Learn how CSU campuses are overcoming adversity and saving money during the pandemic.
San Jose State University
In FY20/21 SJSU negotiated an advance commission payment of $1.5M to allow further liquidity to Spartan Shops, Inc. during the financial recovery period of the pandemic. The Contract Services department and internal leadership team worked together to build this new long-term relationship with their concessionaire.
SJSU conducted an extensive sourcing process to procure consulting services for a University-wide website migration project (Barkley REI – Website Migration). After a period of extensive negotiation between the University and the finalists, SJSU able to reduce the costs to the University by $865K.
San Francisco State University
During the pandemic, the SFSU procurement team was actively renegotiating existing contracts to help reduce costs. In one example, they renegotiated their contract with their food provider that required the campus to pay for 2,200 mandatory meal plans, regardless of the student residence population. By moving to an “at cost" model, the campus was able to save $5.5M. In another example, the procurement team renegotiated their residential network services contract with their provider resulting in savings of $1.0M.
San Diego State University
The SDSU procurement team conducted an RFP for LED Displays for both the Aztec Stadium and Campus. After an extensive proposal review and negotiations, the team selected their supplier resulting in savings $2.2M over the life of the contract.
The SDSU procurement team utilizes a number of available strategies when looking to award contracts to vendors. For example, they utilized Job Order Contracting (JOC) to find the right supplier for electrical and roofing construction projects. In addition to the process and time savings associated with this JOC procurement, these contracts resulted in savings of $188K.
Cal Poly Humboldt
Cal Poly Humboldt led the first CSU Systemwide Sponsorship Agreement. In collaboration with students, consultants, and both CSU and Auxiliary employees across multiple campuses, the team developed an RFP and awarded the resulting contract to outsource of various levels of dining services from the management of self-op programs to full outsource. The contract allows for flexibility to meet each campus' needs; for Cal Poly Humboldt, some of the highlights are: $7,000,000 unrestricted signing bonus; three paid internship positions and 75% of dining staff comprised of Humboldt students; $200,000 in annual scholarships; $50,000+ per year to student athletes; $100,000 per year to the student's food pantry, and many other benefits such as commissions and royalties.
Cal Poly San Luis Obispo
The Cal Poly procurement team is involved in many Public Works projects across their campus. Their involvement in a Collaborative Design-Build Services solicitation for the Freemont Hillside Restoration and Stabilization Project resulted in savings of $3.5M.
Cal Poly SLO issued an RFP for a new ticketing system for Athletics and Performing Arts. Procurement led an acquisition plan that was highly collaborative with the campus stakeholders. Relying on excellent experience, the procurement specialist negotiated directly with the supplier's attorney. Using time to their advantage, as well as sound negotiation tactics, a contract was finally agreed upon. The University obtained a top tier system, high levels of service and product features, and saved a total of $160K.
Negotiated new rates for Charter Air Service for Athletic Charter flights resulting in total savings of $223K.
Cal State Dominguez Hills
The CSUDH procurement team conducted a Collaborative Design-Build solicitation process for the Student Housing Phase IV and Dining Commons project. After an extensive and thorough selection process, the evaluation team awarded the contract, resulting in savings of $3.6M.
Cal State Monterey Bay
The procurement team issued an RFP to secure better pricing with their online MBA provider for the College of Extended Education. The team negotiated a revision to the pricing model from a revenue share to a fee for service model resulting in annual savings of $381K. This new contract also includes an Instructional Design credit of $200K to support the development of new programs added to this agreement.
The Chancellor's Office procurement team established a Master Enabling Agreement for an Enterprise Digital Signature platform. The contract has been adopted by over 20 campuses resulting in annual savings of $2M over the pricing from their competition. In addition to the transactional savings, the CSU is also benefiting from the automation of multiple processes requiring review and signatures. This contract has been critical during COVID and allowed our workforce to move to a hybrid environment without the need to come into the office to sign critical documents.
The Procurement Card program has been adopted by all campuses and is generating $2M per year in rebates that are returned to the campuses each year. The CSU contract has been adopted by the FCCC as well as other agencies and is considered an industry leading contract for returning value back to the institutions which adopt this contract.
At the start of the pandemic as campuses were beginning to seek various PPE products to protect students, faculty and staff, the Chancellor's Office worked to set up a program with Cal OES to provide certain PPE at no cost to the 23 CSU campuses. During the last 2 years, the CSU system received over $20M of PPE supplies at no cost. This significant “cost avoidance" allowed the campuses to purchase other critical supplies and support their operations.