Verizon Contract & USIC /SM&P/CLS

Chicagoman · December 22nd, 2008, 12:21 PM

It has been said that USIC will NOT underbid a contract just to win a contract. So It is my opinion we will not get the Verizon contract. Verizon is out to cut cost. So there are looking for a great deal. I hope that other Contract locating Company take the same attitude towards there bids.

**AULupstate** · December 22nd, 2008, 05:53 PM

So by that logic is USIC planning on going bankrupt and chapter 13????

**underground quester** · December 22nd, 2008, 07:03 PM

Interesting.

I was wondering when the U.S. locating companies would start to stand up and say enough is enough. It should not be a race to the bottom to see which locating company can give their services away the cheapest.

Maybe if VeriZon had no one bid, they would start to see the "actual Value" that contract locate companies really do provide. Not really a chance of that though I would suspect.

JMHO.

**beyond help** · December 22nd, 2008, 07:37 PM

We already lost a portion of our electric contract here due to being underbid.

**2RUDE** · December 22nd, 2008, 09:23 PM

Originally Posted by beyond help

We already lost a portion of our electric contract here due to being underbid.

We just lost one of our major electric contracts as well. Seems Premier is underbidding in an effort to snatch up all the contracts.

USIC really needs to get on the ball with their marketing.... Even if they're not going to actively pursue getting new contracts, it's germaine that they hang onto the existing ones.

Chicagoman · December 22nd, 2008, 10:42 PM

Originally Posted by AULupstate

So by that logic is USIC planning on going bankrupt and chapter 13????

Soooo under bidding a contract will keep you from going bankrupt? Hows that work???

**beyond help** · December 23rd, 2008, 04:10 AM

Originally Posted by Chicagoman

Soooo under bidding a contract will keep you from going bankrupt? Hows that work???

what will happen is that USIC will not go lower than a certain price. No ifs, ands, or buts. We provide a quality ratio that no one else is going to touch (at least in most areas). After a couple years of taking an assbeating (and the other locating company goes bankrupt i.e. Imark), they will come back at a normal price. I have seen this many times, in multiple districts.

**AULupstate** · December 23rd, 2008, 05:57 AM

Why do you think 'PRODUCTION' is the biggest thing on Companies lists that you her every day? Someone figued out that because a contract was bid so low the 'Locator' has to do x amount to turn a profit. They can preach safety and accuracy all they want but that is the smoke and mirrors part of the speach. 4 Way, 5 Way locates (accurate) in under ten minutes per stop? It's a odds game. That is common knowledge.
Throw the pure overhead a company of USIC's size and that statement becomes mute at best. If in fact that is truly the route they want to take then expect layoffs and firings because the workload will not be able to justify the staffing they already have. Then spring will come and work will skyrocket and everyone will be 'surprised' and act like it's the first time it has happened where they are short staffed and need to hire and train.
It's about maximizing profitability. Bid high on new contracts (if they get them great if not oh well) Keep a core of steady contracts that generate revenue. Begin to cut cost where you loose the most money in different markets (Personel and equipment in slower markets).
I'm not trying to stir up anything here but that's the motto of a big business like that.

**Throttle jockey** · December 23rd, 2008, 09:10 AM

Please, no one bid on the Verizon, That way I can keep my job.

But you are correct. It's all about production. In my area we have a 160 mile water project with 500+ meters. This is the first time in 12 years that I'm getting overtime in Nov. Dec., and Jan. all the way to March. And what ever company gets it will be hammered right out of the gate. With damages (on the contractor) and only on 3 Joint Meet tickets. So far 2 guys have been averaging 30 to 40 hours a week all the way from June. You can't make much money with a 1 ticket price. And thats not including what they are going to do in "09".

Stay tuned. I have to go lay some orange down.

**GWJ_CAS** · December 23rd, 2008, 10:10 AM

Originally Posted by beyond help

We provide a quality ratio that no one else is going to touch (at least in most areas).

Really? I have seen USIC's "Quality Ratio" in a couple of recent bids, it isn't as great as you make it sound, in fact it is not great at all. We smoke USIC's "quality ratio" as did two other companies involved in a recent bid (5 total bidders). It ended up the same way as it usually does, the Owner said they wanted quality over price but price won in the end. When USIC bids $2.08 per ticket lower than the top quality rated company...the Owner says "screw it, we'll take the low price, who cares, the liability is on them anyway"...

Owners are loving the idea that they can get locates done for under $6 a ticket, hell I know one area where the world's largest locate company is doing 1 mile power tickets for $5.30...I bet there's a lot of focus on quality there...

**big boots mcghee** · December 23rd, 2008, 01:20 PM

Oh, to be a fly on the wall during contract negotiations.....that'd be nice.

I'm not sure what USIC's quality ratio is in my market. I'd be curious to know if they're trending in the right direction. They pushed hard out here with their quality over quantity talk when we merged back in July, and they were prepared to eat a few damages the first few weeks as we forged ahead. I don't know how things are elsewhere in the Illinois market but I don't think our quality is all that good out here. That's why we're already hearing talk of being more efficient, which is code for being more productive, during our slow winter season. But then I blame my management team for not following through on the whole "hiring and keeping quality locators who do quality locates" thing. Because they didn't do that I anticipate being more productive next dig season to earn them their money as opposed to doing a quality locate and just not having to spend money on any damages.

Chicagoman · December 23rd, 2008, 02:13 PM

Originally Posted by big boots mcghee

Oh, to be a fly on the wall during contract negotiations.....that'd be nice.

I'm not sure what USIC's quality ratio is in my market. I'd be curious to know if they're trending in the right direction. They pushed hard out here with their quality over quantity talk when we merged back in July, and they were prepared to eat a few damages the first few weeks as we forged ahead. I don't know how things are elsewhere in the Illinois market but I don't think our quality is all that good out here. That's why we're already hearing talk of being more efficient, which is code for being more productive, during our slow winter season. But then I blame my management team for not following through on the whole "hiring and keeping quality locators who do quality locates" thing. Because they didn't do that I anticipate being more productive next dig season to earn them their money as opposed to doing a quality locate and just not having to spend money on any damages.

Oh I agree with the statement about hiring and keeping quality locators. plus train them fast and send to the wolfs with no back up from the Supervisors We here all the time call your Supervisor. I hate calling my Supervisor It is such a waste of time. And dont dare call your DM You are a locator you are not worthy of the DM help!!!! But if you have a damage of any kind there will drive there Gas hod SUV to meet at the job site to chew a loacator ass. I have seen DM'S come and go we have had five in the last six years.
Happy Holidays my fellow locator's

**AULupstate** · December 23rd, 2008, 05:52 PM

Well what the hell would a DM be able to help you with anyway??? They came from UPS or Fed Ex and watched a 15 minute video on locating! What would they know????

Chicagoman · December 23rd, 2008, 06:23 PM

Originally Posted by AULupstate

Well what the hell would a DM be able to help you with anyway??? They came from UPS or Fed Ex and watched a 15 minute video on locating! What would they know????

You have a good point on the DM

**sprayandpray** · December 23rd, 2008, 08:13 PM

I'm not sure what the rest of USIC runs but my group stays at about 1 in 5400. If we ever get fully staffed I can see a 1 in 7500 Ratio for the long term. As far as contracts I believe we guarantee ATT about 1 in 2500 which seems to satisfy them.I personally run around 1 in 17,000. However, that doesn't get me anything extra.