|
1.1 Description of
The UT System
1.1.A. Overview of
The UT System – The
University of Texas System ("the UT System" or "The
University") is a system of higher education that is composed
of nine general-academic Components, six health-related Components,
and System Administration (total of 15 Components plus System
Administration). The UT System employees
approximately 76,000 staff and faculty and has approximately 8,000
travelers. There are approximately 148,000 students enrolled at the
UT System’s Components. The UT System is an Agency of the State of
Texas.
1.1.B.
Component Names and Locations – A list of the Components
composing the UT System, including locations, is provided below.
General Academic
Institutions:
UT Austin
UT Brownsville
UT Dallas
UT El Paso
UT Pan American
UT Permian Basin
UT San Antonio
UT Tyler
Health-Related
Institutions:
UT Medical Branch at
Galveston
UT Health Science
Center at San Antonio
UT MD Anderson
Cancer Center
UT
Health Science Center at Houston
UT Health Center at
Tyler
Administration:
1.2. Background and
Special Concerns
1.2.A. History of The
UT System’s Travel Program –
Employees of the UT System traveling on business are
authorized to use the State of Texas General Services Commission’s
(GSC) State Contracted Airfare Rates (city pair contracts). The UT
System also piggybacks onto the GSC’s rental car, hotel, and form
of payment program. Other than the direct-supplier contracts
negotiated by the GSC, business travel for the 15 Components is
currently handled individually by each Component. As a result of
this decentralized approach, travel management programs vary by
Component. Information on each Component’s current Travel Program
can be found in Appendix A –
"Review-At-A-Glance" Travel Agency Information &
Service Requirements.
The number of
University contracted travel agencies currently exceeds 20. In
addition to the 20 contracted agencies, dozens of non-contracted
travel agencies are used by those Components that do not administer
a mandated policy that requires the use of contracted travel
agencies. There are also many additional agencies being used across
the country (possibly hundreds) by non-University employees whose
travel is paid by the UT System (primarily for inbound University
guests, independent contractors, speakers, etc.).
The UT System is
initiating the cluster travel agency consolidation identified in
this E-RFP because with the new Travel Program, The University will:
- receive consolidated and more
accurate travel data for budgeting, forecasting and additional
direct-supplier negotiating;
- improve control over booking
quality;
- have the travel agency partnership
foundations needed to fully harness technological applications
(particularly self-booking products and expense reporting
software); and
- pay less for travel agency
services because the UT System is directing significant volumes
to preferred travel agencies (economies of scale).
1.2.B. Travel
Patterns and Expenditures –
To assist in the development of the Agency’s Proposal and to
identify the magnitude of the travel service requirements of the UT
System, Appendix B contains both UT
System-wide and Component-by-Component travel data estimates.
In summary, during
fiscal year 1998/1999, the UT System-paid business travel expenses
exceeded $39 million, including airline transportation, lodging and
rental car expenses. Airline tickets accounted for $27,032,325.
Domestic airline tickets totaled $23,575,795 and international
airline tickets totaled $3,456,530. Hotel expenses totaled
$10,133,582 and car rental expenses totaled $2,122,597.
The UT System’s
travel needs are diverse. Many faculty travel to remote
international destinations and need knowledgeable agents to help
them make complicated itinerary arrangements. Funding for travel is
often from faculty grant awards. Grant recipients, as well as all
other University travelers, spend their allocated travel dollars
carefully. The UT System’s travelers are accustomed to a high
level of personalized service. The degree of success of this
consolidation will depend on the level of service provided by the
Contractors and their ability to search for creative, cost-cutting
alternatives.
There is limited data
on the UT System’s student travel volume. However, the UT System
has a student population of 148,000 and a rapidly growing
study-abroad program. The largest student population is at UT
Austin, where the student travel agency is proposed to be located.
1.2.C. The UT System
Travel Office – Prior to
the cluster travel agency program’s implementation, the UT System
intends to establish a Director of Travel Management Services
position. Director responsibilities will include:
- overseeing the UT System’s
travel agency contracts;
- negotiating direct supplier
contracts;
- designing Travel Program and
industry training;
- analyzing travel data;
- liaising with the GSC on
travel-related issues;
- liaising with the Travel Program
Administrators at each Component; and
- serving as an advocate and/or
ombudsman in assisting staff and faculty in working with the
contracted agencies.
1.2.D. Component
Travel Offices – Most
Components currently employ Travel Program Administrators (actual
titles vary). Information on each Component’s current Travel
Program Administrator staffing can be found Appendix
A – "Review-At-A-Glance" Travel Agency Information &
Service Requirements.
Most of the Travel
Program Administrators have responsibilities similar to those
described for the anticipated UT System Director position but
have responsibility only for their Components. Most Travel Program
Administrators also oversee:
- the reconciling of travel
expenses;
- the processing of travel
reimbursements; and
- the administering of necessary
advances.
Each Component
intends to continue to employee Travel Program Administrators who
will work in conjunction with the UT System Director of Travel
Management Services.
1.2.E. The UT
System Travel Policy – Travel
policies are established in three arenas: (i) individual Components,
(ii) the UT System Administration, and (iii) state statutes. As a
public institution, there is a high degree of accountability for the
use of funds. This is generally done through an internal control
system, which requires advance approval for all travel, and
reconciliation of travel expenditures to approved travel.
The UT System’s
travel policy will be updated to reflect any changes resulting from
contracts awarded from this E-RFP. Information on each Component’s
current policy can be found in Appendix
A – "Review-At-A-Glance" Travel Agency Information &
Service Requirements. An overview of current
polices is provided below.
In terms of current
travel agency usage policy, 10 (66%) of the UT System’s Components
have mandated travel agency programs currently in place.
- Six Components (40%) currently
have mandated, single travel agency contracts. Although these
Components have mandated policies, some exceptions exist for
inbound guests and international travelers.
- Four Components (26%) currently
have mandated travel agency contracts with a small group of
agencies. Although these Components have mandated policies, some
exceptions exist for inbound guests and international travelers.
The remaining five
Components (33%) currently do not regulate that their
university-paid travel be purchased at a contracted agency.
- Four Components (26%) currently
have travel agency contracts but their use is not required
(including UT Austin).
- One Component does not have
contracts (only verbal agreements).
1.3. Objectives
1.3.A. The UT System’s
Travel Program Redesign Process –
In 1989, the UT System established a Travel Management Council.
In 1998, the Travel Management Council was charged with the task of
evaluating the feasibility of consolidation and hired a travel consultant (Academic Travel Consulting "ATC"
– Los Angeles, CA) to thoroughly assess the UT System’s current
travel practices and to provide recommendations for a redesigned
Travel Program. Part of the review process involved surveying over
800 UT System travelers and travel arrangers and analyzing user
needs, preferences, and habits. Results are provided in
Appendix C – Traveler / Travel Arranger Survey Report and
Analysis.
In November 1998,
recommendations that would lead to improved services and lower costs
were submitted by ATC to the UT System. The principal recommendation
centered on the concept of reducing the number of authorized travel
agencies through the implementation of a cluster travel agency
consolidation – a consolidation comprised of a designated
group of approximately six contracted travel agencies for official
university travel and affiliated university travel, including
student travel.
Recommendations,
including the principal recommendation, are provided in Appendix
D – Recommendation Report for Travel Management Program Redesign.
The Report’s
recommendation to consolidate the number of authorized travel
agencies was presented to and accepted by critical University
committees and individuals between December 1998 and July 1999,
including:
- the UT System Travel Management
Council (Travel Program Administrators from each Component);
- the UT System Travel Advisory Task
Force (travelers and planners, including faculty);
- the UT System Business Management Council
(Senior Financial Officers from each Component);
- each Component’s President; and
- the Chancellor of the UT System.
1.3.B. The UT System’s
Intended Redesign Configuration –
The goal of the UT System’s cluster travel agency
consolidation is to secure improved travel agency services and
reduced prices by leveraging the UT System’s total purchasing
power.
The model to contract
with a small group of agencies will:
- foster healthy competition among
the contracted agencies, which assures The University of optimal
services and prices;
- Include a small enough number of
agencies for The University to leverage its purchasing power
(economies of scale);
- Include a small enough number of
agencies for The University to manage; and
- allow for the UT System to retain reasonable control over travel data.
Given that the travel
needs of the UT System are diverse and complex, this cluster
consolidation will also provide faculty and staff with:
- a choice of travel agencies;
- specialized resources;
- a range of resources; and
- geographical coverage across the
State of Texas.
To the UT System’s
knowledge, there is no peer system of higher education in the US
that has implemented a cluster travel agency consolidation. However,
several single-campus universities have had success in implementing
cluster programs.
1.3.C. Principal
Scope of Partner Travel Agency and Business-Alliance Travel Agency
Contracts – The principal
scope of the Partner Agency Contract and the Business-Alliance
Travel Agency Contracts is to provide travel management services for
the UT System’s business travelers. Business travel services are
needed most frequently by the UT System’s faculty, administrators,
staff, and guests who travel domestically and internationally to
conduct research, attend conferences, recruit, raise funds, and
partake in scholastic and collegiate activities. Business travel
includes student travel paid for by the UT System such as that
needed by athletes participating in intercollegiate competitions and
graduate students conducting research or attending conferences on
behalf of the UT System.
It is the UT System’s
belief that service levels provided by the Partner Travel Agency and
Business-Alliance Travel Agencies will be highest if the Contractors
are able to focus on providing services to the business traveler.
However, because many faculty and staff travelers prefer to use the
same agent for leisure and personal travel, general leisure travel
services shall be provided by both the Partner Travel Agency and
Business-Alliance Travel Agencies but shall not interfere with or
take priority over the contracts’ principal purpose.
1.3.D. Principal
Scope of Student/Retail-Alliance Travel Agency Contract –
The principal scope of the
Student/Retail-Alliance Travel Agency Contract is to provide a
specialized service to the UT System’s student travelers through a
retail (storefront) operation located on the UT Austin campus. Student travelers include students
traveling on study/work abroad programs that are sponsored (paid or
reimbursed) either in whole or in part by the UT System. Although
the principal scope of the Student/Retail Alliance Travel Agency
contract is to provide travel-related services to the UT System’s
students, the Student/Retail-Alliance Travel Agency will be required
to also accommodate the UT System’s faculty and staff traveling
for business and leisure purposes. The Student/Retail-Alliance
Travel Agency is also anticipated to assist the University with
special-event travel.
1.3.E. Cluster Travel
Agency Capacities – The
anticipated six agencies forming the cluster will serve in distinct
capacities: (i) Partner Agency (one contract), (ii)
Business-Alliance Agencies (four contracts) and (iii)
Student/Retail-Alliance Agency (one contract). All Contractors will have
equal access to all of The University’s negotiated/discounted
rates (airlines, cars, hotels, etc.). The six Contractors will be able
to purchase from each other, should a specialized type of service be
available through one Contractor but not another. Part
of the Travel Program’s mission is for the Contractors to work
collaboratively and cooperatively.
1.3.E.i. Partner
Agency Capacity – It is
the intention of The University to direct the majority of The
University’s business travel to the Partner Contractor.
Reasons for this
direction are:
- The University wants to benefit
from economies of scale, which set in after certain volume
thresholds are met with a single agency; and
- certain applications, such as a
self-booking product, may be cost prohibitive or operationally
infeasible to implement in a multiple agency configuration. The
University may be able to implement such applications only with
the Partner Contractor.
The Partner Agency
will have the following distinct responsibilities:
- to play a leadership
travel-management role in the UT System’s cluster travel
agency consolidation;
- to provide the UT System with
the latest travel industry enhancements, specifically in the
area of travel technology;
- to help consolidate the UT
System-paid travel data accumulated at the other five
Contractors and to present a consolidated travel management
report (electronic data) to the UT System (given that systems
are compatible and that agency information can be handled
accordingly); and
- to establish, where requested,
on-site operations for the UT System’s business travelers.
1.3.E.ii.
Business-Alliance Agencies’ Capacity
– In order to provide the UT System’s business
travelers with an alternative to the Partner Contractor, the
Alliance Contractors will be an additional resource to The
University’s business travelers. Ideally, the Business-Alliance
Contractor will offer complementary skills and services to the
Partner Contractor.
Each Alliance Agency
shall have the following distinct responsibilities:
- to provide the UT System-paid
travel data to the Partner Agency for report consolidation (see
1.3.E.i.e.);
- to provide, in addition to
"general" business travel agency skills, a
specialization in one or more of the following
sought-after-travel niche (complementary) areas: international
travel, group / meeting / conference travel, and/or be a
Historically Underutilized Business; and
- to provide travel-related services
from an existing Business-Alliance Agency operation.
1.3.E.iii.
Student/Retail-Alliance Agency Capacity – The
Student/Retail-Alliance
Agency will:
- provide a means by which
students from all 15 Components can benefit from the
Student/Retail-Alliance Contract; and
- provide the UT System-paid
travel data to the Partner Agency for report consolidation
(see 1.3.E.i.e.).
1.3.F. Anticipated
Distribution of The UT System’s Travel Volume –
Volume distribution among the cluster members is anticipated to
be as described below. The University does not guarantee any
specific volume of usage under any resulting contract. Ultimate
volume levels will depend on each Contractor’s performance. For
questions in this E-RFP where travel volume determines an Agency’s
response, the below mentioned percentages can be used as a basic
guideline.
- Partner Contractor
–
The Partner Contractor is anticipated to ticket approximately 50%
of The University’s reimbursed business air volume purchases,
which at the UT System would translate into $13.5 million in
official business air. The Partner Contractor should also
anticipate an additional $5 million in air for leisure in
conjunction with business air purchases as well as affiliated air
purchases.
Business-Alliance Contractor –
All Alliance Contractors combined are anticipated to ticket
approximately 25% of The University’s business air volume
purchases, which at the UT System would translate into $6.75 million
in business air. It is anticipated that each Alliance Contractor
will ticket between $1.5 - $2 million in official business
air. Each Alliance Contractor should also anticipate an additional $600,000
in air for leisure in conjunction with business air purchases and
well as affiliated air purchases.
Student/Retail-Alliance Travel Contractor –
Although not intended to focus on business travel, the Student/Retail-Alliance Contractor is anticipated to ticket approximately 5%
of The University’s business air volume, which at the UT System
would translate into $1,350,000.
Note: The University
anticipates that the balance of The University’s business air
volume ($5.4 million in air or 20%) will be ticketed through
non-University contracted travel agencies, for legitimate
reasons. Example exceptions might include: consolidator ticket
purchases, international inbound travel for official University
guests, and some en route travel, particularly when the traveler is
overseas. However, as the Travel Program gains acceptance, the
deviation percentage is expected to drop each year. Four years after
full implementation, the deviation percentage is expected to be less
than 10%.
1.3.G. Form of
Payment – The UT
System’s travelers use several different forms of payment for
business travel purchases. Each below-described form of payment must
be accepted by each cluster travel agency Contractor. The different
payment forms and the associated purchases are described below:
- State-Issued Ghost Card –
To use a State Contracted Airfare Rate, the purchase must be made
using either the GSC-issued ghost card or a GSC-issued
individual-liability card (plastic). Approximately 57% or $15.4
million of the UT System’s air travel is on State Contracted
Airfare Rates. Approximately 80% or $12.3 million of State
Contracted Airfare purchases are made using the GSC-issued ghost
card. The GSC (which includes the UT System) is currently
converting to a MasterCard ghost card issued by Bank of America.
- Additional Ghost Card – For
non State Contracted Airfare purchases, UT Austin and UT System
Administration use a Diners Club ghost card (no other Components
have a separate ghost card program). UT Austin and the UT System
Administration are currently switching their ghost card from
Diners Club to the MasterCard ghost card issued by Bank of
America.
- State-Issued Individual Liability
Card – Most Components
offer their travelers a GSC-issued individual-liability charge card
(plastic). The plastic charge card is an acceptable form of payment
for State Contracted Airfare Rates and is used for approximately 20%
or $3.1 million of all State Contracted Airfare Purchases. The
State-Issued plastic card is primarily used for en route expenses
and hotel guarantees. The GSC (which includes the UT System) is also
converting to a Bank of America MasterCard for individual liability
cards.
- Other Individual Liability
Cards – UT Austin and UT System Administration utilize an
individual-liability Diners Club card program for en route
travel purchases (no other Components have a separate
individual-liability card program). UT Austin and UT System
Administration anticipate continuing to utilize the Diners Club
card and do not anticipate switching to the Bank of America
individual-liability card program.
- Personal Credit Cards –
Personal forms of payment, primarily personal credit cards are used
for non-State Contracted Airfare Rates and en route travel expenses.
- Direct Supplier Billing –
The UT System has a contract with Avis Rent-A-Car and the GSC has
contracts with Enterprise, Dollar and Advantage. All four of these direct
suppliers extend direct-billing options, though none are heavily
used. Some Components also offer a hotel-prepayment program.
1.3.H. Processing of
Charges to Ghost Account –
Upon contract award, the agency Contractors will
agree to process all charges to the GSC’s ghost account according
to each Component’s procedures. For most Components, tickets issued against the GSC-issued
ghost account require a travel authorization code (actual term may
vary). Current procedures are contained in Appendix
A – "Review-At-A-Glance" Travel Agency Information &
Service Requirements.
1.3.I. Charge Card
Reconciliation – Some
Components will require the agency contractors to reconcile either
ghost card charges. This reconciliation will compare charges issued
against The University’s ghost card with the Contractor’s
records.
1.3.J. Accounts
Receivables – Although
not The University’s preferred form of payment, there may be
occasions when a vendor does not accept a credit card (for example a
non-ARC consolidator transaction) and the Partner and Alliance
Contractors will need to purchase the product on The University’s
behalf and subsequently bill The University for such a transaction.
If billed to The University, such transactions must also have a
travel authorization number. Upon presenting the applicable
Component with an accurate accounting statement, the applicable
Component will process accounts receivables promptly.
1.3.K. Non University
Paid Travel – Billing for
leisure/personal and affiliated travel shall be kept separate from
business transactions. The UT System is not responsible for
non-business transactions.
1.3.L. Location of
Partner Travel Agency –
Most Components require that travel services be provided from an
off-site Partner Agency location. For a few Components, the Partner
Agency will be required to prepare pricing proposal based on on-site
vs. off-site scenarios, as described below.
1.3.L.i Two Components (UT
Southwestern Medical Center in Dallas and UT Health Sciences
Center in Houston) request pricing proposals based on both an
on-site and off-site configuration. After having conducted a
cost-benefit analysis, the Component will select the desired
service configuration option. Information on anticipated on-site
volume is provided in Appendix B – Travel Data.
Information on on-site
facilities and applicable rental charges are provided in Partner
Agency Response Volume 1B, Part 3.
1.3.L.ii UT Pan
American requests proposals given three different scenarios: (i)
service via a full-service off-site (like most Components), (ii)
service via an on-site whereby the Partner Contractor provides all
agency personnel, and (iii) service via an on-site whereby the
Partner Agency provides one agent and the University provide one
agent (split personnel). Information on anticipated volume is
provided in Appendix B – Travel Data.
Information on the on-site space is provided in Partner
Agency Response Volume 1B, Part 4.
1.3.L.iii UT Austin
requests pricing proposals based on having two athletic-agent
specialists located on-site in the Athletic Department.
Information on anticipated athletic volume and Athletic Department
office-space information is provided in Partner
Agency Response Volume 1B, Part 5. For
the general campus (non-athletics), UT Austin also requests the
installation of two commercial SABRE sets. Reservations made on
commercial SABRE are queued to the Partner Contractor for quality
controlling and ticketing. There is an unknown volume level
generated via the two commercial SABRE sets. UT Austin further
requests the installation of one professional SABRE set at its
Applied Research Lab division. The current annual booking volume
on this professional set is $881,566 (1,858 transactions/year).
Reservations made on the professional set are queued over to the
Partner Contractor for quality controlling and ticketing.
1.3.M.
Student/Retail-Alliance Agency Location – The
Student/Retail-Alliance Agency will be located on the UT Austin
campus. The location provided for the Student/Retail-Alliance Agency
will be at the Gregory Gym (a recreational facility), with heavy
student traffic. A large residence hall is also located next to
Gregory Gym. More specific information on the available location is
provided in the Student/Retail-Alliance
Agency Response Volume 3B.
1.3.N.
Business-Alliance Agency Location – The UT System
anticipates that the Business-Alliance Agency provide service
through an existing off-site location(s).
1.3.O. Employed
Personnel – With the
exception of one agent who will be an employee of the UT System and
who manages reservations for UT Pan American, all travel agency Contractors will furnish all personnel, equipment,
material, and resources necessary to provide travel-related services
to the UT System. With regard to all Agency-employed positions, the
UT System shall reserve the right to:
- be involved in the selection
process of Agency personnel assigned to the UT System’s
account;
- approve of all Agency personnel
assigned to the UT System’s account;
- have Agency personnel reassigned
from the UT System’s account; and
- participate in the initial and
on-going training of the UT System-dedicated agents.
13.P. Delivery
– Although many University travelers use electronic tickets
and the need for ticket delivery is decreasing month-to-month, the
travel agency contractors will be required to deliver tickets to
University departments as specified in Appendix
A – "Review-At-A-Glance" Travel Agency Information &
Service Requirements.
1.3.Q. Campus Mail –
For tracking purposes, campus mail may not be used for ticket
distribution. However, campus mail may be used to send itineraries
and passenger receipts (associated with electronic tickets).
1.3.R. Self-Booking
Product – As part of
the UT System’s transition to the cluster travel agency
consolidation, the UT System desires to implement a World Wide Web
(WWW) self-booking travel system. The UT System’s travelers and
arrangers are technologically astute. In a recent survey, 68% of
travelers and travel planners indicated that they would make
reservations some or all of the time using a WWW based system. The
UT System has not yet begun the self-booking product selection
process. Therefore, the University seeks proposals from Partner
Travel Agencies that address potential on-line booking products that
would be made available to the UT System as part of a resulting
Partner Agency contract. All Partner bidders are required to have
experience managing the travel needs of a client who is using a
self-booking product for a portion of their bookings.
|
