RFP’s and Sponsorship: Happy Marriage or Quickie Divorce? March 14, 2014.

RFP’s and Sponsorship:Happy Marriage or Quickie

Divorce?

March 14, 2014

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What does sponsorship mean relative to the RFP?

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What does sponsorship mean relative to the RFP?

• It doesn’t mean that you will pay more for

needed products

• It doesn’t mean that you will have

diminished service levels

• It should have no impact on the University

contract or Purchasing

• They are not buying a contract

• It’s not dirty (no shower required)

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What does sponsorship mean relative to the RFP?

• It does usually result in a new revenue source for your

university by leveraging your brand

• It will usually require an effort from Athletics, Alumni,

Communications & Marketing

• A separate sponsorship agreement will be executed

and only linked back to the supply contract in the event

of breach.

• Your President will think you are Superman or Wonder

Woman

• Be prepared - just like an addictive drug your President

will be easily hooked and will never be able to get it

often enough!

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Before You Begin

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Roadmap to SuccessCoordinate a central management process to protect the value of our University, access to our audiences and protect current university contracts – “One door in, one door out”

New policy in place through shared governance

Ensure the university is retaining maximum value for the business it does now or will do in the future with all vendorsDevelop a program that the university community will accept and embrace through shared profit & transparency

Work with Purchasing and outside counsel to access the RFP process the right way

Assemble a sponsorship review committee

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New Policy in Place1. All current or future sponsorship marketing agreements, inclusive of extensions and renewals

of grandfathered agreements, must be approved by OCM

2. OCM is the only department with authorized signatory authority on all sponsorship

agreements or marketing contracts --not individual units

3. Any agreement that provides marketing access to all students, all faculty, all staff, all alumni,

all visitors are only managed and executed by OCM & Purchasing.

4. If a unit identifies a prospective sponsor for a specific activity or asset, they must contact

OCM to gain approval and ultimately execution of the final agreement.

5. OCM will be present on any department-specific Request for Proposals where sponsorship or

marketing value could be a portion of agreement with the potential vendor, as determined by

OCM and the Department of Purchasing.

6. Anyone responsible for compliance of any type is responsible for notifying the Office of

Communications & Marketing of any prohibitions relative to sponsorship.

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Sponsorship Review Committee

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As part of the new sponsorship policy a sponsorship review committee has been assembled.

The committee will be responsible for:• Program oversight • Review of current and prospective sponsorship

agreements• Profit model and transparency • Management of campus inquiries

Each year the committee will prepare a report to be submitted to leadership.

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Sponsorship Review Committee

2014 members include: Dr. Bruce Kemelgore – Faculty Senate Executive CommitteeDr. Robert Goldstein – Vice Provost, Institutional ResearchSally Molsberger – Associate Director of Contracts & PurchasingDavid Martin – Director of Contracts & PurchasingJulianne Waldron – Director of Brand Marketing John Penny – Nelligan Sports Marketing (ad hoc)

• 1st meeting held March 5, 2014

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• Be sure your administration

is comfortable with the

proposed process

• Accurately outline the

proposed practice and

secure opinion from

Counsel

• Make necessary changes

per Counsel’s advice

Ensure Legality

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Request for Proposal

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We’re Really Doing This!

• This may move through

approvals quicker than

you anticipated

• You will have many people

watching

• Your administration will be

interested

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RFP Language

• Have conversations with

your vendors prior to

releasing the RFP

• The language should be

intentionally vague

• The ultimate proposal is

only the starting point for

negotiations

• Consider a pre-bid meeting

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• Short-list your vendors and schedule

presentations

• Vendor presents highlights of their proposal

• University then takes an opportunity to

highlight the value of sponsorship

• Sponsorship conversation should be led by

Brand Marketing not Purchasing

• University presentation should reflect effort

and be customized to the individual vendor

Vendor Presentations

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• Purchase contract and sponsorship contract

should be negotiated as separate contracts

• Purchasing should not negotiate the final

sponsorship contract

• Utilize your sports marketing organization for

activation of deliverables

• Reference the total financial commitment in the

University contract

• Sponsorship shouldn’t impact purchase contract

unless vendor breaches on sponsorship

Award Notification/Negotiation

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Does it work?

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• 2013 Contract w/Sponsorship• $3,000,000+

• 2008 Contract w/o Sponsorship• $400,000

• 2013 Contract represents $300,000 annually

in product savings compared to 2008 contract

• We are attempting to arrange C-level

OfficeMax leadership to speak at College of

Business

• Possible connections to philanthropic giving

Does it work?

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Does it work?

So far, it’s a happy marriage!

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Questions?