U.S. General Services Administration FSSI Print Management (PM) U.S. General Services Administration Commodity Team Meeting 1 st Quarter FY ’15 November 6, 2014

Agenda FY ’14- Outcomes and Lessons Learned – Functional Area 3 and 4- Cancellation FY ‘15- Goals – FSSI Print Management-Next Generation What does your Agency need? How can FSSI Print help your Agency further to make this easier? Solution Framework – FSSI Team will present initial thoughts- For discussion

FY ‘14 Outcomes FY ’14 Contracting Volume was $13.2 million – Increased 150% over FY ‘13 ($5.4 million) HOWEVER- still only 5% of Schedule 36 and 1-2% of Open Market contracting volume Identified discounting from Schedules was 37%+ – Even greater for large enterprise-wide orders QUESTION: What is your Agency’s existing solution and pricing? In FY ’14, GAO, VA VISN 6, Dept of Energy, and Dept of State issued enterprise-wide requirements These Agencies join DHS, SSA, and HHS as Agencies that are largely utilizing FSSI Print Management UPDATE: Dept of State’s FSSI Print Award for Domestic Leasing is projecting $6.8 million in savings over the next 60 months! QUESTION: What is your Agency’s position on FSSI solutions?

FY ‘14 Outcomes Data Reporting – Tracking Transactional level data and in some cases device utilization (when data readily available) NOTE: Based on Current Volume Band structure, Device utilization is less than 10-30% for MFDs being tracked; 70-90% IDLE CAPACITY=WASTED FUNDING 100% Green Purchasing – All MFDs are EnergyStar Compliant – 90% of all MFDs awarded were EPEAT-rated

Less is more….. – Here is FY ‘14 breakdown of Schedule 36 and FSSI Print contracting volume: 65% of Agencies are leasing (predominately 60 months) 30% of Agencies are purchasing a device WITH a Service/ Maintenance/Consumable Plans – Forthcoming Cancellation of FA 3/FA 4 The future goal is to provide a much more focused and stream-lined offering. FY ‘14 Lessons Learned

 “Management of Government-Owned Assets” also known as FA 3 and FA 4 (Small Business Contractors only) covered: Repair, preventative maintenance, and supply replenishment of government- owned print/imaging devices A central point of management to coordinate services for existing leased devices Active software monitoring of the customer’s needs, costs, usage activities, and business goals New device replacement options (only if Vendor has FA 2 award)  Minimum Scope Requirements: – Must deploy software management tool – Must provide a comprehensive inventory of Government-owned equipment for management – Must envision the management of Government-owned equipment 6 Functional Area 3 and 4

 Marketplace Alignment: Only 3-5% of Schedule 36 related business volume can be captured by scope of FA 3/4 4 out of 10 FA 3/FA4 vendors do not have FA 2 BPAs offering new equipment resulting in a disjointed/fragmented solution After 9 months, there have been ZERO task order awards made through FA 3/FA 4, only ONE RFQ issued (no award as Customer was seeking lease-based solution), and limited inquiries after various training and outreach sessions with Commodity team and Industry Partners since awards were issued in January 2014  Asset Management Software: Agency CIO’s are not willing/able to deploy these software tools for remote monitoring Asset Management tools were a minimum requirement for FA 3/4  Vehicle Structure and Solution Fit: Mixed fleet management presents competitive barriers Fair Opportunity causes difficulty in providing customers holistic solutions Administrative burdens  For the above reasons FA 3 and FA 4 will be cancelled in the near future 7 Functional Area 3 and 4

FY ’15-Goals (Current Solution) Increase Agency utilization of FA 1 and FA 2 Refine pricing structure for ease of benchmarking – As Vendors submit modifications having them re- format price structure to push more standardization Issue Revised FSSI Print Management Ordering Guide

Identify if Agencies want to proceed with a 2 nd Generation Solution – If Agencies want 2 nd Generation, the process would need to start TODAY; Our Game Plan is as follows: “Less is More” Approach – I.E. No More Rental solutions (NEVER USED) Streamlined Ordering (move focus to LPTA at order-level) – STOP RECREATING THE WHEEL! THIS SHOULD BE EASY! Simplify CLIN Structure Simplify the current “Volume Band” Approach – Have Vendors discuss and propose a Volume Band structure Vendors will provide total integrated solution – Currently Fragmented between 4 Functional Areas – Question: Should we proceed with a 2 nd Generation of FSSI Print given the low utilization/adoption to date? FY ’15-Goals (Next Generation)

FSSI Print Management 2.0 The purpose of FSSI Print Management is to enable total cost of ownership and life-cycle management for the print imaging environment inclusive of new device procurement and associated service/maintenance/ consumable (S/M/C) costs through a comprehensive acquisition solution – QUESTION- Should FSSI Print allow for Device-Only procurements if it doesn’t manage the TCO? From FSSI team perspective, it does not make sense. FSSI Print Management intends to capture real-time data through Asset Management Software tools (whether deployed internal or external) to ensure print management environments are operating optimally – QUESTION- Who do we contact within your Agency to discuss Asset Management Software tools? Vendor solutions must be capable of providing all requirements to allow for an integrated solution – Potentially excluding OCONUS Support and Secret/Top Secret Facility Clearance – QUESTION- Could this program include OCONUS Support? Should dialogue with Industry occur to increase OCONUS coverage? – Vendor could provide these through CTAs

Engage Commodity Team Engage Industry Partners Seek SSLC Approval Develop FA II Implement program improvements to FA II FA III and IV Identify new structure and proof of concept Create a coalition of commitment around the revised structure and value Create consensus that requirements are aligned with industry solutions Ensure the solution meets Strategic Sourcing principles Moving forward…..Next Generation 11

New Device Procurement Purchase – Minimum 12 month S/M/C with goal to encourage end-users to utilize option periods to manage total life of device Lease-to-Own – 36, 48, 60 month Operating Lease – 36, 48, 60 month This requirement encompasses the various options for the procurement of a new multi-function or network printer

New Device Capabilities Appendix B Specifications BPA Service Level Agreement Lease-rate factor and prices/discounts held for BPA Duration Three Discount thresholds based on total task order value and/or device quantity – Trigger additional discount thresholds DeviceTask Order Value 1-99$1-$500K $500K-$999K 500+$1 million+

New Device Service/Maintenance/ Consumable Plans Flat Rate S/M/C Cost-per-Copy S/M/C Allowance for Device – Ordering Activity requirement Pooled Allowance for Fleet – Pooled by volume band and supported by a industry formula/methodology This requirement is for all of the different ways to provide ongoing service to newly purchased or leased devices

Existing Government Owned Device Service/Maintenance/ Consumable Plans Flat Rate S/M/C Cost-per-Copy S/M/C Pooled Allowance for Fleet Allowance for Device INITIAL THOUGHTS: All copier-based multi-function devices less than 60 months in age will be supported by an BPA-wide Brand Name Justification due to Closed- Distribution Channels on the repair parts and consumables – OEMs or Value-Added Resellers will support devices Xerox supports Xerox Ricoh supports Ricoh – For mixed fleet solutions, Vendors will enter into BPA-level Contractor Teaming Agreement's to provide support for their own devices at the quoted S/M/C pricing – Service Level Agreement for these CTA solutions can be supported by BPA SLA. Vendors will be quoting Network Printers by Volume Band and not device specific – Either directly provide this S/M/C or provide CTA and/or subcontractor solution to manage Network Printers These are the various procurement options for providing service and support to Government-owned devices not exceeding 60 months in age

Software Solutions Option 1: Vendor provided and Vendor-hosted data collection software to allow remote monitoring of the print imaging environment – Proactive response to service, maintenance, and consumable requirements; increased up-time and reduction in down-time Option 2: Vendor provided but Government- hosted data collection software with one-way reporting to the Vendor – Not real-time communication with vendor but can still be effective if managed properly Option 3: Government purchased and deployed software to monitor and review print imaging environment (Government managing software tool itself) – Information may not even be provided to Vendor – If provided, it would not be real-time communication with vendor but can still be effective if managed properly These software tools will provide several options to allow Client Agencies to monitor their print imaging equipment and associated utilization.

Fleet Assessment Agency is requiring four key deliverables 1)Inventory 2)Device Utilization 3)Current Spend 4)Floor Maps of Devices INTENT: Agency would provide the assessment results, Device requirements and business objectives to Vendors to provide a performance-based solution for their print environment Opportunity for Client Agencies to examine their current print imaging environment to develop and drive a performance- based solution through the FSSI Print Management program

Security Requirements PART 1) Device Security PART 2) End User Security PART 3) Facility Security -Are cleared personnel required to enter your facilities to provide service and maintenance to devices? Opportunity for Client Agencies to delineate any special security requirements that may need to be captured through the FSSI Print Management program

Please contact FSSI Print Management team at or Contact or Questions? Comments? Concerns?