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Agenda Item (IV-D-1)

Meeting4/3/2018 - Committee
Agenda ItemCommittee - Resources (IV-D-1)
SubjectSelection of Follett Higher Education Group, Inc. to provide Bookstore Operation Services for Moreno Valley College, Norco College and Riverside City College
College/DistrictDistrict
Funding N/A
Recommended ActionIt is recommended that the Board of Trustees authorize the selection of Follett Higher Education Group, Inc. to provide Bookstore Operation Services for Riverside City College, Norco College and Moreno Valley College.

Background Narrative:


Staff engaged in a Request for Proposal (RFP) process for the purpose of selecting a provider of bookstore operation services for Riverside City College, Norco College and Moreno Valley College. RFP's were provided to two (2) vendors and an advertisement was published on April 20, 2017 in the Press-Enterprise.

Proposals were received from Barnes & Noble College Booksellers, LLC and Follett Higher Education Group, Inc. A request was made to the colleges to appoint representatives to form a contract review committee to evaluate the proposals. The committee included District and College representatives comprised of the following members:

• Majd Askar – Director Business Services – District
• Melissa Elwood – Controller – District
• Patrick Pyle – General Counsel – District
• Melissa Griffith – Purchasing Specialist – District
• Rolando Regino – Director, Distance Education - District
• Chip West – Interim, VP of Business Services – RCC
• Susan Mills – VP, Planning & Development - RCC
• Mark Sellick – Assoc. Professor, Political Science – RCC
• Micherri Wiggs – Assoc. Professor, Communication Studies – RCC
• FeRita Carter – VP, Student Services - RCC
• Paul O’Connell - Asst. Professor, CTE, Auto Tech – RCC
• Cheryl Ruzak – Director, Food Services – RCC
• Sherrie DiSalvio –Financial & Technical Analyst – RCC
• James Reeves – Interim VP, Business Services – NC
• Jan Muto – Assoc. Professor, Community Studies – NC
• Odili Barrios – Assist. Manger, Food Service – NC
• Nathanial Jones –VP, Business Services -MVC
• David Bobbitt – Financial & Technical Analyst – MVC
• Julie Hlebasko – Asst. Manager, Food Services – MVC
• Frankie Moore – Coordinator, Student Activities – MVC
• Jeanette Hazelwood - Student Trustee

Proposals were evaluated through meetings and email correspondence. Each proposal was evaluated based on criteria consisting of: the ability to provide required services; pricing; book buyback program; refund policies; compensation; facility renovation; and overall quality of the proposal. Initially, the committee concluded that the cost proposals were economically comparable and that continuity of services to students and faculty was the key determining factor in selecting the bookstore operations provider. As such, a recommendation to award Barnes & Noble College Booksellers, LLC. was submitted to the Resources Committee on January 9, 2018 for Board of Trustees’ consideration. At that time, it was noted that outstanding items pertaining to the Learning Management System (LMS) and Online Educational Resources (OER) were still being negotiated. Subsequently, the contract review committee and Barnes & Noble College Booksellers, LLC, were unable to come to an agreement.

Negotiations were then initiated with Follett Higher Education Group, Inc. and, ultimately, they agreed to the District’s terms and conditions. Based on the negotiations, the Contract Review Committee, recommends Follett Higher Education Group, Inc. to provide bookstore operation services for Riverside City College, Norco College and Moreno Valley College for a contract term of five (5) years, beginning May 1, 2018 through April 30, 2023.

In exchange for the right to be the exclusive vendor of bookstore services, Follett Higher Education Group, Inc. guarantees the following:

• First Year of Contract - 14.5% of all gross sales up to $7,000,000 plus 15.25% of any part of Gross sales over $7,000,000, but less than $10,000,000; plus 16.25% of any part of gross sales over $10,000,000, OR guaranteed amount of $850,000, whichever is greater
• Each Subsequent Year 14.5% of all gross sales up to $7,000,000 plus 15.25% of any part of gross sales over $7,000,000, but less than $10,000,000; plus 16.25% of any part of gross sales over $10,000,000 OR guaranteed amount that is equal to 90% of the calculated sales commission of the immediately preceding year, whichever is greater
• One-time signing bonus of $250,000 with implementation of ConnectOnce
• $89,000 for the installation of the JDA/Windows DSS point-of-sale and store management systems
• A total of $60,000 to Riverside Community College District for college store enhancements and improvements
• A total of $350,000 towards the College Promise Program at Riverside City College & Moreno Valley College, and the Dual Enrollment Program at Norco College or for other programs at the discretion of the institution
• $5,000 annually in textbook scholarships for each full contract year

Follett Higher Education Group, Inc. will sell textbooks as follows:

• New textbooks at no greater than the publisher’s list price or a 25% margin
• Used textbooks will be sold at 75% less than the new selling price
• eTextbooks are priced up to 60% off new print book selling price
• Rentals on new books will rent between 30-80% off and used books between 30-80% off. Students will have the option to buy rentals at the end of the term at discounted prices
• Course packs and custom products priced at up to a 30% gross margin
• Trade books, paperbacks, technical and reference books will be sold at publishers’ list prices.
• School supplies and other merchandise will be priced at or below manufacturers’ suggested retail prices or locally competitive prices
• Price Match Program which ensures that students get the best prices available on their course materials by providing price matching on textbooks advertised or offered from local brick-and-mortar bookstores or online retailers (i.e. Amazon)
• Guarantee in stock availability and if out of stock, the student will receive a $20.00 gift card
• Buyback Program , which allows students to sell unwanted textbooks back to the bookstores for up to 50% cash back off the textbook purchase price
Prepared By: Aaron Brown, Vice Chancellor, Business and Financial Services
 Majd Askar, Director of Business Services
Nathaniel Jones, Vice President, Business Services (MVC)
Raymond West, Vice President, Business Services (RCC)
James Reeves, Interim Vice President, Business Services (NOR)