University Strategic Sourcing

While working with various university clients, our team of experts prepared Strategic Sourcing Studies for the analysis of changing utility service provision from the university to an outside entity. The study typically included the following tasks:

  • Developing Expense Forecasts for O&M of University Utility Systems
  • Assessing the Useful Lives of Utility System Assets and Forecasting Life-Cycle Costs
  • Verifying Capital Costs of Required Imminent Equipment Upgrades
  • Verifying Potential Cost Savings from ECMs (Energy Conservation Measures)
  • Reviewing Forecasts in Context to Budgets and University Forecasts
  • Providing Guidance on Performance Measures for Private-Sector Contracts
  • Providing Private Sector Comparator Models and Valuation
  • Business Case Formulation, Scope Determination, Procurement Documentation
  • Coordinating with Financial and Legal Advisors on Transaction Structure

Clients include the University of Oklahoma, Norman, Oklahoma; Oklahoma State University, Stillwater, Oklahoma; Purdue University, West Lafayette, Indiana; and the University of Kansas, Lawrence, Kansas


Guernsey was the technical and pricing advisor to the University of Oklahoma in its exploration and ultimate outsourcing award of six utility systems: natural-gas fired combined steam heat and electrical generation plants/distribution; chilled water plants/distribution; electrical distribution, natural gas distribution; potable water distribution; and wastewater collection. A 50-year concession-type contract was awarded to a single utility service provider at a projected savings to the university in excess of 10% and with provision of a significant up-front cash payment of about $120 million to the university for the contractor’s exclusive right to provide utility service to the university.