|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.
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|Cost Savings: 15%
Contractor Change Orders: 0%
Schedule Delays: reduced to 5%
Satisfaction: 40% increase
Total # of projects: 1,115
Type: Furnishing services
Manufacturers: Knoll, Herman Miller, Steelcase
Location: Statewide in Arizona
Contract: $7,700,000 / annually
Start Date: July 2009
Finish Date: July 2012
Tri-University Furniture Consortium
The Tri-University Furniture Consortium of ASU, U of A, and NAU was experiencing unsatisfactory performance from their furniture providers. The consortium turned to our group to apply the Best Value Model for dealer selection, contract development, and contract management support for risk and performance measurement.
The results have been impressive. The Best Value approach challenged the traditional process of commodities contract procurement by evaluating the suppliers on their ability to identify and minimize risk. Dealers now monitor their project delivery performance on a weekly basis, in terms of cost and schedule deviations. The contract has saved the Universities approximately $2.9M, with 0% cost increases, and an overall 5% schedule delay over the past three years.
John Riley, Executive Director of Purchasing at Arizona State University | firstname.lastname@example.org
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Contract: $800 Million over 16 years
Start Date: July 2007
End Date: July 2023
University Dining Services
In 2006, Arizona State University utilized the Best Value process on an $800 Million procurement for campus wide food service. This not only was the largest project procured using the Best Value process, but was one of the largest food service contracts in University history.
The success of the contract has far exceeded expectations.
"The Best Value method literally took us through the process [of procuring the dining service contract] much more rapidly than we ever have done in the past. We’re talking weeks to do things that took months, and a couple months to do things that sometimes would've taken up to a year... I’m very grateful for the work that we're doing with Dr. Kashiwagi and the PBSRG." - Ray Jensen, Associate Vice President of Business Services [Retired]
The true value of the PBSRG's vendor selection process and risk management planning was put on display in 2007, when a fire broke out ASU's Memorial Union building, which houses the majority of the universities dining venues and student lounge and entertainment areas.
|Reduced 79% ►
John Riley, Associate VP of Business Services | John.Riley@asu.edu
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