Champions' Gate Sports Camp operates four consequective 8-week residen- tial training sessions for young athletes. Each sports camp session hosts 150 student athletes and 30 staff members at the Champions' Gate Sports Com- plex, which provides athletic facilities, classroom space, dormitories, and a picnic area. Unfortunately, what the Champions' Gate Sports Complex lacks is a commercial kitchen, so breakfast is limited to cold items that Champi- ons' Gate stocks in the dormitory refrigerators, while lunch and dinner are delivered fresh each day by an outside catering company. A spend analysis (shown below) of the nonpayroll operating costs of last year's camp season reveals outside catering to be both a substantial portion of overall spending and a high-risk purchasing category.

This year, Champions' Gate has budgeted $65 per person per day for outside cater- ing. This budget includes all student athletes and all staff for all four 8-week camp ses- sions. Champions' Gate's longtime catering company closed during its off-season, so a new company must be chosen for that contract. Champions' Gate has identified the six candidates, shown in the table below, with business locations no more than 50 miles from the Champions' Gate Sports Complex.

Proceeding with this information, Champions' Gate prepared a comprehensive invita- tion to tender, and received tenders from each of the six companies.

The food quality and delivery risk scores were awarded by Champions' Gate's resi- dent manager, who serves as the point of contact for outside catering. In the case of either score, higher numbers of points indicate a better score.

Questions 

1. Consider the purchasing categories in Champions' Gate's spend analysis. How would you chart each category within the supplier positioning matrix?

2. Where would each of the six candidate suppliers' views on Champions' Gate's contract be located within the supplier preferencing matrix?

3. Convert the bid information into a price score. Explain any assumptions you make. If Champions' Gate considers price, food quality, and delivery risk to be equally important to the contract decision, which company should be chosen for the out- side catering contract?

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Category Spend Analysis of Last Year's Operating Expenses Expense, Overall $ and Percent of Total (%) Risk Level of Category Sports equipment, including maintenance $750,000 (30%) High Accommodation supplies (laundry, $500,000 (20%) Low bedding, etc) Outside catering (buffet dinners and $375,000 (15%) High packed lunches) Facilities management, including contract $250,000 (10%) High janitorial and security services Communications and computing Utilities, including water Vehicles and transportation Other (20 items) $175,000 (7%) Low $125,000 (5%) Low $125,000 (5%) High $200,000 (8%) Low