FAYETTEVILLE -- The University of Arkansas will begin negotiations with consulting firm AArete to identify ways to cut nonsalary spending across campus, according to an Intent-to-Award letter dated Friday.
The type of "spend analysis" sought from a consulting firm has not been done previously at the University of Arkansas, Fayetteville, according to a published "Q&A Addendum" document that answered questions from potential bidders.
UA received two certified bids for campus cost-containment consulting, according to the Intent-to-Award letter published online.
Bid scoring data -- also published by UA online -- shows that three bid evaluators ranked AArete higher than Huron Consulting. Both consulting firms are based in Chicago.
AArete, on its website, lists multiple office locations in the U.S. and abroad. The consulting firm works with health care, public sector and business clients, among others, in addition to helping universities "do more with fewer resources," the firm's website states.
"We help maximize the value of tuition and funding revenues, and drive leading business practices into the higher education environment," the firm's website states.
UA initially published erroneous data showing a year-over-year 78% increase in nonsalary spending, but revised the data after a Democrat-Gazette reporter asked about the rise in expenditures.
According to a a published addendum to bid request documents, nonsalary spending is estimated by UA to have dipped in fiscal 2021 compared with a year earlier, falling to $295.9 million from the previous year's $298.4 million. The university published the revised estimates online.
In addition to revising the spending estimates, UA extended by one week to March 17 the deadline for bidders to submit proposals.
The yearly estimated totals consist of two parts: "supplies and services" expenditures and "capital" expenditures.
A "capital project," according to University of Arkansas board of trustees policy, may involve new construction, remodeling or renovation.
For fiscal 2021, UA's "supplies and services" expenditures were estimated to be $176.5 million, down from $215.2 million a year earlier. "Capital" expenditures were estimated to be $119.4 million in fiscal 2021, up from $83.2 million a year earlier.
Back in March, UA spokeswoman Amy Unruh referred to the university's top financial officer when asked why UA was seeking consulting help.
"While the Fayetteville campus has regularly participated in cost containment reviews for specific divisions or functions of the campus, our recently named Vice Chancellor for Finance and Administration Ann Bordelon determined that a comprehensive review of the UAF in totality provides an opportunity to analyze/ ensure use of our resources in the most effective and prudent ways for the institution," Unruh said in an email back in March.
Bordelon has served as UA's top financial officer since July 1, 2020.