Presentation on theme: "Requisition Channel Industry Meeting"— Presentation transcript:
1 Requisition Channel Industry Meeting (OS, MRO and JanSan)February 19, 2014
2 Some General Housekeeping Rules for Today’s Seminar Opening RemarksSome General Housekeeping Rules for Today’s SeminarToday’s seminar is being recorded. It will be available for review at a later date, so you can refer to it in case you missed anything.There is no dial-in number for this seminar. You will be listening to the presentation through your computer speakers.Please make sure your computer speakers are not mutedMake sure your speaker volume is turned all the way upIf you are having any technical issues, please let me know in the chat box on the right of your screen and I will do my best to accommodate you.QUESTIONS for the Presenters:We ask that you hold your questions until the end of the presentationPlease type your questions in the chat box at the right of your screen. We will do our best to answer all of your questions during today’s session, but may need to get you an answer at a later date.
3 Speaker: Mr. Walter Eckbreth Opening RemarksSpeaker: Mr. Walter EckbrethProgram Analyst General Services Administration
4 GSS Supply Transformation -Speaker Introduce yourself and other members of the team on the phone who may be assisting with questions.
5 AgendaSupply Transformation (ST) Background and OverviewFederal Strategic Sourcing Initiative (FSSI) as Key ST EnablerST Milestones & Key Dates
6 Supply Transformation Concept ST will utilize commercial vendor supply chains to transform GSS wholesale and retail programsWholesale Transformation: transition commercially available items from GSA Stock to Strategic Partner Delivery (SPD)Retail Transformation: transition retail operations from GSA-managed inventory solution to the fourth party logistics (4PL) solution
7 Supply Transformation Background FY07New Business Models Study and Business Case AnalysisFY10Launch of Central Asia Sourcing ProgramFY12Launch of Strategic Partner Delivery (SPD) PilotsFY14Implementation of Supply TransformationFY09Launch of 4PL Retail ProgramFY11Launch of Direct Vendor Delivery Pilots (FSSI)FY13Preparation for Supply Transformation
8 Supply Transformation Impetus and Goals Industry distribution models have become more sophisticated, creating both more competition and greater opportunity for partnershipTechnology innovations enable greater integration with external partnersGoalsOverall: Increase value to the customer and to the taxpayerGreater customer responsiveness: more and higher quality products, lower prices, and faster deliveryGreater efficiency: upon completion, generate $100 million in annual savings through acquisition and operating efficienciesPromote small business usageEnsure GSS business model is sustainable: competitive and solventIncreased
9 Federal Strategic Sourcing Initiative (FSSI) as Key Enabler SPDQuality Product, Competitive Pricing, and Fast DeliveryWorldwide DeliveryFEDSTD and MILSTD CompliantDevelop deep insight into markets and lifecycle costsLeverage Government-Wide SpendFoster Usage of Socio-economic FirmsConstantly Capture and Refine Best PracticesAutomated End-to-End Supply Chain ProcessFSSI
11 Appendix: Glossary4PLFourth-Party Logistics: GSA manages customer’s logistical operations in partnership with GSA vendorsAcquisitionThe purchase of commodities from an external sourceDepotDistribution center; GSA has two depots: EDC (Eastern Distribution Center in Burlington, NJ) and WDC (Western Distribution Center in Sharpe/Stockton, CA)DVDDirect Vendor Delivery: direct fulfillment by vendors of orders that would traditionally go to a GSA DepotEDCEastern Distribution Center: one of two depots currently active for GSS, located in Burlington, NJFSSIFederal Strategic Sourcing InitiativeFYFiscal Year: for Federal Government, each Fiscal Year runs from Oct. 1 through Sept. 30GSSThe Office of General Supplies & ServicesJanSanJanitorial/Sanitary: all products that are defined as within this product categoryMILSTDMilitary Standard fulfillment proceduresMROMaintenance, Repair, and Operations: all products that are defined as within this product categoryOS3Office Products (3rd Generation FSSI): all products that are defined as within this product categoryRequisitionA transfer of property (commodities) from GSA to an approved GSA patronSPDStrategic Partner Delivery: fulfillment of orders that would traditionally go to a GSA depot through a dedicated third-party vendor that is well integrated with GSA systems and operationsSTSupply Transformation (GSS initiative to increase strategic use of commercial capabilities, reduce the GSA footprint, and save $100 million annually)WDCWestern Distribution Center: one of two depots currently active for GSS, located in Sharpe/Stockton, CA
12 The Supply Transformation Team will now take any questions, comments or concerns. Please type questions in the chat window.
13 OS, MRO and JanSan Acquisition Strategies For the Requisition Channel -Speaker please make sure to reinforce that these three acquisitions are for the Requisition Channel!!!!-Please make sure to say what MRO, JanSan and OS stands for……
14 Customers buy through several unique methods necessitating a multi-channeled sourcing strategy Government Purchase Card Holder orContracting OfficerOn-base Military PersonnelMILSTRIP / FEDSTRIP UserPurchasing ChannelCustomers purchase products directly from vendor via a vendor- or government-managed internet portal or vendor store frontVendors fulfill orders and invoice customers directlyLargest channel, covering 70-80% of addressable spendRequisition ChannelAcquire products available through GSA Global SupplyMainly DOD customers4PLChannelMainly DOD customersVendors own and operate network of on-site stores, manage inventory and ensure deliveryDOD eMallGSA AdvantageVendor WebsiteGlobal SupplyOn-Base 4PL StoreContractVendor Brick & Mortar Store
15 GSAs requisition model entails a specific set of unique requirements for Contractors to successfully participateThe Requisition Channel covers mainly DoD orders that are fulfilled through GSA Global Supply programRequisition order fulfillment requires advanced e-commerce capabilities and seamless integration with GSA IT systemsE-commerce systems must fully align and link to GSA’sExtensive testing is required to ensure that all orders are transmitted and received, and that no data elements are droppedUse of National Stock Numbers (NSNs) is critical to ensure zero manual touch points for order processingOther custom requirements exist, including unique marking, packing, labeling requirements, and many more
16 Vendors Submit Quotes on Pools Contractor evaluation and category representation uses a market basket approachMarket Basket CreatedVendors Submit Quotes on PoolsPath to Establishment123Designed to represent Federal market purchases in the categoryTop high-spend productsAdditional representative itemsMarket basket items are categorized into pools for Contractors to submit quotesQuote sheets are created for the market basket items within each poolSeveral Technical Go/No Go Factors must be satisfactorily addressed by interested ContractorsContractor’s prices are collected on quote sheets for each pool the Contractors chooseQualifying Contractors for JanSan and MRO are then asked to apply the market basket average discount to all other non-market basket items within each poolFor Office Supplies, non-market basket pricing will be reviewed and negotiated individually
17 FOR ILLUSTRATIVE PURPOSES ONLY Quotes on Market Basket items (to be provided on the quote sheet) are the basis for Contractor evaluationExample: Vendor XYZ, Inc. sells tools and would like to quote on the MRO Tools and Tool Cabinets PoolFOR ILLUSTRATIVE PURPOSES ONLYXYZ, Inc. quotes discounts off of their Schedule pricing for every core itemXYZ, Inc. is evaluated based on the prices quotedMRO Tools and Tool Cabinets ProductSchedule PriceQuoteDiscountHammer…$12.41$11.299%Drill…$108.22$102.815%Screwdriver…$21.99$20.238%Tool Cabinet…$23.26$20.2413%In this example, XYZ, Inc. offered an average discount of about 9% off of their GSA MAS net prices, calculated based on their quotes for all products within the poolIf XYZ, Inc. is selected, the average discount will be applied to the entirety of their non-market basket items that are in scope with the given solution(NOTE: Schedule Price does not apply to OS.)
18 Planned Administrative Go/No-go Evaluation Factors Must be an AbilityOne reseller and demonstrate authorization to be an authorized distributorProvide 100% core items in category with supply manufacturer’s part number and UPC (if available)Demonstrate ability to provide core Market Basket items vs. Non- Market Basket items per poolDemonstrate TAA complianceMeet environmental sustainability requirementsAssure Berry Amendment compliance (MRO only)Provide representation regarding unpaid delinquent Federal tax liability or felony convictionTo include but not limited to:
19 Planned Technical Go/No-go Evaluation Factors (cont) Comply with Item Purchase DescriptionsAbility to support a Requisition based environmentMeet electronic communication capabilityDemonstrate the ability to use the DLA’s VSMAbility to provide “Fill or Kill” statusComply with packing, packaging, marking, labeling and documenting requirements (FED STD 123; MIL STD 129)Ability to secure scannable bar codesProvide a subcontracting plan (other than small business concerns only)Recommend having RFQ handy for bullet descriptions.
20 OS Acquisition Strategy -OS3 is a Multi-Agency Multiple Award Indefinite-Delivery Indefinite Quantity (IDIQ) Contract.-Firm-Fixed Price type contract with an Economic Price Adjustment Provision (EPA).
21 OS Requisition Channel Acquisition Plan RFP – Open to all vendors (Do not have to have a GSA Schedule)OS encompassesGeneral Office Supplies.PaperToner/InkEstimated spend for OS Requisition items is an estimated $200M annuallyDo we wa
22 Proposed OS aggregate volume thresholds Aggregate Volume Discounts: Vendors will be asked to provide additional discounts that go into effect upon reaching a cumulative level of spendOS Proposed Aggregate TiersCumulative Spend Levels$10M+$25M+$50M+$75M+$100M+-Are volume discounts tiers in the requisition channel? (OS)
23 Key Terms and Conditions for OS Period of Performance1 Base Year with 4 One-Year OptionsCONUS – 4 Calendar DaysOCONUS – 7 Calendar Days$0.00FOB DestinationDelivery DaysMinimum Order SizeDelivery Terms
25 JanSan and MRO Requisition Channel Acquisition Plan JanSan encompasses products ranging from motorized floor buffers to toilet paper, hand soap, and moreEstimated spend for JanSan Requisition items is an estimated $92M AnnuallyMRO encompasses products ranging from hardware to hand tools, from portable air conditioners, to pumps and motorsEstimated spend for MRO Requisition items is $144M Annually
26 JanSan and MRO Product Categories MRO CategoriesHardwareTools and Tool CabinetsJanSan CategoriesBrooms, Brushes, Mops, Sponges, Cleaning Cloths, Pails & WipersCleaning and Polishing Compounds, Miscellaneous Chemical Specialties & DispensersMotorized Floor Cleaning Equipment and Accessories, Floor Mats and CoveringsPersonal Hygiene, Paper Products, Dispensers and Laundry AccessoriesTrash Receptacles, Plastic and Paper BagsTalk how many BPAs and how many are eligible for Small Business???
27 Proposed JanSan & MRO aggregate volume thresholds Aggregate Volume Discounts: Vendors will be asked to provide additional discounts that go into effect upon reaching a cumulative level of spendJanSan Proposed Aggregate TiersCumulative Spend Levels$6M+$12M+$18M+$24M+$30M+-Are volume discounts tiers in the requisition channel? (OS)MRO Proposed Aggregate TiersCumulative Spend Levels$12.5M+$25M+$37.5M+$50M+$62.5M+
28 Key Terms and Conditions for MRO and JanSan Period of Performance1 Base Year with 4 One-Year OptionsCONUS – 4 Calendar DaysOCONUS – 7 Calendar Days$0.00FOB DestinationDelivery DaysMinimum Order SizeDelivery Terms
29 The OS, MRO and JanSan Teams will now take any questions, comments or concerns. Please type questions in the chat window.