|Schedule: 0% Transition Delays
Cost Impact: $3.5M guaranteed revenue generation per year
Vendor: Follett Higher Education
Location: Tempe, AZ
Start Date: May 2011
Duration: 10 Years
Campus Book Stores
The University turned to our group to outsource campus book store services. Although satisfied with their in-house operations, the University felt pressure to seek vendor expertise for long-term solutions due to rapidly evolving market conditions in the book industry.
Our group facilitated an RFI process to define market capabilities and identify current performance levels of in-house book store operations. A Best Value RFP was released, including an option for vendor-created cost model proposals. This innovative RFP approach resulted in an awarded contract which guaranteed the University minimum commissions of $3.5M per year, $2M in capital improvements, plus additional percent commissions. This was a huge financial success, especially when compared to the cost-based in-house model being utilized prior to outsourcing.
As the awarded vendor participated in the Best Value pre-planning process to seamlessly transition into full operation and management responsibilities before the start of the ensuing semester, all with 0% schedule impacts.