1. RFP’s and Sponsorship: Happy Marriage or Quickie Divorce? March 14, 2014

2. LOUISVILLE.EDU What does sponsorship mean relative to the RFP?

3. LOUISVILLE.EDU What does sponsorship mean relative to the RFP? It doesn’t mean that you will pay more for needed products It doesn’t mean that you will have diminished service levels It should have no impact on the University contract or Purchasing They are not buying a contract It’s not dirty (no shower required)

4. LOUISVILLE.EDU What does sponsorship mean relative to the RFP? It does usually result in a new revenue source for your university by leveraging your brand It will usually require an effort from Athletics, Alumni, Communications & Marketing A separate sponsorship agreement will be executed and only linked back to the supply contract in the event of breach. Your President will think you are Superman or Wonder Woman Be prepared - just like an addictive drug your President will be easily hooked and will never be able to get it often enough!

5. LOUISVILLE.EDU Before You Begin

6. LOUISVILLE.EDU Roadmap to Success Coordinate a central management process to protect the value of our University, access to our audiences and protect current university contracts – “One door in, one door out” New policy in place through shared governance Ensure the university is retaining maximum value for the business it does now or will do in the future with all vendors Develop a program that the university community will accept and embrace through shared profit & transparency Work with Purchasing and outside counsel to access the RFP process the right way Assemble a sponsorship review committee

7. LOUISVILLE.EDU New Policy in Place 1.All current or future sponsorship marketing agreements, inclusive of extensions and renewals of grandfathered agreements, must be approved by OCM 2.OCM is the only department with authorized signatory authority on all sponsorship agreements or marketing contracts --not individual units 3.Any agreement that provides marketing access to all students, all faculty, all staff, all alumni, all visitors are only managed and executed by OCM & Purchasing. 4.If a unit identifies a prospective sponsor for a specific activity or asset, they must contact OCM to gain approval and ultimately execution of the final agreement. 5.OCM will be present on any department-specific Request for Proposals where sponsorship or marketing value could be a portion of agreement with the potential vendor, as determined by OCM and the Department of Purchasing. 6.Anyone responsible for compliance of any type is responsible for notifying the Office of Communications & Marketing of any prohibitions relative to sponsorship.

8. LOUISVILLE.EDU Sponsorship Review Committee 8 As part of the new sponsorship policy a sponsorship review committee has been assembled. The committee will be responsible for: Program oversight Review of current and prospective sponsorship agreements Profit model and transparency Management of campus inquiries Each year the committee will prepare a report to be submitted to leadership.

9. LOUISVILLE.EDU Sponsorship Review Committee 2014 members include: Dr. Bruce Kemelgore – Faculty Senate Executive Committee Dr. Robert Goldstein – Vice Provost, Institutional Research Sally Molsberger – Associate Director of Contracts & Purchasing David Martin – Director of Contracts & Purchasing Julianne Waldron – Director of Brand Marketing John Penny – Nelligan Sports Marketing (ad hoc) 1 st meeting held March 5, 2014 9

10. LOUISVILLE.EDU Be sure your administration is comfortable with the proposed process Accurately outline the proposed practice and secure opinion from Counsel Make necessary changes per Counsel’s advice Ensure Legality

11. LOUISVILLE.EDU Request for Proposal

12. LOUISVILLE.EDU We’re Really Doing This! This may move through approvals quicker than you anticipated You will have many people watching Your administration will be interested

13. LOUISVILLE.EDU RFP Language Have conversations with your vendors prior to releasing the RFP The language should be intentionally vague The ultimate proposal is only the starting point for negotiations Consider a pre-bid meeting

14. LOUISVILLE.EDU Short-list your vendors and schedule presentations Vendor presents highlights of their proposal University then takes an opportunity to highlight the value of sponsorship Sponsorship conversation should be led by Brand Marketing not Purchasing University presentation should reflect effort and be customized to the individual vendor Vendor Presentations

15. LOUISVILLE.EDU Purchase contract and sponsorship contract should be negotiated as separate contracts Purchasing should not negotiate the final sponsorship contract Utilize your sports marketing organization for activation of deliverables Reference the total financial commitment in the University contract Sponsorship shouldn’t impact purchase contract unless vendor breaches on sponsorship Award Notification/Negotiation

16. LOUISVILLE.EDU Does it work?

17. LOUISVILLE.EDU 2013 Contract w/Sponsorship $3,000,000+ 2008 Contract w/o Sponsorship $400,000 2013 Contract represents $300,000 annually in product savings compared to 2008 contract We are attempting to arrange C-level OfficeMax leadership to speak at College of Business Possible connections to philanthropic giving Does it work?

18. LOUISVILLE.EDU Does it work? So far, it’s a happy marriage!

19. LOUISVILLE.EDU Questions?