Pouring Rights and Vending Services for USD

The University of South Dakota (USD) Auxiliary Services is soliciting proposals through a Request for Proposal to award one or more contracts for pouring rights and vending services on the USD campus. The procurement encompasses beverage and snack vending machines across approximately 80 units located in 27 buildings on campus, fountain dispensers for all food service areas including concession stands at five athletic facilities (DakotaDome, Sanford Coyote Sports Center, Wellness Center Natatorium, Softball Complex, and Track & Field/Soccer Complex), and beverage stock for three convenience store locations (Muenster University Center, North Complex Housing Facility, and Coyote Village). The university's campus serves approximately 10,405 students and 1,400 employees across approximately 70 buildings on 274 acres. Qualified vendors must demonstrate a minimum of five years of experience providing comparable services and submit three references of similar scope. All vending machines must be Energy Star certified and accept coins, bills, credit and debit cards, and USD's Coyote Card with PCI-compliant card readers. Vendor responsibilities include all equipment acquisition, installation, maintenance, and removal costs, with USD providing existing electrical service and water at no cost. Service must be operational 365 days per year with a maximum 24-hour response time to service requests, and any machine out of service for more than 72 hours must be replaced with a functioning unit. Vendors must carry commercial general liability insurance of $1,000,000 per occurrence and $3,000,000 aggregate, business automobile liability of $1,000,000, and workers compensation meeting South Dakota statutory requirements. The deadline for vendor questions is April 10, 2026, with responses provided by April 17, 2026, and proposals are due no later than May 1, 2026. Contract award and negotiations are scheduled for May 15, 2026, with full service operationalization required by August 15, 2026.

The initial contract term runs from August 1, 2026, through July 31, 2029, with vendors eligible to propose an alternative straight five-year term through July 31, 2031, and USD retains the option for two one-year renewals at its discretion. USD identifies vending and pouring rights as a significant revenue stream supporting student scholarships and specifically seeks proposals that increase annual revenue through commissions on sales, annual corporate sponsorships, and creative financial contributions. Vendors must supply nationally recognized brand name products with recommended selling prices subject to USD approval, and all Coyote Card transactions process through USD's card office with monthly reimbursement to the vendor less commissions. The RFP does not identify an incumbent vendor or specify set-aside designations or restrictions on organizational types eligible to respond. No specific award value or budget range is listed in the procurement documents, though the emphasis on revenue generation suggests the contract represents meaningful financial opportunity for the selected vendor or vendors. The existing infrastructure includes approximately 80 vending machines currently operating on campus, and successful vendors must integrate with USD's Coyote Card payment system and work collaboratively with Sodexo, which currently manages USD's food service operations.