Your contractor is continually telling you that they are losing money and want to increase your subsidy. You are pleased with their foodservice performance and have some sympathy for their predicament. However, how much should you give in to be fair without paying too much?
An AOIC consultant will review your current service, the past year's finances and the contractor's forecast budget. In addition we meet the senior operators of the contracting company to understand their position.
Having completed the review we provide our client with a fully benchmarked analysis of the service with a target price that is fair for both parties.
If asked, we will negotiate with the contractor a revised price linked to a realistic service level agreement.
Renegotiating a new contractual price is recognition by the client that they are prepared to pay the right price for the right service offer. It removes the need for Tendering or Best Value and should only be used when the client is satisfied with the general performance of the contractor.