integrated facilities management solutions 2012 by sodexo

Integrated Facilities ManagementSolutionsNorth America

Self-delivery approach

Intelligent solution design

Industry-leading processes

Quality of Life in the service of performanceIn a world facing financial, economic and environmental crises, the issue of quality of life is becoming even more crucial. At Sodexo, through more than forty years of experience, we have seen that quality of daily life is not an obvious question for many organizations that are facing an unprecedented accel-eration in concentration and, therefore change.

The challenge lies in achieving the quality of life that people expect on a day-to-day basis. It is not the exception that makes the difference, but the “daily” repetition of quality of life moments.

Sodexo’s 431,000 employees around the world use their talent to enable our clients to concentrate on their profession. Providing a multitude of services, large and small, at a high standard of quality, 365 days a year - this is the “raison d’être” of Sodexo! It is this that is at the heart of a new profession that carries the name, “Quality of Daily Life Solutions.”

Michel LandelCEO, Sodexo

key figures$22.2 billion in consolidated revenues

431,000 employees

22nd largest employer

33,400 sites

1.6 billion square feet under management

50 million consumers served daily

80 countries

Sodexo in a snapshot

Fiscal 2012

Source: Sodexo at August 31, 2012

Integrated Facilities Management Solutions

North America




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We deliver a fully unified approach to Integrated Facilities Management, which ensures seamless and consistent delivery throughout the United States. Sodexo’s greatest value is the ability to provide integrated solutions consisting of account management, a high degree of service self-delivery and robust management of a limited number of strategic supply partners. Our self-delivery philosophy ensures focus on productivity, morale, organizational performance and operational excellence. We deploy this approach consistently across all portfolios in a progressive solution development platform.

Intelligent solution design is the creation of a customized service delivery platform that can only be achieved when leveraging a high degree of self-delivery. Self-delivery provides us the opportunity to immediately deploy an efficient head-count model that is supported by a lean, effective management team.

At Sodexo, we place primary focus on the planning, scheduling and prioritization of work activities influenced by industry standards, customer alignment and service level agreements. Having the right resources with the appropriate materials at the right time is paramount. A robust “Workflow Management” strategy is key to delivering an industry-leading process.

We typically achieve 5–15% net savings for our clients; even in cases where they are “second generation” i.e., they are currently outsourced. This outsourcing opportunity is the result of deploying a highly efficient model and an increased level of self-delivery.

Sodexo is one of the world’s largest employers with “Quality of daily life” being our core purpose, we view Facilities Management in very different terms–compared to traditional approaches – as we place the user (clients’ employees) at the center of our service delivery model, thereby deploying Facilities Management services directly in support of your corporate objectives. A partnership with Sodexo will drive a new style of facilities management services and exceed your expectations.

The savings we offer our clients come from a number of strategies–our approach to self-perform as many facilities services as possible has

shown 8–15% savings in some accounts. In other cases, customers may see a savings of 5–7% in previously outsourced services. Sodexo is the only dedicated U.S. Facilities Management provider that offers clients the following unique qualities.

Self-delivery

• Efficient deployment of labor drives immediate cost savings on deployment• Streamlined organizational structure

leverages strategic supply partners and minimizes inefficient profit-on-profit nature of traditional IFM standard i.e. management models• Streamlined managerial structure leverages

corporate centers of excellence and reduces the need for large financial (accounts payable) management or sourcing teams• Cross-utilization of resources provides an

increased labor pool with built-in back-up staff that is trained and immediately able to contribute• Safer working environments with minimized

external supplier support deploy a Sodexo team trained to a consistent, high standard of HSE

Model Leverage – Our model seamlessly accommodates portfolio changes managed efficiently with existing teams

Pricing Structures - Total flexibility with contract pricing structures – fixed price, management fee, gross maximum price, etc.

Strategic Sourcing - Reduced number of key supply partners plus our significant buying leverage ensures the fewest possible on-site suppliers delivering at the best possible price.

Geographic Coverage - National on-site solutions model can deploy at any site in the U.S. i.e., we provide comprehensive U.S. coverage

Use of Technology - Use of technology to streamline operations provides Web-accessible technologies, more accuracy in data collection and faster response times

Training Opportunities - Consistency in communication, training, and reporting across all sites reduces redundancy

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Our Expertise Worldwide

Sodexo was founded in 1966 and has grown from a small operation in Marseilles, France to the world’s leading integrated facilities management (IFM) organization today. Sodexo is the only company that operates a truly integrated facility management model. We deliver services to all manner of facilities at a local, regional and global level for many of the world’s leading companies.

Our Expertise in North America

Our proven systems and programs are in place in office

buildings, warehouses, high-technology centers, computer

facilities, manufacturing and testing facilities, as well as

research and development centers.

Diverse Strategic Partner

Sodexo operates two key strategic partnerships in the United States. Both of which deliver Tier 1 MWBE spend.

SodexoMAGIC, LLC is a joint venture between Sodexo Operations, LLC. and Magic Food Provision, LLC, a subsidiary of Magic Johnson Enterprises, the majority owner.

NMS Security is a division of NANA Management Services (NMS) who is jointly owned by NANA Development Corporation and Sodexo USA.

•$8 billion in revenues in North America including:•$1.6 billion in core IFM services• 550 million sq. ft. under management• Comprehensive U.S. coverage•More than 25,000 workplace, technical and

support staff• Leader in diversity and inclusion

•$22.2 billion in revenues•$4.7 billion in core IFM services• 1.16 billion sq. ft. under management•Market presence in 80 countries• 413,000 employees at 33.400 client locations• 22nd largest employer worldwide

Sodexo Ranked on IAOP’s “Global Outsourcing 100” for 7 years in a row

IAOP ranked Sodexo #3 in 2010 and 2011.

Additionally we have received the top ranking in the services categories, including “Facility Services” and “Real Estate & Asset Management.”

Companies were ranked according to 18 criteria, including revenue, growth, number of employees, technical and business certifications, the track record of the management team, and the quality of customer service.

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Core Competencies

Providing solutions for multi-service, portfolio operations is a core competency of Sodexo. Improved internal controls and operational standardization are realized when a uniformed program is implemented and executed at all client locations.

With solutions that can be deployed at a single site or across the globe, our clients have a consistent program based on standard operating procedures (SOPs), stringent quality measures, latest technologies and well-trained employees.

Our Services

Transition - Ensures the smooth implementation of our solutions across people, processes & technologies.

Hard Services - Technical and maintenance solutions are designed to optimize operational efficiencies and support the environmental health and safety of the staff and visitors at your facilities.

Soft Services - To drive productivity of your employees and drive increased image value of your organization, soft services are built around the users–within the working environment–and include janitorial, help desk, reception, landscaping, mail room services and security.

Critical Environment Management - To prevent loss of important data, production output and vital services, we provide skills, processes and technology to support 24/7/365 uptime of critical facilities such as data centers, logistics and production systems.

Supply Chain Management - By leveraging our strategic suppliers, we deliver value through best-in-class innovation and cost savings.

Strategic Planning - This cross-functional process, organizations derive efficiency and true integration through a single view of the entire portfolio.

Comprehensive Facilities Expertise in North

America:

•314 Engineers

•176 Electricians

•19,000 Janitorial staff

•148 Plumbers

•2,400 Maintenance staff

•80 Carpenters

•160 Mail Attendants

•1,050 Groundskeepers

•1,044 Floor Care

•240 Customer Service/Help

•690 Management/Supervisors

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Your Benefits

Integration - By acting as an extension of your team, our delivery approach leverages resources and expertise to help you deliver high-performance facilities, wherever you are in the United States or globally.

Cost Savings - Through collaborative interaction, savings opportunities can be identified and implemented within your facility operations. Savings can be achieved through a broad range of initiatives – self-delivery, streamlined portfolio management, deployment of strategic suppliers, bulk purchasing, standardizing processes, effective energy management, portfolio re-engineering, etc.

Risk Mitigation - Reducing facility downtime and risks are possible through proactive analyses, contingency/continuity planning measures, and the implementation of effective preventative maintenance programs.

Accountability - Our performance-measurement approach ensures accountability, transparency, and client satisfaction. Metrics include downtime at critical sites, safety track records, help desk response times, end-user satisfaction, etc.

Results Through Innovation - Innovative facilities management practices, procedures, tools, and technologies to support service delivery are utilized to ensure results. These are often developed in partnership with clients.

Technology-enhanced Service Delivery - Clients benefit from our proprietary technology for real-time online access to portfolio information customized to meet specific needs.

Geography - Our regional corporate offices provide management and technical expertise to our on-site operators. This allows delivery at any site and at any location across the U.S. and provides quality and consistency of services at site and account level.

Integrated Solutions Drive EfficienciesIntegrated Solutions Drive Efficiencies Commercial Building

Copy Center

Housekeeping / Custodial Front Desk / Reception / Concierge

Conference Rooms, Meeting Rooms and Event Management

Move Management

Mailroom

Furniture Management

Landscaping & Grounds Keeping

Fitness Center

Medical Services

Elevator Maintenance

Interior Building Maintenance (Lights, Doors, Walls, Etc.)

Shuttle Bus Service

Waste Water Treatment & Management

Security and Monitoring

Document Shredding / Recycling and Waste Management

Parking Lot Maintenance

Snow Removal

Technology Support (Help Desk; Archive Management)

Childcare

Company Store

Health Safety & Environment (HS&E)

Exterior Building Maintenance (Walls, Roof, Windows, etc.)

High Voltage, Switchgear Power Distribution

Life Safety Systems

Building Systems Operations & Maintenance (Utilities / Electrical / HVAC / Plumbing, Etc.)

Hospitality Services (Café / Ex Dining / Catering / Vending)

Sodexo Self-performed 80%

Shared Delivery 15%

Specialist Provider 5%

Central Plant Operations & Maintenance

Space Planning

Data Center

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Building Operations & MaintenanceStringent safety standards and operational efficiencyThrough standardized processes and state-of-the-art technology, our building maintenance management system is designed to take responsibility for your services, resources, and assets while improving work methods.

Housekeeping & CustodialQuality controls and consistently high performance levelsWell-trained employees, and exclusive cleaning products and equipment deliver measurable targets in cleanliness, safety, and sanitation.

Landscaping & GroundsCertified staff All-season, environmentally safe programs for turf management; mowing and edging; soil composition testing and fertilization; pest and disease control; irrigation installation and maintenance; tree and shrub care; flower care; walkways; parking lot and road maintenance; snow and ice removal; and interior plant care.

Mail ManagementTailored solutions through an organized, disciplined approachWe will streamline your operations from package, pick up, consolidate, process, deliver, expedite, and track.

Reprographics & Copy CentersOptimum uptime, quality checks, and cost-effective servicesFrom printing, collating, binding, and tabs, to document storage, we will improve your production needs and equipment.

Materials Delivery and Moves & Store Room InventoryHassle-free, stress-free movement of materials We transport and track inner office materials between buildings, labs or offices across your campus.

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Call Center Services & Help DeskOne call does it allMake only one call for everything from burnt out light bulbs to spills or equipment malfunctions. We are able to generate work order tickets, routing them to the appropriate department, saving your employees valuable time and alleviating frustration.

SecurityExperienced personnel ensuring the safety of your building and employeesProtect your assets and minimize your corporate liability from door to warehouse to parking lot.

Special Events, Audio/Visual Setup and Meeting SupportIncrease the overall productivity of your meetingsWhether an internal meeting or a major conference, we will manage your rooms from set up to breakdown including audio/visual equipment, and provide a customer-focused operation.

Warehouse & Data StorageKeep clutter from overwhelming your office spaceOur program includes information and document storage, retrieval and disposal services, and furniture inventory.

Shipping & ReceivingLeading technologies and increased productivity through automationWe will handle, inspect, and document your packages through a safe and expeditious program.

Moves, Adds and ChangesA smooth, efficient move and daily space planningOur facility maintenance program tracks all employees and their work spaces, and helps guide our staff to find the most efficient move solutions to keep disruptions to a minimum.

Reception & Concierge ServicesLet us greet and welcome your guestsThe reception area establishes the tone and image of your organization. We direct guests; manage your switchboard and telephone directories; and manage your parking and paging systems.

Planning & Assessment Services In-depth analysis to appraise all physical systemsWe will help you devise long-term capital replacement plans or energy saving strategies.

Table of Services

Sodexo’s Broad Range of Solu2ons

§  Reprographics & Copy Centers §  Mail Room Management §  Shipping & Receiving §  Document Management

•  Archive Management •  Document Shredding

§  Conference Services/Mee2ng Room Management

§  Conference Center Management §  Space Planning §  Materials & Inventory Management

Business Services

§  Nutri2on & Wellness §  Health & Fitness Center Management §  Diversity Educa2on & Awareness §  SodexoMAGIC §  Travel & Concierge (CIRCLES) §  Tutor.com §  Comfort Keepers §  Mo2va2on Solu2ons

•  Recogni2on Consul2ng •  Esteem Pass •  Vivabox

People and Motivational Services

ONE MANAGEMENT TEAM – DELIVERING RESULTS

§  Construc2on Services §  Energy Management §  Energy Audits §  Renewable Energy §  Truck-‐based Services §  Environmental Sustainability Planning §  Purchasing (entegra) §  Training

§  Real Estate Services §  Technology

•  Maximo CMMS •  BAS Integra2on •  Remote Monitoring •  Call Center •  Enterprise Dashboard PlaXorm

•  Vendor Management •  Roof Maintenance

Professional & Technical Solutions

Environmental Health & Safety Risk Management Integrated Technology Platform

§  Manufacturing Equipment •  Instrument Quality Control §  Crane/Hoist Maintenance §  Li[ Trucks §  Hangar Doors §  RCM §  Compressed Air §  Waste Treatment §  Conveyor Systems

§  O&M – Reac2ve / Planned Maintenance

§  External Building Maintenance §  Interior Maintenance §  Elevator Maintenance §  Mechanical /Electrical Systems §  Plumbing §  Industrial Equipment Maintenance

§  Asset Management §  Building Automa2on Systems & Controls

§  Instrument Calibra2on §  Water Systems §  Central Plant §  Security/Access Control System §  Materials & Inventory Management

§  Data Center MEP

Production Building Maintenance

Plant Operations

Traditional Soft Services

§  Housekeeping & Custodial §  Cleanroom §  Recycling §  Waste Management §  Landscaping & Grounds §  Parking & Roads §  Laundry & Linen Services §  Winter Services §  Fire/Life Safety Systems §  Pest Control

§  Café/Restaurant •  Your Health Your Way •  Simply to Go

§  C-‐Store §  Catering §  Home Meal Replacement §  Vending §  Office Refreshment Services §  Recep2on

Hospitality Services

HARD FM SOFT FM INDUSTRIAL

OTHER SERVICES AND SOLUTIONS

Integrated Solutions Drive Efficiencies Commercial Building

Copy Center



Move Management

Mailroom



Fitness Center

Medical Services



Shuttle Bus Service





Snow Removal


Childcare

Company Store




Life Safety Systems




Shared Delivery 15%



Space Planning

Data Center

Integrated Solutions Drive Efficiencies Manufacturing


Shared Delivery 15%


Conference Rooms. Meeting Rooms and Event Management

Plant Cleaning

HVAC Maintenance

Shipping & Receiving

Plant Maintenance

Plant Equipment Maintenance

Interior Building Maintenance (Lights, Walls, Doors, Etc.)

Hospitality Services (Foodservice, Catering, Vending.)

Sterile Environment Management

Warehouse Management, Storage Equipment & Racking Maintenance

Reception & Switchboard

Office Area Cleaning

Exterior Building Maintenance (Roof, Walls, Windows, Etc.)

Laundry Services

Materials Management, Storage, Mailroom, Reprographics

Transportation, Fleet & Vehicle Management

Technology Support (Help Desk, Data Center,

Archive Management) Landscaping & Grounds Keeping

Emergency Generator Service

Light Voltage, Switchgear Power Distribution

Boiler Operations & Maintenance

Small Building Construction

Water Treatment & Management

Overhead & Dock Door Maintenance

Powered Material Handling Equipment Management

Industrial Gases

Life Safety Systems

Waste Management

Security (Video Monitoring, Access Control, Guarding, Etc.) High Voltage, Switchgear

Power Distribution


Integrated Solutions Drive Efficiencies Data Center


Shared Delivery 15%


Housekeeping / Custodial

Batteries Monitoring

Space Planning

Technology Support

Life Safety Systems


Building Automation / Systems Monitoring


Security (Video Monitoring, Access Control, Guarding, Etc.)

Waste Management

Clean Environment Management

Shipping / Receiving


Light Voltage, Switchgear Power Distribution Materials Management, Mailroom, Reprographics






Energy Audits Energy Management

HVAC / Cooling Systems

Case Studies

Client’s PerspectiveBayer, Inc., a Canadian subsidiary of Bayer AG, is an international research-based group with core businesses in health care, crop science, and innovative materials. Headquartered in Toronto, Ontario, Bayer Inc. operates the Bayer Group’s HealthCare and Material Science business in Canada with 500 employees, 100 of which are tenants with over 400,000 sq. ft. of office and distribution space.

ChallengeBayer was looking for a single source solution for comprehensive facility services. Through a competitive bid process, Bayer selected Sodexo as their single service provider believing that the Sodexo solution would best help Bayer transform the delivery of their facilities services from a tactical approach to a holistic proactive integrated model.

SolutionSodexo manages and delivers more than seventeen services including construction and project services, building maintenance, cleaning services, switchboard/reception, help desk support, after hours support, office services, cafeteria services, mailroom, shipping and receiving, stores, groundskeeping, waste management, audio visual services, space and furniture management, and uniform services. Largest projects included replacement of all existing 150-400 watt High Pressure Sodium [HPS] lighting with new, high efficiency t-5 lighting with motion control sensors along with removal of obsolete/redundant electrical circuitry. Sodexo designed replacement of the existing 1 million BTU heating boiler with smaller, more efficient micro style boilers. First-phase installation of eco roof refit program using solar/UV reflective material was completed. Variable Frequency Drives [VFDs] were installed on the air handling systems. Upgrades were made to the fire safety program, loading dock door with new safety technology, and the BMS system.

OutcomeO Projected savings for just one phase of the electrical

replacement project is $15,610 and 141,900 KWHO Capital forecasting of $1.5M year over year with planO Development and implementation of a performance

management structure including KPIs and fee-at-risk/reward structure

O Completion of outstanding Maintenance Repair Operations [MRO] work orders is at less than 3%.

Audits and Planning Construction Services Building Management Advanced Energy Technologies Energy Management

Sodexo Energy and Construction Services 855 SodexoE [855 763 3963] [email protected] www.sodexoUSA.com

Bayer, Inc., Toronto,

Ontario, Canada

CS0412-5

Case Study

Caldwell College is a small Catholic College in Caldwell, New Jersey. Sodexo is Caldwell’s partner in facilities operations and maintenance. Like many similar colleges, Caldwell had well-built and maintained facilities that had aged and have not been significantly upgraded in over 50 years and there were few capital dollars available to attack the aging infrastructure.

Sodexo identified the needed work to help Caldwell renew its buildings and building systems. We performed a Facilities Capital Action Plan (FCAP) and presented it to the College. Unfortunately, the necessary funding was not available because the College was experiencing operational budget issues and rising utility costs. In March 2009, Sodexo conducted an energy audit to find out how we could help Caldwell with their energy budget and also attack some of the needed infrastructure renewal needs. At the same time, Caldwell wanted to begin a sustainability program aimed at reducing their carbon footprint.

We presented the audit findings in April, 2009 showing a $306,512 annual savings opportunity in their energy spend, representing a total 23.7% savings. This also equated to a reduction of 3,555 Tonnes CO2, equal to 20.8% of their current facilities greenhouse gas output. Still, lack of capital to take advantage of this report was a problem. The College’s financial situation was tightening and in July, 2009 Caldwell asked Sodexo for a 5% reduction in our operational contract.

Project Management

at Caldwell College

The information contained in this document is confidential and proprietary to Sodexo, and cannot be used or re-printed without permission. © 2012.

In September, 2009 Sodexo presented a solution where Sodexo would use a one-time gift to the college of $100,000 that had previously been promised as part of a contract extension, and use the money to perform some of the identified energy projects. The work, completed in January, 2010 realized an annual utility savings of $35,000 and rebate to client of $18,604 from the local utility company.

Seeing the success of this first set of projects, the client asked how Sodexo could help the College accomplish more of the identified energy savings work. With the help of Sodexo Finance and Legal departments, we were able to present the client with a solution where Sodexo would fund the projects, engineer and execute the work and continue to manage the energy consumption. We built confidence with the College administration, beginning with the VP of Finance, the President and then the Board. After several presentations and contract revisions, Sodexo and Caldwell College came to a final agreement in July, 2010.

The final contract amendment resulted in Sodexo making a commitment to invest $1,145,991 to perform the needed work and the College would pay Sodexo back over the next 8 ½ years, using the achieved energy savings. It was calculated that the identified projects would save Caldwell $227,728 and Sodexo would guarantee this performance. The project scope included energy savings projects and another $452,000 worth of other facility renewal needs for which the college had no available capital.

The projects were completed in December, 2010 and the results for savings for the month of January reported — Caldwell realized a 40.4% reduction in their energy expenses in January 2011 compared to January 2010 equaling a savings of $56,735.

Additionally, as a result of this group of projects, Caldwell College has raised its commitment to building and infrastructure needs. Caldwell has committed to fund a five-year plan to begin work on greatly needed facility renewal. Sodexo and Caldwell will work together to prioritize the needs, engineer the solutions and manage the work.

Project Management at Alfred

I. duPont Hospital for Children

“What makes Sodexo such a good partner is that they are on the same journey we are. Like us, they are committed to delivering a uniquely satisfying patient and family experience.”

Mark Lorenz Associate Administrator

The Alfred I. duPont Hospital for Children

FOCUS: Bringing projects in on time and on budget

The Alfred I. duPont Hospital for Children was built in the early 1980s, which meant that all the major infrastructure systems—boilers, chillers, etc.—were now approaching the twilight of their operational life.

After turning to a well-known engineering company whose solutions did not fit the hospital’s time and cost parameters, the hospital then turned to Sodexo to provide emergency power to the new NICU and CICU within their $2.5 million budget. With Sodexo already managing plant maintenance and operations, within 6 weeks we were quickly able to redesign the emergency generation system and install two new generators and switch gear.

After the success of the emergency power project, the hospital was happy to discuss with Sodexo a number of other potential projects. These projects needed to be prioritized, budgeted and implemented on a timely basis. Sodexo carried out a detailed assessment of the hospital’s infrastructure. The resulting 5-year capital plan provided a prioritized blueprint for capital expenditures, identifying what required immediate attention and what could be deferred.

With the emergency power situation in hand, the hospital’s next most pressing need was a critical chiller replacement—a project the hospital immediately turned over to Sodexo.

Subsequent projects have included boiler replacements and upgrades, a third emergency generator, upgraded generator and boiler controls and four air handler refurbishments. To date, Sodexo has completed seven projects totalling over $14 million—on time and on budget.

The information contained in this document is confidential and proprietary to Sodexo, and cannot be used or re-printed without permission. ©2012

FOCUS: Developing strong teams to deliver successful projects

The teamwork between Sodexo’s on-site Director of Facility Services and Sodexo’s Infrastructure Renewal Group has been a big part of the success at duPont Hospital. Sodexo is responsible for the daily maintenance and operations of approximately 2 million square feet of space. The knowledge gained through these daily activities gives the Sodexo team a unique window into the inner workings of the hospital’s critical infrastructure systems.

Sodexo also manages utility services and capital spending at duPont, as well as housekeeping, laundry, and patient and staff dining.

“People ask me, isn’t it risky to turn over so many services to a single contractor, I tell them it’s a big advantage when you have the type of collaborative partnership we have with Sodexo.”

Paul D. Kempinski FACHE—Chief Operating Officer


Key ContraCt FaCts

• Serviced by Sodexo since 1996

• 18 On-Site Managers

• 288 Hourly Employees

• Annual Turnover: $23.5M

• Hard Services: $7.3M

• Soft Services: $9.0M

• Utility Services : $7.2M

• 1.8 Million Managed Square Feet

• 900K Cleanable Square Feet

• 1,050,000 lbs. Linen processed annually

serviCe sCope

Boiler Plant O&M, Chiller Plant O&M, Back-Up Emergency Power Generation O&M, All additional HVAC Systems O&M, Building Management System O&M, Air Compressors O&M, Pneumatic System O&M, Minor Roof Repairs, General Building Maintenance, General Painting, Fire System Inspection & PMs, Repair & Maintenance of Voltage Systems up to 4160 Volts, Laundry & Linen, General Auto Repairs, Regulatory Compliance, Snow Removal, Capital Projects < $1M, Manage Utilities > $7M, Grounds & Landscaping, Housekeeping/Janitorial, Food Service, Clinical Nutrition Services

85% of Services are Self-Performed

“Sodexo’s regional presence in the Andean region and its business model, service management and operation, provide benefits both in savings and reliability.”

Carlos Leithon RESO Director Colombia

FOCUS: Reliability and cost efficiency due to management and self-performance model

Based on our experience performing facilities management services at a high level for IBM in Chile, IBM had confidence in Sodexo’s ability to take lessons learned and apply best practices in the delivery of a flexible, quality program elsewhere in Latin America. Sodexo was awarded as IBM’s facilities management partner under the “Andean Adventure” contract in late 2001.

Sodexo began Andean operations on February 1, 2002, simultaneously in the four Andean countries.

Sodexo renewed the contract in 2005 and Ecuador and Costa Rica were added to the portfolio.

Through this contract, Sodexo delivers:

• One consolidated regional client report

• One service desk management tool – Sodexo Place

• One regional technical support

• One senior executive single point of contact

• One local point of contact for every country

• Standardized services

Self-Perform at IBM


FACT: Sodexo has provided service to IBM since 1991.

Prior to First Andean Tender:

• Countries: 1 (Chile)

• Square Meters: 16,800

• Contract Value/Year: 1,265,000

• Last 2 Years: 2,530,000

First Andean Tender:

• Countries: 4 (Chile, Colombia, Peru, Venezuela)



• Two Year Value: 5,190,000

Second Andean/First Latin America Tender:

• Countries: 6 (Chile, Colombia, Ecuador, Peru, Costa Rica, Venezuela)




FACT: 88% of the scope of services self-performed.

FOCUS: Data centers reliability thru local, regional coordination and standard procedures application.

Support systems maintenance for IBM Data Centers is key to its core activities. Sodexo’s ability to manage and self-operate critical maintenance to ensure the required reliability indicators is key in IBM decisions in the region.

Key Factors for Success

• Team work at local and regional level

• FM and multi-services integrated offer

• Own service desk and CMMS tool developed – Sodexo Place

• Flexible services maintaining local approach and regional standardization.

• Face-to-face account management at local, regional, and global level

• Technical response specific to each sites’ needs

Key ContraCt FaCts

• 1991– 2000 Sodexo Chile providing multi services for IBM

• 2001 Sodexo was awarded the Andean Zone under a new concept of Facilities Management with both hard and soft services

• 2005 Sodexo was awarded the Andean Zone with the exception of Argentina

• 2005–2007 Current contract covering Chile, Colombia, Venezuela, Peru, Bolivia and Ecuador since November 2005. Costa Rica serviced by Sodexo since 2001

• 12 operating sites

serviCe sCope

Electrical Maintenance, Data Center Support Maintenance, Plumbing, HVAC, UPS, Electrical Plants, ATS, STS, Seward(Sewer?) System, Fire Alarm Systems, Cleaning, Pest Control, Waste and Recycling, Elevators, Landscaping, Locksmith, Internal Moving, Minor Repairs, Courier, Conference and Meeting Rooms.

Client’s PerspectiveVerdugo Hills Hospital developed an RFP that covered the entire scope of the hospital deficiencies with a focus on energy cost savings and compliance with health and safety codes. Sodexo had to provide superior program and price - competing against five other service providers for this contract. Along with a long-time, successful client relationship with Sodexo, Verdugo Hills selected Sodexo for the project based on their technical competency and innovation.

ChallengeVerdugo Hills Hospital, a 158-bed hospital, located in Glendale, CA serves surrounding communities of more than 376,000 residents. The hospital infrastructure was outdated, energy costs were continuing to rise, and theoverall comfort for the patients, staff, and visitors was an ongoing concern.

SolutionThe Sodexo Energy and Construction Services team was faced with a myriad of facility deficiencies and compliance requirements of CA state hospital regulations. Potential infrastructure failings were immediately addressed with the installation of new chillers and cooling towers. Replacement and re-fitting of air handlers were re-engineered and installed to improve overall air flow and cooling capabilities. Lighting retrofit and digital controls were installed in the entire facility ensuring energy efficiency and conservation. An overall water conservation program was developed and implemented, ensuring compliance with building codes, permits, and inspections. Sodexo partnered with local engineering compliance experts, guaranteeing all state and local code requirements were met.

Outcome

O The project exceeded its guarantee of $311,000 in annual utility savings.

O The project exceeded its guarantee of $65,000 in annual operational savings.

O Comfort and air temperature control for the hospital patients, staff, and visitors was vastly improved.

O Verdugo Hills and Sodexo’s successful partnership continues with ongoing dialogue on facility asset improvements and upgrades.

“Sodexo gave us the savings, the

timeline, the financing, and considered

our future on a highly complex project.”

— Leonard LaBella, President and CEO, Verdugo Hills Hospital



Verdugo Hills Hospital

Case Study

CS0412-4

www.sodexoUSA.comhttp://bit.ly/sodexosolutions | [email protected] | 888 SODEXO7

© Sodexo August 2012.

Why Sodexo?We welcome and encourage you to contact our existing clients to get their feedback on our ongoing performance. We are confident that you will hear that we are a proactive, innovative, and responsive management company committed to providing superior services.

We believe Sodexo will be the facilities services partner to satisfy your requirements and support your needs. Sodexo has capabilities to move and grow with you and we are willing to guarantee our service levels and our results. Our team is focused, experienced, and excited to have this opportunity, and we are fully confident that we will exceed your expectations.

Integrated Facilities ManagementSolutionsNorth America




Quality of Life in the service of performanceIn a world facing financial, economic and environmental crises, the issue of quality of life is becoming even more crucial. At Sodexo, through more than forty years of experience, we have seen that quality of daily life is not an obvious question for many organizations that are facing an unprecedented accel-eration in concentration and, therefore change.

The challenge lies in achieving the quality of life that people expect on a day-to-day basis. It is not the exception that makes the difference, but the “daily” repetition of quality of life moments.

Sodexo’s 431,000 employees around the world use their talent to enable our clients to concentrate on their profession. Providing a multitude of services, large and small, at a high standard of quality, 365 days a year - this is the “raison d’être” of Sodexo! It is this that is at the heart of a new profession that carries the name, “Quality of Daily Life Solutions.”

Michel LandelCEO, Sodexo

key figures$22.2 billion in consolidated revenues

431,000 employees

22nd largest employer

33,400 sites

1.6 billion square feet under management

50 million consumers served daily

80 countries

Sodexo in a snapshot

Fiscal 2012

Source: Sodexo at August 31, 2012

Integrated Facilities Management Solutions

North America




2

We deliver a fully unified approach to Integrated Facilities Management, which ensures seamless and consistent delivery throughout the United States. Sodexo’s greatest value is the ability to provide integrated solutions consisting of account management, a high degree of service self-delivery and robust management of a limited number of strategic supply partners. Our self-delivery philosophy ensures focus on productivity, morale, organizational performance and operational excellence. We deploy this approach consistently across all portfolios in a progressive solution development platform.

Intelligent solution design is the creation of a customized service delivery platform that can only be achieved when leveraging a high degree of self-delivery. Self-delivery provides us the opportunity to immediately deploy an efficient head-count model that is supported by a lean, effective management team.

At Sodexo, we place primary focus on the planning, scheduling and prioritization of work activities influenced by industry standards, customer alignment and service level agreements. Having the right resources with the appropriate materials at the right time is paramount. A robust “Workflow Management” strategy is key to delivering an industry-leading process.

We typically achieve 5–15% net savings for our clients; even in cases where they are “second generation” i.e., they are currently outsourced. This outsourcing opportunity is the result of deploying a highly efficient model and an increased level of self-delivery.

Sodexo is one of the world’s largest employers with “Quality of daily life” being our core purpose, we view Facilities Management in very different terms–compared to traditional approaches – as we place the user (clients’ employees) at the center of our service delivery model, thereby deploying Facilities Management services directly in support of your corporate objectives. A partnership with Sodexo will drive a new style of facilities management services and exceed your expectations.

The savings we offer our clients come from a number of strategies–our approach to self-perform as many facilities services as possible has

shown 8–15% savings in some accounts. In other cases, customers may see a savings of 5–7% in previously outsourced services. Sodexo is the only dedicated U.S. Facilities Management provider that offers clients the following unique qualities.

Self-delivery

• Efficient deployment of labor drives immediate cost savings on deployment• Streamlined organizational structure

leverages strategic supply partners and minimizes inefficient profit-on-profit nature of traditional IFM standard i.e. management models• Streamlined managerial structure leverages

corporate centers of excellence and reduces the need for large financial (accounts payable) management or sourcing teams• Cross-utilization of resources provides an

increased labor pool with built-in back-up staff that is trained and immediately able to contribute• Safer working environments with minimized

external supplier support deploy a Sodexo team trained to a consistent, high standard of HSE

Model Leverage – Our model seamlessly accommodates portfolio changes managed efficiently with existing teams

Pricing Structures - Total flexibility with contract pricing structures – fixed price, management fee, gross maximum price, etc.

Strategic Sourcing - Reduced number of key supply partners plus our significant buying leverage ensures the fewest possible on-site suppliers delivering at the best possible price.

Geographic Coverage - National on-site solutions model can deploy at any site in the U.S. i.e., we provide comprehensive U.S. coverage

Use of Technology - Use of technology to streamline operations provides Web-accessible technologies, more accuracy in data collection and faster response times

Training Opportunities - Consistency in communication, training, and reporting across all sites reduces redundancy

3

Our Expertise Worldwide

Sodexo was founded in 1966 and has grown from a small operation in Marseilles, France to the world’s leading integrated facilities management (IFM) organization today. Sodexo is the only company that operates a truly integrated facility management model. We deliver services to all manner of facilities at a local, regional and global level for many of the world’s leading companies.

Our Expertise in North America

Our proven systems and programs are in place in office

buildings, warehouses, high-technology centers, computer

facilities, manufacturing and testing facilities, as well as

research and development centers.

Diverse Strategic Partner

Sodexo operates two key strategic partnerships in the United States. Both of which deliver Tier 1 MWBE spend.

SodexoMAGIC, LLC is a joint venture between Sodexo Operations, LLC. and Magic Food Provision, LLC, a subsidiary of Magic Johnson Enterprises, the majority owner.

NMS Security is a division of NANA Management Services (NMS) who is jointly owned by NANA Development Corporation and Sodexo USA.

•$8 billion in revenues in North America including:•$1.6 billion in core IFM services• 550 million sq. ft. under management• Comprehensive U.S. coverage•More than 25,000 workplace, technical and

support staff• Leader in diversity and inclusion

•$22.2 billion in revenues•$4.7 billion in core IFM services• 1.16 billion sq. ft. under management•Market presence in 80 countries• 413,000 employees at 33.400 client locations• 22nd largest employer worldwide

Sodexo Ranked on IAOP’s “Global Outsourcing 100” for 7 years in a row

IAOP ranked Sodexo #3 in 2010 and 2011.

Additionally we have received the top ranking in the services categories, including “Facility Services” and “Real Estate & Asset Management.”

Companies were ranked according to 18 criteria, including revenue, growth, number of employees, technical and business certifications, the track record of the management team, and the quality of customer service.

4

Core Competencies

Providing solutions for multi-service, portfolio operations is a core competency of Sodexo. Improved internal controls and operational standardization are realized when a uniformed program is implemented and executed at all client locations.

With solutions that can be deployed at a single site or across the globe, our clients have a consistent program based on standard operating procedures (SOPs), stringent quality measures, latest technologies and well-trained employees.

Our Services

Transition - Ensures the smooth implementation of our solutions across people, processes & technologies.

Hard Services - Technical and maintenance solutions are designed to optimize operational efficiencies and support the environmental health and safety of the staff and visitors at your facilities.

Soft Services - To drive productivity of your employees and drive increased image value of your organization, soft services are built around the users–within the working environment–and include janitorial, help desk, reception, landscaping, mail room services and security.

Critical Environment Management - To prevent loss of important data, production output and vital services, we provide skills, processes and technology to support 24/7/365 uptime of critical facilities such as data centers, logistics and production systems.

Supply Chain Management - By leveraging our strategic suppliers, we deliver value through best-in-class innovation and cost savings.

Strategic Planning - This cross-functional process, organizations derive efficiency and true integration through a single view of the entire portfolio.

Comprehensive Facilities Expertise in North

America:

•314 Engineers

•176 Electricians

•19,000 Janitorial staff

•148 Plumbers

•2,400 Maintenance staff

•80 Carpenters

•160 Mail Attendants

•1,050 Groundskeepers

•1,044 Floor Care

•240 Customer Service/Help

•690 Management/Supervisors

5

Your Benefits

Integration - By acting as an extension of your team, our delivery approach leverages resources and expertise to help you deliver high-performance facilities, wherever you are in the United States or globally.

Cost Savings - Through collaborative interaction, savings opportunities can be identified and implemented within your facility operations. Savings can be achieved through a broad range of initiatives – self-delivery, streamlined portfolio management, deployment of strategic suppliers, bulk purchasing, standardizing processes, effective energy management, portfolio re-engineering, etc.

Risk Mitigation - Reducing facility downtime and risks are possible through proactive analyses, contingency/continuity planning measures, and the implementation of effective preventative maintenance programs.

Accountability - Our performance-measurement approach ensures accountability, transparency, and client satisfaction. Metrics include downtime at critical sites, safety track records, help desk response times, end-user satisfaction, etc.

Results Through Innovation - Innovative facilities management practices, procedures, tools, and technologies to support service delivery are utilized to ensure results. These are often developed in partnership with clients.

Technology-enhanced Service Delivery - Clients benefit from our proprietary technology for real-time online access to portfolio information customized to meet specific needs.

Geography - Our regional corporate offices provide management and technical expertise to our on-site operators. This allows delivery at any site and at any location across the U.S. and provides quality and consistency of services at site and account level.

Integrated Solutions Drive EfficienciesIntegrated Solutions Drive Efficiencies Commercial Building

Copy Center



Move Management

Mailroom



Fitness Center

Medical Services



Shuttle Bus Service





Snow Removal


Childcare

Company Store




Life Safety Systems




Shared Delivery 15%



Space Planning

Data Center

6

Building Operations & MaintenanceStringent safety standards and operational efficiencyThrough standardized processes and state-of-the-art technology, our building maintenance management system is designed to take responsibility for your services, resources, and assets while improving work methods.

Housekeeping & CustodialQuality controls and consistently high performance levelsWell-trained employees, and exclusive cleaning products and equipment deliver measurable targets in cleanliness, safety, and sanitation.

Landscaping & GroundsCertified staff All-season, environmentally safe programs for turf management; mowing and edging; soil composition testing and fertilization; pest and disease control; irrigation installation and maintenance; tree and shrub care; flower care; walkways; parking lot and road maintenance; snow and ice removal; and interior plant care.

Mail ManagementTailored solutions through an organized, disciplined approachWe will streamline your operations from package, pick up, consolidate, process, deliver, expedite, and track.

Reprographics & Copy CentersOptimum uptime, quality checks, and cost-effective servicesFrom printing, collating, binding, and tabs, to document storage, we will improve your production needs and equipment.

Materials Delivery and Moves & Store Room InventoryHassle-free, stress-free movement of materials We transport and track inner office materials between buildings, labs or offices across your campus.

7

Call Center Services & Help DeskOne call does it allMake only one call for everything from burnt out light bulbs to spills or equipment malfunctions. We are able to generate work order tickets, routing them to the appropriate department, saving your employees valuable time and alleviating frustration.

SecurityExperienced personnel ensuring the safety of your building and employeesProtect your assets and minimize your corporate liability from door to warehouse to parking lot.

Special Events, Audio/Visual Setup and Meeting SupportIncrease the overall productivity of your meetingsWhether an internal meeting or a major conference, we will manage your rooms from set up to breakdown including audio/visual equipment, and provide a customer-focused operation.

Warehouse & Data StorageKeep clutter from overwhelming your office spaceOur program includes information and document storage, retrieval and disposal services, and furniture inventory.

Shipping & ReceivingLeading technologies and increased productivity through automationWe will handle, inspect, and document your packages through a safe and expeditious program.

Moves, Adds and ChangesA smooth, efficient move and daily space planningOur facility maintenance program tracks all employees and their work spaces, and helps guide our staff to find the most efficient move solutions to keep disruptions to a minimum.

Reception & Concierge ServicesLet us greet and welcome your guestsThe reception area establishes the tone and image of your organization. We direct guests; manage your switchboard and telephone directories; and manage your parking and paging systems.

Planning & Assessment Services In-depth analysis to appraise all physical systemsWe will help you devise long-term capital replacement plans or energy saving strategies.

Table of Services

Sodexo’s Broad Range of Solu2ons

§  Reprographics & Copy Centers §  Mail Room Management §  Shipping & Receiving §  Document Management

•  Archive Management •  Document Shredding

§  Conference Services/Mee2ng Room Management

§  Conference Center Management §  Space Planning §  Materials & Inventory Management

Business Services

§  Nutri2on & Wellness §  Health & Fitness Center Management §  Diversity Educa2on & Awareness §  SodexoMAGIC §  Travel & Concierge (CIRCLES) §  Tutor.com §  Comfort Keepers §  Mo2va2on Solu2ons

•  Recogni2on Consul2ng •  Esteem Pass •  Vivabox

People and Motivational Services

ONE MANAGEMENT TEAM – DELIVERING RESULTS

§  Construc2on Services §  Energy Management §  Energy Audits §  Renewable Energy §  Truck-‐based Services §  Environmental Sustainability Planning §  Purchasing (entegra) §  Training

§  Real Estate Services §  Technology

•  Maximo CMMS •  BAS Integra2on •  Remote Monitoring •  Call Center •  Enterprise Dashboard PlaXorm

•  Vendor Management •  Roof Maintenance

Professional & Technical Solutions

Environmental Health & Safety Risk Management Integrated Technology Platform

§  Manufacturing Equipment •  Instrument Quality Control §  Crane/Hoist Maintenance §  Li[ Trucks §  Hangar Doors §  RCM §  Compressed Air §  Waste Treatment §  Conveyor Systems

§  O&M – Reac2ve / Planned Maintenance

§  External Building Maintenance §  Interior Maintenance §  Elevator Maintenance §  Mechanical /Electrical Systems §  Plumbing §  Industrial Equipment Maintenance

§  Asset Management §  Building Automa2on Systems & Controls

§  Instrument Calibra2on §  Water Systems §  Central Plant §  Security/Access Control System §  Materials & Inventory Management

§  Data Center MEP

Production Building Maintenance

Plant Operations

Traditional Soft Services

§  Housekeeping & Custodial §  Cleanroom §  Recycling §  Waste Management §  Landscaping & Grounds §  Parking & Roads §  Laundry & Linen Services §  Winter Services §  Fire/Life Safety Systems §  Pest Control

§  Café/Restaurant •  Your Health Your Way •  Simply to Go

§  C-‐Store §  Catering §  Home Meal Replacement §  Vending §  Office Refreshment Services §  Recep2on

Hospitality Services

HARD FM SOFT FM INDUSTRIAL

OTHER SERVICES AND SOLUTIONS

Integrated Solutions Drive Efficiencies Commercial Building

Copy Center



Move Management

Mailroom



Fitness Center

Medical Services



Shuttle Bus Service





Snow Removal


Childcare

Company Store




Life Safety Systems




Shared Delivery 15%



Space Planning

Data Center

Integrated Solutions Drive Efficiencies Manufacturing


Shared Delivery 15%


Conference Rooms. Meeting Rooms and Event Management

Plant Cleaning

HVAC Maintenance

Shipping & Receiving

Plant Maintenance

Plant Equipment Maintenance

Interior Building Maintenance (Lights, Walls, Doors, Etc.)

Hospitality Services (Foodservice, Catering, Vending.)

Sterile Environment Management

Warehouse Management, Storage Equipment & Racking Maintenance

Reception & Switchboard

Office Area Cleaning


Laundry Services

Materials Management, Storage, Mailroom, Reprographics

Transportation, Fleet & Vehicle Management

Technology Support (Help Desk, Data Center,

Archive Management) Landscaping & Grounds Keeping


Light Voltage, Switchgear Power Distribution

Boiler Operations & Maintenance

Small Building Construction

Water Treatment & Management

Overhead & Dock Door Maintenance

Powered Material Handling Equipment Management

Industrial Gases

Life Safety Systems

Waste Management

Security (Video Monitoring, Access Control, Guarding, Etc.) High Voltage, Switchgear

Power Distribution


Integrated Solutions Drive Efficiencies Data Center


Shared Delivery 15%


Housekeeping / Custodial

Batteries Monitoring

Space Planning

Technology Support

Life Safety Systems


Building Automation / Systems Monitoring


Security (Video Monitoring, Access Control, Guarding, Etc.)

Waste Management

Clean Environment Management

Shipping / Receiving


Light Voltage, Switchgear Power Distribution Materials Management, Mailroom, Reprographics






Energy Audits Energy Management

HVAC / Cooling Systems

Case Studies

Client’s PerspectiveBayer, Inc., a Canadian subsidiary of Bayer AG, is an international research-based group with core businesses in health care, crop science, and innovative materials. Headquartered in Toronto, Ontario, Bayer Inc. operates the Bayer Group’s HealthCare and Material Science business in Canada with 500 employees, 100 of which are tenants with over 400,000 sq. ft. of office and distribution space.

ChallengeBayer was looking for a single source solution for comprehensive facility services. Through a competitive bid process, Bayer selected Sodexo as their single service provider believing that the Sodexo solution would best help Bayer transform the delivery of their facilities services from a tactical approach to a holistic proactive integrated model.

SolutionSodexo manages and delivers more than seventeen services including construction and project services, building maintenance, cleaning services, switchboard/reception, help desk support, after hours support, office services, cafeteria services, mailroom, shipping and receiving, stores, groundskeeping, waste management, audio visual services, space and furniture management, and uniform services. Largest projects included replacement of all existing 150-400 watt High Pressure Sodium [HPS] lighting with new, high efficiency t-5 lighting with motion control sensors along with removal of obsolete/redundant electrical circuitry. Sodexo designed replacement of the existing 1 million BTU heating boiler with smaller, more efficient micro style boilers. First-phase installation of eco roof refit program using solar/UV reflective material was completed. Variable Frequency Drives [VFDs] were installed on the air handling systems. Upgrades were made to the fire safety program, loading dock door with new safety technology, and the BMS system.

OutcomeO Projected savings for just one phase of the electrical

replacement project is $15,610 and 141,900 KWHO Capital forecasting of $1.5M year over year with planO Development and implementation of a performance

management structure including KPIs and fee-at-risk/reward structure

O Completion of outstanding Maintenance Repair Operations [MRO] work orders is at less than 3%.



Bayer, Inc., Toronto,

Ontario, Canada

CS0412-5

Case Study

Caldwell College is a small Catholic College in Caldwell, New Jersey. Sodexo is Caldwell’s partner in facilities operations and maintenance. Like many similar colleges, Caldwell had well-built and maintained facilities that had aged and have not been significantly upgraded in over 50 years and there were few capital dollars available to attack the aging infrastructure.

Sodexo identified the needed work to help Caldwell renew its buildings and building systems. We performed a Facilities Capital Action Plan (FCAP) and presented it to the College. Unfortunately, the necessary funding was not available because the College was experiencing operational budget issues and rising utility costs. In March 2009, Sodexo conducted an energy audit to find out how we could help Caldwell with their energy budget and also attack some of the needed infrastructure renewal needs. At the same time, Caldwell wanted to begin a sustainability program aimed at reducing their carbon footprint.

We presented the audit findings in April, 2009 showing a $306,512 annual savings opportunity in their energy spend, representing a total 23.7% savings. This also equated to a reduction of 3,555 Tonnes CO2, equal to 20.8% of their current facilities greenhouse gas output. Still, lack of capital to take advantage of this report was a problem. The College’s financial situation was tightening and in July, 2009 Caldwell asked Sodexo for a 5% reduction in our operational contract.

Project Management

at Caldwell College

The information contained in this document is confidential and proprietary to Sodexo, and cannot be used or re-printed without permission. © 2012.

In September, 2009 Sodexo presented a solution where Sodexo would use a one-time gift to the college of $100,000 that had previously been promised as part of a contract extension, and use the money to perform some of the identified energy projects. The work, completed in January, 2010 realized an annual utility savings of $35,000 and rebate to client of $18,604 from the local utility company.

Seeing the success of this first set of projects, the client asked how Sodexo could help the College accomplish more of the identified energy savings work. With the help of Sodexo Finance and Legal departments, we were able to present the client with a solution where Sodexo would fund the projects, engineer and execute the work and continue to manage the energy consumption. We built confidence with the College administration, beginning with the VP of Finance, the President and then the Board. After several presentations and contract revisions, Sodexo and Caldwell College came to a final agreement in July, 2010.

The final contract amendment resulted in Sodexo making a commitment to invest $1,145,991 to perform the needed work and the College would pay Sodexo back over the next 8 ½ years, using the achieved energy savings. It was calculated that the identified projects would save Caldwell $227,728 and Sodexo would guarantee this performance. The project scope included energy savings projects and another $452,000 worth of other facility renewal needs for which the college had no available capital.

The projects were completed in December, 2010 and the results for savings for the month of January reported — Caldwell realized a 40.4% reduction in their energy expenses in January 2011 compared to January 2010 equaling a savings of $56,735.

Additionally, as a result of this group of projects, Caldwell College has raised its commitment to building and infrastructure needs. Caldwell has committed to fund a five-year plan to begin work on greatly needed facility renewal. Sodexo and Caldwell will work together to prioritize the needs, engineer the solutions and manage the work.

Project Management at Alfred

I. duPont Hospital for Children

“What makes Sodexo such a good partner is that they are on the same journey we are. Like us, they are committed to delivering a uniquely satisfying patient and family experience.”

Mark Lorenz Associate Administrator


FOCUS: Bringing projects in on time and on budget

The Alfred I. duPont Hospital for Children was built in the early 1980s, which meant that all the major infrastructure systems—boilers, chillers, etc.—were now approaching the twilight of their operational life.

After turning to a well-known engineering company whose solutions did not fit the hospital’s time and cost parameters, the hospital then turned to Sodexo to provide emergency power to the new NICU and CICU within their $2.5 million budget. With Sodexo already managing plant maintenance and operations, within 6 weeks we were quickly able to redesign the emergency generation system and install two new generators and switch gear.

After the success of the emergency power project, the hospital was happy to discuss with Sodexo a number of other potential projects. These projects needed to be prioritized, budgeted and implemented on a timely basis. Sodexo carried out a detailed assessment of the hospital’s infrastructure. The resulting 5-year capital plan provided a prioritized blueprint for capital expenditures, identifying what required immediate attention and what could be deferred.

With the emergency power situation in hand, the hospital’s next most pressing need was a critical chiller replacement—a project the hospital immediately turned over to Sodexo.

Subsequent projects have included boiler replacements and upgrades, a third emergency generator, upgraded generator and boiler controls and four air handler refurbishments. To date, Sodexo has completed seven projects totalling over $14 million—on time and on budget.


FOCUS: Developing strong teams to deliver successful projects

The teamwork between Sodexo’s on-site Director of Facility Services and Sodexo’s Infrastructure Renewal Group has been a big part of the success at duPont Hospital. Sodexo is responsible for the daily maintenance and operations of approximately 2 million square feet of space. The knowledge gained through these daily activities gives the Sodexo team a unique window into the inner workings of the hospital’s critical infrastructure systems.

Sodexo also manages utility services and capital spending at duPont, as well as housekeeping, laundry, and patient and staff dining.

“People ask me, isn’t it risky to turn over so many services to a single contractor, I tell them it’s a big advantage when you have the type of collaborative partnership we have with Sodexo.”

Paul D. Kempinski FACHE—Chief Operating Officer


Key ContraCt FaCts

• Serviced by Sodexo since 1996

• 18 On-Site Managers

• 288 Hourly Employees

• Annual Turnover: $23.5M

• Hard Services: $7.3M

• Soft Services: $9.0M

• Utility Services : $7.2M

• 1.8 Million Managed Square Feet

• 900K Cleanable Square Feet

• 1,050,000 lbs. Linen processed annually

serviCe sCope

Boiler Plant O&M, Chiller Plant O&M, Back-Up Emergency Power Generation O&M, All additional HVAC Systems O&M, Building Management System O&M, Air Compressors O&M, Pneumatic System O&M, Minor Roof Repairs, General Building Maintenance, General Painting, Fire System Inspection & PMs, Repair & Maintenance of Voltage Systems up to 4160 Volts, Laundry & Linen, General Auto Repairs, Regulatory Compliance, Snow Removal, Capital Projects < $1M, Manage Utilities > $7M, Grounds & Landscaping, Housekeeping/Janitorial, Food Service, Clinical Nutrition Services

85% of Services are Self-Performed

“Sodexo’s regional presence in the Andean region and its business model, service management and operation, provide benefits both in savings and reliability.”

Carlos Leithon RESO Director Colombia

FOCUS: Reliability and cost efficiency due to management and self-performance model

Based on our experience performing facilities management services at a high level for IBM in Chile, IBM had confidence in Sodexo’s ability to take lessons learned and apply best practices in the delivery of a flexible, quality program elsewhere in Latin America. Sodexo was awarded as IBM’s facilities management partner under the “Andean Adventure” contract in late 2001.

Sodexo began Andean operations on February 1, 2002, simultaneously in the four Andean countries.

Sodexo renewed the contract in 2005 and Ecuador and Costa Rica were added to the portfolio.

Through this contract, Sodexo delivers:

• One consolidated regional client report

• One service desk management tool – Sodexo Place

• One regional technical support

• One senior executive single point of contact

• One local point of contact for every country

• Standardized services

Self-Perform at IBM


FACT: Sodexo has provided service to IBM since 1991.

Prior to First Andean Tender:

• Countries: 1 (Chile)



• Last 2 Years: 2,530,000

First Andean Tender:

• Countries: 4 (Chile, Colombia, Peru, Venezuela)




Second Andean/First Latin America Tender:

• Countries: 6 (Chile, Colombia, Ecuador, Peru, Costa Rica, Venezuela)




FACT: 88% of the scope of services self-performed.

FOCUS: Data centers reliability thru local, regional coordination and standard procedures application.

Support systems maintenance for IBM Data Centers is key to its core activities. Sodexo’s ability to manage and self-operate critical maintenance to ensure the required reliability indicators is key in IBM decisions in the region.

Key Factors for Success

• Team work at local and regional level

• FM and multi-services integrated offer

• Own service desk and CMMS tool developed – Sodexo Place

• Flexible services maintaining local approach and regional standardization.

• Face-to-face account management at local, regional, and global level

• Technical response specific to each sites’ needs

Key ContraCt FaCts

• 1991– 2000 Sodexo Chile providing multi services for IBM

• 2001 Sodexo was awarded the Andean Zone under a new concept of Facilities Management with both hard and soft services

• 2005 Sodexo was awarded the Andean Zone with the exception of Argentina

• 2005–2007 Current contract covering Chile, Colombia, Venezuela, Peru, Bolivia and Ecuador since November 2005. Costa Rica serviced by Sodexo since 2001

• 12 operating sites

serviCe sCope

Electrical Maintenance, Data Center Support Maintenance, Plumbing, HVAC, UPS, Electrical Plants, ATS, STS, Seward(Sewer?) System, Fire Alarm Systems, Cleaning, Pest Control, Waste and Recycling, Elevators, Landscaping, Locksmith, Internal Moving, Minor Repairs, Courier, Conference and Meeting Rooms.

Client’s PerspectiveVerdugo Hills Hospital developed an RFP that covered the entire scope of the hospital deficiencies with a focus on energy cost savings and compliance with health and safety codes. Sodexo had to provide superior program and price - competing against five other service providers for this contract. Along with a long-time, successful client relationship with Sodexo, Verdugo Hills selected Sodexo for the project based on their technical competency and innovation.

ChallengeVerdugo Hills Hospital, a 158-bed hospital, located in Glendale, CA serves surrounding communities of more than 376,000 residents. The hospital infrastructure was outdated, energy costs were continuing to rise, and theoverall comfort for the patients, staff, and visitors was an ongoing concern.

SolutionThe Sodexo Energy and Construction Services team was faced with a myriad of facility deficiencies and compliance requirements of CA state hospital regulations. Potential infrastructure failings were immediately addressed with the installation of new chillers and cooling towers. Replacement and re-fitting of air handlers were re-engineered and installed to improve overall air flow and cooling capabilities. Lighting retrofit and digital controls were installed in the entire facility ensuring energy efficiency and conservation. An overall water conservation program was developed and implemented, ensuring compliance with building codes, permits, and inspections. Sodexo partnered with local engineering compliance experts, guaranteeing all state and local code requirements were met.

Outcome

O The project exceeded its guarantee of $311,000 in annual utility savings.

O The project exceeded its guarantee of $65,000 in annual operational savings.

O Comfort and air temperature control for the hospital patients, staff, and visitors was vastly improved.

O Verdugo Hills and Sodexo’s successful partnership continues with ongoing dialogue on facility asset improvements and upgrades.

“Sodexo gave us the savings, the

timeline, the financing, and considered

our future on a highly complex project.”

— Leonard LaBella, President and CEO, Verdugo Hills Hospital



Verdugo Hills Hospital

Case Study

CS0412-4

www.sodexoUSA.comhttp://bit.ly/sodexosolutions | [email protected] | 888 SODEXO7

© Sodexo August 2012.

Why Sodexo?We welcome and encourage you to contact our existing clients to get their feedback on our ongoing performance. We are confident that you will hear that we are a proactive, innovative, and responsive management company committed to providing superior services.

We believe Sodexo will be the facilities services partner to satisfy your requirements and support your needs. Sodexo has capabilities to move and grow with you and we are willing to guarantee our service levels and our results. Our team is focused, experienced, and excited to have this opportunity, and we are fully confident that we will exceed your expectations.