Transcription
AFTERNOONPRESENTATIONS
Food Service Contracts-USG Business Procedures Manual UpdateJim BarnabyUSG Strategic Sourcing DirectorContact: jim.Barnaby@usg.eduor phone 404-962-3204
Background: As a result of the system’s experience with the pooleddining RFP (Dec 2015) and the results of the KSU special auxiliaryreview (May 2016), the system initiated a review of 9 institutionaldining contracts with the goal of assessing whether the currentpractices related to dining contracts were sufficiently designed toensure: Affordability for studentsFiscal sustainability of Dining AuxiliariesState law and accounting complianceCompliance with IRS rules related to tax-exempt bonds
Contract review results found several Institutionswere using meal plans to subsidize: Grants Scholarships Complimentary Meals Catering Allowances*We also found that allowances for capitalimprovements funded by dining charges neededgreater oversight.
Guidelines: The new business procedures require that diningand catering service must be structured with studentaffordability and operational efficiency as essential criteriafor successful suppliers and to enable a self-sustaining diningauxiliary.Other requirements include:
Elimination of required funding for grants, scholarships, and complimentarymeals.Limits on catering allowances.Improved oversight of capital improvements paid for with dining revenue.System involvement in procurement of dining and catering services.Inclusion of performance measures for vendor compensation.Enhanced compliance with tax-exempt bond rules applicable to dining facilities(Qualified Management Agreements).Requirement to receive fixed cost proposals to enhance transparency.Limits on institutional commissions.
Business Procedures ManualLocated at:http://www.usg.edu/business procedures manual/(Chapter 3.4.2 Dining & Catering Contracts)
Dining & Catering Contracts New Procedure effective July 1, 2017 Institutions must be in compliance by July 1, 2019*Institutions with contracts that are not fully compliant withthese procedures must obtain any required amendments totheir existing contracts or conduct a new procurement forservices beginning no later than July 1, 2019.
Financial Model
Supplier’s Cost Proposals Must be a fixed cost basis (Per meal or plan) or feebased. Institutions may reasonably add to the supplier’sfixed costs to cover overhead. If commissions are to be paid by the supplier, therate must be based on all gross sales, includingretail and catering sales, and may be variable basedon sales volume.
Affordability and Efficiency Dining and catering services must be structured withstudent affordability and operational efficiency. Institutions must be able to demonstrate thatoverhead costs, including the administration of diningdollars, are reasonable and comparable to peerinstitutions.
Self-LiquidatingDining and catering contracts should be structured toenable a self-liquidating dining auxiliary, reserve balancessufficient to meet reserve requirements for lease financingsand unique institutional needs as outlined in the 5 yeardining auxiliary business plan, and to fulfill any leasepayment obligations reliant upon dining revenues.
Performance Management Supplier compensation must include a performancecomponent and should be measured using campusdesigned performance measures or indicators thatreflect customer satisfaction. Suggest adding Key Performance Indicators (KPI’s) as ascored question within the RFP.
Qualified Management Agreements All RFPs must require that vendors certify their proposal is a QualifiedManagement Agreement in accordance with IRS Rev Proc. 2017-13. Sample RFP Language: “the service provider agree that it is not entitledto and will not take any tax position that is inconsistent with being aservice provider with respect to the managed property in accordancewith IRS Rev Proc 2017-13.” Meal Plans and Retail Operation are on a unit cost basis. (Sample costworksheet available for RFPs)*Opinion of bond counsel must be obtained prior to execution of thecontract.
Pricing No Guarantees or Minimums Non-student pricing (faculty, staff) must be equalto or more than Student pricing Mandatory Meal Plans for Residents will receivemore scrutiny during rate setting process No mandatory commuter meal plans allows Dining Dollars permitted but must be fairly pricedand balances refunded when student seperates
Catering Services Research and comprehensive institutions: 85,000 State universities: 70,000 State colleges: 55,000*Contracts shall allow for unused balances to rollover tosubsequent years.(Managed under the direction of the Institution’s CBO)
Capital Improvements Request for Proposals for Dining and Catering Servicesthat include a total capital allowance in excess of theinstitution’s delegated project authorization level mustundergo facilities integrated review prior to initiation ofproject. This requirement applies to the total capital allowanceregardless of the size of the individual projects.
Capital Reserves Institutions must fully reserve any amount of capitalallowance utilized if the contract requires the repaymentof unamortized balances in the event of non-renewal. These reserve balances are in addition to any amountsheld in a repair and replacement reserve. Institutions must reflect these reserves in account329200 Reserve for Deferred Gift Revenue from AuxiliaryVendor (Unrestricted).
Notification Institutions must provide notice of intent to proceedwith a dining and catering services Request forProposal to the BOR Strategic Sourcing Director atleast 90 days prior to submission to the Departmentof Administrative Services.Variances Any variances from these procedures must be preapproved by the USG Chief Fiscal Officer.
USG Enabling Contract7 institutions for FY 2018Small enough to care big enough tomake a difference.Devon Bice HiltonVice President of Business DevelopmentCell: 601.937.0122devon.hilton@elior-na.com
Other USG Updates: USG Business Procedures Manual (Purchasing & Contracts). SAO Disbursement and Purchasing Policy Update (Purchases 2,500.00 & ov/files/related files/site page/BP Statewide Purchase Order Policy final.pdf USG Comprehensive Administrative Review RFP- Awarded to Huron Consulting GroupPeopleSoft Contracts (Coming Soon).Amazon Marketplace Punch-out/ Book Selling Terms & Conditions Update.Food Service and Housing Template due to BOR by October 15, 2017
Questions?
Thank You!
2017 Benchmarking Studyfor theAuxiliary Services Council of GeorgiaJanine Vienna, Ph.D.Director-Unit Plan and AssessmentCampus Services, Georgia Institute of Technology7
Noel Moreno and Don BronsonInformation Technology Group
Participating Institutions-HistoricalParticipating Institutions2010 2011 2012 2013 2014 2015 2016 2017Augusta University*XXClayton State UniversityXXXXXXXXCollege of Coastal GeorgiaXXColumbus State UniversityXXXXXXXXDalton State CollegeXEmory UniversityXXXXXXXGeorgia College & State UniversityXXXXXXXGeorgia Gwinnett CollegeXXXXGeorgia Health Sciences University*XGeorgia HighlandsXXXGeorgia Institute of TechnologyXXXXXXXXGeorgia Southern UniversityXXXXXXXXGeorgia SouthwesternXGeorgia State University**XXXXGordon State CollegeXXXXKennesaw State UniversityXXXXXXXXMercer UniversityXMiddle Georgia State UniversityXXPerimeter College-Georgia StateXXXXXSavannah State UniversityXXXXXXXXSouthern Polytechnic State UniversityXXUniversity of GeorgiaXXXXXXXXUniversity of North GeorgiaXUniversity of West GeorgiaXXXXXXValdosta State UniversityXXXXXXXTotal1010171917141613*Merged 2012** Consolidated 2013
For Today New for 2017 Data Observations Data Visualization Accessing the Data Process Improvements
New for 2017 Parking Numberof revenue spaces Permitssold Permitprices* Revenue and expensesComparison with select institutions Headertab “COMPARE” Available Yourfor bookstore, dining, vending, c-storesschool plus one to four “peers” Averageline graph peers only*PowerPoint only
Data Observations Generalizations Results influenced by Number Inof institutions participatingwhat year(s) the institutions participated Completeness of data submitted by the institutionHistorical data not available for all years, for allinstitutions Participatinginstitution list changes in data viz
BOOKSTORES
OperatorsSelf-Operated6432017
Digital Course MaterialsAccessories and ApparelComputer HardwareNon-Course MaterialsRevenue(2014*2017)Course MaterialsNew TextbooksCustom Course MaterialsGraduation* 2014 data collection change
Course Vs. Non-Course 2012201320142017
Primary Competition Online retailers Amazon Chegg ValoreBooks Ebay (redirect from Half.com) Publishers
DINING
APPETIT12017
Voluntary PlansFranchises and RestaurantsRevenue per StudentRevenue(2014*2017)Mandatory PlansDeclining Balance Only Plans*2014 data collectionchange
2017 Meal Plan Costs per MealTraditional-Top 10 Most ExpensiveInstitutionPlan NameCostSavannah StateReduced Meal Plan 9.06Clayton StateSilver 8.91Georgia College & State University100 Block 8.86Georgia College & State University150 Block 8.83Georgia College & State University12 Meals/Wk 8.43Georgia College & State University14 Meals/Wk 8.12Savannah State10 Meals/Wk Plus DD 8.06University of West GeorgiaBudget 7.90University of West GeorgiaPup 7.77Emory UniversityA 7.61([Gross Plan Price] – [Declining Balance Included]) / ([Meals per Week] * [Weeks in Semester])2017
2017 Meal Plan Costs per MealBlock-Top 10 Most ExpensiveInstitutionPlan NameCostEmory UniversityB 12.78Emory UniversityC 11.71Georgia TechGreek 100 11.67Georgia TechMeal Pass 75 11.36Georgia TechMeal Pass 125 10.60Kennesaw StateBlock 20 300DD 9.45Kennesaw StateBlock 25 9.40University of GeorgiaCommuter 65 plus 300 9.20University of GeorgiaCommuter 80 plus 255 9.20University of GeorgiaCommuter 80 plus 665 9.20([Gross Plan Price] – [Declining Balance Included]) / ([Meals per Semester])2017
# of FranchisesAll Years
Revenue by FranchiseAll Years
C–STORES
Revenue by School Trends (2011-2017*)Columbus StateEmory UniversityGeorgia College and State UniversityGeorgia SouthernGeorgia TechKennesaw State2017 TotalC-Stores Sales 6,169,403University of GeorgiaUniversity of West GeorgiaValdosta State*For institutions with 2017 data
Revenue by Sales/Student Trends (2011-2017*)Columbus StateEmory UniversityGeorgia College and State UniversityGeorgia SouthernGeorgia TechKennesaw StateUniversity of GeorgiaUniversity of West GeorgiaValdosta State*For institutions with 2017 data
Best Sellers
VENDING
Percent of Revenue by Vend 201610%0%50%BeveragesSnacksOther11%2017
Revenue by School Trends (2011-2017*)Clayton StateColumbus StateGeorgia College and State UniversityGeorgia SouthernGeorgia TechKennesaw StateMiddle GeorgiaSavannah StateUniversity of GeorgiaUniversity of West GeorgiaValdosta State*For institutions with 2017 data
# of Machines by VendTypeBEVERAGES978SNACKSOTHER6113712017
PAR K I N G
Spaces/Permit Pricing 87,284 Revenue generating spaces Automobile Annual PermitsInstitution*StudentsFacultyStaffGeorgia Tech 795 795 795Kennesaw 357 276 276West Georgia 228 15 15Georgia Southern 160 100 100Georgia C&SU 75 120 120Savannah State 50 85 85Valdosta 50 75 75Middle Georgia 20 Augusta State 300000 300UGA-Lot ColorRed 480Blue 360Yellow 240
Permits Sold80%70%60%50%40%30%20%10%0%75%11%9%4%20171%1%
Permits 0000SpacesSold2017
Revenue iscellaneousCitations2017Special EventsMeters
Expense 5%4%3%20172%2%1%1%1%
Revenue/Expenses 45,000,000 40,000,000 38,897,294 35,000,000 27,777,768 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0RevenueExpenses2017
DATAV I S UALI ZATI O N
12Select up tofourcomparisoninstitutions345Query onselectedcategories
Accessing the Data Available at: http://ascog.campusservices.gatech.edu Click on View 2017 Survey Results No time limitations
Process Improvements Simplify the data fields and navigation process Include a spreadsheet with initial participation request Retain parking data? Ifyes, add option to report revenue by lot or color (v. purchaser type) Limit population to exclude online-only students for some per capita data? Special topics for 2018? Submit additional data/edits to Janine Send suggestions to Janine (janine.vienna@gatech.edu)
?
A Taleof Two CitiesCompetitorsIt was the best of times, it was the worst of times, itwas the age of wisdom, it was the age of foolishness . . .
It was the best of times . . .GC was a Coke exclusive campus all was wellIt was the worst of times . . .GC was required to put out an RFP for beveragesIt was the age of wisdom. . .RFP was so cleverly developed to ensure exclusivenessIt was the age of foolishness. . .Incumbent vendor misjudged the fortitude of its competitor
EquitySame number ofmachines or fountainsSplit sideline supportvs.ParitySales OpportunitiesCompete forexclusive sidelinesupport
Prosvs.ConsMore ChoiceDouble AccountingCompetitive MarketMaintaining Balance
What did we learn?
SELLING MORE INCOLLEGEBOOKS TORESL E A H A N TO N I A Z Z IS TO R E D I R E C TO R – B A R N E S & N O B L E @ G T
10.7 million dollar operation 50,000 sq ft retail space Satellite location in Student Center Responsible for football, basketball andbaseball merchandise concessions Licensed Starbucks location Apple Authorized Computer Store andService Center
College Insights 770 ReportLISTENLEARNACT
DRIVING REVENUEWhat does that mean to you?
IN WHAT WAYS HAVE YOU USED THECAMPUS BOOKSTORE IN THE PAST 6MONTHS?Visted the bookstore in person92%Visted the bookstore website71%Visited the bookstore on social media7%Emailed the bookstore7%Called the bookstoreUsed the bookstore appNone of these21%11%1%
CAMPUS SERVICES FASET EXPOVIP NIGHTDESTRESS FEST
Competing in an Aggressive Textbook MarketThis semester did you have all of your coursematerials/textbooks on your first day of class?YesNo
FY 18FY17 (FULL YEAR)NEW STUDENTCONNECTIONPA R T I C I PAT I O NLEVELSNEW STUDENTCONNECTIONSIGN UPSNEW STUDENTCONNECTIONPA R T I C I PAT I O N SLEVELSNEW STUDENTCONNECTIONSIGN UPSOPENR AT ECLICKR AT EUNSUBSCRIBER AT EREVENUEAUTO ENROLL6244AUTO ENROLL6045204.31%9.68%0.18% 154,436.39IGNITING THE NEW STUDENT & PARENT CONNECTION
*Price Match YTD is 231 units.*Average discount: 17*Total dollars discounted: 3,919*Discount percent average: 16%PRICE MATCH
Increased marketing around Bursar billing toinclude website banners, hero shots and in-storesignage. Fall Bursar Billing: 271,271 increase of 67,209 Spring Bursar Billing: 95,444 increase of 27,184 Student Savings FY17 470,436 14.8% Textbooks sales increased in by 24% for total of 516,424BURSAR BILLING &INCREASING THEADOPTIONAdoptions
Apparel/SchoolSpirit Clothing11%0%26%20%40%Have Purchased62%60%80%What reason have you purchased school supplies at the bookstore? 56% Convenience 55% item was what I was looking forWhy haven’t you purchased school supplies at the bookstore? 47% Already purchased school supplies 27% I prefer shopping at a different storeSchool SuppliesBrowsed No PurchaseNot Browsed or PurchasedWhat was the reason you purchased apparel at the bookstore? 60% purchased to support school 51% store promotion/saleWhy haven’t you purchased apparel at the bookstore? 38% type of purchase isn’t in my budget 27% haven’t needed apparelConvenience Items0%10%23%20%38%39%30%40%Have PurchasedBrowsed No PurchaseNot Browsed or Purchased50%65%13% 22%0%20%40%60%Have PurchasedBrowsed No PurchaseNot Browsed or PurchasedWhat reason have you purchased convenience (candy, snacks, soda)at the bookstore? 63% Convenience 51% unplanned/impulse purchaseWhy haven’t you purchased convenience at the bookstore? 52% Wasn’t hungry/didn’t need anything 22% Not a product I purchase80%
Margin Building Product & UpsellingValue Notebooksweek of class sales528 units 1573 (1subject)355 units 1767 (3 subject)Margin – 59.9%1stHatsLegacy EZA – Wordmark GTNavy #11001 units 22,00152% marginWhite #2 - Wordmark GT580 units 12,748Margin – 53%MugsMCM ColorMax 12.98RFSJ Matte Diner 14.98829 Units 12,418Margin 58%Cancun Medallion 17.98Cat Studio - GT and StatesPillow – 11 units 1738Dish Towel –51 units 1020Glass – sold 129 2096State glasses 277 units 4085State dish towels 144 units 2880TOTAL SALES 712 UNITS/ 13,445
Promotions and Customization - A KEY to our success
Questions
Emory University B 12.78 Emory University C 11.71 Georgia Tech Greek 100 11.67 Georgia Tech Meal Pass 75 11.36 Georgia Tech Meal Pass 125 10.60 Kennesaw State Block 20 300DD 9.45 Kennesaw State Block 25 9.40 University of Georgia Commuter 65 plus 300 9.20 University of Georgia Commuter 80 plus 255 9.20 University of Georgia .
