1. Construction and Facilities Program October 12, 2012
Premier and GNYHA Services

2. Agenda Items
Introductions
Overview of Construction and Facility Services Program
Construction Projects
Tools

3. Construction and Facilities Program
GOAL:
Drive Member value through the utilization and implementation of the Construction Capital Portfolio and Facility Portfolio
| Construction | Facilities | IT and Telecom | Clinical Capital Equipment |
Program Elements:
Vetted Product Selection Process
Incremental Management Process
Tiered Contract Pricing
Project and Large Order Competitive Pricing 3 3

4. Contract Due Diligence Process Contract Creation
The Facilities Committee is made up of 20 facilities management professionals from the Premier Owners and hold a position of Director or Vice President in Facilities Management
The Facilities Committee defines the contract priorities
Potential suppliers are identified and contacted by Premier
Prospective Suppliers respond to a Request for Proposal from Premier
The Facilities Committee reviews findings assembled by Premier and fact based criteria common to all suppliers
The Facilities Committee completes evaluation of all proposals and makes decision on which agreements move to final contract negotiations managed by Premier
The Facilities Committee will make final contract award decisions
Data
Needs
Knowledge

5. Program Foundation Construction and Facilities Programs
Facilities Program Benefits
Use high quality, pre-vetted vendors with beneficial terms and conditions
Broaden facilities portfolio specific to member needs and to include regional agreements
Provide greater value through additional savings and supplier value adds
Enhance warranty & service terms (at no additional cost)
Lock-in future savings on service agreements
Drive manufacturer standardization (where desired)
Construction Program Benefits
Assist in the planning and acquisition phases of new construction capital
Build complementary relationships with general contractors, architects and equipment planners early in project
Maximize Savings on projects
Improve delivery and lead time with major equipment manufacturers
Leverage project volume for greater savings
Keep local subcontractors involved

6. Construction and Facilities Contract Opportunities Overview: Premier Construction Services and Facilities Capital Portfolio
Electrical
Plumbing
Roofing
Elevators
Tube
System
Controls
HVAC
Security
Flooring
Fire
Paint
Furniture
Nurse Call
Printers
Copiers
RFID Asset
Tracking
Interactive
Kiosk
Data
Storage
Telecom
Cardiovascular
Equipment
Laboratory
Equipment
Imaging
Equipment
Nursing
Equipment
Pharmacy
Equipment
Surgical
Equipment
Can Liners
Energy
Efficiency
Floor Care
Laundry
Paper &
Janitor Supply
Disaster &
Emergency

7. Contract Implementation Construction and Facilities Contracts
The Construction and Facilities industries are driven by relationships
Incorporating GPO contracts involves creating awareness and building the process to implement Premier contracts
This involves working with all parties during a project or implementation into your operations
Understanding the relationships and industry model is imperative to the success of implementing Premier agreements into your project or operations

8. Construction Projects

9. Construction Services Team Engagement Traditional Design
Concept
- Early involvement in project
- Collective expertise for project development before anything is designed
Opportunity for Cost Savings
Low
High
Schematics
- Integrate Construction Services Program with project team
- Create Premier portfolio awareness
- Provide education around contract features
- Help identify project delivery opportunities
Opportunity for Cost Savings
Low
High
Design
Development
- Provide education around contract features
- Identify Premier contract opportunities
- Provide value analysis
- Facilitate inclusion of capital equipment into equipment planning lists
Opportunity for Cost Savings
Low
High
Construction
Documents
- Review project specifications for final contracted supplier selections
- Provide authorized distributor information
- Provide contract language for including Premier agreements and reporting
Opportunity for Cost Savings
Low
High
Project
Bid
- Notify contracted suppliers included in project
- Begin tracking contracted supplier spend in project
Opportunity for Cost Savings
Low
High
Project
Construction
- Assist with any contracted supplier issues
- Help prepare reporting documents for contracted supplier utilization
Opportunity for Cost Savings
Low
High

10. Construction Capital Portfolio
Clinical
IT & Telecom
Furniture
Fixtures
Equipment
(Non-Clinical)
Fees & Contingency
Project Budget
60%
Project Budget
10%
Project Budget
15%
Project Budget 5%
Project Budget
10%
Contract Categories 19
Contract Categories
114
Contract Categories 14
Contract Categories 11
Contract Categories 3
National Contracts 63
National Contracts
300
National Contracts 44
National Contracts 42
National Contracts 21

11. Contract Implementation Construction and Furniture, Fixtures and Equipment
Construction Contracts
Architects / Engineers
& Equipment Planners
Contracted National Supplier
General Contractor
Construction Manager
Local Distributor
Local
Subcontractors

12. Barriers to Contract Implementation Construction and Furniture, Fixtures and Equipment
Common Barriers to Contract Implementation May Include:
Subcontractors (Purchasing Agent) will not want to, or may not be able to, purchase from Local Distributor; bad financial relationship may be barrier…..
- No solution for this. This will be the biggest hurdle
Materials purchased from an unauthorized distributor or agent for national supplier
- Member will not receive Premier Contracted Terms and Conditions for purchase
- Only buy through identified Local Distributors
Availability of contract products in local region
- Some contracted products cannot be purchased a local distributor – only direct from National Supplier; for example, Mannington Carpets
Premier Contract Portfolio continually changing
- New products will come on contract, products will go off contract as contracts expire
- See the Facility Management Toolkit on the Premier, Inc. website

13. Contract Implementation Material Procurement | Bidding Information
Steps:
Send project specifications to Premier Construction Services Team
Construction Services Team will contact National Supplier for listing of Local Authorized Distributor for the project
Construction Services Team will assemble list of Local Distributors and send back to you for your project
This information needs to be provided to the bidding contractors for the project materials
Bidding contractors will need to follow instructions to receive contract pricing, terms and conditions
Instructions for Bidding Subcontractors form to be sent from Premier Construction Services Team

14. Tools Available

15. Construction Contract Portfolio Book
Updated monthly, this book is available to help match up Premier contracts to CSI Divisions in project specifications
Displays:
Contract Features Summary
High-level Review of Items/Services Available on Contract
Distribution Terms
Supplier Representative Information

16. Clinical Capital Contract Resources Attainia
Attainia's applications enable hundreds of hospitals, health systems, healthcare equipment planners, architects, and integrated delivery networks to effectively manage thousands of healthcare projects and budgets
Healthcare equipment suppliers catalog their items within Attainia's integrated planning and budgeting tools allowing their products to be specified early in the planning process
Premier agreements are stored in Attainia and can be viewed when planning (think of a catalog of Supply Chain Advisor products)
Premier Members have free access to WATCH
Register for your facility
If your Equipment Planner is using Attainia, be sure to turn on the GPO agreements so they can see which items are on-contract vs those that are off-contract for your project

17. Construction Services Program Resources
Construction Services Program Website
Updated Construction, Facilities, IT & Clinical Capital Portfolio
Reporting Templates
Links to additional Premier resources
Facilities Management Toolkit
Updated Construction online portfolio
Direct links to Contract Details in Supply Chain Advisor
Direct links to Contracted Supplier websites

18. Construction Services Program Contact Information
Jim Venker, AIA
Donna Craft, RN
National Director,
Construction Services Program
Regional Manager,