Orange County NC Website
ROBERT S. SEGAL, CPA PA <br />EXPENSE REDUCTION & REVENUE ENHANCEMENT <br />April 26, 2004 <br />Mr. Kenneth T. Chavious <br />Director of Finance, Orange County <br />P.O. Box 8181 <br />Hillsborough, NC 27278 -8181 <br />Dear Ken: <br />I <br />IC <br />1912 EASTCHESTER DRIVE <br />SUITE 206 <br />HIGH POINT, NO <br />00 <br />FAX 336.886 -2101 <br />www.segalepa.osm <br />You have recently requested my thoughts about opportunities for savings if <br />two school districts were to collaborative purchasing, Please remember <br />that Robert S. Segal, CPA PA does not perform personnel related analysis. <br />it is our understanding that school districts are required to purchase all <br />products and services off of State Contracts unless the district can <br />document that the alternative vendor has equivalent quality and service. <br />Because of the documentation, many districts concentrate their purchase <br />through State Contract, <br />However, we believe there are some opportunities to reduce the expenses <br />by collaborative purchasing in the following areas: <br />Copying services — This is a volume driven expense (more copies, lower <br />cost) and we would assume that a larger the contract with more <br />volume/copies would have a lower cost per copy. <br />Waste disposal — if the waste is picked up by independent contractors (and <br />not the municipality), this is also a volume driven expense. A larger <br />volume of business would entice more bidders and should result in a lower <br />cost. <br />Wireless phone services —This is also volume driven and may be an <br />opportunity under an aggregate minute plan. <br />101 a sea gce 7V03s s ld390a h0?JA PId9a' c vooz;_9z -r <br />