Memo

1928 words 8 pages
TOWN OF BELMONT CASE STUDY
Executive Summary

Course: ACCY6900.10
Professor: Marcus Melton, CIA, CGFM, PMP
Student: xxxxxxxxxxx
Date: xxxxxxxxxxxxxx

Introduction

The purpose of this summary is to present the results of a cost comparison analysis of the

Town of Belmont’s two options in providing snow plowing services: to replace six of their snow

removal vehicles on a one-to-one basis; or to subcontract six more vehicles for snow plowing

services. This summary will also explore some of the financial and non-financial implications of

public service outsourcing versus keeping the service mainly in-house, specifically in relation to

the snow plowing services for the Town of Belmont.
The Results of the Financial
…show more content…
The Drawbacks and Benefits of Maintaining In-house Services

In a decision to purchase the new snow removal vehicles, the town is also deciding to

keep this service in-house. The first cost or drawback in doing so would be the upkeep and

storage of the vehicles and equipment. Although the case study suggests that repairs and maintenance costs are incorporated in the given cost of operating the new town vehicles, one

could argue if other costs; such as storage or parking costs, insurance, and deicing materials; are

included in that amount. The second drawback relates to the cost of coordination and training of the crews to operate the town vehicles. Several factors that accompany the hiring of the town’s

own personnel would be management costs, costs of training, personnel benefits costs, and the cost of liability insurance for the crew while performing services for the town.

On the plus side, the town would have more control over the availability of the crew,

better accessibility to snowplow vehicles, and control over the timing of the snow removal. These

controls could mean that the town is more equipped to provide assurance that its standard of

high quality public services is maintained. Secondly, if a properly trained crew is already

available, which is the case in this town, there could be the obvious costs savings

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