Unique Vending and Pouring Rights RFP Lessons Learned Along The Way Keith Wassum, Associate Vice Chancellor, Business Services Ana Alvarez, Director, Auxiliary Services Rick Torres, University Program Manager, Auxiliary Services
UNC Charlotte Charlotte, North Carolina Founded in 1946 North Carolina's urban research institution 8 miles north of Uptown Charlotte Public university on 1,000-acre campus Approximately 75 buildings Center City Building (opened 2011) 27,238 students (Fall 2014) Compete in the NCAA Division I level and are members of Conference USA
UNC Charlotte 7 Colleges Colleges of Arts + Architecture Business Computing and Informatics Education Engineering Health and Human Services Liberal Arts & Sciences 165 Degree Programs 80 Bachelor's degree programs 64 Master's degree programs 21 Doctoral degree programs
UNC Charlotte
Business Affairs Auxiliary Services Vice Chancellor for Business Affairs Elizabeth A. Hardin Associate Vice Chancellor for Business Services Keith Wassum Director of Auxiliary Services Ana Alvarez Campus Card Services Bookstore Collegiate Licensing Reprographic Services Vending Services ATMs Dining Services Mail Services
Vending and Pouring Rights RFP Process Highlights Previous State (2010) Planning for the RFP Response Alternates Evaluation Criteria Results Lessons Learned Q & A
Previous State Auxiliary Services Agreements 1. Beverage Vending - Coca Cola Bottling Company Consolidated (50%) 2. Beverage Vending - Pepsi Bottling Company / Pepsi Bottling Ventures (50%) 3. Snack Vending - Canteen Vending (100%)
Previous State (continued) Athletic Department Agreements 1. Pepsi Bottling Company Sponsorship Pouring Rights and Signage Exclusivity - Dale Halton Arena 2. Coca Cola Bottling Company Consolidated Sponsorship Pouring Rights & Signage Exclusivity - Soccer, Track and Field, Tennis, Softball and Baseball Stadium
Planning for the RFP Planning begins with organizing & studying the current business state and defining the preferred future state. It is critical to involve key stakeholders and gain executive level support early on. Identified Key Stakeholders Business Affairs Auxiliary Services Student Affairs (Union) Athletics Current Food Service Partners Supported by Executive Staff Revenue Neutral
Planning for the RFP Considerations for Future State: Vending Exclusive versus non-exclusive Five versus ten year term Guaranteed commission structure In-kind donations Athletic needs Campus needs Expanded services and offerings Enhancements (dollar value)
Planning for the RFP (continued) Athletics Status quo or a holistic approach Launch of Football (sponsorship needs) Dining Services Major projects planned New dining hall New CRI campus café Current equipment inventory National Purchasing Agreements
Planning for the RFP (continued) Clearly Define Locations Cafés consider inclusion as a dining location C-Stores - consider majority allocation of shelf space to exclusive provider Athletics exclusivity specific to the facility Retail Dining and Board operations - exclusivity by food service area Level Playing Field
The Final RFP Beverage Vending Pouring Rights Snack Vending Office Coffee Service Annual Minimum Guaranteed Commissions 5 & 10 year term options with 5 year extension opportunity Program Enhancements to include In-Kind Donations (dollar value) Defined Athletics in-kind and sponsorship rights
The Final RFP (continued) Base Bid Response Required (vending only) Cold Beverage Juice* Water* Hot Beverage Snacks
Alternates A. Single provider for all campus vending services B. Exclusive rights to all campus beverage vending C. Exclusive campus beverage vending and pouring rights in Athletics (excludes Dining) D. Exclusive campus beverage vending and pouring rights in Dining (excludes Athletics) E. Exclusive campus vending and pouring rights in Dining and Athletics
Alternates (continued) F. 50% campus beverage vending and exclusive pouring rights in Athletics (excludes Dining) G. 50% campus beverage vending and exclusive pouring rights in Dining (excludes Athletics) H. 50% campus beverage vending and exclusive pouring rights in Dining and Athletics I. Exclusive pouring rights in Athletics only (vending placement in Athletics only)
Evaluation Score Card Financials (40%) Functional and Technical Approach (25%) Demonstrated Experience (20%) Product Approach (15%)
Criteria Section Value Company 1 Company 2 Company 3 Company 4 Confidence Level and Company Experience Section Total = 20% Expertise in providing service to college campuses; Clients past and present 0 to 5 Financial resources/stability, Social and legal responsibility 0 to 5 Vending BID Evaluation Matrix Scores Organizational structure/support staff 0 to 5 Marketing initiatives/the ability to maintain and increase business 0 to 5 Company Experience & Confidence Level Total 0 0 0 0 Product Approach Section Total = 15% Nationally recognized brands and regional favorites & variety of choices/falvors Incorporation of categories, i.e. Wellness, Functional, comfort foods, low calorie, organic, etc. 0 to 5 0 to 5 Flexibility 0 to 5 Appropriateness of product line for college-aged customers 0 to 5 Product Approach Total 0 0 0 0 Functional/Technical Approach Section Total = 25% Proposed route labor and schedule 0 to 5 Repairs and maintenance response 0 to 5 Age of equipment, Equipment design/type, Energy efficiency of equipment 0 to 5 49er Card equipment 0 to 5 Contractors Financial Approach Contractor's Functional Approach Total Section Total = 40% 0 0 0 0 Cost to customers 0 to 5 Commission paid to University 0 to 5 Financial Considerations 0 to 5 Total impact on the Campus Community 0 to 5 Financial Approach Total 0 0 0 0 Overall Score (Total possible pts = 80) 0 0 0 0 Weighted Final Score (Total possible pts = 20) 0 0 0 0 Name and Signature of Evaluator
Final Outcome Snack Vending Base bid 10 year term 5 year renewal option Up front enhancements Guaranteed minimum commission Office Coffee Service
Final Outcome (continued) Beverage Vending Alternate G 10 year term 5 year renewal option 50% Campus Beverage Vending Exclusive pouring rights in Dining areas Up to 60% C-Store shelf space Guaranteed minimum commission Annual Enhancement monies In-Kind (dollars)
Final Outcome (continued) Beverage Vending Alternate F 10 year term 5 years renewal option 50% Campus Beverage Vending Exclusive pouring/vending rights in Athletic Venues Guaranteed minimum commission Annual Enhancement monies for Athletics Sponsorship In-Kind (dollars)
Lessons Learned Defining locations C-Stores, Dining/Retail mix Signature drinks; franchise arrangements Specify equipment needs Bottle versus syrup Catering Sponsorship Buy-out exclusion
Keith Wassum Associate Vice Chancellor, Business Services knwassum@uncc.edu Ana Alvarez Director, Auxiliary Services ana.alvarez@uncc.edu Rick Torres University Program Manager, Auxiliary Services ricktorres@uncc.edu