1. Requisition Channel Industry Meeting
(OS, MRO and JanSan)
February 19, 2014

2. Some General Housekeeping Rules for Today’s Seminar
Opening Remarks
Some General Housekeeping Rules for Today’s Seminar
Today’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 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 today’s session, but may need to get you an answer at a later date.

3. Speaker: Mr. Walter Eckbreth
Opening Remarks
Speaker: Mr. Walter Eckbreth
Program 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. Agenda
Supply Transformation (ST) Background and Overview
Federal Strategic Sourcing Initiative (FSSI) as Key ST Enabler
ST Milestones & Key Dates

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. Supply Transformation Background
FY07
New Business Models Study and Business Case Analysis
FY10
Launch of Central Asia Sourcing Program
FY12
Launch of Strategic Partner Delivery (SPD) Pilots
FY14
Implementation of Supply Transformation
FY09
Launch of 4PL Retail Program
FY11
Launch of Direct Vendor Delivery Pilots (FSSI)
FY13
Preparation for Supply Transformation

8. Supply Transformation Impetus and Goals
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
Increased

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. Supply Transformation Milestones and Key Dates
FY 2014
FY 2015 Q2 Q3 Q4 Q1
Engage Industry
Implement SPD
Transform GSS Internal Operations
Industry Day
Engage Industry
Video Presentation
Letters to Contractors
FSSI RFQs
Implement SPD
JanSan & MRO Awards
OS3 Award
Stop ship WDC
Transform GSS Internal Operations
Stop ship EDC
Close WDC
Close EDC
Convert Stores to 4PL

11. Appendix: Glossary
4PL
Fourth-Party Logistics: GSA manages customer’s 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 (3rd 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. 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 or
Contracting Officer
On-base Military Personnel
MILSTRIP / FEDSTRIP User
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
Requisition Channel
Acquire products available through GSA Global Supply
Mainly DOD customers
4PL
Channel
Mainly DOD customers
Vendors own and operate network of on-site stores, manage inventory and ensure delivery
DOD eMall
GSA Advantage
Vendor Website
Global Supply
On-Base 4PL Store
Contract
Vendor Brick & Mortar Store

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 GSA’s
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. Vendors Submit Quotes on Pools
Contractor evaluation and category representation uses a market basket approach
Market Basket Created
Vendors Submit Quotes on Pools
Path to Establishment 1 2 3
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
Contractor’s 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

17. FOR ILLUSTRATIVE PURPOSES ONLY
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
XYZ, Inc. quotes discounts off of their Schedule pricing for every core item
XYZ, Inc. is evaluated based on the prices quoted
MRO Tools and Tool Cabinets Product
Schedule Price
Quote
Discount
Hammer…
$12.41
$11.29 9%
Drill…
$108.22
$102.81 5%
Screwdriver…
$21.99
$20.23 8%
Tool Cabinet…
$23.26
$20.24
13%
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
(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 distributor
Provide 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 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
To include but not limited to:

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 DLA’s 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)
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 encompasses
General Office Supplies.
Paper
Toner/Ink
Estimated spend for OS Requisition items is an estimated $200M annually
Do 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 spend
OS Proposed Aggregate Tiers
Cumulative 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 Performance
1 Base Year with 4 One-Year Options
CONUS – 4 Calendar Days
OCONUS – 7 Calendar Days
$0.00
FOB Destination
Delivery Days
Minimum Order Size
Delivery Terms

24. MRO and JanSan Acquisition Strategy

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. JanSan and MRO Product Categories
MRO Categories
Hardware
Tools and Tool Cabinets
JanSan Categories
Brooms, Brushes, Mops, Sponges, Cleaning Cloths, Pails & Wipers
Cleaning and Polishing Compounds, Miscellaneous Chemical Specialties & Dispensers
Motorized Floor Cleaning Equipment and Accessories, Floor Mats and Coverings
Personal Hygiene, Paper Products, Dispensers and Laundry Accessories
Trash Receptacles, Plastic and Paper Bags
Talk 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 spend
JanSan Proposed Aggregate Tiers
Cumulative Spend Levels
$6M+
$12M+
$18M+
$24M+
$30M+
-Are volume discounts tiers in the requisition channel? (OS)
MRO Proposed Aggregate Tiers
Cumulative Spend Levels
$12.5M+
$25M+
$37.5M+
$50M+
$62.5M+

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

29. The OS, MRO and JanSan Teams will now take any questions, comments or concerns. Please type questions in the chat window.