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Comprehensive Business Solutions

Comprehensive Business Solutions. Pittsburgh Trane business planning 2004. Agenda. Contracting Business Overview Understanding Your Customers Market Focus Local Example Next Step Summary and Discussions. Contracting Business Overview What makes us unique?. Who are we as an organization?

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Comprehensive Business Solutions

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  1. Comprehensive Business Solutions Pittsburgh Trane business planning 2004

  2. Agenda • Contracting Business Overview • Understanding Your Customers • Market Focus • Local Example • Next Step • Summary and Discussions

  3. Contracting Business OverviewWhat makes us unique? • Who are we as an organization? • What are our strengths, weaknesses? • What is our unique message of value? • How do we deliver….what are our processes?

  4. Who We AreTrane is….. • Worlds largest supplier of HVAC • Over $700 million in contracting business • Over $150 million in performance guarantee’s • $80 million CCS business 2003 • Federal Super ESPC supplier • Federal Supply Schedule…no bid required • Single-source provider of products, installation, training and service • 100 local offices in continental US

  5. BOOM PACTSM Projects Turnkey Projects Design & Manufacture Custom Equipment Contract Operations and Technical Services Direct Controls and Equipment Supplier Trane Solutions….increase the value we bring Trane Scope/Risk Customer

  6. What is Performance Contracting? A turnkey method of contracting for needed facility improvements which provides a single point of accountability for multiple professional services such as : • Project Development and Project Management Services • Engineering and Design Services • Hiring and Directing Subcontractors • Equipment and Supplies • Turnkey Implementation • Guarantee of Savings and Performance

  7. Preliminary Study Final Proposal and Authorization Project Fulfillment PACT Process Steps Introduction to CCS (PACT , Turnkey, Outsourcing) TM Preliminary Proposal Detailed Study

  8. DBOOM Process Steps

  9. Central Plant Outsourcing • Outsourcing Defined • The transfer of assets andresponsibilities from a customer to Trane to optimize the Total Cost of Ownership of the customer’s facility infrastructure • Long-Term Agreement • Covering the design, construction, ownership, operation and maintenance of chilled water, hot water, steam, etc. • Financed solution • Funded by American Standard or third-party • Customer pays thermal energy fee • Includes capital cost recovery, all services

  10. Central Region Team Tim Traxler Central Region Team Leader Michael Balaban Project Manager Janice Gillespie Contract Attorney Bill Heer Project Administrator Barbara Johnson Sales Project Administrator Dawn Smith Measurement and Verification David Sprinkle Energy Engineer Greg Tatro Regional Manager

  11. Understanding Our Customers

  12. Areas of Greatest Needopportunities for business partnerships and value delivered Business Partnerships Supplier of Products and Services Vendor

  13. Understanding Our Customers • What are their goals/mission? • What are their issues? • Financial • Operational/Administrative • Technical • What are their market trends/dynamics? • Resources for a better understanding?

  14. Education Market Focus K-12 Private Higher Education

  15. School Districts By County

  16. Why the k-12 market? • Shrinking Operating Budgets • GASBE 34 accounting standards • From cash accounting to accrual accounting method • Proposed changes in school funding • Improvements in the Act 57 legislation • Ease of market penetration • Access to key decision-makers • Maximum opportunity to add value

  17. Why the k-12 market?market assessment….. • 510 Districts in the Commonwealth • Pittsburgh territory incorporates approx.240 • Small districts have large budgets • Non-technical buyer…perfect fit • Opportunities to partner • No-bid required below $175,000 utility bill

  18. House Bill 1996proposed legislative changes to Act 57... • Expands allowable ECM’s • Extends payback period to 15 years

  19. Act 29 Combine With PlanCon

  20. PlanCon • Major building renovations • Once every 20 years • Formula for State reimbursements • Districts much the remaining % • Typically involves architects/engineers • Typically over budget, underfunded

  21. Traditional vs. Performance ContractingTime and money is the difference! Performance Contract Approach Guaranteed Maximum Pricing Established Needs Time & Assessment RFP Process Detail Design Dollars Pre-Construction Services Construction Saved Traditional Design-Bid-Build Approach Final Cost Determined Needs Detail Design Bid Assessment Basic Design Construction If project over budget-- Redesign and Re-bid

  22. Factors Influencing Income • Zoning, eg. Industrial, commercial, residential • Trends in assessed value of real estate • Other tax-generating capacity • Practical and legal limits on rate of tax • State subsidies; bldg. Construction reimbursements • Federal and State Grants • Current and future Debt • Fund carryovers from previous years

  23. Pennsylvania k-12 MarketSpending Breakdowns…...

  24. Local School District Profile McKeesport Area School District

  25. McKeesport Area School Districtprofile... • 7 school buildings • 1 administration bldg. • 9 board members • Approx. 4500 students

  26. McKeesport Area School District The mission of the McKeesport Area School is to educatestudents for the future through collaborative efforts ofstudents, families, staff, and community. Educational and Program Goals 1. Acquire basic skills in reading, writing, and mathematics. 2. Apply basic skills in all areas of the curriculum.3. Meet school district benchmarks at transitional levels. 4. Expand the scope of alternative funding sources.5. Complete the Capital Improvement Project.6. Orchestrate activities to involve parents and other communityresidents in the mission, activities, changes and results of allthe educational programs and opportunities for students.7. Develop a safe and secure learning environment.

  27. Next Steps

  28. Focusing Our Efforts • Develop Business Model • Develop Team of Professionals • Gain State Sponsorship • Targeting and Qualifying

  29. Next Steps • Evaluate the market • Identify top 10 targets • Set up appointments for first call preso • Sponsor informational seminar/luncheon

  30. Key Success Factors • Become a “Market Expert”-Focus • Target and Plan your approach • Sponsorship at Executive Level • Understand Goals and Challenges • Research, Politics, Issues, Dynamics • Multi-level Selling, gain support below • Lead the Charge, Control the Process

  31. Your Top 10 List

  32. Target Sources • Service customers • BAS customers • Equipment customers • Personal and business relationships • CCS customer referrals • Consultants, Design/Build contractors, and Utility partners • Your own research

  33. First Call Objectives • Rapport • Pain • Technical Requirements • Financial Requirements • Legal Requirements • Administrative Requirements • Money • General Fund Budget • Capital Improvement Funds..if available • Decision Process

  34. Preliminary Study Final Proposal and Authorization Final Approval and Contracts PACT Process Steps Introduction to CCS (PACT , Turnkey, Outsourcing) 2 weeks TM 2 weeks 2 weeks Preliminary Proposal 6 weeks RFP Process 16 weeks 8 weeks TOTAL…5 months

  35. Summary and Discussions

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