1 U.S. Communities Program Graybar Internal Training

2 Graybar U.S. Communities Program Managers Rob Rhoads | Strategic Account Manager Graybar East Districts (Atlanta, Boston, New York, Pittsburgh, Richmond, Tampa) Office (314) | Mobile (202) Jeff Peskuski | Strategic Account Manager Graybar West Districts (California, Chicago, Dallas, Minneapolis, Phoenix, Seattle, St. Louis) Office (314) | Mobile (630)

3 Creating Value U.S. Communities Organization Overview –Contract Basics –Key Contacts –USC Roles & Resources Graybar Role and USC Contracts Best Practices –Selling approach & strategies SG-530 process –Corporate Commitment U.S. Communities and Graybar Program Website information Agenda

4 Process Price Product Government 25% 65% 10% How do we add value if this is how the market purchases? Creating Value

5 Government Purchasing, Cooperatives & U.S. Communities Government requires Three Bid or Solicitation Process Cooperative purchasing saves money U.S. Communities –A national cooperative purchasing alliance for local governments including Counties, Cities, Special Districts, Schools, Colleges and Universities, Non-profits, and State Agencies Website: Program Managers:

6 U.S. Communities Cooperative Contract Manager Non-Profit For Government – By Government National Volume Best Overall Value 24+ Available Contracts No Cost / Non-Binding Best in Class Vendors

7 National Sponsors NIGP ( –National Institute for Governmental Purchasing NACo ( –National Association of Counties ASBO International ( –Association of School Business Officials NLC ( –National League of Cities USCM ( –United States Conference of Mayors

8 Auburn University Cobb County City and County of Denver Emory University Fairfax County Great Valley School District Harford County Public Schools Hennepin County Hillsborough Schools Fresno Public Schools City of Kansas City Cape May County City of Houston City of Los Angeles Los Angeles County Maricopa County Miami-Dade County North Carolina State University City of San Antonio San Diego Unified School District Salem Kaiser School District City of Seattle Denver Public Schools Public Procurement Professionals The Advisory Board

9 USC Solicitation Process Advisory Board recommends a product or commodity U.S. Communities evaluates category Lead Agency and Advisory Board evaluate proposals Lead Agency & Advisory Board monitor and evaluate supplier performance Public Agencies access contract through online registration with U.S. Communities Award Contract Correct Fit? No further action Lead Advisory Board member prepares competitive bid Includes "public participating agency" language enabling other agencies to use contract. All contracts are competitively solicited, non-exclusive and require no fees to participate. NoYes

10 Graybar role with U.S. Communities Two Contracts –Electrical –Telecommunications –Current growth of contracts are $130MM County of Los Angeles, Lead Public Agency Large Breadth of Product Consistent and competitive pricing No contracts to sign and non-binding Best Overall Value Services

11 Graybar USC Contracts Electrical # MA-IS Valid to 3/31/2013 Products include Lighting & Lighting Controls, Power Distribution, Management & Control General Electrical Commodity Materials. Services include Recycling, Energy Audits, Power Distribution Analysis, Emergency Service, Preventive Maintenance, Installation and Graybar Financial Services Communication/Security # MA-IS Valid to 12/31/13 with (1) one year options Products include Networking, Communication, Fiber & Cabling, Termination & Related Materials Security products include Cameras, Monitoring, Entrance Protection, Fire, Intrusion, Notification and other Related Security Products

12 Over 50,000 Participating Agencies Nationwide Access Participation

13 States By Population

14 State & Local Government Overview Main Responsibilities –Handle powers not delegated to Fed or other agencies –Public Safety, Education, Transportation, Health, Housing, Internal Facility Infrastructure Breakdown per 2010 Census –50 States –3034 County & Parishes –36,011 Cities, Towns & Villages –28 Consolidated City/County Governments –Other Townships, Municipalities, Incorporations & Special Districts

15 State & Local Org Chart Example

16 Higher Education & K12 Overview Main Responsibilities –Improve quality of learning each fiscal year –Ensure equal access for all citizens –Better serve the needs of the society and economy. Breakdown per 2010 Census –145,209 K-12 Educational Institutions –4,352 Colleges & Universities –Other Technical Schools, Charter Schools & Special Education Districts

17 Common Higher Ed & K-12 Purchasing Services Org Chart Director of Procurement Services Assistant Director of Procurement Services Purchasing ManagerP-Card Coordinator Purchasing Agents/buyers Accounts Payable clerk E-business Manager Sr. Purchasing Agent Commodity Manager Manager/Construction Services

18 Benchmark Potential Business Benchmarking using population or enrollment Core Commodities Narrows Focus State & Local Government –$2 to $4 per resident depending on services Education –Higher Education: $16 per student –K12 & Charter: $12 per student

19 Potential Sales for State, Local & Education State & Local –308,745,538 Residents per 2010 Census –$1 Trillion Annualized Local Spend –Potential $1 Billion for Graybar Higher Ed Enrollment –~ 20,500,000 enrollment per 2010 Census –Potential $325,000,000 Million for Graybar K-12 Enrollment –~59,200,000 enrollment per 2010 Census –Potential $700,000,000 Million for Graybar

20 Selling approach & Strategies Focus on selling, not bidding Sell at the Director of Procurement level or above Sell yourself and Graybar first! Establish the competitive solicitation and award by a public agency, (Los Angeles County Government) Provide the RFP, Master Agreement, MICPA and Statute. Utilize U.S. Communities as a vehicle to avoid the solicitation process Start the process 6 – 12 months prior to the end of their current contract Reference Advisory Board members and others in the region utilizing our USC contract

21 Corporate Commitment Legally, it is our corporate commitment to lead with the U.S. Communities contract to agencies that have signed up to use the program. Commercially, it is in our best interest to encourage customers to sign up for the program. Strategically, it is our plan for selling to local government customers.

22 USC Program, register –Customer clicks on register to participate tab –Reference Master Intergovernmental Cooperative Purchasing Agreement (“MICPA”) –Registration is one time –Customer can register more than one dept. and buyer –Registration enables agency to use program and to be automatically notified of new contracts –Graybar receives a notification via that the customer has registered and selected use of our contracts. –Graybar will then link customer sold to/account # to the USC hierarchy pricing on our end. (SG-529 form) How a Customer Participates

23 SG-530 Process The CVIA exemption was created for project business or large one-time orders from our Local Government agency customers. Utilize only when a “Formal Public Bid” or “Formal Quotation” is issued from a USC member account. Bid documentation is required to exempt the order from VIA payment. We cannot exclude any sale where an agency is using the program to purchase or Graybar is using the program pricing to win the order. Exemptions on registered USC customers for daily commodity purchases will not be approved. SG-530 forms must be approved by the District Government Manager prior to approval by the Strategic Account Manager.

24 U.S. Communities & Graybar Program Website Information Graybar Marketing and Contract Documents: U.S. Communities Program Information: U.S. Communities Graybar micro-site: Government WIKI page under SAM Information

25 Graybar U.S. Communities Program Overview Thank you !!