Interuniversity Services Inc.

1. Interuniversity Services Inc. CAUBO Conference 2004 June 12, 2004 R.C. MacDonald, CPP, FPMAC

2. Interuniversity Services Inc. Vision The Company’s vision is “To be a model for university cooperation.” Mission Its mission is “To Identify & Promote Opportunities for Members to Acquire Goods and Services with Enhanced Value & Reduced Costs.” Core Business Activity The core business activity of ISI is supply and services management, including Contracting, Consulting, Technical Servicing, and Facilitating.

3. Background • Evolved from Desire to Cooperate (3 University Presidents) • Cooperation in Procurement - Had History - Was Non-Threatening • Common Benefits Purchasing & Servicing

4. Objectives • To Reduce Costs • To Leverage • To Bring Professional Approach/Best Practice • To Avoid Duplication • To Try For Minimum 2 Years

5. History • Office Formed in September of 1981 by: • Saint Mary’s University • Mount Saint Vincent University • Dalhousie University • 1984 Technical University of Nova Scotia Joined • ISI Was Incorporated -- Not-For-Profit Company • 1987 Novanet was Added as a Division of ISI • Associate Membership – Early 1990’s • Fee For Service • Reduced Fee • No Direct Management Input • 8 Universities Joined • Independent N.B./P.E.I. Study 1993/94 • ISI Reorganized • Novanet Inc. As Separate Company

6. Interuniversity Service Inc.

7. Members Board of Directors Executive Committee 17 Institutions Senior Administrative Officers 5 Directors Representation: 1 Small University 2 Medium Universities 2 Large Universities Current Structure

8. Structures/Standing Committees • Executive Committee • Audit Committee • Supply Management Committee • Employee Benefits Committee • Ad Hoc Committees As Required

9. Current Cost Sharing Formulas 50% University Operating Revenue (Provincial Grant & Tuition Income) 25% FTE Student 25% Equal

10. Cost Sharing Formula Budget: Provincial, Credit & Non-Credit (CAUBO, 2002) FTE (MPHEC 2002-2003)

11. Core Business

12. On-Going Results • Full time Staff – Centre of Excellence Available to Members • Procurement • 50+ Agreements – Goods/Services • Some Largest Atlantic Canada • Increased Value Add  Non-Value Add • Cost Reductions • Improved Contracting • Improved Reporting • Supplier Base Reduced • Low Value – High Transaction

13. On-Going Results • Expanded to Non-Traditional Areas • HR/Benefits • Training • Risk Management – Future • Improved Communication Intra/Inter/External • Model/Focal Point • Coaching/Mentoring

14. University Contract with Supplier (Montreal) $ 90,000 / 3 Years $ 30,000 Increase $ 120,000 Full Parts, Labour ISI Contract $ 90,000 $ 57,000 Actual $ 33,000 Balance Parts, Labour &Travel Technical Services • Customize Agreements For The User • Cost and Service Effective • Example: • Results: • $30,000. Cost Avoidance • $33,000. Balance Used to Upgrade Equipment • No Down Time • Return to ISI of 25%

15. Academic Training Academic Department Heads Cost Nationally - $3,000 ISI Costs - $ 850 Benefits Reduced Cost/Fee Reduced Travel Costs Over 120 Participants/Greater Participation

16. Employee Benefits • One of the Largest Expenditures • One of the Largest in Atlantic Canada

17. Why Successful • Senior Admin Commitment • Support • Cost Effective/Cost Avoidance/R.O.I. • Has Been Non-Threatening • Flexible (Agreements/Services/InOut) • Consensus & Good Faith • Commitment • User Input/Collaboration • Independent/Impartial • Consistent

18. A Few Highlights • 1988 ISI Received National Recognition – CAUBO Quality & Productivity Award – 2nd Prize • 1994 Reorganization Becomes A Model Of Inter- Provincial Operational Cooperation In The Public Sector • 1996 MacKay Report • 1997 ISI Receives Regional Award For ISI Net • 1997 CAUBO – N.P.C. • 1999 ISI Recognized As “Best In Class” And A Model For The Wider Commonwealth By A.C.U. Study

19. Interuniversity Services • Unique - Non Profit • Provides Central Administrative Services • Reduces Overall Costs • Improves Services • Framework