Project Details
Rite Aid Exterior Services- Land/ Lot/ PW/ Porter
RFP
Completed
Won
Green
90%
11-10-2022
12-16-2022
Project Log Items
 
Date
Type of Note
Type of Service
Due Date
Status
Note
Resolution
 
02-16-2023 General Note     Open Awarded 77 sites.
- looks like they cherry picked sites
RISK: based off cherry picked sites there could be an opportunity to fail 
Chresten: following up with client to understand details on how they awarded the bid and why.		  
02-06-2023 Meeting     Open     - Bruce: 
    - 100-150% off than the lowest bid on average
    - Sent 258 stores with average price
    - Client agreed to give us these sites that they don’t have an incumbent on
    - If we're not below our minimums we can do what we need to do to be aggressive
        ? Minimums are in line 75 VA 65 WA
    - Mulch from 3" to 1.5"
    - Removed wet checks from per service cost
    - 1.9% higher than the average
    - Chresten- find out what stores are going to be mulched
    - Typical prune 1-2 hours- check outliers- typically not a lot of plant material 
        ? Anything over 4 look into 
        ? Vince sending outliers to Bruce
    - Bruce aligned
    - John G:
    - Minimums $120 for RAMS across the board
        ? Take pruning down to $95 per service
        ? Cap pruning at $300 to provider
    - Jason T:
    - 100 drop to $85 minimum- provider
    - 125 to 105 minimum
    - 130 to 110 minimum 
Cap pruning hours at 6		  
02-01-2023 Meeting     Open Meeting with Mark and Mike from the middleman analysis group: 

1. 258 sites incumbent did not bid. Those sites are the most up for grabs. They are sending us comparison values for those accounts. 

2. Rite Aid cut budget vs incumbent numbers

  
02-01-2023 General Note     Open Rite aid gave us feedback on 3 sites saying in general we are 150% high  and we would only get 11 sites based on price currently.  
02-01-2023 Meeting     Open 2/1/23 LogicSource Meeting NotesAttendees:  Greg, Chris, Chresten, Vince, Mike D, Marc T Reviewed pricing discrepancies, award scenarios and incumbent pricingRite Aid budget cut $2 million – awards will be given to lowest bidder in most casesOur TOTAL bid is 150% on avg higher than incumbentsRegional average Section A per service bids ranged from $90 - $113 (DMG $118) Store 107 (Kenmore, NY) – Section A incumbent price:  $80 vs. $162 DMG 258 sites up for grabs where incumbent didn’t bid pose best opportunity to winDelaware:                          8Maryland:                           7Michigan:                           12New Hampshire:               7New York:                          28New Jersey:                       4Ohio:                                   118Pennsylvania:                    41Virginia:                              13Washington:                      20  LogicSource will provide range of bids for these sites and median price for our reviewAreas we can cut:  mulch, minimums, dead plant, irrigation  
12-19-2022 Meeting       Greg, Chris, Chresten, Vince
- every state doesn't need a spring and fall clean up
- go in at 1" mulch
- how to price top dress 
- 1.5, 1, .75- get alignment from Jason, Bruce
- what areas to go after?
- liners- providers take them off site, not allowed to dump on site- part of the porter
- 2-hour minimum porter- off season
- porter frequencies will match the cut frequencies
- hardscapes leave crack weed
- Add fertilizers for spring and fall cleanup
- wet check as a separate line item on brand standard bid
- wet check in the spring and fall (winterization) will save money instead of doing 6. *Chresten going to talk to this with the client
- AL 28%, CA 28%, OR, WA, OH, PA, NY, MA 30%, CT 30%, DE 30%, GA 30%, ID 35%, MD 30%, MI 25%
- Routine 30% margin across the board		  
12-16-2022 General Note       Jim Rubino- 514 sites  
12-16-2022 Meeting       Andy Krumm- 152 sites
irrigation
- start up- 150
- monitoring- 75
- shut down- 200
Frequencies
- mow- 24
- prune- 3
Minimums per service- 60
Key Assumptions 
- dead plant removal
- top dress- 50% of mulch
- wet checks		  
12-16-2022 Key Assumption       10 yard per hour for turning of mulch  
12-16-2022 Key Assumption       check in and out on fall and spring clean ups. do not have check in per service  
12-16-2022 Meeting       Matt Alley-
irrigation start-up 125, monitoring 45, shut down 200
minimum frequencies
- mows 32
- prunes 4
$10 per service dead plant removal
top dress- half of mulch at 1" depth
$75 weekly wet checks
  
12-16-2022 Meeting               ? They're award strategy is on cost
            § Have had bad service/ bc of only worrying about cost?
            § Frequencies are higher side/ have to prove it is going to be an issue
            § Prunes 12- check in every month
            § 30 day inspections
                ? Where do we want to bid? CA, OH, NY under 500 locations
                ? Awarded snow by cherry picking
                ? 30-40 mile radius around every DM
                    ® Batch Geo
                ? Key assumptions in current scope
                    ® Removal of dead plant material- call out on pricing assumption
                    ® Cigarette butts/ dead plant removal/ site visits
                    ® Rake and turn mulch yearly
                    ® Cheap price- per Greg 
                    ® Do we follow Rite Aid's scope?
                        ? Where can we start cutting scope?
                        ? Until Monday at noon the 19th
                    ® Put together separate bids
                        ? DMG scope- ex provider showing up 42 times vs weekly
                        ? Rite Aid scope
            § Updated bid sheet
                ? Priced if we were to do a full mulch vs top dress and turn
                    ® Some sites will take mulch, others will do top dress and turn
                        ? Ask for field input
            § Risks
                ? Can 30 day inspections be done by provider? What has to be turned in? Ask question to the field
                ? Current scope
                    ® Dead plant removal
                    ® Cig butts
                    ® Rake and turn mulch
                    ® High frequencies
                    ® Checking in and out with store manager per service
            § Action Items:
                ? Vince working on version 1 based on rite aid scope
                ? Provide option 2- DMG suggested scope- track what we reduced- Ex/ Family Dollar
Show cost savings in Rite Aid scope vs DMG recommended scope		  
12-16-2022 Meeting       Mitch Miller- 181 Sites
Irrigation 100 start up, 75 monitoring 150 shut down
minimum 28 to 24
prune- 3 minimum $100
$10 per service dead plant removal 
70% of the mulch rate for 1" top dress		  
12-12-2022 Risk       visit store once a month. Can not utilize our inposition app to have the vendors check in and out. Providers have to check in with store managers for each service.  
12-12-2022 Risk       Pruning on service B  
12-12-2022 Risk       turn up mulch once a year  
12-12-2022 Risk       weekly check ins on pruning and mowing  
12-12-2022 General Note       can't bid it with this scope. Greg meeting with site contact to discuss the SOW. Needs to change to give us the opportunity to win.  
12-12-2022 General Note       wait for Greg to give us direction on how to proceed. Just worry about specs for the time being.  
Postmortems
 
Date Modified
Question
Answer
Action to What We Learned
 
05-16-2023 04:30 PM   •    - expectations for new service lines need to be tempered as incumbents given priority – 400 sites were actually for up for grabs though they put 2200 sites on the bid sheet
  
05-16-2023 04:30 PM   •    - There were inaccuracies on site specs – spend time verifying current specs with the field  
05-16-2023 04:30 PM   •    - 3rd party sourcing agencies provide little coaching and looking for lowest cost only – they did eventually crack and provide budgets for a select 250 sites  
05-16-2023 04:30 PM  
•    Menetrey has a good relationship with Katherine the final decision maker		  
05-16-2023 04:30 PM   Logic source was the sourcing company – contacts were Mike Denhardt was the analyst and Mark targlia was the point of contact. We met with Mike twice and Mark once – (Greg/Chreston/Vince)
•    Logic source continues to be used on all Rite Aid RFPs		  
05-16-2023 04:30 PM   •    Logic Source is very price driven however us suggesting changes in scope that ultimately would save them money, brought them to the table and gave a competitive advantage as we were able to get a lot more insider knowledge from those meetings
•    Logic Source took a lot of our suggestions on the frequency side and sent it out to rebid to all competitors
•    We suggested Mowing – Service Frequency reductions, Pruning – Service Frequency reductions, Dead Plant/Shrub removal – moved out of scope, Pruning Frequency reductions, Land – irrigation wet checks/repair moved to out of scope, Final Leaf Cleanup – removed, •   
SCU Mulch – Turn and Top Dress only, mulch reduction from 3 to 2 inches		  
05-16-2023 04:30 PM   •    Rite Aid does want to align vendors with land and snow – keep this in mind for strategy next time  
05-16-2023 04:30 PM   •    Originally Mike said we would have won 11 sites based on price but through coaching we ended with 68  
05-16-2023 04:30 PM   •    We have a foot in the door strategy so we hope to grow the portfolio based on strong kpis for the initial award. Operational excellence with lead to growth.  
05-16-2023 04:30 PM   •    Clearer process explanation for the next RFP. Action items for team clearly distributed.  
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