Strategic Sourcing Case Study

Assessments Worksheet

Overview

The strategic sourcing case study is a hands-on activity where students apply analytical, planning, and decision-making skills to develop a strategic sourcing process for long-term facility management service agreements at the Red River College campuses.

Develop tactics that support strategic sourcing to align to the overall strategy of the organization.

Conduct public procurement to comply with the Canadian competitive bidding law.

Complete Spend Analysis to gain insights that improve financials.

Apply cost and price analysis to use in procurement decision.

Provide an estimate for how long it should take students to complete the assessment.

8-10 hours

You will be assessed on your achievement of the following course learning outcomes:

LO3, LO4, LO5, LO6, LO9, & LO12

Instructions

• You will work in a cross-functional team of 5 or 6 members to develop a complete strategic sourcing plan with an RFP for the assigned facility management service.

• Each group member will take on different roles in the team to brainstorm, analyze, and develop specific components of the strategic sourcing plan and RFP documents as further detailed in the responsibility matrix.

Details for the Assignment

The Red River College is a public multi-campus college, funded by the government, private donations and internal revenue generated from academic programs. The college has 2 main Winnipeg location campus, the Notre Dame Campus and the Exchange District.

1. The Notre Dame Campus comprise of the 100,00 sq ft Skilled Trade & Technology Center that hosts administrative buildings, sporting facilities, lecture halls, parking facilities technology and innovation labs such as the newly completed Innovation Center at the Roblin Center.

(2) The Exchange District - this urban campus consists of the newly completed Innovation Center, a total of 80,000 square feet on multiple locations, where academic programs, social events, research, and community activities take place all year-round.

The Red River College is embarking on the strategic sourcing of several services that have been identified for outsourcing and seeks to save money and improve services while accomplishing the sustainability goals of the college through this strategic initiative.

Facility Management Service Contracts

Several multi-year service contracts will replace the current service agreements at the Red River College Winnipeg based campus facilities to sustain the Red River College's commitment to sustainability amongst other objectives.

You have been appointed the role of a Procurement Manager at the Red River College. As part of your onboarding and tour of the facilities, you were briefed by the Facility Manager about the several 5-year term contracts for facility management services of the Winnipeg location campus, that comprise of the Notre Dame, Exchange District Campus, Roblin Center, and the Patterson GlobalFoods Institute. The contracts were awarded 3.5 years ago at $450k-900k each.

The Facility Manager further emphasized the need to start planning the renewal of the contract at least 1 year before their expiration. He has completed a procurement request and needs to ensure replacement service contracts are executed before the next winter season in January 2024.

Summary of Scope of Work:

The following is the service for review by the Red River College Administration.

1. Waste Management Services - Current Award Value at $600k

The contractor shall provide all labor equipment services materials necessary to provide full professional waste management services that include but not limited to;

1. Waste removal
2. Waste haul-away on-campus facilities
3. Recycling
4. Composting of biodegradable wastes
5. Disposal of solid waste generated on campus.

The contractor shall be responsible for all municipal, provincial and federal regulations.

All contractor's personnel are required to have background checks and required licenses to operate the contractor's equipment.

The work under these services does not include the handling of construction and demolition waste materials from construction projects on campuses.

Cross-Functional Project Team Roles

Member	Role	Responsibilities
1 - Name	Procurement Specialist	Conduct procurement activities, ensures requirements are SMART, facilitates RFP, recommends procurement strategies, and ensures compliance with the Canadian competitive bidding laws.
2 - Name	Financial Officer	Price and cost analytics of contract, financial forecasts and prepares budget estimates. Review records of incumbent contracts, supplier financials evaluation.
3 - Name	Facilities Manager	Develops technical, quantity and quality requirements, ensures the strategic sourcing initiatives align with overall objectives such as cost savings, sustainability etc.
4 - Name	Vice President, Finance & Administration	Alignment of contractual decisions with organizational objectives, approval of agreements that supports strategic initiatives.
5 - Name	Legal Representative	Review and develop the standard contract terms and conditions of the RFP and the proposed contract agreements, ensuring it meets the Canadian competitive bidding laws.
6 - Name	Health, Safety & Environmental Manager	Ensures environmental requirements and specifications are integrated into the scope of work. Compliance with HSE standards and regulations

Focus on developing the following topics deeply:

7-8 Conduct a Detailed Review of Supplier Evaluation Criteria (SUPPLIER SELECTION)

7-8a Management Capability (Financial KPIs)

7-8b Employee Capabilities

7-8c Cost Structure (Make or Buy decision)

7-8d Total Quality Performance, Systems, and Philosophy

7-8e Process and Technological Capability

7-8f Sustainability and Environmental Compliance

7-8g Financial Stability

7-8h Scheduling and Control Systems

7-8i E-Commerce Capability

7-8j Supplier's Sourcing Strategies, Policies, and Techniques

7-8k Longer-Term Relationship Potential

Assumptions

1. Strategic sourcing of these services will save the College some substantial amount through a multi-year procurement strategy.
2. Team personnel identified above will be available to work on this project.
3. The historical cost of the services for the past 4 years is available.

Additional Information

• Utilize market research of the facility management services in Winnipeg to understand the cost drivers, suppliers, industry trends, innovations, services options, alternative materials, and equipment available in the industry.
• Review the Red River College Purchasing policies to understand requirements for public procurement compliance. (https://www.rrc.ca/legal/policies/purchasing/

• Recommended layouts (e.g. templates)
  • Sample RFP for a similar procurement project will be reviewed in the class.
• Student work samples
  • Completed strategic sourcing of a similar project by a student team.

Rubric

Please consult the attached rubric for grading details.

Criterion	4 Exceeds	3 Meets	2 Meets Most	1 Does Not Meet
Landscaping & Lawn Maintenance Services	Demonstrates exceptional strategic sourcing plan	Demonstrates good strategic sourcing plan	Demonstrates acceptable strategic sourcing plan	Strategic sourcing plan lacking
Janitorial & Cleaning Services	Demonstrates exceptional strategic sourcing plan	Demonstrates good strategic sourcing plan	Demonstrates acceptable strategic sourcing plan	Strategic sourcing plan lacking
Snow Removal Services	Demonstrates exceptional strategic sourcing plan	Demonstrates good strategic sourcing plan	Demonstrates acceptable strategic sourcing plan	Strategic sourcing plan lacking
Campus Safety & Security Services	Demonstrates exceptional strategic sourcing plan	Demonstrates good strategic sourcing plan	Demonstrates acceptable strategic sourcing plan	Strategic sourcing plan lacking
Waste Management Services	Demonstrates exceptional strategic sourcing plan	Demonstrates good strategic sourcing plan	Demonstrates acceptable strategic sourcing plan	Strategic sourcing plan lacking.
Public Procurement process and RFP	Exceptional application, including applied course material	Good application, including applied course material	Acceptable application, including applied course material	Weak application, course material not applied.
Spend Analysis	Exceptional application, including applied course material	Good application, including applied course material	Acceptable application, including applied course material	Weak application, course material not applied
Cost and Price Analysis	Exceptional application, including applied course material	Good application, including applied course material	Acceptable application, including applied course material	Weak application, course material not applied
Overall Strategic Sourcing Plan alignment to overall organization strategy	Exceptional plan and alignment with organizational objectives	Good plan and alignment.	The plan aligns to most of the organizations strategy but lacks in some areas	Poor plan, does not align to organization strategy
Format, grammar, spelling, punctuation, APA referencing.	No errors	Minor errors	Some errors	Significant errors, difficult to follow.
			Total	/40