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The University of Maine’s 10-year-old contract with the Coca-Cola Company to provide beverages on campus will expire on June 30, 2009. UMaine is preparing to enter into a new contract, which could be with Coca-Cola or a different company.
The contract guaranteed Coca-Cola a constant financial stream and the rights to exclusive production of all UMaine’s vending machine beverages, fountain drinks and athletic drinks.
Coca-Cola recently contacted UMaine asking when the process for renewal will begin, according to Mike Noblet, the university purchasing manager. The Pepsi Company, which also competed for the contract, expressed interest a few months ago in competing for the new one.
“We expect this RFP [Request For Proposal] process to be very similar to the original event. We will be sending a request for proposal to the two major companies – Coke and Pepsi – but anyone is going to be free to bid on this. Usually, Coke and Pepsi are the companies that can best handle a contract of this size,” June Baldacci, director of purchasing and resource efficiency, said.
The current contract provided $3.2 million over its 10-year tenure. There was $1.2 million dedicated to renovating classrooms and teaching labs, more than a $1 million went to expanding Fogler Library’s collection, $350,000 provided Mainebound with its climbing wall, and $70,000 purchased special chairs for Morse Field and the sports stadium for commencement exercises, said Janet Waldron, vice president of Administration and Finance.
Smaller companies will most likely be unable to provide adequately for a contract of this size. Noblet cited RC Cola as one example of this.
“Whoever makes RC Cola is such a small company that they can’t do the product line that we would need for a campus-wide beverage contract, for the most part,” Noblet said.
An evaluation committee made up of representatives from the president’s office, the vice president’s office, auxiliary services, the Public Relations Department, the Purchasing and Finance Department, Auxiliary Property Management, Auxiliary Dining Management, the student body and the Department of Student Affairs chose the vendor for the contract 10 years ago. The university can expect the new committee to have similar members.
“I don’t think it [student representation] is going to be limited to a student athletic representative, but I don’t know,” Baldacci said.
Baldacci thought one of the student representatives from the committee of 10 years ago was from the Athletics Department.
“I know the last time they actually had two specific students – I believe – that were listed, at least for the pre-bid meeting. There were a couple of students that were there on the list of attendees,” Noblet said. The student representation extended beyond student athletes.
Waldron stressed the University’s desire to involve all of the UMaine campus in the process, especially students and faculty.
UMaine President Robert Kennedy will likely pick most of the committee members, according to Noblet, all of whom will be chosen in the coming weeks.
A 20 percent allowance in the contract will be set aside for beverages from other companies.
New criteria in the evaluation process will include a requirement for certified energy-efficient machines, a company commitment to sustainability, recycling and environmental policies, as well as a level of corporate citizenship – a commitment to human and labor rights.
The Purchasing and Financing Department will work with the committee once it’s formed to decide on the content of the RFP, then send a final draft to companies.
“We don’t know [how the contract will be different] really, because we don’t know how companies will respond,” Baldacci said.
The process will begin sometime in November, and the university hopes to release the RFP by January, according to Baldacci. UMaine hopes to award the contract before the original expires in June.
Bangor Daily News