April 4, 2008

The University of Minnesota is recommending its Board of Regents approve four contracts awarding 10- and 12-year contracts for food and beverage service for several of its campuses.

“These new contracts are designed to enhance healthy food and beverage options, sustainability and customer service,” said Associate Vice President of University Services Laurie Scheich. “To maximize the benefits for our students and the entire university system, we’ve used an inclusive, competitive, single-enterprise approach to these contracts.”

The recommendations, which are worth $696 million over the next decade, are a result of a lengthy process that involved the active engagement of more than 120 University of Minnesota students, faculty and staff.

The contracts include the following:

• Aramark – 12-year, $616 million contract to provide dining services on the Twin Cities campus. Estimated $96 million value to the university.
  
• Sodexo – 10-year, $36 million contract to provide dining services on the Crookston and Morris campuses. Estimated $7 million value to the university.
  
• Taher, a Minnesota-based company – 10-year, $8.9 million contract to provide non-beverage vending services on the Morris, Rochester and Twin Cities campuses. Estimated $2.7 million value to the university. Includes new provision requiring 25 percent of food options be healthy.
  
• Coca-Cola – 10-year, $35 million contract to provide beverage service to all university campuses. Estimated $38 million value to the university. Includes stronger corporate responsibility clause.

“Over the past decade, the university’s contracts for food and beverage service have improved customer choice and satisfaction as well as provided millions of dollars to support student services and our academic mission,” said Scheich. “These new agreements are focused on healthy options, customer service and continuing our commitment to sustainability and encouraging socially responsible business practices.”

The University of Minnesota issued a comprehensive RFP for its campus food and beverage requirements on the Twin Cities campus and designated coordinate campuses. Contract start date for most components will be July 1, 2008.

President Bruininks has appointed an Executive Steering Committee to direct and lead the food and beverage RFP process, determine policy issues, and review and approve the final RFP document.

Members of the Executive Committee are:

• Kathleen O’Brien, Vice President, University Services, Co-Chair
• Richard Pfutzenreuter, Vice President and CFO, Co-Chair
• Kathryn Brown, Vice President and Chief of Staff
• Robert Jones, Senior Vice President, System Administration
• Tom Sullivan, Senior Vice President and Provost
• Laurie Scheich, Associate Vice President, Auxiliary Services
• Murray Harber, Manager, U Plan Wellness Program
• Staff to Committee:
  • Leslie Bowman, Contract Administration - UDS
  • Mike Berthelsen, Interim AVP Facilities Management

Kathleen O’Brien and Richard Pfutzenreuter appointed an Advisory Committee.

The Advisory Committee will facilitate and oversee the development of the University’s comprehensive food and beverage RFP. The Advisory Committee will work closely with a number of designated work groups to identify the University’s food and beverage requirements, oversee the process for developing the associated RFP, and develop RFP evaluation criteria. The Advisory Committee will also review the final RFP evaluations and make award recommendations to the Food & Beverage Executive Steering Committee.

Members of the Advisory Committee are:

• Leslie Bowman, Director, UDS - Contract Administration, Co-Chair
• Mike Berthelsen, Assistant Vice President, U Services Finance, Co-Chair
• Gerald Rinehart, Vice Provost, Student Affairs
• Arnie Frishman, Office of the General Council
• Patti Dion, Director, Human Resources
• Karen Triplett, Director, Purchasing Services
• Steve Baker, Director, Communication Services
• Joel Maturi, Director, Intercollegiate Athletics
• Gregory Fox, Vice Chancellor, UMD & Coordinate Campus Representative
• Marvin Marshak, Faculty Representative
• Bethany Khan, Student Representative
• Staff to Committee:
  • Brea Lambert, Auxiliary Services
  • Jerry Taintor, Purchasing

The Advisory Committee is in the process of setting up several work groups that will develop the separate components of the RFP. Examples of the work groups include, but are not limited to, Catering, Retail, Vending, Beverages, Coordinate Campuses, Athletics, etc.

If you have questions or comments regarding this information, please contact Jerry Taintor in University Purchasing at (taint001@umn.edu).