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General Supplies and Services (GS&S) Portfolio Federal Acquisition Service U.S. General Services Administration Requisition Channel Industry Meeting (OS,

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Presentation on theme: "General Supplies and Services (GS&S) Portfolio Federal Acquisition Service U.S. General Services Administration Requisition Channel Industry Meeting (OS,"— Presentation transcript:

1 General Supplies and Services (GS&S) Portfolio Federal Acquisition Service U.S. General Services Administration Requisition Channel Industry Meeting (OS, MRO and JanSan) February 19, 2014

2 Federal Acquisition Service U.S. General Services Administration 2 Opening Remarks Some General Housekeeping Rules for Todays Seminar Todays 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 muted Make sure your speaker volume is turned all the way up If 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 presentation Please 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 todays session, but may need to get you an answer at a later date.

3 Federal Acquisition Service U.S. General Services Administration 3 Opening Remarks Speaker: Mr. Walter Eckbreth Program Analyst General Services Administration

4 General Supplies and Services (GS&S) Portfolio Federal Acquisition Service U.S. General Services Administration GSS Supply Transformation

5 Federal Acquisition Service U.S. General Services Administration 5 Supply Transformation (ST) Background and Overview Federal Strategic Sourcing Initiative (FSSI) as Key ST Enabler ST Milestones & Key Dates Agenda

6 Federal Acquisition Service U.S. General Services Administration 6 Supply Transformation Concept ST will utilize commercial vendor supply chains to transform GSS wholesale and retail programs Wholesale 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 Federal Acquisition Service U.S. General Services Administration 7 Supply Transformation Background FY07 New Business Models Study and Business Case Analysis FY09 Launch of 4PL Retail Program FY10 Launch of Central Asia Sourcing Program FY11 Launch of Direct Vendor Delivery Pilots (FSSI) FY12 Launch of Strategic Partner Delivery (SPD) Pilots FY13 Preparation for Supply Transformation FY14 Implementation of Supply Transformation

8 Federal Acquisition Service U.S. General Services Administration 8 Supply Transformation Impetus and Goals Impetus Industry distribution models have become more sophisticated, creating both more competition and greater opportunity for partnership Technology innovations enable greater integration with external partners Goals Overall: Increase value to the customer and to the taxpayer Greater customer responsiveness: more and higher quality products, lower prices, and faster delivery Greater efficiency: upon completion, generate $100 million in annual savings through acquisition and operating efficiencies Promote small business usage Ensure GSS business model is sustainable: competitive and solvent

9 Federal Acquisition Service U.S. General Services Administration 9 Federal Strategic Sourcing Initiative (FSSI) as Key Enabler SPD Quality Product, Competitive Pricing, and Fast Delivery Worldwide Delivery FEDSTD and MILSTD Compliant Develop deep insight into markets and lifecycle costs Leverage Government -Wide Spend Foster Usage of Socio- economic Firms Constantly Capture and Refine Best Practices Automated End-to-End Supply Chain Process FSSI

10 Federal Acquisition Service U.S. General Services Administration 10 Supply Transformation Milestones and Key Dates FY 2014FY 2015 Q2Q3Q4Q1Q2 Engage Industry Implement SPD Transform GSS Internal Operations Stop ship WDC Stop ship EDC Close WDC Close EDC Engage Industry Transform GSS Internal Operations Industry Day Video Presentation Letters to Contractors Implement SPD FSSI RFQs JanSan & MRO Awards OS3 Award Convert Stores to 4PL

11 Federal Acquisition Service U.S. General Services Administration 11 Appendix: Glossary 4PL Fourth-Party Logistics: GSA manages customers logistical operations in partnership with GSA vendors Acquisition The purchase of commodities from an external source Depot Distribution center; GSA has two depots: EDC (Eastern Distribution Center in Burlington, NJ) and WDC (Western Distribution Center in Sharpe/Stockton, CA) DVD Direct Vendor Delivery: direct fulfillment by vendors of orders that would traditionally go to a GSA Depot EDC Eastern Distribution Center: one of two depots currently active for GSS, located in Burlington, NJ FSSI Federal Strategic Sourcing Initiative FY Fiscal Year: for Federal Government, each Fiscal Year runs from Oct. 1 through Sept. 30 GSS The Office of General Supplies & Services JanSan Janitorial/Sanitary: all products that are defined as within this product category MILSTD Military Standard fulfillment procedures MRO Maintenance, Repair, and Operations: all products that are defined as within this product category OS3 Office Products (3 rd Generation FSSI): all products that are defined as within this product category Requisition A transfer of property (commodities) from GSA to an approved GSA patron SPD Strategic 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 operations ST Supply Transformation (GSS initiative to increase strategic use of commercial capabilities, reduce the GSA footprint, and save $100 million annually) WDC Western Distribution Center: one of two depots currently active for GSS, located in Sharpe/Stockton, CA

12 Federal Acquisition Service U.S. General Services Administration 12 The Supply Transformation Team will now take any questions, comments or concerns. Please type questions in the chat window.

13 General Supplies and Services (GS&S) Portfolio Federal Acquisition Service U.S. General Services Administration OS, MRO and JanSan Acquisition Strategies For the Requisition Channel

14 Federal Acquisition Service U.S. General Services Administration 14 4PL Channel Mainly DOD customers Vendors own and operate network of on-site stores, manage inventory and ensure delivery Requisition Channel Acquire products available through GSA Global Supply Mainly DOD customers Purchasing Channel Customers purchase products directly from vendor via a vendor- or government-managed internet portal or vendor store front Vendors fulfill orders and invoice customers directly Largest channel, covering 70-80% of addressable spend Customers buy through several unique methods necessitating a multi-channeled sourcing strategy Government Purchase Card Holder or Contracting Officer MILSTRIP / FEDSTRIP User On-base Military Personnel DOD eMall GSA Advantage Vendor Website Vendor Brick & Mortar Store Global Supply On-Base 4PL Store Contract

15 Federal Acquisition Service U.S. General Services Administration 15 GSAs requisition model entails a specific set of unique requirements for Contractors to successfully participate The Requisition Channel covers mainly DoD orders that are fulfilled through GSA Global Supply program Requisition order fulfillment requires advanced e-commerce capabilities and seamless integration with GSA IT systems E-commerce systems must fully align and link to GSAs Extensive testing is required to ensure that all orders are transmitted and received, and that no data elements are dropped Use of National Stock Numbers (NSNs) is critical to ensure zero manual touch points for order processing Other custom requirements exist, including unique marking, packing, labeling requirements, and many more

16 Federal Acquisition Service U.S. General Services Administration 16 Contractor evaluation and category representation uses a market basket approach Designed to represent Federal market purchases in the category Top high-spend products Additional representative items Market basket items are categorized into pools for Contractors to submit quotes Quote sheets are created for the market basket items within each pool Several Technical Go/No Go Factors must be satisfactorily addressed by interested Contractors Contractors prices are collected on quote sheets for each pool the Contractors choose Qualifying Contractors for JanSan and MRO are then asked to apply the market basket average discount to all other non-market basket items within each pool For Office Supplies, non- market basket pricing will be reviewed and negotiated individually Market Basket Created Vendors Submit Quotes on Pools Path to Establishment 1 2 3

17 Federal Acquisition Service U.S. General Services Administration 17 MRO Tools and Tool Cabinets Product Schedule Price QuoteDiscount Hammer…$12.41$11.299% Drill…$108.22$ % Screwdriver…$21.99$20.238% Tool Cabinet…$23.26$ % Quotes on Market Basket items (to be provided on the quote sheet) are the basis for Contractor evaluation Example: Vendor XYZ, Inc. sells tools and would like to quote on the MRO Tools and Tool Cabinets Pool FOR ILLUSTRATIVE PURPOSES ONLY 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 pool If 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 XYZ, Inc. quotes discounts off of their Schedule pricing for every core item XYZ, Inc. is evaluated based on the prices quoted ( NOTE: Schedule Price does not apply to OS.)

18 Federal Acquisition Service U.S. General Services Administration 18 Planned Administrative Go/No-go Evaluation Factors Must be an AbilityOne reseller and demonstrate authorization to be an authorized distributor Provide 100% core items in category with supply manufacturers part number and UPC (if available) Demonstrate ability to provide core Market Basket items vs. Non- Market Basket items per pool Demonstrate TAA compliance Meet environmental sustainability requirements Assure Berry Amendment compliance (MRO only) Provide representation regarding unpaid delinquent Federal tax liability or felony conviction

19 Federal Acquisition Service U.S. General Services Administration 19 Planned Technical Go/No-go Evaluation Factors (cont) Comply with Item Purchase Descriptions Ability to support a Requisition based environment Meet electronic communication capability Demonstrate the ability to use the DLAs VSM Ability to provide Fill or Kill status Comply with packing, packaging, marking, labeling and documenting requirements (FED STD 123; MIL STD 129) Ability to secure scannable bar codes Provide a subcontracting plan (other than small business concerns only)

20 Federal Acquisition Service U.S. General Services Administration 20 OS Acquisition Strategy

21 Federal Acquisition Service U.S. General Services Administration 21 OS Requisition Channel Acquisition Plan RFP – Open to all vendors (Do not have to have a GSA Schedule) OS encompasses General Office Supplies. Paper Toner/Ink Estimated spend for OS Requisition items is an estimated $200M annually

22 Federal Acquisition Service U.S. General Services Administration 22 Proposed OS aggregate volume thresholds OS Proposed Aggregate Tiers Cumulative Spend Levels $10M+$25M+$50M+$75M+$100M+ Aggregate Volume Discounts: Vendors will be asked to provide additional discounts that go into effect upon reaching a cumulative level of spend

23 Federal Acquisition Service U.S. General Services Administration 23 Key Terms and Conditions for OS 1 Base Year with 4 One-Year Options CONUS – 4 Calendar Days OCONUS – 7 Calendar Days $0.00 FOB Destination Period of Performance Delivery Days Minimum Order Size Delivery Terms

24 Federal Acquisition Service U.S. General Services Administration 24 MRO and JanSan Acquisition Strategy

25 Federal Acquisition Service U.S. General Services Administration 25 JanSan and MRO Requisition Channel Acquisition Plan JanSan encompasses products ranging from motorized floor buffers to toilet paper, hand soap, and more Estimated spend for JanSan Requisition items is an estimated $92M Annually MRO encompasses products ranging from hardware to hand tools, from portable air conditioners, to pumps and motors Estimated spend for MRO Requisition items is $144M Annually

26 Federal Acquisition Service U.S. General Services Administration 26 JanSan and MRO Product Categories MRO Categories JanSan Categories 1.Hardware 2.Tools and Tool Cabinets 1.Brooms, Brushes, Mops, Sponges, Cleaning Cloths, Pails & Wipers 2.Cleaning and Polishing Compounds, Miscellaneous Chemical Specialties & Dispensers 3.Motorized Floor Cleaning Equipment and Accessories, Floor Mats and Coverings 4.Personal Hygiene, Paper Products, Dispensers and Laundry Accessories 5.Trash Receptacles, Plastic and Paper Bags

27 Federal Acquisition Service U.S. General Services Administration 27 Proposed JanSan & MRO aggregate volume thresholds JanSan Proposed Aggregate Tiers MRO Proposed Aggregate Tiers Cumulative Spend Levels $6M+$12M+$18M+$24M+$30M+ Cumulative Spend Levels $12.5M + $25M+ $37.5M + $50M+ $62.5M + Aggregate Volume Discounts: Vendors will be asked to provide additional discounts that go into effect upon reaching a cumulative level of spend

28 Federal Acquisition Service U.S. General Services Administration 28 Key Terms and Conditions for MRO and JanSan 1 Base Year with 4 One-Year Options CONUS – 4 Calendar Days OCONUS – 7 Calendar Days $0.00 FOB Destination Period of Performance Delivery Days Minimum Order Size Delivery Terms

29 Federal Acquisition Service U.S. General Services Administration 29 The OS, MRO and JanSan Teams will now take any questions, comments or concerns. Please type questions in the chat window.


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