December_28_2022_Board_Book.pdf — PaddleOCR-VL (Baidu)

The annual contracted budget below is a not to exceed number for the scope of work identified in Exhibit 2 Management Agreement.

Maximum First-Year Costs (Including Management Fee)

Category	Amount	Notes
Labor Cost	2,489,344.78	Payroll, payroll expenses, and taxes for Sodexo employees
Start-Up Costs	208,626.05	Site tagging, staff training, and SME account opening support for the first-year
Fixed Annual Costs	326,298.14	Insurance, Software Fees
Other Costs	44,515.49	PPE, Uniforms, Background/Drug Testing, Handhelds and Cell Phones
Maximum First-Year Costs: 3,068,784.46*

We believe an outsourced onsite solution is best for Kentucky State University. The benefits of this approach are:

An onsite provider increases productivity by eliminating 90% of the current subcontracted services.
Minimizing subcontracts eliminates out of scope discussions and supplemental billing
Sodexo's systems, processes and training can be implemented immediately by Sodexo's subject matter experts
Cross training employees provides an opportunity for Sodexo dining employees to augment the facilities staff in the summer. This helps to minimize overtime and temporary workers.
The ability to measure employee performance translates to a rapid culture change, leading to productivity improvements, and finally implementation of cost saving strategies.