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Augusta set to bring outsourced human resources services back in-house

In other action

Monday, Aug 4, 2014 9:13 PM
Last updated Tuesday, Aug 5, 2014 1:48 AM
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Four years after city leaders pushed to outsource the government’s health and welfare benefits administration to global outsourcing firm Automatic Data Processing, the service might be headed back in-house.

According to Human Resources Director Tanika Bryant, despite ADP’s contract to handle most benefits-related calls from current and retired employees, the two city benefits representatives are still swamped with calls. It would be cheaper to replace the benefits administration portion of ADP’s contract with three additional city staffers, she said.

“During my first year as the HR director, I spent a lot of time gaining an understanding of what we do, how we do it and how we can allocate resources appropriately to lower costs and become more efficient,” Bryant said in a Friday e-mail to commissioners.

What she found was that while the city is paying ADP $279,000 annually – subject to a 3.5 percent annual increase – to answer up to 3,732 benefits calls each year, ADP only took 1,268 calls between June 2013 and June 2014 and referred two-thirds of them on to the city benefits specialists.

Bryant said she can hire three more specialists at $34,600 each, plus benefits, and save the city $134,975 annually or $874,823 over the next five years.

“In house could have saved us a considerable amount of money,” Com­missioner Wayne Guilfoyle said. “Have we reached out to ADP to find out if it is justified?”

Two years ago the commission also considered outsourcing the city’s remaining HR functions to ADP, which has a service center in Augusta, but later rejected the idea.

IN OTHER ACTION

Other business going before the commission Tuesday for approval includes:

  • Tax Commissioner Steven Kendrick will present information about Richmond County student interns, as the summer program concludes
  • Activist Al Gray will speak about the Transport­ation Investment Act, which Augusta-area voters approved in 2010
  • A salary adjustment and equalization program for Augusta Fire Department, with funds to come from the department’s existing budget
  • Augusta Fire Depart­ment’s plan to opt out of the city’s First Vehicle Services fleet management contract and create its own vehicle maintenance program, which Fire Chief Chris James said will cut maintenance costs almost in half to $771,683
  • The refunding and reissuing of some $160 million in water and sewer bonds for Augusta Utilities, despite the continued objection Tuesday by Atlanta-based IFS Securities, which claims it could save the city $22 million and is minority-owned
  • Extending authorization for Aegias to continue to sell employee permanent life insurance policies for ING, despite not going through the procurement process as it did nine years ago
  • An update from Interim Administrator Tameka Allen on Heery International’s scope of work at Augusta’s new transit operations and maintenance facility, as well as Commissioner Marion Williams’ call for the firm’s city contract to be terminated
  • A request from Com­missioner Bill Lockett to task the Engineering Department with seeking funds to study the impact and expense of removing portions of John C. Calhoun Expressway
Comments (10) Add comment
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just an opinion
2720
Points
just an opinion 08/04/14 - 10:52 pm
5
0
"Removing portions of J.C. Calhoun Expressway"

Please please carry this on live T.V. I can't wait to hear this presentation. This should be entertaining!

Riverman1
87014
Points
Riverman1 08/05/14 - 05:02 am
7
2
Cousin Needs A Job

Any Commissioner pushing to bring the ADP work in-house probably has a friend who needs a job with the county.

corgimom
34196
Points
corgimom 08/05/14 - 06:13 am
5
0
In other words, the former

In other words, the former Commissioners, who were just as incompetent as the current Commissioners, awarded a grossly overpriced contract to ADP.

corgimom
34196
Points
corgimom 08/05/14 - 06:14 am
5
0
ADP must be laughing up their

ADP must be laughing up their sleeves at how they pulled that wool over the Commissioners' eyes.

nocnoc
45061
Points
nocnoc 08/05/14 - 06:47 am
3
0
Strange

I t seem frequently, when a few of our Local Political Watch Dogs use the words:

"Forensic Accounting Audit"
or
"Unaccounted for Waste"

DOWNTOWN seems to find time to quickly finish, cancel or reel in a suspicious contract, Project and/or Commission appointed agency.

UMMMMM!

grinder48
2017
Points
grinder48 08/05/14 - 11:12 am
0
0
Yea Right
Unpublished

I'll guarantee you that a 34K "benefits coordinator" will be an incompetent. boob like practically all that level of city personnel I have to deal with. I'd also be willing to bet that ADP coordinators are infinitely better trained and competent.

grinder48
2017
Points
grinder48 08/05/14 - 11:18 am
0
0
Yea Right
Unpublished

I'll guarantee you that a 34K "benefits coordinator" will be an incompetent. boob like practically all that level of city personnel I have to deal with. I'd also be willing to bet that ADP coordinators are infinitely better trained and competent.

Dixieman
15999
Points
Dixieman 08/05/14 - 11:32 am
2
0
It won't last

Some management genius consultant will outsource it again in 2018.

dichotomy
34484
Points
dichotomy 08/05/14 - 12:51 pm
2
0
"study the impact and expense

"study the impact and expense of removing portions of John C. Calhoun Expressway"

Well, the TEE and associated "stuff" ended up costing us about 5 times what you told us it would....and the Marble Palace is already over 2 times what you told it would cost......So don't even bother lying to us with a GUESS that you might think you know what the expense of tearing down parts of the Calhoun would be....AND, oh by the way.....building SOME kind of road(s) to absorb the traffic. Don't even tell us YOUR LIE because we know from experience YOU AIN'T GOT A CLUE.

And YES, almost everything can be done less expensively with contract services BUT....BIG BUT.....you have to have a competent Procurement Office and competent Commissioners who will write a GOOD statement of work and advertise the bidding IN PLENTY OF TIME to GET LOTS OF BIDS FROM MORE THAN ONE OR TWO LOCAL FIRMS WHO THINK THEY HAVE YOU BY THE GONADS. Contract services is all about COMPETITION and, unfortunately, for most of our "contracts" the winning bidder has already been selected before the RFP goes out.

triscuit
3157
Points
triscuit 08/05/14 - 07:07 pm
1
0
You got it right,

You got it right, dichotomy....Augusta's procurement dept is the root of a lot of problems.

itsanotherday1
45482
Points
itsanotherday1 08/05/14 - 07:53 pm
1
0
! would like to see a

! would like to see a complete, independent analysis of in-house vs outsourced services. It is atypical for government in-house to be cheaper when all facets are considered; including benefits, future retirement obligations, etc.

HROplus
2
Points
HROplus 08/07/14 - 02:53 pm
0
0
Do they think that ADP is the only company in the country that

Do the commissioners know that there are other HR outsourcing providers in the country? If they did, they would realize that there are better options than their current vendor with much better pricing and services. I don't know the logistics of this deal at all, but based on the overall bill of $279,000, that should cover all HR functions for a company with upwards of 858 employees.

Kristian Svindland
Owner, VP
HROplus

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