Privatization of ISU Dining has been considered a dozen times in the past, but administrators say changes in the profitability of the service in recent years makes it worthwhile to consider again.

A committee is exploring the viability of outsourcing ISU Dining to private companies, although Iowa State has hired consultants 12 times in the past 15 years to assess the potential of privatization, said Jon Lewis, director of campus dining.

“It was never recommended to outsource by any of the consultants,” Lewis said.

Thomas Hill, vice president for student affairs, said the last time the university hired a consultant to analyze dining service was 2002.

Nancy Brooks, associate director of purchasing and head of the committee charged with evaluating the viability of outsourcing, said the amount of debt accumulated by university-run dining since the last time consultants assessed privatization makes the option worth investigating again.

“What has changed is, over the years with new facilities and buildings, we now have a huge debt load,” Brooks said. “Dining needs to repay some of that debt.”

She said Iowa State sold around $140 million in bonds to fund the purchase of new facilities, creating a sizable debt.

“We need to investigate any option that would allow us to meet the debt and provide for students,” Brooks said.

Warren Madden, vice president for business and finance, said other factors have changed since 2002.

He said components of ISU Dining outside of residence hall food service, such as the Memorial Union food court, campus catering and cafe operations have been losing money, making outsourcing something to consider.

“The nonresidence component of ISU Dining was losing money,” Madden said. “They aren’t bringing into the university what they were expected to.”

The Memorial Union component of ISU Dining, he said, has been losing as much as $50,000 a month. Madden said declining enrollment and residence hall occupancy have also contributed to the university’s decision to look into privatization. “Back when this was last looked at, there was a different climate,” he said. “I don’t know that those private studies are relevant to what we’re doing now.”

Because private firms seek a greater profit than ISU Dining, Lewis said, Iowa State should handle its own food service needs.

“These firms are in the business to make money,” he said. “The university can do better running food service itself. In the end, the in-house operation is better.”

Brooks said the committee is investigating the option of outsourcing, but no decision has been made yet, saying it is a “long process.”

She added that the committee is in the process of putting together a request for a proposal report that will be sent to various private firms that will, in turn, send proposals back to the university, outlining their plans and procedures for privatizing ISU Dining.

Brooks said she expects the request for proposal to be completed by Oct. 14, and proposals from the private firms will be due in early December.