CIC Agency, Inc. Maintenance Insurance Contract
Gerald Schaffer, Vice President for Administrative Affairs
The Purchasing Division is pleased to announce that a university contract for maintenance insurance has been awarded to CIC Agency Inc. The concept of maintenance insurance provides that for a pre-determined monthly fee, all preventive maintenance and repair costs for an item of equipment will be paid for by CIC Agency Inc. Initial estimates indicate that maintenance insurance can save a department between 15-30% of the current cost of maintaining and repairing equipment items. Departments may use the service provider of their choice and repair and maintenance costs will be billed to and paid by CIC Agency Inc. on a time and materials basis. Most types of equipment owned by the University can be insured in this manner, but CIC Agency Inc. reserves the right to review any repair above $5,000 prior to the work being done.
CIC Agency Inc. will be on campus in March to meet with interested divisions, centers and departments to explain how the maintenance insurance program will work. The Agency will provide you with premium quotes for equipment which you may currently have on maintenance contract. While equipment may be added or deleted from the insurance program at any time, the majority of our maintenance agreements end on June 30. These premium quotations should allow you sufficient lead time to make an informed decision as to the potential benefits of participating in the maintenance insurance program beginning July 1, 1996 or earlier if desired. The maintenance insurance contract with CIC Agency Inc. runs from March 1, 1996 through June 30, 1998 with the option to renew for two additional years.
Details regarding how a department will pay the monthly maintenance insurance premium have not been finalized. Your department will most likely establish one encumbrance, probably an ID, to pay the premium. The University will pay one invoice monthly to CIC Agency Inc. for the premium.
We will be contacting departments in the near future to begin a review of the maintenance insurance program. In the interim, if you desire further information or have any questions please contact Ms. Emily Hamby, Director of Purchasing at 392-1331.