David Jesse

Detroit Free Press

Eastern Michigan University is collecting bids for a possible privatization of its food service, a move being explored as the university looks for ways to cut costs.

The switch could result in layoffs for the university's existing food service employees, but Eastern is asking bidders to include language on how they would make jobs available for current employees.

Responses to the request for proposals are due to the university on Friday.

The move comes as debate swirls about how the university spends its money. The faculty and student government recently released a report calling on Eastern to severely reduce the $27 million general fund subsidy sent to the athletic department. University officials responded by saying there were no plans to drop football or make other cuts to the subsidy.

"Many universities in Michigan have moved to outside partners that specialize in dining services in order to provide the best value and highest quality dining options for their employees and students," EMU spokesman Geoff Larcom told the Detroit Free Press. "A recent national review found that 74% of universities nationwide utilize a third party to provide food services."

The request for proposals is asking for someone to manage and run the entirety of Eastern's food services, including traditional dining for students living in dorms; food court-style eating in the student center, small cafes scattered around campus and concessions at the football stadium and basketball arena. The goal would be for a company to take over the food service by August.

"EMU is seeking a partner that will invest in the facilities and future as well as provide EMU a financial return to help sustain the program," the proposal says.

The proposal also asks for firms to detail if they will offer a signing bonus to the university as part of the contract. Such upfront money could be used by the university to make up any budget shortfall; however university officials would not detail how much savings they were looking for.

"Any savings or revenue will be determined as the process unfolds," Larcom said. "It’s important to note that the issuance of the RFP is the beginning of an evaluation process that will determine how we move forward and whether utilizing an outside partner is the best course of action. The process will be completed by June.

Larcom also didn't offer any specifics on how much the university's budget might be short.

"That’s to be determined at the end of this fiscal year. Budgets are continually adjusted as conditions dictate."

The university built its budget on having 520,756 credit hours. Larcom would not say if those numbers would be met this year.

"The overall total for student credit hours will be established when registration for spring classes is completed and FY16 budget numbers are finalized," Larcom said. "It's preferable to work with actual data."

Michigan's public universities are in the middle of budget season, with boards beginning to approve budgets for next year, including tuition rates. Last year, Eastern raised tuition 7.8%.

Contact David Jesse: 313-222-8851 or djesse@freepress.com. Follow him on Twitter: @reporterdavidj