REQUEST FOR PROPOSAL (Extracted Summarized Version)

We are evaluating whether to outsource the operations of the UNC Student Stores to a third party or to
continue self-operation. Extracted below are the relevant sections/paragraphs from the Request for Proposal
(RFP) that was designed to ensure our values: academic quality and image, affordability and service,
employee welfare, respect for our obligations, and financial assistance to need-based students.
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UNC Goal

UNC recognizes that the traditional university bookstore business is in a transformational period, and
UNC’s intent is to be on the cutting-edge of campus retail services. Therefore, UNC has initiated this
Request for Proposal process and is seeking an innovative and proactive partner (or partners) that is on
the cutting-edge of campus retail services to effectively serve the UNC community. UNC’s goal is to
provide innovative, state-of-the-art retail services that will result in the following:

• Improved affordability for UNC students by reducing course materials costs

• Improved customer satisfaction through cutting-edge retail innovation and “Premier” state-of-the-art
campus retail services
• Enhanced exposure of the UNC brand
• Increased financial contribution to UNC that will assist with supporting the UNC Student
Scholarship Program

UNC desires campus retail services that are customer-centric; a visible representation of the academic
quality and image of UNC; an industry leader in providing creative and affordable course materials; and
focused on advancing the UNC brand by increasing the selection and marketing of UNC emblematic
merchandise.

Invitation

UNC intends to encourage and evaluate ideas on how to offer an exciting customer experience to
students, faculty, staff and visitors, making UNC Student Stores an exciting place to visit and shop,
making customer transactions convenient at a low cost to UNC students, while growing the sales volume
to be able to contribute more to UNC student scholarship funds. To explore various options, technology,
ideas and business models, contractors and providers are invited to submit proposal(s) for one or both
options for bookstore/virtual course materials store services at UNC:

Option 1: On-Campus Full-Service Bookstore

Option 2: Virtual Course Materials Store

Option 1: On-Campus Full-Service Bookstore

Full-Service UNC Student Stores will provide comprehensive on-campus course materials services,
emblematic merchandise, school supplies, technology products/computer store and Carolina
Computing Initiative, Bull’s Head Bookshop, convenience products, coffee shop, U.S. Postal Contract
Station, Print Stop, etc.

Option 2: Virtual Course Materials Store

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 UNC is seeking proposals for a Virtual Course Materials Store with an On-Campus Course Materials
Storefront/Kiosk component that will provide full range of course material services including customer
service, order pick-up, refunds, and other services for all UNC programs (e.g., undergraduate,
graduate, professional, continuing education, etc.).

Major Desired Elements

 Creating a customer-centric innovative retail environment.

 Supporting the academic mission of UNC by providing efficient and effective course materials
services to students and faculty, including buyback and adoptions.
 Creating and implementing effective strategies to reduce the cost of course materials to UNC students
by offering a comprehensive textbook rental program, a strong used textbook and buyback program,
an innovative digital textbook/course materials program, access to Open Educational Resources
(OER) course materials, and by utilizing emerging technologies.
 Providing easy access for online course materials.
 Providing comprehensive course materials services to support current and future distance learning
programs and online courses.
 Introducing new products and services that meet the evolving needs of customers, including UNC
students, faculty/staff, alumni, fans, and visitors.
 Implementing a comprehensive e-commerce strategy and social media engagement strategy.
 Playing an integral role with the transformation from traditional textbooks to cutting-edge course
materials.
 Providing easy access and multiple distribution channels for course materials.
 Implementing a proactive course materials strategy that will allow UNC Student Stores to compete
effectively in the challenging university bookstore environment.
 Communicating and coordinating effectively and proactively with faculty regarding the use of all
types of course materials.
 Providing a general book program/Bulls Head Bookshop that supports academic excellence at UNC
and is tailored to the needs and interests of the UNC community.
 Providing excellent customer service, including minimizing transaction times and wait times for in-
store and e-commerce transactions, and ensuring efficient processing of all transactions.
 Creating a dynamic, exciting retail environment that promotes and enhances the UNC brand..
 Creating and implementing effective strategies to reduce the cost of course materials to UNC students
by minimizing shipping costs and providing a wide selection of used textbooks, textbook rental titles,
and digital textbooks/course materials.
 Utilizing state-of-the-art technology and emerging technologies for web based course materials
operations (e.g., online transactions, inventory status, registration integration, online textbook rental,
online buyback, etc.).

Proposal Evaluation Criteria

UNC will not award a contract based on financial considerations alone. A contract will be awarded to
Contractor whose proposal best meets UNC’s mission, goals, institutional values and business objectives
by providing the best overall value as determined by UNC in light of factors including, but not limited to
(where applicable), personnel policies including retention plan, compensation terms and benefits,
employment and training opportunities for UNC students, financial arrangements, confidence level,
experience, reputation, value-added services, capability to partner with UNC to provide digital course
material solutions, company history and background, operations plan, marketing strategy, customer
service, course materials affordability and pricing policies, General Book program, general merchandise
and marketing strategy, technology, financial projections, transition plan, exceptions to RFP
requirements, any additional information, and the quality of proposal.

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Affordability and Service

 University is focused on course materials affordability for UNC students. As part of this focus,
University will continue to explore all options regarding the digital delivery of textbooks/course
materials and course content, including direct coordination with publishers, Open Educational
Resources (OER), etc.
 Contractor shall support special events (e.g., lectures, readings, speakers, etc.) on campus by offering
books and/or appropriate merchandise at University events, which right shall be non-exclusive.
 Contractor shall provide donations of merchandise (retail value), gift card/textbook scholarships, etc.,
to support various departments, programs, events, etc., on campus.
 Contractor shall provide a full-service computer store. The computer store shall include, but not be
limited to, Apple products, non-Apple hardware, software, accessories, computer supplies, repair
services, etc. Contractor shall work collaboratively with UNC’s Information Technology Services to
support the Carolina Computing Initiative as per existing agreements.
 Contractor shall operate a coffee shop or collaborate with the current third-party provider, or another
provider subject to UNC approval, to operate a coffee shop.
 Contractor shall operate the U.S. Postal Contract Station located in the Student Stores as per the
existing contract or offer a workable alternative.
 Contractor shall sell graduation merchandise (e.g., diploma frames, announcements, regalia, class
rings, etc.) in UNC Student Stores and at other locations as designated by UNC throughout the year
and during graduation.
 Contractor shall assist and support student organizations and student activities at UNC by providing
discounted or free merchandise and UNC Student Stores services to a reasonable extent.

Staffing / Personnel

 Contractor shall be responsible to employ all personnel necessary for the efficient operation of a full-
service UNC Student Stores in accordance with the requirements established by UNC.
 Since successful placement and treatment of current Student Stores staff is critical to UNC’s
evaluation of proposals and is imperative for the successful transition, Contractor shall prepare three
financial offers based on the following potential scenarios related to the current Student Stores staff:

1. Scenario 1: staff Student Stores in accordance with Contractor’s standard staffing profile,
staffing level, and salary/benefit package in order to meet the service requirements of UNC.

2. Scenario 2: hire al UNC Student Stores employees (at time of transition) for a minimum of
1 year at their current salaries/wages and Contractor’s benefit program.

3. Scenario 3: Retain Student Stores employees on UNC’s payroll under the overall direction
of Contractor for the term of the agreement. Contractor will reimburse UNC for salaries,
wages, and benefits.

 Contractor, working with the faculty, shall make every effort to obtain early course materials adoption
commitments in order to maximize the quantity of course materials purchased from students for resale
at UNC Student Stores. Contractor shall provide timely reports to faculty members concerning the
status of their orders.
 Contractor shall provide sufficient quantities of course materials, custom-published materials,
software, and related academic supplies and materials, as required by faculty for course work,
available for purchase by students according to the schedule established by University.

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  Contractor shall offer custom-published materials (i.e., coursepacks, including digital coursepacks),
including the securing of copyright clearances in compliance with all copyright laws,
production/printing, and sales.

Course Materials Affordability / Pricing Policies

 UNC is committed to making course materials affordable to UNC students. Contractor’s course
materials pricing policies should be innovative and prices cannot exceed the pricing policy as
described below.

o "List-Priced" new textbooks shall be sold at no higher than list price.

o "Pre-Priced" new textbooks shall be sold at no higher than the pre-price.
o "Net-Priced" new textbooks shall be sold at no higher than a twenty-five percent (25%) gross
profit margin.
o "Net-Priced" bundled packages of course materials (i.e., textbook, workbook, CD, passcode,
etc., bundled together) shall be sold at no higher than a twenty-five percent (25%) gross profit
margin.
o Digital course materials sold by publishers to Contractor at net-price shall be sold by UNC
Student Stores at no higher than a twenty-five percent (25%) gross profit margin.
o Digital course materials sold by publishers to Contractor via the agency fee pricing model shall
be sold by UNC Student Stores at no higher than the retail price established by the publisher.
o Used textbooks shall be sold at no higher than seventy-five percent (75%) of the current new
textbook retail price.
o Coursepacks and custom published materials (i.e., materials requiring copyright permissions)
shall be sold at no higher than a twenty-five percent (25%) gross profit margin.
o New rental textbooks shall be rented at no higher than fifty percent (50%) of the current new
textbook retail price.
o Used rental textbooks shall be rented at no higher than fifty percent (50%) of the current used
textbook retail price.
o There shall be no add-ons or surcharges to cover freight, handling, publisher re-stocking fees,
etc. (i.e., above formulas shall be applied to the actual price listed on the publisher's invoice in
order to determine the selling price of a particular course material).

 Contractor shall sell trade books, reference books, and other non-textbooks at no more than the
publisher’s list price, or if there is no list price, at prices competitive in the local area and competitive
in the university bookstore industry.
 UNC is committed to providing a strong used textbook program in order to reduce the cost of course
materials to UNC students. Contractor shall make a significant effort to maximize the availability of
used textbooks for UNC students.
 Contractor shall buy back books from students at not less than 50% of the original retail price for
textbooks that have been adopted for an ensuing semester (i.e., if a textbook was purchased new and
has been readopted, then Contractor pay the student not less than 50% of the original new textbook
retail price during buyback. If a textbook was purchased used and has been readopted, then UNC
Student Stores shall pay the student not less than 50% of the original used textbook retail price during
buyback). Textbooks that have not been adopted for an ensuing semester shall be purchased at a
minimum of the current wholesale price, established by national used book wholesalers and published
in one of the current national used book wholesale buying guides.

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Other Selected Requirements

 Contractors are required to submit a proposed facility investment to provide state-of-the-art facilities
for UNC Student Stores.
 Contractor shall participate in UNC’s recycling program. Contractor shall remove all trash and
recyclable materials and place them in the proper UNC recycling containers.
 Contractor shall utilize environmentally friendly practices in its operation of UNC Student Stores and
shall abide by all UNC environmental/sustainability practices.
 Contractor shall work towards continuing a program whereby UNC Student Stores, in partnership with
UNC Employee Benefits, Human Resources, and Payroll Services, offers an interest-free payroll
deduction program to permanent University and UNC GA employees for the purchase of computers,
tablets, and accessories.
 Contractor shall continue to operate “Print Stop”, a course pack publishing operation and serves as the
facilitating service for the printing needs and requirements of University.
 Contractor shall honor the relevant current contractual obligations to manage and work with the
programs and entities such as Belfour, General Alumni Association, Friday Center, Daily Grind,
Campus Health Service, U.S. Postal Services, and Apple Computers.
 Contractor shall work with University to ensure compliance with the Higher Education Opportunity
Act (HEOA), Americans with Disabilities Act (ADA), and all other relevant state, federal and local
laws, rules and regulations, and UNC policies.

This RFP is a competitive process designed to serve University's best interests. This RFP pertains to a
revenue-generating University endeavor and does not involve the expenditure of University funds.
Consequently, this RFP process is not subject to State or University purchasing laws and regulations.
UNC reserves the right to reject any or all proposals and to request any additional information it
deems necessary to supplement the proposals and/or to reach agreement.