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GLS-030 - Ver 1.0 (Aug 23)

1. Best Practices In Snow Service Procurement - 52 Week Timeline

Confidential & Proprietary | 2023 CBRE Inc.

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  • Use SIMA's Snow & Ice Management Standard Glossary of Terms (www.sima.org/glossary) while finalizing snow & ice contracts to ensure clarity of specific terms
  • Ensure that both parties – the buyer and the service provider – have time to review and propose changes to any contract, with shared liability and clarity of roles in mind
  • Final contract should include a snow-specific Level of Service (LOS) that describes the expected outcome on a site from the completed performance of snow and ice management services
  • The LOS can be a standalone section of an RFP or be presented in throughout the RFP

Snow Contract Timing

Contracting

Page 1 of  2

Grounds, Landscaping & Snow

Page 2 - Contract Award Risks
Page 1 - Buying / Selling Snow Services

The timeline opposite describes the snow buying yearly-lifecycle in full.  We will explore the various processes in more detail below.

 

2. Buying Snow Services - Detailed Timeline

Contract Negotiations & Legal Review 

  • Ensure contracted service begins at least 2 weeks prior to the typical start of winter in a given area, to account for early winter storms

Service Contract Begins 

  • Consider a minimum 3-year contract with exit clause for both parties. This will help ensure consistency and account for potential weather volatility in a given session
  • Award contracts no later than the start of fall. A good rule of thumb is prior to September 1.  Ideally contracts are awarded in late summer to account for the need for significant sourcing of snow service providers (subs/materials/equipment)

Contract(s) Awarded 

  • Recommended that service providers consider committing 50-75% of required deicing material supply for toward the end of the summer.  This can help secure and manage costs
  • Labor-specific items to address including hiring, recruiting subcontractors, training and orientation; insurance coverage (workers' compensation, subcontractor certificates of insurance, etc.); promotions/wages increases changeovers; and defining staff and management roles

3. Selling Snow Services - Detailed Timeline

Equipment, Materials & Labor Procurement 

  • Demobilization and site repair should end when the contract service date ends, prior to a new procurement cycle

Demobilization / Site Repair  

  • This should include site inspections, finalizing site engineering plans, snow staking, route building and documentation, equipment staging (prior to contract start), preseason safety and refresher training, dry runs/ equipment rodeos, seasonal kickoff meetings, subcontractor meetings, etc. 

Training & Preparation  

Contract Negotiations & Legal Review 

  • Any signed agreement should include a clause that the service provider will inspect the site and document any existing damage for which their company is not responsible

Snow Contract Timing

Contracting

Page 2 of  2

Grounds, Landscaping & Snow

Page 2 - Contract Award Risks
Page 1 - Buying / Selling Snow Services
  • Majority of quality providers will have production capacity and be able to put forth a proposal
  • Allows time for service providers to effectively and efficiently procure needed resources (equipment, materials, subcontractors and labor). Earlier procurement helps service providers avoid supply chain issues / delays, demand-based price fluctuations, etc.
  • Provides time for post-award site inspections, site prep (staking, mapping), equipment staging and more
  • Positions the purchaser in a proactive procurement methodology for a risk-prone service
  • Accounts for necessary time required to finalize service outcomes and negotiate contract terms

4. Contract Award Date Risks Meter - Green Zone

Pro's 

  • Requires shifting procurement process to start in early spring
  • Must communicate effectively with any departments to maintain proper timing of legal reviews, procurement reviews, budgets, etc. 

Con's

GLS-030 - Ver 1.0 (Aug 23)

Confidential & Proprietary | 2023 CBRE Inc.

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  • Allows for more time to manage procurement process and any associated delays
  • Convenient for sites where service quality and efficiency is not official (e.g. empty parking lot, low priority sites, low traffic or vacant, etc.)

5. Contract Award Date Risks Meter - Red Zone

Pro's 

  • May increase the chance of inaccurate or rushed proposals or pricing by service providers or regional  /national service brokers
  • Most quality service providers will have sold the majority of their production capacity and may not submit a proposal - which narrows the buyer’s pool of qualified service providers
  • Opens the service provider up to the potential logistical / supply issues related to procuring proper equipment and deicing materials (e.g. limited availability, delivery delays, cost increases, etc.)
  • May increase the possibility of buyer’s site(s) being added to an existing route vs. being part of the initial route allocation, creating potential service limitations
  • May increase potential for new / unvetted subcontractors or operators to be hired to meet the demand of increased capacity late in the season
  • Places purchaser in a weaker negotiating position as winter approaches
  • May create a situation where site(s) are not under contract for early winter storms, increasing liability concerns, site access and safety issues

Con's