1 Canadian National Site Licensing Project ICOLC 9, Newport, April 24, 2001 Canadian National Site Licensing Project (CNSLP) Project Update Deb deBruijn ICOLC 9, Newport, April 24, 2001

2 Canadian National Site Licensing Project ICOLC 9, Newport, April 24, 2001 Context  Need meets opportunity  Canada Foundation for Innovation (CFI) –Bolster Canada’s research capacity –Focus on research infrastructure: science, engineering, environment, health  Show me the money (60%)! – CFI funds 40%  CNSLP –Research content is infrastructure –Equitable access to research content is good public policy – 64 universities –3-year pilot project: proof of concept at national scale –Second largest national award

3 Canadian National Site Licensing Project ICOLC 9, Newport, April 24, 2001 CNSLP Goals n Increase quantity, breadth & depth of research literature –build capacity, within and across multiple disciplines –share costs and reduce economic barriers to participation n Maximize use and utility of content for researchers –speed transition from print to electronic resources –encourage large-scale adoption of digital formats n Influence the marketplace –reduce volatility and unpredictability –achieve advantageous terms and conditions for usage –develop new models

4 Canadian National Site Licensing Project ICOLC 9, Newport, April 24, 2001 Licensing process n Formal procurement process: –Best value for each dollar spent –Fair opportunity for vendors n Pre-qualification bid –Open call to vendor community –42 responses –23 fulltext/sole source vendors selected for RFP n Request for Proposal –23 vendors invited to bid; 20 bids submitted –Evaluation produced prioritized list of Preferred Bidders n Negotiations –In order of prioritized list of Preferred Bidders –11 negotiations; 7 vendors retained; 3-year contracts totalling ~$46M Cdn.

5 Canadian National Site Licensing Project ICOLC 9, Newport, April 24, 2001 Timeline  March – April 2000: licensing principles established  May – June 2000: pre-qualification bid  June – August 2000: RFP and model license developed  August 2000: RFP release  Sept – Oct 2000: RFP response evaluation  Oct 2000: ranked list of preferred bidders and budget allocation approved  Nov – Dec 2000: negotiations commence; 3 vendors retained  January 2001: negotiations continue; 4 vendors retained  February 2001: access activated under trial provisions

6 Canadian National Site Licensing Project ICOLC 9, Newport, April 24, 2001 RFP Bid Evaluation n Quantitative and qualitative data n RFP scoring: –Institutional demand (29%) –Products (29%) –Licensing approach (14%) –Vendor capability (7%) –Technical support services (7%) –Usage information reporting (7%) –Annual price increase limits (7%) n Financial information: $ per article n “Value proposition” blending financial and functional elements n Result: list of Preferred Bidders in priority order

7 Canadian National Site Licensing Project ICOLC 9, Newport, April 24, 2001 Negotiations Objectives  Aggressive counter-proposal to vendors’ quoted price  Low base cost for Year 1  Containment of annual cost increases (3-5%)  All available backfiles at low or no cost  New titles added at no charge  Refunds to libraries for 2001 subscriptions already paid  Flip model from print-based with electronic add-on, to electronic-based with print add-on  Broad interpretation of authorized users  Sustainability in Year 4

8 Canadian National Site Licensing Project ICOLC 9, Newport, April 24, 2001 Summary Results n All vendors agreed to: –Sign CNSLP model license –Offer three-year agreement, with fixed pricing in Cdn $ –Hold annual price increases significantly lower than prevailing rates –Commit to a price increase cap in Year 4, at license renewal –Change pricing model so as to unbundle print and electronic; several vendors will implement an electronic-based model, with print treated as an incremental and optional add-on

9 Canadian National Site Licensing Project ICOLC 9, Newport, April 24, 2001 Publisher/Product Mix n Commercial publishers –Academic Press IDEAL –ISI Web of Science –Springer-Verlag Link n Society/Non-profit –American Chemical Society Web Editions –American Mathematical Society MathSciNet –Institute of Physics Publishing Journals –Royal Society of Chemistry Electronic Journals

10 Canadian National Site Licensing Project ICOLC 9, Newport, April 24, 2001 Early Observations  Competition for CNSLP dollars, unified national market, confidentiality, multi-year stability/predictability, and CNSLP ability to “walk” were powerful motivators for vendors  Vendors unaccustomed to formal process – not “business as usual.” Vendors who priced strategically rewarded  Process worked best where we had big problems to solve  National negotiations shaved almost 34% off bid prices  More detailed cost-benefit analysis part of the pilot project