CUC board OKs cancellation of call center contract

The Commonwealth Utilities Corp.’s contract with a private telecommunications firm is expected to end anytime soon following its board’s decision to terminate the existing contract.

The CUC board adopted the recommendation of the special task force that looked into the current customer service performance of the utilities corporation. This task force was headed by board member Chris Concepcion.

CUC board chair David Sablan ordered an assessment on the effectiveness of customer service at the agency in April this year. Two months after the task force did its job, a decision was made to cancel the existing contract for the service.

CUC inked a two-year agreement early last year with IT&E to handle the agency’s call center service at a cost of $180,000 per year. The goal then was to improve customer service and access to CUC departments, through 24/7 call center services. Since then, all calls made to CUC were answered by a live operator, and either handled directly or connected to the appropriate CUC employee.

Saipan Tribune learned that IT&E’s contract is expiring on Nov. 28 this year. Under the agreement, the parties have the option to renew the contract for another year. The contract provides a 90-day notice of nonrenewal or termination.

Based on CUC’s records, IT&E handled over 7,000 calls for CUC each month. The service is being provided by about seven to eight people working 24 hours. Sixty percent of the calls come in during business hours, while 40 percent are received during nighttime.

It was earlier disclosed that CUC pay IT&E $15,000 a month for this service—a cost that the board now says would be less if CUC uses its own personnel.

CUC board chair Sablan said yesterday that the contract’s termination will mean putting back in-house personnel to do the work.

It was disclosed that CUC, which will provide training to its own personnel, will also procure the equipment needed for the service, which is expected to reach $61,800.

“It’s one-time fee for CUC versus the $180,000 per year [paid to IT&E],” Sablan said, adding that final date of termination will be based on the determination of the management, or after completion of the transition process.

Sablan pointed out that having their own people to assist customers will put more value on CUC services besides the cost savings and efficiency it will bring to the corporation. He said bringing the service back to the in-house staff would win back the confidence of CUC clients.

According to him, the creation of the task forces was aimed at instilling “consistency” in the CUC services to meet the satisfaction of its customers.

In yesterday’s board meeting, CUC executive director Alan Fletcher emphasized that IT&E has done a good job and fulfilled everything in the contract.