Bids for Management Outsourcing Reviewed

The Ocean Pines Board of Directors has announced that it will pursue filling the vacancy for the community’s general manager position. The announcement comes after a bid review for outsourcing management revealed a lack of viable proposals.

A recommendation to the Board to retain an in-house general manager was made by interim General Manager John Viola and a work group that reviewed the proposals.

According to Viola, 49 firms were asked to submit proposals for the outsourcing of operations and management services for Ocean Pines; only five companies responded to the request.

Viola said that prohibitive costs and the failure of the bids to meet the requirements of the request for proposals (RFP) drove the recommendation.

Larry Perrone, who served on the work group, echoed Viola’s sentiments. “As chairman of the Budget and Finance Committee, my perspective is that the cost of outsourcing far exceeds having an in-house GM,” he said.

The five companies that responded to the request submitted bids 136-436 percent higher than the cost of the current total compensation package for the Ocean Pines general manager position. Most also included substantial additional fees lists that would drive up those percentages even more.

The work group considered other conditions of the proposals, such as the need for all five of the firms who submitted bids to use their own software, to be prohibitive as well.

“None of the bids fully complied with the RFP. Most importantly, two of the bids did not want to manage the police department, which is required under our by-laws,” said Perrone.

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