ART - Lease versus Buy Analysis - Uniforms 2000

The document is a memo from Teresa V. Lemon, a buyer in the Office of Purchasing, to John A. Gray, a senior buyer in the same office. The memo is dated April 10, 2000, and the subject is MDO (most desired option). The memo discusses the research on the purchase vs. rental of uniforms for blue-collar workers. The figures for uniform purchase come from an existing contract for the Ho. Co. Board of Education. The memo states that although the initial cost of purchasing uniforms for 75 employees is approximately $7000.00 more than renting, the cost for the second year is approximately $2500.00 less than rental, and by the third year, the cost is reduced by $11,977.50. The initial outlay of County funds for the purchase of uniforms for each employee is $370.85. Starting from the second year, an annual stipend of $150.00 is issued to each employee for replacement of worn clothing. The memo mentions that the Central Fleet and Bureau of Utilities were not interested in participating in the uniform buy program due to concerns over their employees laundering their own clothes. They felt that only a commercial rental company could ensure a high enough temperature for cleaning. As a result, a request for quotation will be prepared to address their needs for rental uniform services. However, the Bureau of Highways will go forward with their pilot program and purchase uniforms for their 75 union employees. Purchase requisitions are being issued and should arrive shortly. The memo also includes a chart comparing the current method of using a uniform service with the proposed method of buying uniforms with an annual stipend. The chart shows the costs for each method for the first, second, and third years. The proposed method is shown to be more cost-effective in the long run.