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    Bidders should be aware that the above air spend is estimated ... Bidders should be aware that the above air spend is estimated ... Document Transcript

    • REQUEST FOR PROPOSAL FOR TRAVEL MANAGEMENT SERVICES & PROGRAMS FOR 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. 1
    • THE UNIVERSITY OF CALIFORNIA RFP #UCOP/Tvl-Book-Agen/2007 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 ATTACHMENTS 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 Payment 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 Government Contracts 10. Attachment #10 University of California Appendix DS/Additional Terms and Conditions/Data Security 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 2
    • 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 $126,000,000. 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. 3
    • 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 priority. 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 program: 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 program; 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 include: • 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. 4
    • 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 SPEND 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 Laboratory 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 Francisco, CA *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. 5
    • 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. 6
    • SECTION III: GUIDELINES AND INSTRUCTIONS A. Objective: 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 present. 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 Commodity Manager Strategic Sourcing Office of the President University of California Phone: (510) 987-0472 Lesley.Clark@ucop.edu 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 7
    • 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 pat.cheney@ucop.edu 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. CONFERENCE SCHEDULE: 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 legal forms. 8
    • • Pricing questions, bidder’s financial statements and annual reports, insurance requirements and legal forms are to be sent to: Haggai Hisgilov Executive Director of Strategic Sourcing Financial Management 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 instructions: 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 delivered. • Please forward two (2) hard copies, one CD of documents and one (1) electronic copy of your proposal to: Ms. Lesley Clark Commodity Manager Strategic Sourcing University of California 1111 Franklin Street, #10329B Oakland, CA 94607-5200 (510) 987-0472 phone Lesley.Clark@ucop.edu • 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 contract(s): 9
    • 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 typewritten. 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 services. 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 requirements. 3. Vendor Qualifications and Experience: This section should contain the required qualification information specified in the “Qualifications of Bidders” (Paragraph H above). 10
    • 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  Program administration  Expertise of personnel  Bidder’s experience serving academic institutions with domestic and international travel  Commitment to environmental sustainability  Training 11
    •  Marketing  Quality management and continuous improvement processes 2. Industry Specific Criteria  Operational/service configuration  Implementation plan and approach  Completeness and accuracy of data generation and reporting  Technical Qualifications  Information Management  Experience in selecting, operating, and supporting online booking systems 3. Service Quality and Commitments  Commitment to the UC’s travel goals and objectives  Staffing plan  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; 12
    •  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 13
    • 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. 14
    • 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 representatives. 3. State locations from which the program will be administered if your company is awarded the contract. 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 your company. 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:  Corporate travel  Leisure travel  Groups and meetings  Consulting services  Athletic travel 15
    • 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 needed? 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 questions: 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 integrated data.  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 natural disaster. 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? 16
    • 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? Account Management 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 council meetings. 6. What benefits could the University realize from a business plan describing its program objectives? 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- booking tool – 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. • Scripting – 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 17
    • • Out of policy notifications • Problem resolution. (What is the turnaround time for any problems raised). • 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 portal. – 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, How? • 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 customers? 7. Provide an example of a detailed, online complex itinerary confirmation that includes air, car, hotel, passport requirements, confirmation numbers and more. 18
    • 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? Travel Portal 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 consolidator fares? 6. Describe any specific capabilities you have to process requests for passports and visas. 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. 19
    • 10. Are there other services and programs that you recommend the University include to better manage its systemwide program? If so, describe these services, their benefits, and the cost to purchase, implement, and maintain. 11. The new systemwide travel program will be branded as a University of California venture. Indicate any concern that your company might have with this approach. F. Bidder’s Cost Savings Measures: 1. Describe your cost savings strategies and focus on the short-term, mid-range and long term for the University of California. What items do you target for maximum cost savings results? What kinds of reports can you provide on our cost savings? 2. Describe any additional possible cost savings initiatives that could assist UC with reducing its travel spend. G. Bidder’s Reporting and Policy Compliance and IT: 1. Provide samples of reports normally submitted to your customers to assist them in managing travel and interacting with suppliers. Indicate the media used, frequency provided, and any cost associated with providing the reports. 2. Data protection is of critical importance at the UC. When complying with the University’s Standard Terms and Conditions, how is your company prepared to safeguard UC data privacy interests. Have your systems ever been breached? Please describe all instances. Are you willing to be totally accountable for all ramifications of a potential breach? 3. What is the location of the database where UC data would be stored? Please indicate the location of the server and backup servers. 4. Describe your ability to provide accurate data based on the University’s diverse organizational hierarchy. 5. Explain your experience in data exchange with Human Resource systems. 6. Describe your ability to provide custom and ad hoc reporting to the University, and any associated fees. What report writers can be used to query against your database? 7. Describe how you might play a systemwide data consolidation role in the event that UC selects multiple agencies and provides reservation options for its travelers. 8. Describe your capabilities to provide the University’s Travel Management Unit direct access to the data and/or data feeds. 9. Indicate your ability to identify policy exceptions, such as travelers refusing low fares in violation of policy or, travelers not booking preferred hotel or rental car suppliers. Describe your ability to identify the above exceptions on a pre-trip and post-trip basis, and your ability to document reasons for audit purposes. 10. Describe your capabilities to support airline and/or hotel negotiations and compliance. Specifically, reports that should include actual expense and market share, service potential, utilization, overlap and exclusive city pairs. 11. Describe any other reports and/or analyses you recommend to support UC’s travel programs. 12. Do you have specific experience in completing data transfer agreements with Prism Group Inc.©? Do you anticipate any difficulties in responding to airline requirements in this area? 13. Describe your programs for identifying and tracking hotel commission revenue. What processes do you use to notify hotels of delinquent commission payments? How can the University of California be assured of receiving 100% of such revenue? 20
    • 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 this service. 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 21
    •  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 competitors? 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. Also: 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 information. 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 services. 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 information. 3. Provide information regarding the cost effectiveness of your program. 4. Describe your negotiated hotel rate program and how it could complement UC’s contracted program. 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 22
    • 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. Also: 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 services. 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 performance. Meetings Management 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  Sleeping rooms  Ground transportation (including arrival/departure manifests, if necessary)  Logistical coordination of program services  Program reconciliation  Program invoicing, including collection of payments and disbursements to meeting suppliers More elaborate and larger meetings may need the following services:  Recreational coordination  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 encouraged. Also: 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). 23
    • 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). Group Air 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 California system. 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 company’s work. 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 24
    • 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 this issue? 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 suppliers? 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 hot zones? 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? 25
    • 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 cars? 15. What skills and experience do you look for in assigning agents to international booking responsibilities? 16. How familiar are your agents with ground transportation options in major US and foreign locations? 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 administrators? 18. How familiar are your agents with all the special arrangements necessary in booking athletic travel? 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. 26
    • 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 costs. 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 reduction. 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. 27
    • 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: Air Commissions Hotel Commissions 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: Labor Reservationsbooking domestic and international On line bookings and fulfillment Ticket issuance for all transactions Ticket delivery Refunds exchanges GDS equipment, printers ARC fees 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. 28
    • 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 area. 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. 29
    • 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. 30