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The two case studies noted below and the
following tabulation of results show just one small segment of
the Strategic Management Services that Shubnum provides in the
Engineering, Architecture and Construction industry.
Case Study 1
State of California, USA
Department of General Services
The Department of General Services, State
Government of California was recently interested in procuring
consulting services to renovate six different buildings within
a State Prison.
Shubnum's predecessor company Seneca, provided
the Architectural and Engineering Consulting Services for this
project.
Shubnum provided Strategic Consulting Services
to strategize the resourcing and procurement,
once the projects had been designed. Being projects owned
and operated by the government, they had to be competitively
bid in the open market. The goal was to secure the best qualified
construction company and all related products and services at
best value for the taxpayers' money.
The project consisted of six smaller projects,
each of which was funded separately for a total budget of US$
6,817,500.00.
Shubnum created a strategy to market, bid, evaluate and recommend
to the government, best valued and qualified bidders. In doing
so Shubnum also assured the government of meeting its social
goals of providing work for and opportunities to small businesses
in the State of California.
Because of the efforts and engagement of
Shubnum, all of the government's goals were met at a contract
let out for US$5,916,599.00 thus saving the government US$ 900,901.00
in a single transaction.
In the above case, the government would
have been satisfied to let out the contract for US$ 8,181,000.00
(which is a budgeted 20% added contingency to the budget of US$
6,817,500.00). They were wise to choose Shubnum, so the same
work was accomplished for US$ 5,916,599.00.
This was done without sacrificing the content, structure, brands
or integrity of the original package.
Interestingly, there were no hard feelings
amongst the suppliers. Everyone felt that they benefited from
the transaction. The laws regarding open and competitive bidding
were met as well as the social agenda of providing opportunities
to small businesses. The project is almost finished constructing.
It is about 30 days ahead of scheduled completion,
in part, because of how the contract was set-up to strategize
resources and procurement.
In the above case, Shubnum provided a narrow
segment of the overall project management. In the same case,
they could have provided Program Management Services which
would have included the above work as well as provide the original
and overall management for the design, construction and management
of the project.
The owner's return on investment in us
may be reviewed in the section Investment
Return Analysis. Also please review a testimonial
from the Project Director Mr. Robert Oates, regarding the successful
implementation of Shubnum's management strategies.
Case Study 2
State of California, USA
Franchise Tax Board
The Department called the Franchise Tax
Board of the State Government of California was interested in
upgrading its Data Processing Center facility.
Shubnum provided similar Strategic Consulting
Services to strategize the resourcing and procurement,
once the project was designed.
The overall project was budgeted for US$1,500,000.00. Similar
rigid conditions applied to the procurement of public projects
as in the case above.
The State of California would have been
satisfied to let out this contract for US$ 1,800,000.00 (which
includes a budgeted 20% added contingency on the original budget
of US$ 1,500,000.00).
Shubnum was able to provide strategic
resourcing and procurement of the overall project, including
construction services, and related products and services for
US$ 862,000.00 for a savings of US$ 638,000.00 in one transaction
and without sacrificing the content or integrity of the original
package.
The owner's return on investment in us
may be reviewed in the section Investment Return Analysis.
In the above two cases, Shubnum is optimizing
the Supply Chain and Demand Chain in the resourcing and procurement
segments of these chains. The chains consist of businesses that
are interconnected to work on an assignment.
In this context, Shubnum can provide additional
services that optimize the Central Procurement within very large
organizations in the public and private sector
.
Shubnum can provide additional strategic management services
to enhance the 'net operating profits' of an organization or
meeting the public mandate by using techniques, both within the
organization and between its Supply Chain and Demand Chain links.
Sample results of Shubnum's strategic management consulting services
(All amounts referred below are
in US Dollars)
Engaging
Agency |
Budgeted
Funds |
Qualified
Bid Procured at |
Savings,
Based on
Strategic
Processes |
Percent
Savings on
Budgeted
Funds |
Calif. State Univ.
Sacramento
Energy Retrofit |
$2,300,000 |
$1,650,000 |
$650,000 Savings
$640,000 Rebates
$1,290,000 Total |
28%
+ 28%
total: 56% |
Univ of Calif. Med Center, Telecom
Infrastructure |
$120,000 |
$ 85,000 |
$35,000 |
29% |
Franchise Tax Bd
Data Center |
$1,500,000 |
$334,000 Ded.Alt.
$862,000 Base |
$303,000 Ded.Alt.
$638,000 Total |
20% Ded. Alt.
42% Total |
Dept. of Justice
Hawkins
Data Center |
$1,200,000 |
$924, 000 |
$276,000 |
23% |
Franchise Tax Bd
Modifications |
$84,000 |
$72,000 |
$12,000 |
14% |
Folsom State
Prison (6 Projects) |
$6,817,000 |
$5,916,599 |
$900,901 |
13% |
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