Case Studies

using the Shubnum Process

 

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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