Integrated Supply Chain & Warehouse Management Services

REQUEST FOR PROPOSALS (RFP)

SCOPE OF WORK (SOW): INTEGRATED SUPPLY CHAIN & WAREHOUSE MANAGEMENT SERVICES

1. Project Background & Purpose

Indiana University (IU) is seeking proposals from qualified vendors to establish an integrated supply chain partnership for its warehouse serving the IU Bloomington Facilities Organization. The selected vendor will oversee the ordering, receiving, inventory management, warehousing, and distribution of materials. These materials support the IU Bloomington Facilities group in maintaining university infrastructure, campus buildings, and utility systems. The objective is to optimize inventory levels, reduce lead times, leverage vendor-managed inventory economies of scale utilizing systems and applications that maximize the potential to achieve the objectives.

While IU envisions scaling this outsourced model across its entire portfolio over time, the initial phase will focus exclusively on the Bloomington campus (IUB).

IU will evaluate proposals using a Total Cost of Ownership (TCO) framework, encompassing procurement, supplier management, warehousing, inventory control, issuance, disposal, and accounting reconciliation. However, operational reliability and safety continuity serve as a mandatory prerequisite threshold for evaluation.

2. Planning Data for Bidding Purposes

The matrix below represents the approximate previous twelve months spend by the Facilities warehouse organization.

This data represents purchases from approximately 110 different suppliers

The information below is intended to provide a sample listing of materials that have been ordered to give possible vendors insight as to the depth and breadth of the material in question.

A portion of this spend is with catalog vendors and if IU elects to proceed with executing a vendor proposal, that vendor would need to make a proposal whereby they would supply the same products from the same suppliers, equivalent product from themselves or acceptable alternatives as well as a process for supplying specific products provided by themselves or other suppliers.

IU operates a highly distributed footprint where maintenance functions are done by in-house employees as well as some maintenance and custodial functions are contracted. The warehouse also acts as a central receiving point for deliveries to the Facilities Services skilled trades on the Indiana University Bloomington Campus

3. Core Functional & Operational Requirements

A. Warehouse & Facility Operations

Day-to-Day Management: Manage all staffing, labor, equipment (forklifts, shelving, safety gear), and operational workflows (ordering, receiving, inventory management/stock levels, storage/preservation, delivery, etc) within the vendor's warehouse space.

Hours of Operation: Maintain standard operating hours aligning with IU Facilities shifts (e.g., Monday-Friday, 7:00 AM - 5:00 PM), with an established protocol for 24/7 emergency after-hours access.

Safety & Compliance: Ensure full compliance with OSHA, EPA, and Indiana University risk management, safety and general policies.

B. Inventory Management & Optimization

Stocking & Sourcing: Maintain an optimized inventory of core items across major trades (HVAC, electrical, plumbing, carpentry, locksmith, structural, and custodial).

Core Metrics: Monitor and manage Minimum/Maximum stock levels, reorder points, economic order quantities (EOQ), and safety stock to prevent stockouts while minimizing carrying costs.

Auditing: Conduct mandatory cyclical counting and a comprehensive annual physical inventory audit, reporting discrepancies directly to IU Contract Managers.

C. Procurement & Sourcing

Previously Selected Suppliers: In cases where IU has conducted sourcing events and has determined a supplier for a specific MRO product (such as Air Filters) the vendor should plan on establishing orders on that supplier and facilitate warehousing and delivery to an on-campus location.

Vendor Sourcing: Leverage buying power to source high-quality materials at highly competitive commercial rates.

Specialty Orders: Provide a streamlined process for sourcing non-stock, specialty, or long-lead items requested by IU.

Sustainability and Code of Conduct: Align procurement with IU's sustainability goals and Supplier Code of Conduct, prioritizing energy-efficient, green-certified, or locally sourced materials when applicable.

D. Delivery & Fulfillment Service Level Agreements (SLAs)

To maintain campus operational continuity, the vendor must strictly adhere to the following delivery structures:

Critical / Emergency Deliveries: Must be fulfilled to the specified campus location or staging area within 2 hours of order placement (available 24/7/365).

Standard / Normal Deliveries: Routine stock and non-stock line items ordered before the designated daily cutoff time must be delivered the next day.

Specialty Delivery Mandate and Facilities Centralized Delivery: Bidders upon request must deliver products directly to the specific point of use across campus and arrange for the subsequent collection and compliant environmental disposal of product requiring this type of handling. Centralized deliveries for use of product by Facilities skilled trades will be delivered to a central location allowing the skilled trade to inspect and prework / fabrication of the material for use.

E. Workforce Interaction & Labor-Saving Solutions

Bidders must explicitly detail how their delivery and service model interfaces with university staff to maximize technician efficiency (wrench time). Proposals should detail capability differences across the following areas:

Part Research: Vendor-performed part and replacement research versus requiring IU staff to identify technical specifications.

Point-of-Use Distribution: Delivery of materials directly to campus zones when required, versus requiring IU employees to travel to a central warehouse to pick up supplies.

Decentralized Support: If applicable, implementation of remote vending machines, smart lockers, or mobile asset hubs for after-hours emergency material distribution.

F. Inventory Ownership, Procurement, & Sourcing Control

Consignment Inventory Structure (Preferred Model)

The vendor will maintain ownership of materials warehoused within the designated facility (on- or off-site). Indiana University will only be invoiced upon the exact physical issue or electronic check-out of an item for and to an active maintenance or custodial work order. No inventory holding or carrying charges may be billed to the university.

Direct Purchase Exceptions & Handling Fees

If a specialty or non-stock item must be procured outside the standard consignment system, the vendor may pass through the material cost subject to the following rules:

An order handling surcharge not to exceed 3% may be applied to the base cost.

Direct purchases are strictly exception-based. Any exception item ordered more than three (3) times in a trailing 90-day window must automatically be transitioned by the vendor into the core, surcharge-free consignment inventory baseline.

G. Systems Integration & Financial Accounting

The selected vendor's technology platform must establish native, automated data workflows with Indiana University's internal systems of record to maintain complete financial transparency:

Financial System Integration: All material purchases, consignment drawings, and vendor invoices must map, reconcile, and post automatically within IU's financial system of record.

CMMS Integration: Materials issued to campus technicians must automatically track against active work orders, asset tags, and specific university account strings within IU's computerized maintenance management system (CMMS).

Reporting & Analytics: The platform must generate real-time spend clarity, tracking purchase controls, shrinkage data, and monthly KPI compliance scores.

4. Proposal Submission Framework

Bidders must organize their proposals to directly address and list the cost the following deliverables:

Proposal: Overview of Bidder's Proposal, substantiated by an operational and functional current customer and location where the proposed methodology is being applied along with key measurement data.

Inventory Cost & Consolidation Strategy: Define the cost of carrying inventory charges associated with maintaining inventory. Methodology to achieve supplier consolidation and total cost optimization.

Inventory & Warehouse Plan: Detailed layout, staffing, and logistics plan for either or both on-site and off-site scenarios. The detailed cost for each of the items associated with the warehouse and its operation, this would include systems.

Procurement & Analytics Approach: Strategies and cost associated with ordering to receiving or use of the material. Framework for KPI tracking, purchase controls, and data transparency.

Operational Continuity & PAR Management: Strategy for stocking critical campus needs while minimizing risk.

Change Management & Implementation Timeline: A detailed schedule and cost breakdown to achieve full implementation and technical integration within a phased rollout.

Processes and Cost Undefined: Any processes not captured above should be detailed in your proposal