Consolidated Equipment Maintenance Program (CEMP)

Contract # 2867XX with Specialty Underwriters, LLC. (SU)

"(CEMP).is part of our ongoing effort to help our customer agencies reduce costs and streamline administration. We encourage you to take a look at how this DAS program can save your agency money and protect your budget from costly equipment break-downs."

Paul F. Carlson, Chief Operating Officer
Department of Administrative Services
General Services Enterprise

What is CEMP?  Equipment manufacturers and distributors commonly offer extended equipment maintenance agreements (MA).  Maintenance agreements cover repairs and maintenance beyond the manufacturer's new product warranty period for a flat fee.  The main benefit to the equipment owner is that it sets a cap on unscheduled maintenance expense "surprises", regardless of the number of repairs that are needed.  The main disadvantages are that MAs are expensive, and you may have to write a separate agreement and make separate payments for, each individual piece or brand of equipment you rely upon.  This can become very time consuming and cumbersome for a large organization.  This also makes it difficult to benefit from 'volume purchasing' of this type of service.

CEMP is a creative alternative to traditional maintenance agreements.  CEMP is based on a "risk transfer" tool; a type of  "break-down insurance coverage" against frequent repair expenses.  Under CEMP you transfer your risk of budget-busting equipment expense and pick up many additional benefits:

• We can consolidate all our purchases of this type of repair service to leverage the best up-front pricing, plus you share in the possibility of profit sharing with SU if repair losses remain low in your agency.
• You may keep the local repair service provider of your choice.  The person doing your future repairs can be the same one you are currently using if your experience with them has been good.  If you'd like different local service provider, you may choose another.  CEMP wants you to have the best service available for the best price.  You may also buy consumables, such as toner for copiers, wherever you wish.  Buy consumables from your local service provider of choice or another independent vendor.
• "One Stop Convenience".  When repairs do become necessary, you place just one free phone call to get any repair that is necessary, regardless of the type or brand of equipment.  SU notifies the local service provider of your choice, pays them on a 'Time and Materials' basis, and provides you with a report of repairs performed to any given machine in your fleet of machines.
• "Voluntary Convenience".  You decide what type, number, and individual pieces of equipment you wish to cover under CEMP.  Your premium is determined by the equipment list you wish to protect.  You pay a flat premium; but you don't share the risk of frequent or costly repairs.  Instead of keeping track of many different maintenance agreements and paying many different bills, you pay one bill only.
• "Additional risks". The types of repairs that are covered under MAs are included in CEMP along with several added coverages.  Read the fine print and you'll find most MAs don't protect against failures caused by human error, power surges, and air conditioning failures.  CEMP covers these risks.
• "3 Ways to Savings".  All eligible equipment will receive a guaranteed 20% discount if it is medical, laboratory, or testing equipment, and a guaranteed 25% discount if it is office, communications, computers, and electronic equipment on the maintenance agreement you currently have.  Don't currently have a maintenance agreement?  Then the discounts come off of any current MA quote that you've obtained.  Finally, if you have highly specialized equipment that is ineligible under the "risk transfer" portion of the contract, they will still help you negotiate a lower cost contract, in which case SU only charges a percentage of realized savings that they help you obtain. 

Free competitive analysis and quote.  It costs nothing to see what savings you might realize and the administrative relief of dealing with just one vendor.  To get a free analysis and quote contact:

Specialty Underwriters
Jim Caughey, Senior Vice President
9667 S 20th St
Oak Creek, WI 53154
Phone: 800-558-9910 ext 2712
Fax: 414-281-1111
E-mail: jcaughey@SU-group.com
Web Page: http://www.su-group.com

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