Bidders should be aware that the above air spend is estimated ...Document Transcript
REQUEST FOR PROPOSAL
TRAVEL MANAGEMENT SERVICES & PROGRAMS
THE UNIVERSITY OF CALIFORNIA
RFP # UCOP/Tvl-Book-Agen/2007
ISSUE DATE: March 8, 2007
RESPONSE DUE DATE: April 6, 2007, 4:00PM PDST
DEADLINE FOR INQUIRIES: March 20, 2007
MANDATORY PRE-BID CONFERENCE DATE AND LOCATION:
March 15, 2007 – 2:00 pm PDST (RSVP by 3/13/07)
University of California
Office of the President
1111 Franklin Street #10325
Oakland, CA 94607
The information contained in this Request for Proposal (RFP) is confidential and proprietary to the University of California and
is to be used by the recipient solely for the purpose of responding to this RFP.
THE UNIVERSITY OF CALIFORNIA
FOR TRAVEL MANAGEMENT SERVICES
TABLE OF CONTENTS
I. PURPOSE OF PROPOSAL ................................................................................. 3
II. BACKGROUND .................................................................................................... 4
III. GUIDELINES & INSTRUCTIONS ......................................................................... 7
IV. SUPPLIER CAPABILITY ..................................................................................... 15
V. PRICING ............................................................................................................27
VI. EXECUTIVE SUMMARY ......................................................................................30
1. Attachment #1 Pricing Matrix
2. Attachment #2 Notification of Intent to Bid
3. Attachment #3 RFP Cover Page
4. Attachment #4 University of California Terms and Conditions of Purchase
5. Attachment #5 University of California Certificate for Debarment/Lower Tier
6. Attachment #6 University of California Certificate and Disclosure of Influence
7. Attachment #7 University of California Certificate Regarding Debarment/First Tier
8. Attachment #8 University of California Bidder’s Information Form (BIF)
9. Attachment #9 University of California Special Terms and Conditions for Federal
10. Attachment #10 University of California Appendix DS/Additional Terms and
11. Attachment #11 OnLine Booking and Agency Travel Team Roster
12. Attachment #12 University of California Campus Profiles (to be distributed at Pre-
Bid Conference on March 15, 2007
SECTION I: PURPOSE OF PROPOSAL
This Request for Proposal (RFP) is intended to evaluate suppliers who have the capability of delivering
travel management services on a systemwide basis to the University of California (UC) which is
comprised of 10 campuses, 5 medical centers, and 3 U.S. Department of Energy (DOE) national
laboratories and the University of California’s Office of the President with locations throughout
California and in Washington, D.C. The UC’s scope and mission statement for this initiative is to:
Develop and administer the UC’s travel policies, strategies and direction, and
provide leadership under the general direction of a systemwide travel council and a
central travel management services organization in designing the foundation and
ongoing management of travel services and programs that generate maximum
benefit and value for the UC.
Respondents submitting proposals should be competitive, provide comprehensive programs and
services, be in the forefront of technology and have superior customer service, reporting and data
management capability. The required annual revenue for participating bidders must be at least
The UC is seeking an external service provider(s) for a three (3) year contract to assist in managing
approximately $250,000,000 in systemwide Travel and Entertainment (T&E) expenses of which
$126,000,000 is air travel. The University of California has one internal service provider as outlined in
Section II. The extent to which the UC chooses to consolidate its current agency supplier base will
depend on the capabilities proposed by the participants of this RFP process. The University may select
a single external agency provider or contract with multiple suppliers, implement a regional service
structure or seek separate suppliers for online booking, data consolidation, reporting, etc. UC may
design and develop its own web portal for travel or seek an externally provided portal solution.
The University of California’s core strategy is to offer its travelers and travel coordinators multiple
reservation options to create compatibility with local custom and preferences. All of these options,
however, will be integrated in one UC travel program and be subject to management and reporting
policies and processes.
SECTION II: BACKGROUND
The University of California,, one of the world’s leading public higher education and research
institutions, is in the process of implementing an initiative to leverage the UC’s buying power over a
wide range of commodities and services. There are currently over twenty concurrent Strategic
Sourcing projects in process, addressing a wide variety of goods and services. The Strategic
Sourcing program is led by a group in the Office of the President (UCOP) within the Business and
Finance Division. The University’s travel and expense spend initiative has been established as a high
Through a detailed analysis of UC-wide spend completed earlier this year, it became clear that a
successful sourcing program is needed to operate within a managed travel system. Considerable
change needs to occur in the “cultural” attitudes, policy, and operations related to T&E spend. To
date, emphasis has been placed on the creation of an “infrastructure” to manage the new systemwide
1. A new Travel Council representing all UC locations has been formed;
2. A central management unit within UCOP is being developed to respond to the needs of the
3. A new policy framework is being developed to outline the duties and responsibilities of units
involved in management and system oversight;
4. Defined systemwide roles and responsibilities for the Central Travel Management Unit will
• Strategically Sourced Agreements for air, hotel and rental car spend
• Operations, budgeting and planning for Travel Unit and guidance to UC locations
• Data management and consolidated reporting for the entire UC system
• Promotion and growth of participation in a UC travel program
• Revision and development of policies and travel business rules
• Creation and maintenance of a UC travel portal
• Leadership and advocacy for the UC travel program within the UC, to the Travel
Council, to UC executive management and within the professional industry.
UC business travel is governed by travel policy that was recently strengthened in directing UC
personnel to use preferred suppliers and service providers. However the University of California has no
mandated use of University contracts for any commodity, including travel. Accordingly, there are
currently a variety of travel management approaches at individual UC locations. They range from a few
adequately staffed, highly disciplined and policy based travel programs to limited attempts at travel
spend management due to local cultural and/or political challenges. All locations recognize the need to
manage travel within a non-mandated environment.
UC locations vary in culture and have varying degrees of adoption and resistance to travel
management approaches. All UC business travelers are concerned with responsible use of funds due
in part to UC’s status as a public institution. UC business travel is primarily UC employees (faculty and
staff), as well as inbound travelers (non-UC employees). Travel arrangements are made by travelers,
and travel coordinators, at the departmental level. The UC system includes National labs that are
required to follow US Department of Energy (DOE) policies which are somewhat different from UC
policies and subject to Federal guidelines.
UC’s campus in Los Angeles, UCLA, operates a Corporate Travel Department (CTD) with on-site
reservation staff. UCLA’s CTD currently provides service to UCLA, UCOP, UC Santa Cruz and UC
Merced. UCLA’s CTD will be available to all UC travelers and travel coordinators and will be marketed
as a reservations option. Representatives from UCLA’s travel program will participate in bid evaluation
for this RFP.
There is currently no systemwide management process for T&E spend. UC locations use different
financial systems and administrative processes. This has hampered the University’s ability to leverage
that spend and to realize savings estimated at $25,000,000 per year. The UC sees the eventual
selection of provider(s) stemming from this RFP as the first step in creating capability in the UC’s travel
system to review and monitor its spend, and be far more effective in their relationships with preferred
suppliers. A recent milestone for the UC in related efforts is that UC locations now have a single
common T&E card platform and provider: US Bank Visa.
Following is a list of campuses, institutions and units participating in the initial sourcing initiative along
with their estimated annual air spend. These organizations are all represented on the Travel Council
and also are involved in a number of functional teams addressing key issues in the development of the
systemwide Travel Management Program.
CAMPUS /INSTITUTION/ UNIT LOCATION ANNUAL AIR
UC Office of the President Oakland, Berkeley, Goleta, Irvine, $ 2,000,000
Sacramento, CA and Washington, DC
UC Berkeley, CA $13,000,000
UC Santa Cruz, CA $ 6,000,000
UC Davis, CA $10,000,000
UC Merced, CA $ 2,000,000
UC San Francisco, CA $ 8,000,000
UC Santa Barbara, CA $ 8,000,000
UC Riverside, CA $ 4,000,000
UC Los Angeles, CA $17,000,000
UC San Diego, CA $12,000,000
UC Irvine, CA $ 5,000,000
Lawrence Livermore National Livermore, CA $10,000,000
Los Alamos National Laboratory Los Alamos, NM $11,000,000*
Lawrence Berkeley National Laboratory Berkeley, CA $7,000,000
UC Medical Centers (5) Davis (Sacramento), Irvine, Los $11,000,000
Angeles, San Diego, and San
*Los Alamos National Laboratory is no longer under the direct management of the UC.
Total Estimated Air Spend = $126,000,000
Estimated Average Ticket Price = $315
Estimated Number of Transactions = 400,000
Bidders should be aware that the above air spend is estimated only and there is no guarantee that
any UC-sponsored travel supplier would initially process the majority of this spend. With the
introduction of systemwide policies, tailored reservation options infrastructure investment and
proactive agency partners, the University hopes to increase overall participation levels across the
UC system to 80%. This would place our air spend just above $100,000,000 per year.
The above information is provided as an estimate only to assist bidders in preparing proposals.
The figures provided are indicative of potential business volume and the complexity of the account.
However the UC does not and cannot guarantee any specific quantities or business volume during
the Agreement period or any extensions thereto. The cross-functional UC systemwide Travel
Council has been formed to develop and implement a world-class procurement program for travel
at the University of California, in accordance with UC Strategic Sourcing Initiative objectives.
Subsequent phases of this initiative may include group travel including athletic teams,
conferencing, and events.
SECTION III: GUIDELINES AND INSTRUCTIONS
The University of California encourages you to take this opportunity to promote your company’s
strengths while explaining how you intend to meet the requirements that the UC has established
for its relationship with a travel management company. The University will not disclose any
bidder’s proprietary information; however, concepts or ideas listed in the response may be
utilized in the sourcing solution. UC welcomes creativity in the options and solutions you
B. Issuing Office and Communications Regarding the RFP:
Ms. Lesley Clark will be the primary contact for all supplier inquiries and responses related to
this RFP. No supplier personnel should have any contact with any UC personnel, including
senior management and the Board of Regents, related to this project without first having
obtained approval from Ms. Clark. The only exception is for emailing your information regarding
attendance at the Pre-Bid Conference as below (see D. in this section).
It is expected that all participating bidders will have the capability to serve all UC locations listed
in Section II of this RFP.
The UC requests that all bidder inquiries be sent to:
Ms. Lesley Clark
Office of the President
University of California
Phone: (510) 987-0472
C. RFP Dates:
ACTIVITY DATE TIME
RFP Issued Thursday, March 8, 2007 5:00pm PST
RSVP for Pre-Bid Conference Tuesday, March 13, 2007 12:00pm PDST
Mandatory Pre-Bid Conference Thursday, March 15, 2007 2:00pm PDST
Questions Submitted by Bidders Tuesday, March 20, 2007 1:00pm PDST
Answers to Questions Sent to Bidders Thursday, March 27, 2007 5:00pm PDST
Proposal Due Friday, April 6, 2007 4:00pm PDST
Possible Site Visits to Bidder Locations During evaluation phase
Selection of Finalists Friday, May 8, 2007 12:00pm PST
Finalists Presentations Week of May 14, 2007
Award Decision Week of May 21, 2007
Implementation May - October 2007
D. Pre-Bid Conference:
A mandatory Pre-Bid Conference will be held to provide bidders the opportunity to ask
questions and for UC personnel to clarify the contents of this RFP. This step is important to
avoid any misunderstanding of the UC’s intention and to give prospective bidders an opportunity
to improve their understanding of the UC’s goals and objectives related to this initiative.
Participation in-person at this conference is mandatory for suppliers who intend to submit a bid.
We ask that each bidder send no more than two (2) company representatives and that you
complete the attached Notification of Intent to Bid (Attachment #2 of this RFP) and e-mail the
document to Pat Cheney at firstname.lastname@example.org with the names and titles of your attendees
no later than March 13, 2007 at 12:00 p.m. Pacific Daylight Savings Time. Alternately, you can
fax a copy of this form to Pat at (510) 839-0856. Please call Pat at (510) 987-0474 to confirm
her receipt of your fax.
Date: Thursday, March 15, 2007
Time: 2:00 p.m. PDST
Location: University of California
Office of the President
1111 Franklin Street #10325
Oakland, CA 94607
Contact: Pat Cheney – (510) 987-0474 or Pat.Cheney@ucop.edu
E. Addenda to the RFP:
Any changes, additions, or deletions to the RFP will be in the form of written addenda issued by
the UC. Any addenda to this RFP will be distributed to all participating bidders and posted to a
the bid web site at http://www.ucop.edu/purchserv/rfp/welcome.html
F. Instructions for Submitting Proposals:
Four (4) copies of the signed original bid, one that includes the pricing attachment and three
that do not must be received by the UCOP Strategic Sourcing Department no later than 4:00pm
(Pacific Daylight Savings Time), Friday, April 6, 2007.
Late bids will not be accepted.
• A copy of the entire RFP must be returned with your bid. Bids must follow the format
specified in this RFP, Section III - I
• Bids must be signed by a company officer authorized to enter into contracts on
behalf of the bidding firm. The submission of a signed bid will confirm understanding
and acceptance of all requirements, terms, and conditions of this RFP and the UC
(see Appendix “A” RFP Attachment #4) unless specific exceptions are taken and
alternative language or provisions are offered.
• Bid responses must be submitted by bidders directly to the Online Booking and
Agency (OBA) Team of the UC’s Travel Council. These additional copies of the
proposal must be completed and include all requirements as stated in the RFP and
specified in Section III. Copies of proposal shall not include price quotations,
bidder’s financial statements and annual reports, insurance requirements and
• Pricing questions, bidder’s financial statements and annual reports, insurance
requirements and legal forms are to be sent to:
Executive Director of Strategic Sourcing
Office of the President
University of California
1111 Franklin Street, #10403
Oakland, CA 94607
• Bidders must submit their proposal copies in compliance with the following
1. Original proposal must be complete and include all requirements as stated in
the RFP and specified in Section IV.
2. Bids must be sealed and marked:
Travel Online Booking and Agency
RFP # UCOP/Tvl-Book-Agen/2007
3. Bids sent via facsimile (FAX) or electronically via email will not be accepted.
4. All bids must include Attachment #2/RFP Cover Page with each copy
• Please forward two (2) hard copies, one CD of documents and one (1) electronic
copy of your proposal to:
Ms. Lesley Clark
University of California
1111 Franklin Street, #10329B
Oakland, CA 94607-5200
(510) 987-0472 phone
• Additional hard copies of the bid must be forwarded to the OBA team members.
These copies of the bids must arrive to the team members no later than 4:00 pm
PDST on Friday, April 6, 2007.
G. Site Visits:
Site visits may be conducted by members of the OBA Team to supplier locations during the
evaluation phase of this RFP process.
H. Qualifications of Bidders – Mandatory:
The intent of this solicitation is to provide for the UC the successful implementation of a program
for travel that will allow UC users to book their travel, either via an online booking tool, through
an agency or via a commercial web site. The University of California believes that the supplier’s
previous experience, financial capability, expertise of its personnel, and related factors are
important in assessing the bidder’s potential to meet the goals and objectives of this travel
program. Accordingly, prospective bidders must conform to the following minimum qualification
standards and provide the required information in order to be considered for award of the
1. For each Bid Option specified below, bidders must have verifiable successful
experience in the last three(3) years in providing the range of products and services
specified in this RFP as a primary provider for at least five (5) accounts of similar size,
complexity, and business volume as the UC. Bidders must include with their proposal
the company name, address, contact name, phone number and e-mail address and a
brief description of reference accounts meeting this criterion.
2. Bidders must submit audited financial statements for the past two (2) years (or
equivalent data) in order to establish its financial capability to provide the required
products and services on a long-term contract basis.
3. Bidders must be able to demonstrate and show evidence of having the capability to
provide the required products and services by possessing adequate available
resources, including the personnel, delivery capabilities, offices, systems, organization
structure, operational and quality controls necessary to provide stated customer
service levels to all UC users.
4. Bidders must have the ability to obtain the necessary insurance (ref: Article 17 of the
enclosed University of California Terms and Conditions of Purchase/Attachment #2).
5. Bidders may sub-contract the work necessary to meet the terms of this RFP.
6. Bidders must possess all trade, professional, and business licenses as may be
required by the work contemplated by this RFP.
In addition to the information required above, the UC may request additional information either
from the bidder or others, and may utilize site visits and bidder presentations, as reasonably
required by the UC to verify the bidder’s ability to successfully meet the requirements of this
RFP. The University of California also reserves the right to obtain Dun & Bradstreet reports, or
similar independent reports for further indications of the bidder’s abilities.
I. Proposal Format Guidelines:
Bidders must submit their proposals in the format presented in this part. The entire Proposal
must be submitted in hard copy in addition, pricing information (Attachment #1)must be
submitted electronically on CD in Excel as provided). Proposals are to use the same section
titles used below for ease of evaluation. Pricing information must be received in the exact
format given in this RFP. Proposals must provide a complete response to all requirements
stated in the RFP. Incomplete proposals are subject to disqualification. The Proposal shall be
signed by an Officer or employee duly authorized to legally bind the entity submitting the
Proposal (see Attachment #3/RFP Cover Page). Proposals shall be completed, submitted in
the prescribed format or on forms provided, and comply with all specifications and legal
requirements. All information furnished on the signed original copy of your bid shall be
1. Statement of Company Background: Bidders shall provide an introduction and
general description of the company’s background, nature of business activities, and
experience in providing travel services in the area of online booking and agency
2. Management Overview: This section should present the bidder’s understanding of
the major objectives on the RFP and the bidder’s approach to fulfilling the RFP
3. Vendor Qualifications and Experience: This section should contain the required
qualification information specified in the “Qualifications of Bidders” (Paragraph H
4. Vendor Organization and Staffing: This section should describe the bidder’s
organization and representation team. The narrative should include the name of
staff, their background and qualifications and their role in providing representation
and management of the UC account.
5. Responses to Program Requirements: Bidders are to provide a complete
response to each of the numbered requirements included in Section IV of this RFP.
Bidders should be concise in responding to the requirements.
6. Supplemental Information: This section provides bidders and opportunity to inform
the UC of the others services and/or products that may be relevant.
7. Price Quotation: Bidders are to provide a price quotation in the form and format
described in Section V. Bidders are to base the price quotation on the estimated
annual volume of transactions and spend as indicated in Section II.
8. UC Business Information Form: All bidders must complete the attached University
of California Business Information Form (UAA101 1/92/RFP Attachment #8) and
return it as part of the bid.
9. Responses to Questions: Bidders need to restate each question in Section IV as a
lead-in to their responses.
J. Proposal Evaluation and Contract Award:
This solicitation, the evaluation of proposals and the award of any resulting contract(s) shall be
made in conformance with applicable University of California policies and State of California
laws. UC reserves the right to withdraw this RFP at any time. All documents submitted to the
University on behalf of this RFP will become the exclusive property of the UC system and will
not be returned.
Any contract(s) resulting from this RFP will be awarded to the responsive and responsible
bidder(s) whose proposal(s), in the opinion of the UC, offers the greatest benefit to the
University when considering the total value, including, but not limited to, the quality of
services/products and total cost (including prompt payment discounts, available volume
discounts, and other miscellaneous charges).
Proposals will be evaluated by the UC OBA Team members and industry advisors using a total
quality point system. The evaluators will examine each proposal to determine, through the
application of uniform criteria, the effectiveness of the proposal in meeting the UC’s program
requirements for online booking and travel agency services. In addition to materials provided in
the proposals, the OBA Team may utilize site visits, oral presentations, additional
material/information and references from the supplier(s) and others. Factors that will be used to
evaluate the proposals include:
1. General Capabilities:
Company organizational, environment and strategic direction
Bidder’s market focus and orientation
Level of management involvement and commitment
Expertise of personnel
Bidder’s experience serving academic institutions with domestic and
Commitment to environmental sustainability
Quality management and continuous improvement processes
2. Industry Specific Criteria
Implementation plan and approach
Completeness and accuracy of data generation and reporting
Experience in selecting, operating, and supporting online booking
3. Service Quality and Commitments
Commitment to the UC’s travel goals and objectives
Ability to respond to service standards
The average of all quality points per category awarded by individual evaluators will be added
together to compile a quality points total. The total quoted cost will then be divided by the total
quality points to determine the best proposal(s). The proposal(s) offering the lowest cost per
quality point for any of the specified bids which UC, in its sole discretion, elects to exercise, will
be recommended for award. Should the bidder with the proposal offering lowest cost per quality
point refuse or fail to accept the tendered purchase contract, the award may be made
successively to the bidder with the second lowest cost per quality point, and then to the third in
the event of further failure to accept.
The University may elect to conduct the supplier selection process using a quality points system
in two phases:
Phase I: Selection of finalists,
Phase 2: Selection of winning supplier(s) for contract award
The University of California may waive irregularities in a proposal provided that, in the judgment
of the UC, such action will not negate fair competition and will permit proper comparative
evaluation of bids submitted. UC’s waiver of an immaterial deviation or defect shall in no way
modify the RFP documents or excuse the bidder from full compliance with the RFP
specifications in the event the contract is awarded to that bidder.
The University reserves the right to accept or reject any or all bids, make more than one award,
or no award, as the best interests of the UC may dictate. UC reserves the right to make awards
by region if it is deemed in the best interest of the organization. Any contract awarded pursuant
to this RFP will incorporate the requirements and specifications contained in the RFP, as well as
the contents of the bidder’s proposal as accepted by UC and will be in writing.
Unsuccessful bidders and suppliers who choose not to bid on this RFP shall not knowingly sell
or solicit any of the products or services covered in this initiative to any UC location. Violation
will be grounds for disqualification from future bids.
K. Rejection of Proposals:
The University of California reserves the right to reject proposals, which are non-responsive,
including, without limitation, proposals which contain the following defects:
Late or incomplete proposals;
Failure to conform to the rules or requirements contained in the RFP;
Failure to sign the proposal;
Proof of collusion among bidders, in which case all proposals involved in the
collusive actions will be rejected;
Noncompliance with applicable law, unauthorized additions or deletions, conditional
bids, incomplete proposals, or irregularities of any kind which may tend to make the
proposal incomplete, indefinite or ambiguous as to its meaning;
Provisions reserving the right to accept or reject an award or to enter into a contract
containing terms or conditions that are contrary to those in the solicitation;
The proposed services must meet the minimum specifications as stated in Section #
V!, Supplier Capability, of this RFP.
L. Proposal Preparation Costs:
All costs incurred in the preparation and submission of proposals and related documentation,
including bidder presentations to the UC, will be borne by the bidder.
M. Proposal Acceptance Period:
“Acceptance Period” as used in this provision means the number of calendar days available to
the UC for awarding a contract. All bids shall remain available for the UC acceptance for a
minimum of 160 days following the RFP closing date.
N. Initial Contract Term:
It is anticipated that the initial term of any Agreement(s) resulting from this RFP will be for a
period of three (3) years.
O. Optional Renewal Terms:
It is the UC’s option, after expiration of the initial term of any Agreement(s), to renew for two (2)
additional one-year periods at the same terms and conditions.
P. Disclosure of Records:
All bids, supporting materials, and related documentation will become the property of the UC.
This RFP together with copies of all documents pertaining to any award, if issued, shall be kept
for a period of five (5) years from the date of contract expiration or termination and made part of
a file or record which shall be open to public inspection. If the response contains any trade
secrets that should not be disclosed to the public or used by the University for any purpose
other than evaluation of the bidder’s approach, the top of each sheet of such information must
be marked with the following legend: “CONFIDENTIAL INFORMATION.”
All information submitted as part of the bid must be open to public inspection (except items
marked as trade secrets and considered trade secrets under the California Public Records Act),
after the award has been made.
Should a request be made of the UC for information that has been designated as confidential by
the bidder and on the basis of that designation, the UC denies the request for information, the
bidder shall be responsible for all legal costs necessary to defend such action if the denial is
challenged in a court of law.
Q. Audit Requirements:
Any agreement resulting from this RFP shall be subject to examination and audit by the
University of California and the State of California, or by a third party on behalf of UC, for a
period of three (3) years after final payment. The examination and audit shall be confined to
those matters connected with the performance of the agreement, including but not limited to, the
costs of administering the agreement.
R. Marketing References:
The successful bidder(s) shall be prohibited from making any reference to the University of
California in any literature, promotional material, brochures, or sales presentations without the
express written consent of the UCOP Strategic Sourcing Department.
S. Insurance Requirements:
If any work is to be performed on University of California premises, bidder(s) shall furnish a
Certificate of Insurance acceptable to the UC (see Appendix “A,” Article 17). All certificates
shall name the Regents of the UC as an additional insured. The certificate must be submitted to
Exigis Limited Liability Company. Exigis is the third-party supplier who manages the University
of California’s Certificates of Insurance. At the time of bid award, the awardee will be furnished
the contact information and process for working with Exigis Limited Liability Company to
complete this University of California requirement. The Certificate of Insurance information
must be given to Exigis Limited Liability Company before any work on can commence.
T. UC Terms and Conditions of Purchase:
The University of California Terms and Conditions of Purchase, Appendix “A,” and Supplement
5, and Exhibits A-C as attached, shall be incorporated into the purchase agreement resulting
from this RFP.
U. Errors and Omissions:
If the bidder discovers any discrepancy, error or omission in this RFP or any Attachments, the
University of California shall be notified immediately and prior to bid submission, a written
clarification/notification shall be issued to all bidders, who have been furnished a copy of this
RFP for bidding purposes. No bidder will be entitled to additional compensation for any error or
discrepancy that appears in the RFP where the UC was not notified and a response provided.
V. Bidder Certification:
Bidder certifies that their proposal in response to this RFP, is genuine and is not made in the
interest of or on behalf of any undisclosed person, firm or corporation. Bidder has not and will
not offer any gratuities or special consideration to any University of California employees.
W. Termination of Agreement:
Any Agreement resulting from this RFP may be terminated by either party with a written sixty
(60) day notice without penalty. Any Agreement resulting from this RFP can be terminated in
whole or on a site-by-site basis without penalty.
X. Data Security:
All bidders should be aware that the University of California has specific requirements, rules and
processes protecting the security of information shared in the process of working with Agency
and supplier partners. These areas include the preparation, storage and maintenance of
personal profile information, data generated by the reservation/ ticketing process, databases
created for the purpose of reporting and monitoring travel activity, spend and policy compliance
and information sent to preferred and regular suppliers as part of contract administration. Any
successful bidder(s) must be prepared to comply with these requirements. All requirements are
presented and made part of this bid in Attachment #10, University of California Appendix
DS/Additional Terms and Conditions/Data Security.
SECTION IV: SUPPLIER CAPABILITY
Bidder must complete this section of the RFP by discussing each item in the order presented.
A. Company Profile:
1. State whether your company is local, regional, national, or international. Include
information on any affiliates and/or subsidiaries.
2. Describe your company’s service network. Specify your geographic locations, company
owned or independently contacted offices, and their respective number of
3. State locations from which the program will be administered if your company is awarded
4. Describe the range of activities performed by each location.
5. Please furnish the UC with your company service standards. Include your company’s
Service Goals, Mission Statement and Environmental Sustainability Policy.
6. Does your company own all of its service locations? ____ Yes ____ No
If not, please provide a list of the independently owned offices and their affiliation with
B. Bidder’s Background and Experience:
1. Indicate the name and title of the executive who will have overall account responsibility
for the UC as specified in this RFP. Provide a brief resume of this executive’s
background, training, experience and in managing a program of the size and scope of
the program described in this RFP.
2. Provide the contact details for the person(s) who will be responsible for this proposal:
name, mailing address, e-mail address, telephone and fax numbers.
3. Please provide an organizational chart, including functions and responsibilities of your
company’s recommended account management team for the University of California.
4. Please provide:
Current financial statements and an annual report if available
Complete statement(s) of ownership
A brief history of the company, highlighting growth over the last five (5) years
including growth via mergers and acquisitions.
5. Are you certified as a small business, including women-owned small business, DVBE, or
Hub-Zone? ____ Yes ____ No
6. Does your company have a current or past relationship with the UC?
____ Yes ____ No
If yes, please explain ensuring to point out key relevant facts.
7. Indicate company specific sales volume for the prior year for these market segments:
Groups and meetings
8. Explain how you differentiate yourself from your competition. What is your company’s
core competency? What does your company do well and where is improvement
9. Describe your preferred supplier relationships with respect to airlines, rental cars, hotels,
Computer Reservations Systems automation, reporting systems, charge card suppliers,
online booking systems and rail and limo suppliers. Include any additional industry-
related partners that are not listed.
10. What is the average experience and tenure of your fully accomplished travel agents?
What is your average travel agent turnover rate?
C. Bidder’s Service Capability:
Please address your company’s capabilities as they relate to the following service issues or
1. How will your company absorb all of the University’s needs and requirements for travel
services as stated in this RFP and provide uniform service standards at all locations?
Provide a statement describing your company’s ability to provide all the services
required by this RFP, including any plan to sub-contract work.
2. Does your company have experience with higher education customers with equivalent
distribution of operations as UC’s system? Describe your expertise with managing
programs for comparable clients, specifically:
How you implement, maintain and monitor consistent systemwide procedures.
How you currently consolidate data and what is the timeframe for providing
How you would assist each UC location in fully utilizing all UC contracted air, car
and hotel programs for the best ROI to the University of California.
3. Specify your company’s normal business hours for providing customer service and what
systems you have in place to efficiently handle emergencies during business and non-
business hours (describe fees, if any).
4. Does your company have a tested recovery or business resumption plan in place? If
yes, please describe how your company will respond to UC’s needs in the event of a
5. Describe how your company will meet our requirement for on-site visitation by your
account representatives to implement the program or handle challenging account
situations. These visits will include demonstrations of your technical capability.
6. Describe your customer service and quality control programs.
7. Describe the procedures your company will utilize to provide training and orientation for
new and current UC travelers, travel managers and travel coordinators.
8. What is your company’s business strategy regarding the following:
How often does your company introduce new services?
How to you handle these introductions?
How do you handle the discontinuation of a service?
9. The University of California requires quarterly business review with all suppliers and
service providers. Please specify the type of information you would include in a review
of this kind.
10. What is your operational philosophy for serving a diverse multi-dimensional academic
institution with UC’s T&E volume? Describe how using the services of your company will
directly benefit the University.
11. What strategies would you recommend that the University of California employ to
increase participation by various administrative and academic units across the system?
12. Does your company provide ghost account reconciliation services, floater coverage in
support of customer on-sites, VIP services through a specialized desk and do you
process non-employee and companion travel?
13. Does your company provide specialized services in support of athletic travel and/or
operate a specific unit providing services to university athletic departments?
1. Describe the account management model you would service the University of
California and how this model would tie into your overall organizational structure.
2. List the primary individual(s) you would identify to manage UC’s program. Detail
roles, responsibilities, decision making authority, credentials and location.
3. What key criteria do you use to determine the overall effectiveness of your program
that might be included in quarterly/annual reviews?
4. What benchmarking statistics do you collect within your client base that you would use
with your customers to establish best practices?
5. Do you have an advisory council among your customers? If so, how often do you
meet? Describe one or two process improvements that have been the result of these
6. What benefits could the University realize from a business plan describing its program
7. What do you recommend as a process for payment of agency fees?
D. Bidder’s Technological Capability and Online Booking:
General Capabilities: Describe the technology and process for telephonic reservations which you
employ to support customer transactions, including but not limited to:
• The agent desktop
– Examples: Mapping tools to find hotels in relation to an address,
access to the web, e-mail, feedback from travelers and arrangers, etc.
• Profile creation and management and how it synchronizes with a self-
– Address why this process is efficient as well as safe from data theft.
– How profiles are managed by the user.
– Ability to integrate with UC Human Resources databases.
– Provide examples of air, car and hotel scripts that would be best suited
to support the UC’s program.
• Low air fare searches and securing the best rates for hotel or car rentals.
– How do the agents access and book web air fares, non-GDS
inventories (low cost carriers, consolidators), and hotel web rates?
– Are you certified to issue State of California (YCAL) fares? If not, are
you willing to obtain certification to issue YCAL fares?
– How are reservations that are made on the web integrated in to the
Passenger Name Record to be available for reporting?
• Seat checking/clearing lower fare wait lists
• Quality control
– Detail your quality control initiatives and tools. Are the tools owned by
the company or outsourced to a third-party?
• Air and hotel exception reporting
• Out of policy notifications
• Problem resolution. (What is the turnaround time for any problems
• Ticket delivery (both electronic and paper)
• Itinerary confirmations
– What software do you use for itineraries and to what extent can these
itineraries be customized?
Online Booking System
1. Describe the technology and selection, roll-out, support and expansion processes for
your online booking tool(s) which you deploy to support customer transactions,
including but not limited to:
• The various functions that are possible within the site.
– Examples: Booking of air, car, hotel and shuttle services mapping
tools to find hotels in relation to an address, feedback on the program
and tools, access to UC policies, preferred suppliers and UC’s web
– Profile creation and management
• Policy enforcement
• Low fare searches, securing the best rate at a hotel or for a car rental
– How does the tool access and book web airfares, non-GDS inventories
such as low cost carriers (LCC), YCAL fares, consolidators and hotel
web rates? Can you book Southwest (in the US) on your tool? If so,
• Seat checking
• Quality control
• Air & hotel exception reporting
• Out of policy notification
• Ability to allow for approval routings if necessary
• Problem resolution
• Ticket delivery
• Itinerary confirmations
• Single Sign-On capability (Web portal integration)
2. What is your experience with self-booking tools? Do you offer a proprietary tool or
function as a system integrator? How will your experience and tools help the UC to
expand and advance the current or your recommended self-booking program. Cite
evidence of your ability to successfully support an online booking tool for large clients
and to rapidly achieve improved adoption rates. What process would you recommend
for selection of the UC’s systemwide online booking tool?
3. Identify how you would fulfill UC’s online booking transactions.
4. Describe the pros and cons of ownership of online booking tools, addressing the
potential benefits of a UC-managed online booking tool compared with the UC using a
booking tool managed by your company.
5. If the University were to use an online booking tool managed by your company, it is
required that UCLA’s CTD would have full access to the booking tool. Please indicate
how this would be handled.
6. What is the average adoption rate for online booking for your current and past
7. Provide an example of a detailed, online complex itinerary confirmation that includes
air, car, hotel, passport requirements, confirmation numbers and more.
Technology Strategy and Commitment
1. Describe the technology strategy of your company, including whether it is an internal
process or sub-contracted to a third-party, the number of Full Time Equivalents (FTEs)
dedicated to technical support, and the percentage of your overall workforce dedicated
to technology research.
2. How would you utilize the latest in technological trends to meet the University’s
requirements? What recommendations would you make to create UC benefits from
new or future technologies in travel management?
1. Can you create and maintain a customized travel portal? How is it maintained? How
quickly can changes be made? What experience can you apply to the University of
California’s needs in this area? Can you provide an example?
2. How will your agency mitigate risk tied to the changing distribution channels and
ensure long-term availability and utilization? What factors could cause cost increases
and in what time frame should they be anticipated?
3. What would you recommend to address the operational, cost and reporting issues tied
to the new Southwest booking requirements?
E. Bidder’s Service Configuration and Operations
1. Given the University’s unique culture, its current priority on consolidation combined
with its decentralized and dispersed facilities and offices, what operational/service
environment would you recommend? Does a single or multiple agency configuration
make sense? Should a “regional” approach be considered?
2. What specific telephonic solutions would you deploy and what are the benefits that you
feel make it a superior system? Does it require specific hardware at client locations?
If so, what type and at whose cost? Responses should be related to your discussion
on service configuration.
3. How would you provide after-hours emergency service? Describe service standards
for 24-hour emergency services. Who staffs this operation? What is the average
answer speed? What is the average hold time? Please indicate any cost associated
with this service.
4. Do you provide or align yourself with traveler locater software? If so, please describe
the system and features of this product that would be available to the UC.
5. Do you have any special pricing relationships you can pass to UC with respect to
6. Describe any specific capabilities you have to process requests for passports and
7. How can you help the University manage its inventory of un-used non-refundable
airline tickets? Is there a best practice you recommend?
8. In general, the UC does not attempt to manage leisure/vacation bookings, but within
some airline/hotel Agreements suppliers do extend those rates for leisure. The
University would like to steer travelers to an agency as an “option” for booking their
leisure travel. What capabilities does your company have for providing leisure and
vacation services for employees? How are these services priced? Is there a discount
or incentive you can extend them for this service? How do you handle travel that is
partially for business and partially leisure? How is a non-business trip differentiated in
your system and reporting?
9. Describe other special services or amenities that will be made available at not cost to
UC and/or travelers.
H. Bidder’s Quality Control and Performance Metrics:
1. As part of the University of California’s contractual Agreement with any supplier, it is our
intent to include performance metrics based on the supplier’s performance measured
against these Key Performance Indicators (KPI). Please provide your model for
including KPIs as measurements. Be specific to include the respective KPI, along with
the standard you would propose.
2. Describe performance standards and response time with respect to resolving service
issues. Please provide statistics on meeting these standards.
3. How do you measure your overall effectiveness in providing travel management
services to your customers? What do you try to achieve? How do you rank the
elements of success, and how do you measure them?
4. Do you provide an International Rate Desk to assure the best fares are constructed for
your customers? If so, please provide more information on this service, number of
personnel dedicated and average savings per reservation. Please indicate any cost of
5. What methods do you propose to continually receive travel and arranger feedback? If a
survey is proposed, define what you feel is the best practice in managing the survey
process. Please provide an example of a survey you have used.
6. Describe all quality control functions you perform, including lowest logical fare,
preferred air and hotel offering, primary rental car supplier offering, date continuity,
reason code integrity, preferred seating acquisition, special meal requests, hotel non-
smoking/smoking requests, etc.
7. Describe what quality control procedures are in place to assure MIS integrity.
8. Describe your company’s quality management procedures and continuous
improvement processes. These should include a willingness to prepare quarterly
business reviews for presentation and will include the status of any UC stated
performance issues, plans for improving, corrective actions taken and the progress
made toward resolution of stated issues and objectives. Please provide results of the
most recent three satisfaction surveys performed and the identity of any independent
agency that performed them.
Marketing and Promotion
1. Since increased utilization of this program by University departments will result in
increased sales and fees for the supplier, UC encourages an alliance relationship with
respect to marketing of our systemwide travel and online booking systems and,
therefore, we encourage bidders to discuss innovative approaches to partnering with
objectives, such as:
Improving supplier performance
Improving service quality to reduce costs
Increasing traveler and travel arranger participation through product show
sponsorship and other marketing assistance
Reduction of paperwork and increased efficiency through consolidated
invoicing and other methods
2. Bidders are encouraged to discuss the cost vs. benefits of various aspects of partnering
with which bidders may have experience.
I. Bidder’s Implementation and Transition:
1. Describe your plan for implementing your services with the University of California. Be
sure to include the following items:
Individuals responsible for implementation
Project Implementation Plan including timeline, roles and responsibilities to
ensure a July 1, 2007 start date.
Technology implementation schedule
2. Provide a brief description of your new account implementation process. How do you
work towards a seamless transition? What are some “lessons learned” from other
large account roll-outs? How does your implementation process compare to your
3. Describe how your implementation model for the University of California will ensure
success and a high rate of adoption given a non-mandated environment coupled with
differences in local travel and culture throughout the various UC locations.
J. Bidder’s Program Outsourcing and Consulting Services:
The outsourcing of key travel management programs to agency suppliers is a growing “best
practice.” Please respond to the following and describe your approach in providing these services.
Air Program Management
Your services may include the ability to negotiate best airfares on behalf of University, ensure
the program is being managed and implemented correctly, provide ongoing market analysis to
be certain that UC is receiving the most competitive pricing as market conditions change, and to
provide supplier management. This includes being the key contact for all supplier interactions.
1. Define your program offering for outsourcing of UC’s Contracted Airline Program
2. Indicate technologies used, support staff and available resources and other pertinent
3. Provide information regarding the cost effectiveness of your program.
4. Include an overview of your expertise in this area and provide references for your
5. Include an overview of pricing for this program.
Hotel Program Management
Your services should include the ability to negotiate best rates on behalf of the University of
California, ensure rate loading is done accurately and timely by hotels, meet a January 1 yearly
completion date, assure that the University is receiving the best rates and provide a real-time
web-based directory. This includes being the key contact for all hotel supplier interactions and
general inquiries. The web-based directory must reside on the supplier’s server and be updated
within a minimum of one (1) business day’s notice. It must also include spending guidelines that
could establish rate limits by destination. This directory must be accessible to travelers via a
UC portal (even when using an online booking tool) as well as to the travel agent’s counselors.
1. Define the program offered for the outsourcing of UC’s Contracted Hotel Program.
2. Indicate technologies used, support staff and available resources, and other pertinent
3. Provide information regarding the cost effectiveness of your program.
4. Describe your negotiated hotel rate program and how it could complement UC’s
5. What is your company’s best solution to provide a web-based global hotel directory?
List directory features and define its advantages.
6. What type of policy compliance and other reporting capabilities can you provide to UC?
7. Include an overview of pricing for this program.
Car Rental Program Management
Your services should include the ability to negotiate best rates on behalf of the UC and provide
ongoing market analysis to ensure the University of California receives the most competitive
pricing as market conditions change. This includes being the face to the supplier on behalf of
UC. The supplier must utilize and promote the University’s contracted car rental supplier(s) and
follow University of California travel policy and Risk Management’s vehicle rental guidelines.
1. What expertise and benefits can you offer to manage UC’s car rental services?
2. Define the program offered for outsourcing UC’s Contracted Car Rental Program.
Indicate technologies used, support staff and available resources.
3. Provide information regarding the cost effectiveness of your program and how you
propose to help the University reduce its overall car rental costs.
4. Include an overview of your expertise in this area and provide references for your
5. Include an overview of pricing for this program.
Quarterly savings reports would be required as well as other information to monitor and
benchmark all the above outsourced programs against stated objectives and/or supplier client
The University of California is looking for a more cost effective solution to meetings. Meetings
may consist of 25-300 people. They tend to be coordinated by administrators or meeting
departments who may be looking for assistance with the following basic meeting requirements:
Meeting site selection and negotiation
Audio visual (not production)
Food and beverage
Web-based meeting registration
Ground transportation (including arrival/departure manifests, if necessary)
Logistical coordination of program services
Program invoicing, including collection of payments and disbursements to
More elaborate and larger meetings may need the following services:
Arranging optional tours
Awards and incentive merchandise
Coordinator located at meeting site
Arranging activities and off-site functions
Arranging theme events
Production of standard name tags, tents and place cards
Other meeting services as agreed to by both parties
The solution should include one-stop shopping for users. With technological advancements, the
UC would like to explore solutions such as a more “self-serve” model. For instance, an online
booking tool which is pre-populated which users can use to plan their meeting. Creative
solutions with cost effective techniques and proven results which show cost saving results are
1. Describe your capabilities for handling meetings.
2. Propose best-in-class solution(s) for meetings. This can be “full service,” “self-serve,”
and/or hybrid model or anything else you have experienced.
3. Provide three (3) references for proposed solution(s).
4. Provide lessons learned / best practices for meeting solutions.
5. What is a best practice for determining “cost savings” and what are your savings
estimates for the UC from your proposed solutions?
7. Provide pricing for your proposed solution(s).
1. Describe your capabilities for handling group air.
2. What specific service offerings can you bring the University of California in this area and
how would you deploy them?
3. What related technology solutions can you provide?
4. How do you identify group air opportunities when travelers are going through your
reservations site (corporate travel)?
5. If more than one supplier is selected for different regions, how do you propose
managing group air for travelers from multiple regions?
6. What do you propose as best-in-class solution for group air?
7. What additional services do you offer for group air?
8. How do you price your services for group air? What cost savings might be achieved?
9. Describe your experience with and abilities to handle athletics travel.
10. Are you able to charter flights?
K. Bidder’s Marketing Capability:
1. What strategy and techniques will you use to provide ongoing communications to UC
customers and to potential customers such as new UC employees?
2. Please describe your company’s capability to market your services for a customer
operating in a non-mandated environment. Describe two examples of successes you
have achieved, along with samples of creative promotional materials you used, for
contract implementation in organizations as large and complex as University of
3. Describe how you will help identify UC travelers who are not using UC preferred
service providers and travel suppliers, and to bring them into the program.
L. Bidder’s Account References:
1. Provide five (5) references of which at least three (3) represent your experience with
higher education clients. Include the names, addresses, e-mail addresses and
telephone numbers for the contacts in each company who are familiar with your
2. Provide three (3) references of travel industry supplier contacts (airline, car rental, and
hotel) names, addresses, e-mail addresses, and telephone numbers, of the persons
most familiar with your account. Provide recent references for similar sized
implementations within the last twelve (12) months.
3. What is the largest account that you have lost in the last eighteen (18) months due to a
reason other than consolidation or change of ownership? Why did this customer
change travel management companies? Provide the contact name, address, e-mail
address, and telephone number for the primary contact who terminated this account.
4. Provide the largest account that you have won in the last eighteen (18) months. Why
did this company change travel management providers and what did your company
offer them that they were not receiving from their prior supplier? Provide the contact
name, address, e-mail address and telephone number for a contact in this company.
5. Provide two examples of a successful relationship where you have provided
outsourced program services and thereby produced significant savings. Please
describe program details.
M. Direct Customer Questions:
A comprehensive internal survey and focus group process was completed as input to this RFP.
Results from over 1,700 respondents indicated that the highest priority items are:
Obtaining the lowest fares and rates
Being proactive in identifying fare and rate options
Courtesy and attitude of reservation/fulfillment personnel
Prompt response in answering calls and returning call backs and e-mails
Effective problem solving.
1. Please demonstrate your understanding of our culture by proposing how you would
meet these service challenges. What would you do to assure the University of
California that you also would adopt the above as your priorities and deliver the
highest quality service?
2. How would you go about identifying and guaranteeing the lowest air fares and hotel
rates for group study travel outside the US?
3. What organizational scheme would you use to personalize the relationship between
your agents and UC faculty travelers? Is there any training that could be applied to
4. Does your online reservation method routinely offer air, hotel and rental car options?
5. How would you assist UC in advertising its discounted rates and the use of preferred
6. How do you handle questions from travelers and travel arrangers who need assistance
in using your online booking system? Is this support available 24/7?
7. How do you handle emergency situations during normal working hours? How do you
respond to the traveler who needs immediate assistance?
8. University of California customers prioritize service quality when looking for the lowest
fare combined with friendly service. What do you do to ensure that your agents are
providing friendly service while being proactive in searching for fare options?
9. Many UC travelers have no administrative assistance for making travel arrangements.
How would you meet these travelers’ needs assuming no trained UC staff is available
to help them?
10. Do you offer computer-based tutorials on your programs and how the reservation
process would work?
11. What do you do to inform travelers of developing crises situations or disasters that
could affect them while they are en route? How do you apprise the UC of travelers in
12. Our internal focus group identified several “value added” reasons for using an agency:
• Handle multiple reservations
• Handle and process recruitment travel
• Expertise in low-fare identification
• Experience and knowledgeable agents
• Ability to resolve problems
Are there any additional thoughts, comments or proposals you would like to make in
response to these factors in addition to your previous answers?
13. Can your reservation system allow individual travelers and travel arrangers to update
their profiles? If not, how do you handle this issue?
14. What data could you provide to assist us in tracking savings on air, hotel and rental
15. What skills and experience do you look for in assigning agents to international booking
16. How familiar are your agents with ground transportation options in major US and
17. Do you have any ideas as to how an airline upgrade program might work for long
distance faculty international travel or for mission critical trips by UC executives and
18. How familiar are your agents with all the special arrangements necessary in booking
There may be some redundancy between the above questions and those listed earlier in this
section. We would, however, like to isolate these questions generated from our survey.
SECTION V: PRICING
A. Price Quotation
1. Please complete the attached Pricing Schedule Attachment #1 based on the specified University of
California requirements as defined in this RFP. Your pricing is to be based on the estimated annual
volume of transactions and spend as indicated in Section II. Please provide your pricing proposal in
hard copy and on CD in Excel.
2. Please do not change the format of the Pricing Schedule/Attachment 1#, rather complete
Attachment 1 as presented. If bidder desires to present other pricing information as part of this
RFP, please submit the additional information as another attachment, separate from Attachment #1.
3. Bidders must provide a price quotation for all the options included in the Pricing Schedule and
detailed in Section V of this RFP.
4. The prices quoted in response to this section shall be the UC net price including the various
services to be provided. There shall be no separate charges, fees, handling or other incidental
B. Price Protection
1. Prices quoted cannot increase during the first 12 months of the Agreement term. Price changes
after the first 12 months period, if any, shall be made on an annual basis as negotiated by both
parties. Any price change requests require a 30-day written notification. However, in no event shall
price increase on an aggregate basis exceed three (3) percent or CPI whichever is less. In the
event that a certain item has a significant price increase in excess of five (5) percent, those
particular items shall be negotiated individually.
2. Price increases for any renewal periods must be supported by documented evidence of the
successful bidder(s)'s price increases for the specific services that are part of this RFP. This
documentation must be provided to the UC for review in advance of any pricing negotiation. The UC
shall benefit from any lower price offered to other universities, hospitals, government agencies or
entities where the economic and service requirements are substantially similar. If the successful
bidder(s)’s commercial or list price is reduced, the UC shall benefit from a corresponding price
C. Manufacturer Price Decreases
Bidders are advised that there is no mandatory use policy at the University of California at this time.
The service provider(s) must compete with other vendors. Therefore, it is essential that the successful
bidder(s)’s price decreases be passed on to UC immediately and the supplier agrees to do so.
Furthermore, the service provider(s) will use best efforts to provide a minimum of thirty (30) days prior
notification of such price change.
D. Prompt Payment Discount
Bidders are to quote discounts offered for prompt payment. The University of California considers 30-
day payment periods as normal. Additional discounts should be quoted for payments received in 5, 10,
15, and 20 days. The University of California expects to enter into a long-term alliance with the
successful bidder(s). Please provide your company's long term pricing commitment for this contract.
E. Patronage and Earned Incentive
The successful bidder(s) may be required to provide an Earned Incentive(s) to the University of
California for aggregating the business volume and managing the business processes.
Incentives can include the following:
1. Electronic Fund Transfers (EFT) for invoice payment
2. Specify any other incentives that may be earned by the University of California
Please include in your company's proposal how the Earned Incentives are paid along with frequency of
payment. Provide sample or describe how Earned Incentive dollars are tracked and reported.
F. Definitions for Costing Proposal
1. Transaction - A transaction is defined as a ticket issued, inclusive of any hotel, car, rail and other
reservations. Credits, refunds, exchanges and voided tickets are excluded. The tickets issued
should be verified by an ARC report.
2. Revenue Sources - All revenues (hard and soft) will be the property of the University of California
and they include but are not limited to:
Rental Car Commissions
Bonuses on all commissions based on any promotional programs
Performance bonuses from suppliers
Overrides from all suppliers
GDS segment fees
Soft dollar awards, including tickets upgrades, club memberships, etc
3. Cost Elements - Are those expenses that are incurred by the bidder in the course of providing
the level of service required by the University of California. Cost Elements may include:
Reservationsbooking domestic and international
On line bookings and fulfillment
Ticket issuance for all transactions
GDS equipment, printers
See below for further definition of direct cost factors
4. Labor - As a key element of bidder cost in providing services, labor is defined as the fully
loaded total cost of personnel assigned to and or dedicated to the UC account.
5. Standard Accounting - Is defined as the cost of those bidder activities in establishing and
maintaining with an acceptable level of accuracy key financial data, reports and information on
indices such as the number of transactions, tickets issued, revenues generated, refunds,
exchanges and voids processed, billing and payment summaries and the issuance and payment
of Agency fees and related charges.
6. Account Management - Is the level of support and interaction between the successful bidders
and the UC in meeting the travel program’s goals and objectives. Here the quality of service,
customer satisfaction, UCbidder communications, program promotiontraveler education, the
development and installation of best practices, the application of technology and the achievement
of savings targets are among the top priorities.
7. Quality Control Policy Compliance - Are those Agency resources and programs which provide
a quality review for accuracy and completeness of all travel documents issued and reservations
completed by the Agency(s). It is also to assist the UC in improving the system wide level of
compliance with travel policies, meeting preferred supplier market share targets and in assessing
progress in the use of an online booking system. These tools would also assist in determining the
use of authorized reservation options and the installation of best practices.
8. Operations Support - Are those activities and programs designed to facilitate, improve and
support staff and processes involved in providing direct service to UC travelers and travel
arrangers. Scripting, quality control, supervision and Ops training would be typical costs in this
9. Overhead - Is the cumulative cost of indirect service functions such as sales and marketing,
space and facilities, executive review and oversight, financial management, non dedicated
account management, training, HR etc.
10. Technology - Is defined as the cost of all technology support programs that assist in the
completion of reservation and ticketing processes, along with assisting customers in managing
their travel spend and improving compliance with travel policies.
SECTION VI: EXECUTIVE SUMMARY
Summarize your proposal into a brief, compelling argument for UC choosing your company as its travel
management service provider. Confirm that you can meet all of UC’s requirements. If you cannot meet
a certain requirement, you must detail it including the reason in this section.