ARTIFACT:

Meta Commentary: This is the presentation (actually my notes for the presentation; there is
not a video of me doing the presentation for inclusion here) in Gillens Research Methods
course (ENGL 5300). This presentation cover the trend of college boards and state legislators
privatizing college services (such as food service, custodial work, course material sale, etc.).
Gillen asked us to choose an issue of concern in higher education, and because of this issues
proximity to my life, I manage a college bookstore, I felt I had some insight to share with my
class mates. I thought this was a good assignment. One in which I was interested in every
presentation because they were all issues that concerned me directly. I included this artifact
because I borrowed and reworked Gillens assignment idea for my scaffolded assignment. I
reworked it in terms of the time line and teacher involvement. Gillen was largely hands-off
and let us develop the format on our own. I give my students drastically more directions and
chances to have their work peer reviewed, but this was an assignment given to incoming
graduate students, whereas my scaffolded assignment has been developed for college
freshmen. The reason Id include this concept as a potential assignment in my portfolio is the
very reason I like hearing the presentations from my classmates, this issue and any other issue
facing higher ed. (the exploitation of adjuncts, rape on campus, sports culture, plagiarism,
etc.) are directly relevant to any and all members of the student body. These are issues a
student should be aware of and have some opinion on regardless of what their opinions are.

Privatization of College Services: [Slide]

Types of Services being privatized: [slide]

Food Service and House Keeping Services
Aramark founded in 1959 is in the business of providing food and facilities (which would include
Janitorial and laundry) services. They serve schools (K University lever), as well as private and public
facilities like office buildings, hospitals, sport stadiums, public buildings like court houses. It is a private
company and is not publicly traded. FY 2012 net was nearly 142 million
Sodexo founded in 1966 is a huge French company that does essentially the same thing as Aramark.
Although it is a publically traded corporation. With over 400,000 employees it made almost a billion
dollars in profit in 2011, they are the largest player in this industry.
Both of these companies are paid to be on campus but they also profit on the sales of goods and
services. Describe contract structure.
Bookstore:
The term course materials it actually used in the industry because they provide supplies and equipment
like goggles and lab coats and the like. Follett and Barnes and Nobles have a long history and once the
founders of both started a mail order book company together
B&N College Barnes and Nobles started in the late 19th century. They operate nearly 600 college and
university bookstore, this book store being one of them.

Follett the company that I work for has been in the college book industry since 1930. Follett runs over
900 books stores in the U.S. and Canada. Being a private company doesnt have to and so doesnt
disclose publicly their annual earnings. Because of my access, I been told anecdotally its over a billion
dollars annual.
These stores pay to be on campus. Explain contract structure.
I have even heard of College privatization parking lots, golf courses, and health and wellness facilities
Potential issues with privatization: [slide]
The student as a customer.
Why is it problematic to see the student as a customer? Because students are poor. Im making a
generalization obviously, but the exorbitant cost of higher education is a growing concern. As a college
degree become more important to an economically sound future, the cost of an education has grown.
Very few people pay for college outright, many take out loans. Text books may or may not be covered
depended on the amount of aid is awarded and the cost of tuition at a school. We all know what we pay
here. I went to UTSA, and it was like 4 thousand-ish dollars a semester. Again just because of my
proximity, I heard anecdotally that UIW costs over 10,000 dollars a semester. Some of these people are
going on to be nurses and school teachers, 80 plus thousand dollars of debt seems kind of high all things
considered. With these Services tacked on, costs rise. These business thrive because they have a
captive audience. Many schools have policies that require fresh men to live on campus, and if they do
they are required to buy a meal plan. I see these cost around 1500 dollar a semester. Ive eaten
sodexos food, its not great. Its mostly Sysco provided frozen and prepackaged food. Tell story about
rolls being delivered. The cost of items are also ridiculous on some campuses. My own observation has
been that on a public school prices are comparable with the outside world. At incarnate word a bottled
water or soft drink is its like 2.50. This is companies like Sodexo and Aramark capitalize on having
student who have been forced to consume their services by the bureaucracy of the institution
The bookstores make money off the sale of books and supplies and branded merchandise. Our
notebooks are so expensive, because if youre in there asking, you probably need one now. So youre
probably going to by that note for twice the price youd pay at HEB or Walmart. The cost of books is
higher because of Major publishers like Cengage, McGraw-Hill, and Pearson but also because of the
stores on campus. But also because of the Bookstores. There are only a few players in the game, there
is not collusion in the truest sense but, like gasoline, a competitor is going to set their prices comparable
to their competition. Follett also influences costs by being the biggest distributor of used textbooks. Our
competition buys from us.

Concepts like IncludEd a proprietary concept from Follett will make costs higher and ensure their profit
margins.

Labor issues of low skilled workers is also an issue. Aramark and Sodexo have been fine by OCHA for
health hazards, negligently exposing employee to chemicals or asbestos. As well as claims of fare labor
practices. In these private companies there is seemingly less oversight than there would be with a
complete state run facility.

Benefits of Privatization: [slide]

Lower costs spent on essential non-education related services.
Sodexos pov:

Sodexo partnered with one of the largest urban school districts in North America, the Detroit Public
Schools system, to reinvigorate the educational environment and support local business wherever
possible, to increase attendance, improve grades and test scores, and to create a safe, clean, energetic
and positive learning environment. The results: 800 new jobs created, 74% of contracts awarded to
Detroit-based businesses and 100% of supplies and consumable products sourced from local vendors.
Detroit Public Schools will also save $75 million in custodial, building repair, maintenance, engineering
and grounds services, and produce $147,000 annually in rental income.
( Quoted from: sodexousa.com, under the Case Study: Detroit Public Schools URI:

http://www.sodexousa.com/usen/quality-life-services/on-site-services/education/education.aspxy
Negative Response: with a for profit business strategy a private company is less like to offer their
employees with essential but less glamorous jobs on campus the same benefits: 401K and medical
benefits.
Alternatives to Privatization [slide]
Completely state run facility. This is the way it was before the mid-eighties and early nineties. It is
generally a losing proposition for the institution or privatization would be so favorable. There are legacy
costs with full time employees and government protections that ensure employee greater job security.
The Bobcat bookstore in San Marcos is a school run facility.
Not- for-profits:
The UT Co-op is the is huge. They move more textbooks than any other store in the nation. Their model
is not any cheaper when it comes to the cost of text books but they return drastically more money to
the institution which may offset the cost of tuition or offer more grants and scholarships to less well off
students.