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Procurement Initiative - Equipment Contracts

Currently individual UNC schools and departments manage their own maintenance contracts for equipment. The campus has 1,190 contracts total, valued at $3.7 Million/year. One of the Procurement initiatives introduced earlier this year is the Equipment Maintenance Management Program (EMMP). It provides campus departments with consolidated equipment maintenance from the same vendor as previously used, but yielding 22% to 32% reductions in cost (depending on vendor). The program achieves these savings by using a maintenance consolidator who assumes the risks and pays the vendor on a time and materials basis. The vendors, in quoting maintenance contract rates, are projecting “worse case” scenarios. To date this program has achieved almost $120,000 in real savings that are retained by the participating departments (see EMMP Summary link below). The EMMP program, if utilized fully by every campus department with equipment maintenance contracts, would save UNC over $1,000,000 annually.

Equipment Maintenance Management Program Summary - November 30, 2012