SMS Audit Reportx

Metropolitan Nashville Airport Authority MEMORANDUM TO: Raul Regalado, President and CEO CC: Monty Burgess, Senior Vice President and COO Stan Van Ostran, Vice President and CFO Jim Graham, Director of Maintenance David Howard, Contract Services Coordinator Lynne Steck, Director of Purchasing and Inventory Management Amber Gooding, Director of Business Diversity Development FROM: Julie Zwicknagel, Internal Auditor DATE: September 8, 2008 SUBJ: Service Management Systems, Inc. Audit Report Background On October 1, 2004, Service Management Systems, Inc. (“SMS”) entered into a Cleaning and Custodial Services Contract with the Metropolitan Nashville Airport Authority (“Authority”). The Contract was for a period of three years with two additional one-year renewal options. The Authority would have the right to exercise the renewal options by providing the Contractor at least sixty days written notice prior to the expiration of the original term or any renewal term. The Authority agreed to pay SMS for the performance of cleaning and custodial services, glass/window cleaning, and miscellaneous maintenance services (“cleaning services”), as detailed below. Contract Period AmountYear 1 (Oct 04 - Sept 05) $1,745,686Year 2 (Oct 05 - Sept 06) 1,798,057Year 3 (Oct 06 - Sept 07) 1,860,989Renewal Option #1 (Oct 07 - Sept 08) 1,916,818Renewal Option #2 (Oct 08 - ...