Oakland college is considering outsourcing grounds

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Reference no: EM13940454

Oakland College is considering outsourcing grounds maintenance. In this regard, Oakland has received a bid from Highline Grounds Maintenance for $299,440 per year. Highline states that its bid will cover all services and planting materials required to "keep Oakland's grounds in a condition comparable to prior years." Oakland's cost for grounds maintenance in the preceding year were $304,800, as follows:

Salary of three full-time gardeners		$190,000
Plant materials		79,000
Fertilizer		11,800
Fuel		12,600
Depreciation of tractor, mowers, and other miscellaneous equipment		11,400
Total		$304,800

If Oakland College outsources maintenance, it will be able to sell equipment for $31,200, and the three gardeners will be laid off.

Reference no: EM13940454

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