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U.S. General Services Administration Office Supplies 3 rd Generation (OS3) Industry Engagement Event December 10, 2013.

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Presentation on theme: "U.S. General Services Administration Office Supplies 3 rd Generation (OS3) Industry Engagement Event December 10, 2013."— Presentation transcript:

1 U.S. General Services Administration Office Supplies 3 rd Generation (OS3) Industry Engagement Event December 10, 2013

2 Robert Woodside, FSSI Program Director, Region 2 1

3 Office Supplies Second Generation (OS2) Summary 2 OS2, developed in 2010, was a great success resulting in: Sales exceeding $800M Cumulative government savings of $350M Increased small business spend from 67% to 76% Improved ease of use for customers with standardized product descriptions for more efficient comparison shopping Lower prices through increased competition and a dynamic pricing model, which reduces price variances Increased the visibility of how much the government spends on office supplies.

4 OS3 Expectations/Requirements 3 With our proposed acquisition strategy in the purchasing channel, we anticipate a full increase of 15% of small business spend from 76% to an anticipated 91 %. With our proposed acquisition strategy in the requisition channel, we anticipate a full increase of 14% of small business spend from 58% to an anticipated 72 %. Combined (purchasing + requisition), we anticipate a full increase of 14% of small business spend from 68% to an anticipated 82 %. Increase our data care abilities by requiring a UPC-A code which will give agencies further visibility into their office supply spend Increasing our savings through more precise product comparison using UPC-A code and also through some innovative strategies such as delivery order tier thresholds.

5 OS3 Expectations/Evolution 4 FSSI Office Supplies Solutions OS1 ( ) OS2 ( ) OS3 (2014-onward) Increased Agency Collaboration Enhanced Business Intelligence Purchasing Channel Dynamic Pricing Model  $35M in sales  Unknown Small Business utilization  Unknown savings  $750M in sales  76% Small Business utilization  $351M ($118M direct + $233M indirect) savings (through October FY14)  $2B+ in expected sales ($1.3B purchasing channel, $1B in requisition channel)  Increased SB opportunities; 82% utilization forecasted  Expected savings from increased competition, dynamic pricing, flexible contract terms, and lower operating costs

6 OS3 Expectations/Evolution 5 OS3 Small Business Opportunities Number of Small Business Vendor Set-Asides on the Standard Purchasing Channel OS3OS2  Unlimited opportunities for qualified Small Businesses with open season on-ramping on the purchase channel – this methodology will continually push prices down as new vendors must be 1% below the median price 12 20

7 OS3 Expectations/Evolution 6 Small Business Utilization (%) Purchasing Channel OS2OS3 Forecast 76% 91% Small Business Utilization (%) Requisition Channel Global Supply OS3 Forecast 58% 72% Weighted Small Business Utilization (%) Purchasing & Requisition Channel Current Solutions (OS2 & Global Supply OS3 Forecast 68% 82% 14%

8 OS3 is expected to be a “win-win-win” solution which will benefit the government, industry, and the tax payer 7 OS3 Expected Benefits Agency Benefits  Price reduction cost savings  More purchase channel options with the inclusion of the requisition channel and eventually the 4PL channel  More efficient requisition distribution process with fewer back orders  Easier cross-vendor price comparison shopping with SKU standardization and enhanced GSA Advantage! portal  Less need for comparison shopping with the dynamic price model  Ability to meet socio-economic goals with small and SDVOSB set-aside tracks, and AbilityOne and TAA contract requirements  Reduced contract administration  Detailed business intelligence for better informed buying decisions Vendor Benefits  Increased opportunities for Small Businesses on the purchase card channel with an increase from 85% in OS2 to 100% Small Business vendors in OS3, except for one unrestricted vendor on an enhanced delivery track  Increased opportunities for Small Businesses with open season on-ramping  Industry standard product classification system  Pricing structure better aligned to vendor economics with the replacement of a category discount structure and a market driven economic price adjustment clause Tax Payer Benefits  Cost savings from unit price discounts  Cost savings from supply chain management

9 OS3 Scope OS3 will incorporate a similar scope of Schedule 75 Office Solutions: Supplies & Services, Special Item number (SIN) Office Products for Federal Government-wide usage, as part of the OS2 Federal Strategic Sourcing Initiative, however since this is not a multiple-award Schedule contract, will not utilize respective SINS, except as a reference point. OS3 will be a total acquisition solution: OS3 Purchasing Global Supply Transformation Program (Requisition) (i.e. GSA Global Supply)-GSTP 4 th Party Logistics (4PL) GSTP and 4PL will be separate solicitations Today’s discussion is for the DRAFT OS3-Purchasing channel only… 8

10 Nelson Duncan, Lead Contracting Officer, FSSI PMO office 9

11 OS3 RFP Solicitation Documentation RFP Contains: Section Goods & Services I Terms and Conditions II Vendor Instructions III Evaluation Factors IV Representations and Certifications V Additional Related Components Statement of Work (Appendix A) Attachments 10

12 Section I: Goods & Services OS3 will utilize Four (4) Contract Line Item numbers to distinguish the categories of Office Supplies. Contract Line Item Number = CLIN CLIN 0001 General Office Supplies CLIN 0002 Paper CLIN 0003 Toner/Ink CLIN 0004 GSA On-the Go (unrestricted) Gen. Office Supplies See Attachment No. 2 for Office Supplies Definitions 11

13 Attachment No. 2 Office Supplies Definitions 12

14 OS3 Qualification Criteria-Section II Terms & Conditions Terms and Conditions Provisions Clauses Other /Solicitation Contract Requirements AbilityOne Certification Ability One Program provides employment opportunities for people who are blind or other significant disabilities in the manufacturing and delivery of services to the Government AbilityOne Items must be proposed and sourced when available. You must be an authorized AbilityOne Dealer as a pre-requisite for OS3. You are reminded that this is part of your proposal submission checklist found in Attachment No. 10, Information and Instructions to Contractors For more information on how to become AbilityOne certified, please contact Mr. Eric Beale, 13

15 OS3 Qualification Criteria-Section II Terms & Conditions OS3 will maximize Small Business Participation Estimated Awards CLIN % Small Business Set-Aside 12 2 SDVOSB 2 TOTAL CLIN CLIN % Small Business Set-Aside 3 CLIN % SDVOSB Set-Aside 3 CLIN 0004 Unrestricted * 1+ The Government reserves the right to adjust the number of awards based upon receipt of successful qualified proposals as set forth in the evaluation criteria. *Unrestricted Category may include SBs, Large Business, Non-profit, and Small Business Consortiums. A maximum of one award to a qualified large entity is proposed. CLIN 0004 has subcontracting plan requirement, if applicable. A minimum of 21 Awards are anticipated. 14

16 OS3 Qualification Criteria-Section II Terms & Conditions Ability to Supply Level III Data Monthly Usage Reports with Transactional Data Capture/Report Data at Point of Sale (Line Item) level Quarterly Performance Reports Requirements are located in SOW, Appendix A, Section

17 Michael Cullis, Contracting Officer, FSSI PMO office 16

18 Monthly Usage Reports with Transactional Data Fields  Order Date  Order Number  Product Description  Manufacturer Name  Manufacturer Part Number  UPC-A Code  Unit of Issue  Quantity  FSC Code (Federal Supply Code)  UNSPSC (United Nations Standard Products and Services Code)  Subcategory (Ink, Paper, Toner, General Office Supplies) 17

19 Monthly Usage Reports with Transactional Data Fields  OS3 Price  MAS Contract Price if any  Commercial List Price  Environmental Preferred Product (EPP)  Comprehensive Procurement Guidelines (CPG)  Compatible or Remanufactured Toner  Post Consumer Recycled Percent  Total Recycling Content  Delivery Method (Standard, Overnight, Secured Desktop)  Freight Charge  Shipping Weight 18

20 Monthly Usage Reports with Transactional Data Fields  Discount Amount  Supplemental Fees  Total Purchase Amount  Credit or Debit  Agency of Customer  Sub- Agency to Major Command Identity Information  DODAAC (Dept. of Defense Activity Address Code)  Pay Method (Smart Card, ETF, Net 30, check, etc.  Pay Date (Date Payment Received)  Sales Channel (GSA Advantage, DoD Emall, Fax, phone, etc.) 19

21 Monthly Usage Reports with Transactional Data Fields  Zip Code Delivered To Location  Zip Code Sent From Location  Charge Processing Date  Transaction Number  Contractor Name  Contract Number 20

22 Nelson Duncan, Lead Contracting Officer, FSSI PMO office 21

23 OS3 Qualification Criteria-Sections III thru V Vendor Instructions III Evaluation Factors IV Representations and Certifications V These sections also contain informative Federal Acquisition Regulation (FAR) Clauses and regulations such as FAR: Taxpayer Identification (III) Place of Performance Type of Contract Evaluation of Commercial Items (IV) Small Business Representation (V) OS3 is a Multi-Agency Multiple Award Indefinite-Delivery Indefinite Quantity (IDIQ) Contract It will be a Firm-Fixed Price type contract with an Economic Price Adjustment Provision (EPA). Prices must be held firm for a period of no less than 180 days after award. 22

24 Section III: Vendor Instructions Although located between Terms and Conditions and Evaluation Factors, Contractors are reminded to pay attention to instructions throughout the RFP, SOW and related document Attachments. Attachment 3 is the Contractor’s Information cover sheet which is to provide: Basic Contractor Information SocioEconomic Overview Operations Overview Financial Information Sales Information (Capability and Capacity) You may submit a tailored version however failure to address all elements may result in your proposal being determined to be unacceptable. Attach additional pages as needed to fully demonstrate performance ability. Attachment 10 provides some very basic additional guidance for submission, such as the requirements of a digital certificate to submit your proposal, supplier information and agent forms and checklist. Reference also Section 7 of SOW, Appendix A for Proposal Formatting Instructions. 23

25 Section III: Vendor Instructions Continued…Past Performance Attachment 5 is your Past Performance Questionnaire List Performance Data on your five (5) most recently completed Federal Government contracts (not to exceed three years since completion) for like or similar items required by this solicitation indicating highest Office Supplies sales. If you do not have 5 Federal Government contracts, then list state, local or commercial contracts, in that order, to complete this report. Specify the nature, types and percentage of products provided within each contract referenced to demonstrate previous performance. A copy of respective invoice may be submitted along with form. Submit as many copies of Attachment 5 as needed. You may submit more than 5 references if needed to depict the scope and variety of your performance. NOTE: Fewer than 5 references will result in a non-responsiveness determination. 24

26 Section IV Evaluation Factors Technical Go/No-Go (CLINS 0001, 0002, and 0003) Small Business Certification; AbilityOne-certified contractor; Demonstrated ability to meet all environmental reporting and green product requirements; Demonstrated ability to provide 100 percent core-items list products; Demonstrated capability to provide real-time order status to GSA Advantage! ®; Currently be able to provide point of sale discount for all IDIQ Contract orders; Agency-defined reports at no additional cost; Standard delivery anywhere CONUS within 3 to 4 business days; Demonstrated Level III transaction data at the line-item level; and Satisfactory past performance. Price Adjusted Market Basket Proposal (Block G15 of Attachment No 1) Technical is more important than Price, and Price is less important than Technical. 25

27 Section IV Evaluation Factors Continued… CLIN 0004 CLIN 0004 GSA On-the-Go (Unrestricted) AbilityOne-certified Contractor; Demonstrated ability to meet all environmental reporting and green product requirements; Demonstrated ability to provide 100 percent core-items list products; Demonstrated capability to provide real-time order status to GSA Advantage! ®; Currently be able to provide point of sale discount for all IDIQ Contract orders; Agency-defined reports at no additional cost; Demonstrated ability to provide desktop delivery and secure desktop delivery; Standard delivery; Expedited delivery to include same day if requested. Demonstrated ability to provide expedited or same day delivery method for immediate purchases Ability to deliver to Alaska, Hawaii, Puerto Rico, and international locations; Demonstrated ability to proposal Fill or Kill status; Demonstrated Level III transaction data at line-item level; Ability to report subcontracting quarterly, other than small business only; Satisfactory past performance; Submission of completed Subcontracting Plan, if applicable. 26

28 Section IV Evaluation Factors Continued… CLIN 0004 Price Adjusted Market Basket Proposal (Block G15 of Attachment No 1) Technical is more important than Price, and Price is less important than Technical. ALL CLINS: The Government reserves the right to award without discussions, based upon initial submission. Contractors are therefore encouraged to submit competitive pricing at the onset. In efforts to further increase competition and narrow price variations the price evaluation phase may include a reverse auction. In the price evaluation phase, the Government reserves the right to conduct multiple rounds of revised pricing submissions, as necessary. If revised pricing submissions are utilized, the Government may publish contractor proposed pricing information to all respective contractors within CLIN range with the aim of aiding contractors in more effectively revising their Proposals without names to directly compare their own prices against the best pricing proposed in the previous round of revised pricing submissions. 27

29 Section V: Representations and Certifications This area is where you provide verification and validation of: Small Business Status Ability One FAR Annual Reps & Certs North American Industry Classification Standard (NAICS) applicable under OS3 Purchasing: – Office Supplies (except Paper) Manufacturing – Paper (except Newsprint) Mills – Photographic Film, Paper, Plate and Chemical Manufacturing (i.e.Toner/Ink) The size standard for the above NAICS is 500 employees. A Non-Manufacturer Rule Waiver has been requested and pending approval for the above NAICS codes for this solicitation. NOTE: Your SAM account (formerly CCR) should reflect the respective association with the items being proposed in OS3. 28

30 Section V: Representations and Certifications Continued… Another important Certification is located in Attachment No. 4 Business Rules and Agreement for Contract Holders Acknowledgment and authorized signature is required on the last page. Highlights include: Requirement expectations Complaint resolution Improper content Catalog and Spreadsheet contents Delivery/Task Order/Purchase Order Information Unsolicited Customer Marketing Identification of “Green” Sustainable Products 29

31 Attachment No. 1- OS3 Price Proposal Spreadsheet.xlsm Generated in MS Excel, this Attachment is where prices are proposed and submitted for evaluation Submission of a completed Attachment 1 is a mandatory requirement of the OS3 RFP Failure to submit a complete Attachment 1 on a otherwise Technically Acceptable proposal will result in an unacceptable proposal submission and will no longer be considered eligible for award. The Market Basket Items are considered to be a mandatory core-items list that represents high demand, frequently purchased and high volume Office Supplies based on previous actual purchases. Items that you desire to propose that are within scope of Attachment 2, Definitions may be listed as part of a “Non-Market Basket” Mr. Joshua Royko, Supervisory Business Analyst will guide you through this critical piece of your submission. 30

32 Joshua Royko, Supervisory Business Analyst, CAR 31

33 Area(s) of Consideration for Contract Line Item Number (CLIN) Submissions For an in-depth overview, please view the FSSI OS3 Price Proposal Sheet tutorial at https://interact.gsa.gov/blog/fssi-os3-draft-rfp-overview-videoshttps://interact.gsa.gov/blog/fssi-os3-draft-rfp-overview-videos A Full Catalog (Small Business) B Office Paper (Small Business) C Toner & Inkjet (SDVOSB) D Full Catalog/GSA On-the-Go (Unrestricted) E.0001-Full Catalog, Office Paper (Small Business) F Full Catalog, Toner & Inkjet (SDVOSB) G Office Paper, Toner & Inkjet (SDVOSB) H.0001-Full Catalog, Office Paper, Toner & Inkjet (SDVOSB) I.0001-Full Catalog, Full Catalog/GSA On the-Go (Small Business) J Office Paper, Full Catalog/GSA On the-Go (Small Business) K Toner & Inkjet, Full Catalog/GSA On the-Go (SDVOSB) L.0001-Full Catalog, Office Paper, Full Catalog/GSA On the-Go (Small Business) M.0001-Full Catalog, Toner & Inkjet, Full Catalog/GSA On the-Go (SDVOSB) N Office Paper, Toner & Inkjet, Full Catalog/GSA On the-Go (SDVOSB) O.0001-Full Catalog, Office Paper, Toner & Inkjet, Full Catalog/GSA On the-Go (SDVOSB) Pricing for all items within each applicable category must be proposed. I.e., all rows within the sheet must be filled. If unable to submit a proposed price for any items, please immediately contact Nelson Duncan at for review and further instructions. 32

34 Price Bid Proposal Sheet Overview 33

35 Adjusted Market Basket and Delivery Tier Thresholds Adjusted Market Basket Proposal will be the basis of award in terms of the price evaluation As delivery order size increases significant cost efficiencies are achieved mainly from a reduced cost of freight To ensure that the corresponding cost efficiencies translate to government savings a delivery order size-based discount structure may be used as a credit to reduce the total market basket proposal price for consideration A credit of one tenth of the discount offered times the number of tiers for which it is applicable will be granted up to a maximum aggregate reduction credit of five percent. 34

36 To maximize savings, OS3’s acquisition channel will incentivize the alignment of buying behavior with drivers of vendor cost savings through delivery-order tier discounts 35  Industry feedback indicates that efficiencies stemming from the cost of freight are realized as delivery order size increases. In order to ensure that these efficiencies translate in to customer savings, OS3 will encourage a delivery order tier discount structure through a market basket bid reduction credit.

37 Cumulative volume tier discounts: high volume = better pricing, on every single item! (Acquisition Channel) OS2 demonstrated that straight-line price reductions across a large catalog of items is sub-optimal due to back-loading of discounts at higher volume tiers, and post-reduction price increases through the Economic Price Adjustment (EPA) clause. As such, OS3 plans on utilizing a market driven approach to volume discounts by requiring items to be priced not greater than a tightening tolerance above the lowest priced vendor for each item. 36 OS3 Cumulative Volume Tiers Cumulative OS3 Volume Maximum Tolerance Above Lowest Priced Vendor (Item Level) $010% $10M9% $25M8% $50M7% $75M6% $100M5% OS2 Cumulative Volume Tiers Cumulative OS2 Volume Straight-line Price Reduction $25Mx% $50My% $75Mz% $100Ma%  Flat-rate discount at volume tier  Subject to “Gamesmanship” (back-loading) and dilution through the EPA Process  One-size fits all approach for a market with nuanced vendor pricing structures  Discounts tied to the lowest priced vendor = Uniform, rock-bottom pricing on every item  Aligned with vendor’s negotiating leverage: More purchasing power = better cost structure  Market-driven approach

38 Question & Answer Session GSA welcomes the opportunity to address any questions that you may have at this time. To submit a question, please type it in to the Adobe Connect Chat Window. 37


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