UPDATE: UI set to move forward with outsourcing as early as this week in response to deficit

The university is expected to move forward with formal requests for proposals to explore outsourcing options in Facility Services as early as this week in one of its next steps in addressing the projected $22 million deficit by Fiscal Year 2022, as confirmed by multiple sources. 

The university will accept formal requests for proposals (RFP) from commercial providers for four specific units: facilities services, administrative operations, auxiliary services and the Student Recreation Center, according to a memo obtained by The Argonaut sent out by Vice President of Finances Brian Foisy Oct. 30. 

Walker said if the university choses to move forward with outsourcing, it would only impact a small percentage of employees working custodial, grounds and maintenance trade.

There is no known timeline on when RFPs will move forward within administrative operations, auxiliary services and the Student Rec Center.

“Many of you are aware that I invited various facilities management providers to campus in September to review our operations and offer advice regarding the potential for outsourcing,” Foisy said in the memo. “While the quality of services provided by our in-house teams is excellent, it is imperative that we explore all alternatives to ensure that we are implementing best industry practices within a sustainable budget model.”

Outsourcing would bring in a company to supply outside management and operations previously done in-house. The university would pay the company to figure out how that company can provide the same services on a tighter budget.

Foisy notes in the memo sent out to the four departments that although the university will be opening the door to for formal RFPs, it is still possible outsourcing will not be the chosen path. 

UI budget deficit: UI one-time budget cuts to become permanent, projected deficit of $22 million for Fiscal Year 2022

“If the university decides to proceed with outsourcing, we would need to transition operations by July 2020,” Foisy wrote. “The many details and options regarding employment status and the potential transition from UI to contracted employment have yet to be determined. My hope is to provide our employees with as much flexibility and choice as possible, recognizing we have many people who’ve invested heavily in careers at the university.”

Outsourcing: What it means

University of Idaho Director of Communications Jodi Walker said outsourcing does not mean layoffs, but a focus on the overall management of the services themselves. 

UI budget deficit: University faces $14 million budget shortfall

“If we could get somebody to come in and give some management suggestions do some improvements, we would hope that they would appreciate the expertise of our dedicated staff that’s been working in those roles,” Walker said. “If we choose to go forward with any of these (RFPs), or we can take those proposals that come from the consultants that we’re working with, and just dismiss them all and continue on as we are.”

Rusty Vineyard, executive director of Recreation and Wellbeing, said Recreation and Wellbeing can opt out of the RFP process if it is not a good fit and no student employment would be impacted by any possible outsourcing.

“I think the whole campus just needs to know that it is an exploration with good intentions,” Vineyard said. “As the president said, this is where we are at and we are doing ourselves a disservice if we do not look into all possible options.”

Walker said the university wants to keep as many resources available to students as possible, including employment in campus positions. 

University of Idaho President C. Scott Green said moving forward with outsourcing would bring in outside expertise to better manage and consult current process in place. Because this would change processes currently in place, Green said students might notice impacts. 

“I don’t think it’s anything to panic about. It will create change if we do go down that route (outsourcing) there’s no question about it, and students might see some of the impact of that change,” Green said. “I don’t think it would be a huge impact but they probably see change in how things are done.”

Our view: Having open and honest conversations about financial issues shouldn’t even be a consideration

Impacts of outsourcing on campus departments

The impacts of the on-going university budget deficit and progressing discussions of outsourcing in departments have begun to take its toll on UI Facilities Services. 

An employee of the department with knowledge of the situation who requested anonymity to protect their job, said outsourcing the department services is not a long-term solution to the overall budget deficit. 

“We recognize the university has budget issues,” the facilities employee said. “We (Facilities) just think that what’s happening has more to do with with what some what a specific agenda is and won’t solve the university’s issues in the long run and could potentially cost even more money.”

Walker said outsourcing would bring in a professional company where the university would agree with the company on a service contract up to a certain amount. 

Whether or not the university pursues outside management for facilities, the department will be expected to cut a total $2 million from its operating budget. The current total Facilities budget is $13.56 million, according to an email from Assistant Vice President of Facilities Brian Johnson, obtained by The Argonaut. Of the $13.56 million, $2.515 million is the operating budget while the remaining $11.04 million is salary and fringe costs. 

Fringe costs are anything required to be covered by the employer, such as work boots and phone bills for work-related calls. 

In the email, Johnson said the reduction target for Facilities Services is expected to be $2 million. Johnson wrote in the email because 80% of Facilities expenses goes to salary and fringe, “we might expect a significant portion of our planned reductions to come on the personnel side of the equation.”

If the university does not move forward with outsourcing, the department will likely turn to reducing personnel, the employee said. 

“They cut $2 million, facility services falls even deeper behind, the budget issues aren’t fixed, enrollment isn’t going to get better because the buildings are going to look worse and the grounds are going to look worse,” the employee said said. “I just want someone to ask a question like, ‘’What if it doesn’t work? What’s the bailout plan? What are you going to do to make sure the campus still is appealing to be welcome here?’”

The numerical breakdown of the four departments has been removed from this article to not create further confusion of the impacts of outsourcing.

This article has been corrected to clarify the RFP process is an exploratory process.

This article has been corrected to reflect no student employment would be impacted by potential outsourcing.

This story has been corrected to state the outsourcing company would provide the services for the university.

Meredith Spelbring can be reached at [email protected] or on Twitter @mere0415