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Request for Proposal

Pouring Rights and Vending Services

For

The University of South Dakota

RFP # USD03302026

Proposals Due 5/1/26

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University of South Dakota Auxiliary Services

414 E. Clark St.

Vermillion, SD 57069

Pouring Rights and Vending Services RFP

PROPOSALS ARE DUE NO LATER THAN MAY 1, 2026

RFP #:

USD03302026

State POC:

Chris Phillips

EMAIL:

chris.phillips@usd.edu

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CITY/STATE: TELEPHONE NO:

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E-MAIL:

PRIMARY CONTACT INFORMATION

CONTACT

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1. Background Information

The University of South Dakota (USD) was founded in 1862 and is South Dakota’s flagship university. In the Fall semester of 2025 USD enrolled 10,405 students. Enrollment is made up of approximately 75% undergraduate students and 25% graduate students. USD offers 148 undergraduate majors and 79 graduate programs on its main campus in Vermillion, SD.

The University is the home to South Dakota’s only Law and Medical schools.

USD’s on-campus student housing includes 8 housing units with approximately 2200 students living on campus. Several of the housing facilities are used during the summer months for summer camp housing. The main campus contains approximately 70 buildings on about 274 acres. USD employs around 1400 people.

USD is an NCAA Division I school and is a member of the Summit League and the Missouri Valley Football Conference. There are 16 Division I intercollegiate athletic teams. USD’s athletic programs have enjoyed tremendous success in recent years, including runs in the FCS football playoffs, several conference titles and a women’s basketball WNIT championship. The University’s athletic facilities are state-of-the-art, and USD will be breaking ground on the new Gassen Fieldhouse in the late summer of 2026.

More information about USD may be found here.

During the RFP process, from publication to final award, vendors are not permitted to contact any USD staff or faculty regarding this RFP, aside from the person of contact listed on page 2 (Chris Phillips), unless at the request of the USD designated contact, or to fulfill pre-existing contractual obligations. Violation of these conditions may constitute immediate disqualification.

Any reference to University of South Dakota, USD, University, State, Agency, or State of South Dakota used in this RFP shall all mean the same.

2. Purpose of the RFP

The purpose of this RFP is to award a contract(s) to a vendor(s) to provide beverage and snack vending machines in most facilities on campus, fountain dispensers for all food service areas (including concession stands in athletic facilities) and beverage stock at all convenience store locations on campus. USD contracts its food service operations to Sodexo. Sodexo uses contracts established by USD to stock beverage products at convenience stores located on campus.

https://usd.edu/About/At-a-Glance

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Food service operations located in the Muenster University Center include Chick-fil-A, Qdoba, WOW American Eats, Peking Plate, Grind Market featuring We Proudly Serve Starbucks and Coyote Dining. Concession stands are located in the DakotaDome, Sanford Coyote Sports Center, Wellness Center Natatorium, Softball Complex and the Track & Field/Soccer Complex. Convenience stores are located in the Muenster University Center, North Complex Housing Facility and Coyote Village.

There are approximately 80 vending machines (soda, juice, water, or snacks) located in 27 buildings on campus.

3. Intent

The vending and pouring rights contract is a significant revenue stream for USD which supports student scholarships. The intent of this RFP is to award a contract which increases the annual revenue stream to USD. The current contractor pays both a commission on sales and an annual corporate sponsorship in exchange for exclusive vending and pouring rights on campus, as well as certain advertising rights and other benefits.

Coyote Sports Properties, LLC is a limited liability company owned by Learfield Communications, Inc., and has entered into a Multi-Media Rights Agreement associated with USD athletic programs. The Successful Vendor(s) will be required to participate in a sponsorship marketing package.

Vendors are encouraged to be creative in their proposal for financial contributions to USD.

In addition to financial contributions, proposals may include items such as annual credits for products consumed by USD athletic teams and/or coolers, cups, ice chests, squeeze bottles, bottle carriers, sideline carts, towels, etc. for athletic teams.

USD retains the right to negotiate all proposals and make single or multiple awards in the best interest of the University.

4. Definitions

Carbonated Soft Drinks – Refrigerated carbonated flavored beverages.

Non-Carbonated Soft Drinks – Refrigerated non-carbonated flavored beverages including tea and coffee-based drinks, excluding Sports Drinks or Juice.

Bottled Water – Packaged drinking water sold in sealed portable bottles.

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Energy Drinks – Beverages containing legal stimulants, vitamins, and minerals.

Sports Drinks – Non-carbonated isotonic beverages designed for replenishment during or after exertion.

Juice – Refrigerated beverages containing at least 70% natural juice by volume.

Snacks – Healthy snacks and other items such as candy, chips, gum, cookies, and pastries.

5. Schedule of Activities

RFP Publication – March 30, 2026

Deadline for Vendor Questions – April 10, 2026

Response to Questions – April 17, 2026

Proposal Submission Date – May 1, 2026

Award and Contract Negotiations – May 15, 2026

6. Term

The initial contract term shall run from August 1, 2026, through July 31, 2029, with the option for two (2) additional one-year renewals at USD’s discretion. Vendors may also propose an optional straight five-year term.

7. Instructions to Vendors

All proposals must be completed and received by the Director of Auxiliary Services by the date indicated in the Schedule of Activities (Section 5). Proposals received after the deadline will be late and ineligible for consideration.

All proposals must be signed by an officer of the responder, legally authorized to bind the responder to the proposal. Proposals that aren’t properly signed may be rejected.

Chris Phillips, the Director of Auxiliary Services, is the person of contact for this RFP. All inquiries should be directed to him by email at chris.phillips@usd.edu with the subject line USD03302026. Proposal submission should also be sent via email, with the same subject line, to the same address. If vendor would like to schedule a pre-submission campus walk-through they should reach out via the same method as above.

mailto:chris.phillips@usd.edu

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Vendors may withdraw their proposal at any time prior to the submission date. During the evaluation period, USD may engage vendors in discussions and request clarifications.

The proposal of the successful vendor will become public information upon contract execution. USD will take appropriate care to protect proprietary information received from the vendor. Accordingly, vendors may submit two copies of the proposal, one with proprietary information intact, which will remain internal within USD, and a second copy with proprietary information redacted for public release. Vendors should note that their entire proposal may not be redacted as proprietary information.

8. Specifications/Scope of Work

The following specifications and scope of work are provided to clarify the requirements of the RFP but may not be exhaustive.

USD shall specify locations for the vending machines. Vendor should monitor activity at each machine and provide recommendations to USD for consideration. Proposals should include a schedule for setting up this service. The schedule should include a proposed timeline for the installation of equipment to minimize the impact on university operations and ensure the service is fully operational on, or prior to, August 15, 2026.

All vending machines must be Energy Star certified, must accept coins, bills, credit/debit cards, and USD’s Coyote Card. Mobile credential compatibility is preferred. Vendors are responsible for all card reader hardware costs. Vendor should ensure that the card readers are PCI compliant and provide USD with a PCI compliant certification upon contract execution.

Vendor shall ensure all machines include occupancy-sensing power saving features. All vending equipment must display USD approved branding panels. Outdoor machines may not include illuminated front panels, only selection buttons may be illuminated.

Vendor must service all equipment 365 days per year unless otherwise agreed and maintain a maximum 24-hour service response time. Any machine out of service for more than 72 hours must be replaced. Machines must be cleaned and maintained in sanitary condition. Servicing hours must be compatible with USD operating hours.

Vendor must agree that it will relocate or remove a machine within seven (7) workdays after receipt of a routine relocation or removal request from USD. Vendor must agree that it will relocate or remove a machine within two (2) workdays after receipt of an emergency relocation or removal request from USD.

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Refund procedures must be provided, and refunds may not be deducted from gross receipts. Commissions payment schedule will be negotiated. Vendor will provide quarterly reports that must include sales by machine and product category.

The vendor will be required to provide healthy snack and beverage options in the Wellness Center and any other location identified by USD.

The proposal(s) must include a recommended selling price for each product category. USD reserves the right to negotiate selling prices with the successful vendor.

All sales made with the Coyote Card shall transmit through the USD Card office. USD shall reimburse the vendor monthly for all sales less commissions.

All products vended shall be nationally recognized, brand name products. The proposal must include an itemized list of potential products to be vended, provided through fountain dispensers or sold at convenience stores. This description shall include the unit sizes of the products to be vended, case quantities and proposed selling prices. Any change to the brand name product or unit size must be approved by USD Representative before placed in machines for sale.

9. Vendor Qualifications

Vendors must demonstrate a minimum of five (5) years of experience providing comparable vending and pouring rights services. Each proposal must include three (3) references of similar size and scope, including contact information, service details, and number of machines installed.

10. Evaluation Criteria

USD will evaluate proposals based on the following criteria:

A. Compliance with the RFP requirements.

B. Financial commitment, including commissions and sponsorship value.

C. Quality and brand recognition of proposed products.

D. Equipment quality, efficiency, and maintenance plans.

E. Vendor experience providing similar services.

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11. Additional Terms, Conditions, and Requirements

a. Term. The term for the initial contract will be a three (3) year term, from August 1, 2026, through July 31, 2029, with the option to renew for two (2) additional one (1) year renewals for a total term not to exceed five (5) years. Alternatively, vendors may propose, and USD may award, a five (5) year contract with an end date of July 31, 2031.

b. License. Subject to the terms and conditions herein, USD grants to the successful vendor a license right to use and occupy the premises for the purpose herein provided. The successful vendor accepts the premises “as is” based upon its own inspection and without any reliance or warranty of USD.

c. Use. The successful vendor shall occupy and use the Premises only for the purpose of operating a vending service in accordance with the terms and conditions of the Agreement and for no other purpose. The successful vendor shall not use or allow the Premises to be used for any unlawful purpose. The successful vendor shall not commit or allow to be committed any waste or nuisance on the Premises. The successful vendor shall not overload the floors or structure of the building in which the Premises is located or subject the Premises to any use that would damage the Premises or raise or violate any insurance coverage maintained by USD. The successful vendor shall have access to and use of the facilities. The successful vendor shall exercise prudent control over the facilities to minimize wear and tear on building and fixtures. Repairs necessitated from misuse by the successful vendor shall be at their expense.

d. Alterations. No alteration shall be made to USD's owned, leased, or controlled buildings or fixtures, or to utility services without the prior written consent of USD AVP of Facilities Management, who reserves the right to approve or disapprove all alterations. Any and all such approved alterations shall be constructed with diligence, in a safe and good and workmanlike manner, and in compliance with all applicable University guidelines, governmental statutes, laws, ordinances and regulations. Machines shall not be secured to the premises without the express written approval of USD AVP of Facilities Management.

e. Maintenance and Repairs. All maintenance to the premises which are owned, leased or controlled by USD shall be provided by USD unless contracted by USD to

9 | P a g e an outside firm. All maintenance to equipment which is the property of the successful vendor shall be provided by the successful vendor.

f. Condition of Premise Upon Termination. Upon the termination of the Agreement, the successful vendor shall surrender the premises in as good condition as premises was at the commencement of the Agreement, reasonable wear and tear and acts of God excepted.

g. General. The successful vendor agrees to operate on the Premises a vending service in accordance with the requirements, terms, conditions, information and descriptions contained in the Agreement, including the successful vendor's Proposal. The successful vendor shall always conduct its business in a professional and reputable manner while on the Premises. During the term of this Agreement, the successful vendor shall take all actions as may be reasonably requested by USD to carry out the purpose and intent of the Agreement.

h. Service to be Rendered. The successful vendor will provide machines to vend products as agreed in the Agreement. These machines will be capable of operating with either coins or dollar bills. All machines will include card swipes capable of accepting USD’s Coyote Card as well as debit and credit cards, in addition to, and not instead of, accepting coins and dollar bills. Mobile credential compatibility is preferred. The card readers shall be PCI compliant. The machines will be unattended and self-contained. The machines will have a notice posted on them that provides the locations and methods for customers to use for obtaining a refund, as well as the name and telephone number to call for service and the machine identification number and location. This notice shall be posted in a prominent location in a size and manner consistent with ADA requirements. The successful vendor will provide the machines, install them, operate them, maintain them, and remove them at no cost to USD except for the electricity and/or water used by the machines. The prices to be charged are as agreed in the Agreement.

i. Expenses. The successful vendor understands and agrees that they are responsible for paying the cost of all merchandise, services and other expenses in connection with the operation of its business.

j. Compliance with Laws. The successful vendor, at its expense, shall at all times during the term of the Agreement, and with respect to all phases of operating its business, comply with all applicable governmental ordinances, laws, rules and

10 | P a g e regulations now or hereafter in effect at any time during the Agreement, including, without limitation, all applicable rules, regulations and policies of USD. Copies of any inspection reports, notices, etc. relating to its operation on the premises, from any state, federal, city or other agency shall be forwarded to the USD representative within one day of receipt.

k. Product. The successful vendor agrees to supply the specified brands and unit sizes of products intended for human consumption per the Brand Names and Unit Sizes enclosed with their response to the Request for Proposal. These products will pass all tests that may be required by any health, safety, or regulatory agency.

l. Prohibition of Glass Containers. Glass containers will not be used in any vending machines on the premises.

m. Machines. The successful vendor shall be responsible for the installation and removal of all equipment used in providing the vending service as well as the purchase of all needed communications and card swipe equipment. All machines must be Energy Star certified. Within thirty days after the start of the Agreement, the (Successful Vendor) shall submit a list of all machines by location to the USD Representative. This list will include the brand name, model number, serial number, date of manufacture, manufacturer's name and address, and manufacturer's telephone number. All machines shall be designed, constructed, and installed in accordance with standards of the National Sanitation Foundation, the National Automatic Merchandising Association, the Occupational Safety and Health Administration, and the Americans with Disabilities Act. All installations shall be attractive and complement the architecture, landscape, and public image of USD.

USD reserves the right to require the removal from the premises of machines that USD deems, in its sole judgment, not to meet this standard.

n. Damage to Machines. The machines will be the sole property of the successful vendor who will hold USD harmless for any and all damage to these machines.

o. Machine Maintenance and Service. The successful vendor will be required to service all equipment 365 days a year unless otherwise agreed to by USD Representative. The successful vendor will service every machine on the premises at least once during each reporting period. The successful vendor will maintain a maximum response time to all equipment of 24 hours. This means that within 24 hours of a fault being reported, the machine will be visited and either the fault

11 | P a g e corrected and/or the machine restocked. The (Successful Vendor) will be responsible for maintaining all equipment in a clean and sanitary condition. USD will provide normal custodial service which consists of the cleaning of walks, hallway, etc. All other custodial services, specifically including cleaning under the machines, will be provided by the successful vendor. The successful vendor will replace any vending machine which is out of service for longer than seventy-two (72) hours. Servicing hours must be compatible with USD operating hours. Scheduling must be approved by USD Representative.

p. Machine Relocation. USD may require the routine relocation or removal of a machine for the purpose of performing maintenance, modifying facilities, changing use of a facility, avoiding electrical problems, and many other purposes. The successful vendor agrees that it will relocate or remove a machine within seven (7) workdays after receipt of a routine relocation or removal request from USD. USD may require the emergency relocation or removal of a machine because it is a hazard to health and safety, or for other reasons. The successful vendor agrees that it will relocate or remove a machine within two (2) workdays after receipt of an emergency relocation or removal request from USD.

q. Employee Identification. The service employees of the successful vendor must wear identifying uniforms, or some easily visible item that identifies them as employees of the successful vendor.

r. Records. The successful vendor shall retain for inspection and audit by USD, the South Dakota Board of Regents, and/or the Auditor General of the State of South Dakota, or their agents, all books, accounts, reports, files and records relating to the Agreement for a period of at least five (5) years after expiration or termination of the Agreement; provided, however, that records relating to disputes, litigation or the settlement of claims arising out of the performance of this Agreement, shall be retained by the successful vendor and be subject to inspection and audit by USD, the South Dakota Board of Regents, and/or the Auditor General of the State of South Dakota, or their agents, until such litigation or claim is fully resolved. The successful vendor shall provide all such records at any office of USD as USD may designate. Further, USD has the right, at the successful vendor’s expense, to request that the commission statements for the current and any previous Agreement year be examined in accordance with generally accepted auditing standards by an independent certified public accountant. The scope of this

12 | P a g e examination should be such that an auditor's opinion would be issued. USD may exercise this right no more than once per Agreement year.

s. Internal Controls. USD shall have the right to review the successful vendor’s internal controls and accounting procedures relative to the their operation at USD.

Significant weaknesses shall be rectified as soon as possible, but not later than thirty (30) days after written notice specifically describing such condition is received by the successful vendor from USD. Within thirty days after the Commencement Date, the successful vendor will furnish USD with a statement of how they maintain accountability of revenues.

t. Price Changes. Any change in the price of the merchandise vended from the prices set out in this specification, or any change in the quality or unit sizes of the products provided, must have the prior written approval of USD Representative. Price changes will normally only be considered at the end of one Agreement Year and the beginning of another. Price change requests should be supported by evidence of increased costs to the successful vendor. USD will not approve price increases that will merely increase the gross profitability of the successful vendor at the expense of our students, faculty, and staff.

u. Taxes. The successful vendor shall pay all transaction privilege, sales, and use taxes together with any possessory interest or other taxes levied in connection with the (Successful Vendor)'s use of the facilities. The successful vendor shall acquire, at their expense, all licenses or permits required by local, state and federal agencies and shall comply with all state and county laws and regulations. This includes any parking permits.

The successful vendor agrees to comply with and to require all of its subcontractors to comply with all the provisions of applicable state transaction privilege, sales excise tax, and compensation use tax law and all amendments to same. The successful vendor further agrees to indemnify and save harmless USD, of and from any and all claims and demands made against it by virtue of the failure of the successful vendor or any subcontractor to comply with the provisions of any or all said laws in amendments.

v. Insurance Coverage. The Contractor, at all times during the term of this Agreement, shall obtain and maintain in force insurance coverage for the types and with the limits as follows:

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a. Commercial general liability insurance with $1,000,000 per occurrence and $3,000,000 aggregate coverage.

b. Business automobile liability insurance with minimum liability limits of $1,000,000 per occurrence.

c. Workers compensation and employers’ liability coverage meeting all South Dakota statutory requirements.

Before beginning work under this Agreement, if requested by USD, the successful vendor shall furnish USD with properly executed Certificates of Insurance which shall clearly evidence all insurance required in this Agreement and which provide that such insurance may not be cancelled, except on 30 days’ prior written notice to USD. The successful vendor shall furnish copies of insurance policies if requested by the State.

w. Subrogation. All policies of insurance will provide that the insurance company or companies will not have right of subrogation against USD, its agents or employees.

The successful vendor assumes all risks in connection with the adequacy of any insurance and waives any claim against USD for liability, cost or expense arising out of any uninsured claim, in part or in full, of any nature whatsoever.

x. Assignment. The successful vendor shall have the responsibility to fulfill all requirements of the contract. The Agreement shall not be assigned. The successful vendor shall not subcontract the performance of any part of the Agreement without the prior written approval of USD.

y. Deliveries. All deliveries to various vending locations must be by way of the regular campus streets and service roads. No motor vehicles may be driven on the malls or walkways without prior approval of USD.

z. Card Transactions. All transactions originating from USD Coyote Cards will be processed through USD’s card office. Any transactions originating from debit or credit cards must be processed through the successful vendor’s system with a monthly reimbursement to USD for any commissions due. Card readers must be PCI compliant, and USD may request certification of such.

aa. Storage Space. Storage space on USD campus is not available. The successful vendor shall provide all storage space required off campus.

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bb. Inspections. USD Representative shall have the right to inspect any machine with a successful vendor representative at any reasonable time.

cc. Utilities. USD will provide existing 110-volt electric service at the site of the installation of the vending machines, at USD's expense. The cost of the electricity used in conjunction with the operation of the vending machines will be borne by USD. No change or alteration of electric service will be made by the contractor without the prior written authorization of USD Representative. If an installation of a machine causes disruption of the electrical service at the premises, the successful vendor will immediately discontinue use of the machine and either install a dedicated electrical circuit at successful vendor’s expense, or request approval from USD Representative to relocate the machine. For any machines that require water, the successful vendor must use existing University provided water sources.

The cost of the water used in conjunction with the operation of the vending machines will be borne by USD. No change or alteration of water service will be made by the contractor without the prior written authorization of USD Representative.

dd. USD Logo. The successful vendor shall not use the name of USD or any USD sign, logo, symbol, trademark or wordmark, etc., for any purpose, without the prior written consent of USD in each instance.

ee. News Release. The successful vendor shall not in any way or in any form publicize or advertise in any manner the fact that it is providing services to USD without the prior written approval of USD, in each instance. However, nothing herein shall preclude the contractor from listing USD on its routine client list for matters of reference.

ff. Independent Contractor. While performing services hereunder, Contractor is an independent contractor and not an officer, agent, or employee of the State. Unless explicitly authorized herein, Contractor will not use State equipment, supplies or facilities. Contractor is solely responsible for the withholding and payment of applicable income and Social Security taxes due and owing from money received under this contract.

gg. Personnel. The successful vendor shall operate as an equal opportunity employer and shall have control over and be responsible for all personnel and employment matters involving its employees including, but not limited to, work schedules and

15 | P a g e compensation. All employees shall be employed by the successful vendor in its own name at its own expense, and the successful vendor shall pay all salaries, wages and employee benefits payable to or on behalf of its employees. The successful vendor shall always maintain appropriate staff to ensure continuous service through the course of the contract. The successful vendor will identify one manager made known to USD to routinely review and inspect operations on the premises. The successful vendor shall ensure that its employees conduct themselves appropriately while working on the USD campus. USD is a smoke-free campus. Smoking is not allowed on the property or within any of its buildings.

hh. Indemnification. Successful vendor agrees to indemnify and hold the University of South Dakota, the South Dakota Board of Regents, the State, and its officers, agents and employees, harmless from and against any and all actions, suits, damages, liability or other proceedings that may arise as the result of performing services hereunder. This section does not require successful vendor to be responsible for or defend against claims or damages arising from the errors or omissions of the State, its officers, agents or employees or from the errors or omissions of third parties that are not officers, employees or agents of Contractor, unless such errors or omissions resulted from the acts or omissions of Contractor. Nothing in this agreement is intended to impair the insurance coverage of Contractor or any subrogation rights of the Contractor's insurers.

ii. Governing Law and Venue. The Agreement shall be governed by and construed in accordance with the laws of the State of South Dakota. Any lawsuit pertaining to or affecting this Agreement shall be venued in Circuit Court, First Judicial Circuit, Clay County, South Dakota.

jj. Non-Discrimination. Successful vendor agrees not to discriminate or harass based on or related to a person’s race, color, creed, religion, sex, ancestry, disability, national origin, or any other legally protected category, class, or characteristic recognized under applicable law.

kk. Non-Appropriations. The Agreement depends upon the continued availability of appropriated funds and expenditure authority from the Legislature for this purpose.

If for any reason the Legislature fails to appropriate or grant expenditure authority or funds become unavailable by operation of law or federal funds reductions, this Agreement will be terminated by the State and the University of South Dakota.

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Termination for any of these reasons is not a default by the State nor does it give rise to a claim against the State.

12. Form of Proposal

To facilitate direct comparisons, your proposal must be submitted in the following format, listed in order, and index tabbed to match. If the Vendor fails to provide any of the following information, USD may, at its' sole option, ask the Vendor to provide the missing information or evaluate the proposal without the missing information.

a. The Financial Contribution Data Sheet. Vendor’s proposals must include the financial contribution to USD, including commissions on sales and annual sponsorship contributions.

b. A description of how the Vendor will ensure that the service will be fully operational on August 15, 2026.

c. A description of how the Vendor will make refunds.

d. A list of the brand names and unit sizes of the products to be vended, sold through fountain dispensers and sold through convenience stores. Include a description of each product, container size, case quantity and recommended selling price.

e. Three references sufficient to determine that the Vendor has been engaged in providing the service for a minimum of five (5) years and has serviced an account at least the size of USD.

f. A description of how the machines will be serviced while complying with the restrictions on driving on the malls and sidewalks during the hours of 7:30 A.M.

to 5:00 P.M. on weekdays.

g. A description of the level of machine maintenance and servicing offered, to include the proposed response times for repair or service.

h. A description of the vending machines offered, to include manufacturer's specifications and evidence that these machines are Energy Star certified.

i. Sample quarterly report(s).

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PRIMARY CONTACT INFORMATION