Win-Win for Leominster?

By Scott Baum
May 21st, 2009

With economic constraints come difficult decisions. The Leominster School Committee was just confronted with one of those tough choices and, in my opinion, The Committee made the right move.

Monday night’s 7-2 vote to privatize the Leominster school system’s food service program represents a great example of economic urgency breeding increased efficiency.

The Leominster School Committee had an urgent need to cut costs. Public delivery of food services would have cost them around $400K this year.

Contracting with a private partner, who can cut costs through best practices and increased buying power, will allow the city to break even and take the burden of managing yet another service off the municipal plate.

The only possible downside to this move is the potential for current food service workers to lose their jobs. However, based on my conversation with a consultant who works in this field, in all likelihood any current food service worker will have the option of continuing his employment under new management.

When a private company wins a food service contract, like the one Leominster will be putting out for bid, the incentive to deliver quality service is huge. The contracts only last a maximum of five years (per federal law) and the servicing entity makes a significant initial investment in the project, so winning renewals becomes very important in terms of profit margin.

Springfield made the decision to go private with their school system’s food services two years ago and, according to the consulting company that helped them with contracting, they’ve saved almost $2 million so far.

Perhaps over the next year or two we will see other municipalities at least exploring the option of privatization in this area.

Tater-Tots anyone?