DEC 10 OS3 Presentation- FINAL.ppt

U.S. General Services Administration

Office Supplies 3rd Generation (OS3) Industry Engagement Event

December 10, 2013

Robert Woodside, FSSI Program Director, Region 2

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Office Supplies Second Generation (OS2) Summary

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• 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.

OS3 Expectations/Requirements

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• 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.

OS3 Expectations/Evolution

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FSSI Office Supplies Solutions

OS1(2006-2010)

OS2(2010-2014)

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


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OS3 Small Business Opportunities

Number of Small Business Vendor Set-Asideson 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

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Small Business Utilization (%)Purchasing Channel

OS2 OS3Forecast

76%91%

Small Business Utilization (%)Requisition Channel

Global Supply

OS3Forecast

58%

72%

Weighted Small Business Utilization (%)Purchasing & Requisition Channel

Current Solutions(OS2 &

Global Supply

OS3Forecast

68%

82%14%

OS3 is expected to be a “win-win-win” solution which will benefit the government, industry, and the tax payer

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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

OS3 Scope

• OS3 Scope• OS3 will incorporate a similar scope of Schedule 75 Office Solutions: Supplies

& Services, Special Item number (SIN)75 200 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• 4th Party Logistics (4PL)

• GSTP and 4PL will be separate solicitations

• Today’s discussion is for the DRAFT OS3-Purchasing channel only…

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Nelson Duncan, Lead Contracting Officer, FSSI PMO office

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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

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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

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Attachment No. 2 Office Supplies Definitions

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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, Email: [email protected]

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• 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 5.3.3.

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Michael Cullis, Contracting Officer, FSSI PMO office

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Monthly Usage Reports with Transactional Data Fields

Order Date Order Number Product Description Manufacturer Name Manufacturer Part Number UPC-A CodeUnit of Issue Quantity FSC Code (Federal Supply Code) UNSPSC (United Nations Standard Products and Services Code) Subcategory (Ink, Paper, Toner, General Office Supplies)

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OS3 PriceMAS Contract Price if anyCommercial 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

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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.)

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Zip Code Delivered To Location Zip Code Sent From Location Charge Processing Date Transaction Number Contractor Name Contract Number

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Nelson Duncan, Lead Contracting Officer, FSSI PMO office

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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:

• 52.204-3 Taxpayer Identification (III)• 52.215-6 Place of Performance• 52.216-1 Type of Contract• 52.212-2 Evaluation of Commercial Items (IV)• 52.219-1 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.

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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.

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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.

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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.

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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.

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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.

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Section V: Representations and Certifications

• This area is where you provide verification and validation of:• Small Business Status• Ability One• FAR 52.204-8 Annual Reps & Certs

• North American Industry Classification Standard (NAICS) applicable under OS3 Purchasing:

• 339940 – Office Supplies (except Paper) Manufacturing• 322121 – Paper (except Newsprint) Mills• 325992 – 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.

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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

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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.

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Joshua Royko, Supervisory Business Analyst, CAR

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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-videos

A. 0001 - Full Catalog (Small Business)

B. 0002 - Office Paper (Small Business)

C. 0003 - Toner & Inkjet (SDVOSB)

D. 0004 - Full Catalog/GSA On-the-Go (Unrestricted)

E. 0001-Full Catalog, 0002 - Office Paper (Small Business)

F. 0001 - Full Catalog, 0003 - Toner & Inkjet (SDVOSB)

G. 0002 - Office Paper, 0003 - Toner & Inkjet (SDVOSB)

H. 0001-Full Catalog, 0002 - Office Paper, 0003 - Toner & Inkjet (SDVOSB)

I. 0001-Full Catalog, 0004 - Full Catalog/GSA On the-Go (Small Business)

J. 0002 - Office Paper, 0004 - Full Catalog/GSA On the-Go (Small Business)

K. 0003 - Toner & Inkjet, 0004 - Full Catalog/GSA On the-Go (SDVOSB)

L. 0001-Full Catalog, 0002 - Office Paper, 0004 - Full Catalog/GSA On the-Go (Small Business)

M. 0001-Full Catalog, 0003 - Toner & Inkjet, 0004 - Full Catalog/GSA On the-Go (SDVOSB)

N. 0002 - Office Paper, 0003 - Toner & Inkjet, 0004 - Full Catalog/GSA On the-Go (SDVOSB)

O. 0001-Full Catalog, 0002 - Office Paper, 0003 - Toner & Inkjet, 0004 - 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 [email protected] for review and further instructions.

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https://interact.gsa.gov/blog/fssi-os3-draft-rfp-overview-videos

Price Bid Proposal Sheet Overview

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Company Name

Area(s) of ConsiderationO) 0001-Full Catalog, 0002 - Office Paper, 0003 - Toner & Inkjet, 0004 - Full Catalog/GSA On the-Go (SDVOSB)

Contact Information:Name:Title:Email:Address:

Phone:

Delivery Order Size Tier Percentage Discount Offered at Delivery Order Volume Tier$300-$999.99 -$

$1,000-$2,999.99 -$ $3,000-$4,999.99 -$

$5,000-$9,999.99$10,000+

E) 0001-Full Catalog, 0002 - Office Paper (Small Business)

Volume Tier Credit Towards Market Basket Reduction 0.00%

Market Basket Reduction Credit (Max. Total = 5%)

0.00%

0.00%

0.00%

0.00%

Total Unadjusted Proposal

Adjusted Market Basket Proposal

<---- Capped at 5%, Current structure is a .% / $ Credit

$ -

0.00% -$

Toner

PaperGeneral Office Supplies

Total

Area(s) of Consideration (CLIN(s) / Socioeconomic Requirement)

K) 0003 - Toner & Inkjet, 0004 - Full Catalog/GSA On the-Go (SDVOSB)L) 0001-Full Catalog, 0002 - Office Paper, 0004 - Full Catalog/GSA On the-Go (Small Business)M) 0001-Full Catalog, 0003 - Toner & Inkjet, 0004 - Full Catalog/GSA On the-Go (SDVOSB)

O) 0001-Full Catalog, 0002 - Office Paper, 0003 - Toner & Inkjet, 0004 - Full Catalog/GSA On the-Go (SDVOSB)

F) 0001 - Full Catalog, 0003 - Toner & Inkjet (SDVOSB)G) 0002 - Office Paper, 0003 - Toner & Inkjet (SDVOSB)H) 0001-Full Catalog, 0002 - Office Paper, 0003 - Toner & Inkjet (SDVOSB)I) 0001-Full Catalog, 0004 - Full Catalog/GSA On the-Go (Small Business)J) 0002 - Office Paper, 0004 - Full Catalog/GSA On the-Go (Small Business)

A) 0001 - Full Catalog (Small Business)B) 0002 - Office Paper (Small Business)C) 0003 - Toner & Inkjet (SDVOSB)D) 0004 - Full Catalog/GSA On-the-Go (Unrestricted)

N) 0002 - Office Paper, 0003 - Toner & Inkjet, 0004 - Full Catalog/GSA On the-Go (SDVOSB)

Summary of Proposal $ -

$ -

$ -

Proposal at Full Estimate of

Government Demand

Toner

Paper

General Office Supplies

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.

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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

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Industry Feedback: Higher $ Delivery Orders = Lower Freight as a % of Total Cost

Low

<----

------

------

------

------

------

------

------

-->

High

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.

Delivery Order Size Tier

% Discount at Delivery Order Tier

Market Basket Reduction Credit (Max. Total = 5%)

$300-$999.99 3.00% 0.30%$1,000-$2,999.99 5.00% 0.50%$3,000-$4,999.99 6.00% 0.60%$5,000-$9,999.99 7.00% 0.70%$10,000+ 10.00% 1.00%

3.10%Volume Tier Credit Towards

Market Basket Reduction

Example of Delivery Order Tier Credits

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.

OS3 Cumulative Volume Tiers

Cumulative OS3 Volume

Maximum Tolerance Above Lowest Priced Vendor (Item

Level)

$0 10%$10M 9%$25M 8%$50M 7%$75M 6%

$100M 5%

OS2 Cumulative Volume Tiers

Cumulative OS2 Volume

Straight-line Price Reduction

$25M x%

$50M y%

$75M z%

$100M a%

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.

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Documents

DEC 10 OS3 Presentation- FINAL.ppt