Strategic Sourcing Case Study
Assessments Worksheet
Overview
The strategic sourcing case study is a hands-on activity where students apply analytical, planning, and decision-making skills to develop a strategic sourcing process for long-term facility management service agreements at the Red River College campuses.
Develop tactics that support strategic sourcing to align to the overall strategy of the organization.
Conduct public procurement to comply with the Canadian competitive bidding law.
Complete Spend Analysis to gain insights that improve financials.
Apply cost and price analysis to use in procurement decision.
Provide an estimate for how long it should take students to complete the assessment.
8-10 hours
You will be assessed on your achievement of the following course learning outcomes:
LO3, LO4, LO5, LO6, LO9, & LO12
Instructions
• You will work in a cross-functional team of 5 or 6 members to develop a complete strategic sourcing plan with an RFP for the assigned facility management service.
• Each group member will take on different roles in the team to brainstorm, analyze, and develop specific components of the strategic sourcing plan and RFP documents as further detailed in the responsibility matrix.
Details for the Assignment
The Red River College is a public multi-campus college, funded by the government, private donations and internal revenue generated from academic programs. The college has 2 main Winnipeg location campus, the Notre Dame Campus and the Exchange District.
(1) The Notre Dame Campus comprise of the 100,00 sq ft Skilled Trade & Technology Center that hosts administrative buildings, sporting facilities, lecture halls, parking facilities technology and innovation labs such as the newly completed Innovation Center at the Roblin Center.
(2) The Exchange District – this urban campus consists of the newly completed Innovation Center, a total of 80,000 square feet on multiple locations, where academic programs, social events, research, and community activities take place all year-round.
The Red River College is embarking on the strategic sourcing of several services that have been identified for outsourcing and seeks to save money and improve services while accomplishing the sustainability goals of the college through this strategic initiative.
Facility Management Service Contracts
Several multi-year service contracts will replace the current service agreements at the Red River College Winnipeg based campus facilities to sustain the Red River College’s commitment to sustainability amongst other objectives.
You have been appointed the role of a Procurement Manager at the Red River College. As part of your onboarding and tour of the facilities, you were briefed by the Facility Manager about the several 5-year term contracts for facility management services of the Winnipeg location campus, that comprise of the Notre Dame, Exchange District Campus, Roblin Center, and the Patterson GlobalFoods Institute. The contracts were awarded 3.5 years ago at $450k-900k each.
The Facility Manager further emphasized the need to start planning the renewal of the contract at least 1 year before their expiration. He has completed a procurement request and needs to ensure replacement service contracts are executed before the next winter season in January 2022.
Summary of Scope of Work:
The following are the services shortlisted for review by the Red River College Administration.
1. Landscaping & Lawn Maintenance Services – Current Award Value $450k
Providing all labor, material, equipment, tools, and services required to provide full professional landscape maintenance on Campus.
In general, the work will include the following but not limited to;
• Maintenance of all landscaping
• Roadway cleaning
• Maintenance and repair of all watering systems
• Fertilization of soil for flower decorations
• Application of chemicals to treat landscape plants.
• Debris removal and weed control.
The contractor shall be responsible for complying with regulations of all local, state, and federal agencies having jurisdiction over the work to be performed.
All work is to be performed during normal daylight hours; any exception will require written approval of the Facility Manager.
Assumptions
1. Strategic sourcing of these services will save the College some substantial amount through a multi-year procurement strategy.
2. Team personnel identified above will be available to work on this project.
3. The historical cost of the services for the past 4 years is available.
Additional Information
• Utilize market research of the facility management services in Winnipeg to understand the cost drivers, suppliers, industry trends, innovations, services options, alternative materials, and equipment available in the industry.
• Review the Red River College Purchasing policies to understand requirements for public procurement compliance. (https://www.rrc.ca/legal/policies/purchasing/
• Recommended layouts (e.g. templates)
o Sample RFP for a similar procurement project will be reviewed in the class.
• Student work samples
o Completed strategic sourcing of a similar project by a student team.
Parts need to be Done
o Maximum 2 pages
o Can refer to page 16 – 23 of the sample case study
Rubric
Please consult the attached rubric for grading details.
Criterion 4 Exceeds 3 Meets 2 Meets Most 1 Does Not Meet
Landscaping & Lawn Maintenance Services Demonstrates exceptional strategic sourcing plan Demonstrates good strategic sourcing plan Demonstrates acceptable strategic sourcing plan Strategic sourcing plan lacking
Public Procurement process and RFP Exceptional application, including applied course material Good application, including applied course material Acceptable application, including applied course material Weak application, course material not applied.
Spend Analysis Exceptional application, including applied course material Good application, including applied course material Acceptable application, including applied course material Weak application, course material not applied
Cost and Price Analysis Exceptional application, including applied course material Good application, including applied course material Acceptable application, including applied course material Weak application, course material not applied
Overall Strategic Sourcing Plan alignment to overall organization strategy Exceptional plan and alignment with organizational objectives Good plan and alignment. The plan aligns to most of the organizations strategy but lacks in some areas Poor plan, does not align to organization strategy
Format, grammar, spelling, punctuation, APA referencing. No errors Minor errors Some errors Significant errors, difficult to follow.
Total /40