GLS-030 - Ver 1.0 (Aug 23)
1. Best Practices In Snow Service Procurement - 52 Week Timeline
Confidential & Proprietary | 2023 CBRE Inc.
- 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
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
- 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.
- 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