Project Case Studies

Vendor-Generated Solution Maximizes Cost Model

Schedule: 0% Transition Delays
Cost Impact: $3.5M guaranteed revenue generation per year

 

Type: Services

Vendor:  Follett Higher Education

Location: Tempe, AZ

 

Contract: $35,000,000

 

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.

REFERENCE:  Sam Wheeler,  Executive Director of Business Services | sam.wheeler@asu.edu

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