federal acquisition service u.s. general services administration 2012 government transportation...
TRANSCRIPT
Federal Acquisition Service
U.S. General Services Administration
2012 Government Transportation Forum
March 20-22, 2012
Federal Strategic Sourcing InitiativeSecond Generation Domestic Delivery
Services (DDS2)
"Leveraging spending via governmentwide strategic sourcing for Domestic Delivery Services"
Page 2
• FSSI DDS1&2 Background – Blaine Jacobs, GSA
• DDS2 Update and Insights – Stevie Graham, GSA
Agenda
Page 3
What is Strategic Sourcing?
“Strategic sourcing is the collaborative and structured process of critically analyzing an organization’s
spending and using this information to make business decisions about acquiring commodities and
services more effectively and efficiently”
Clay Johnson
Former Deputy Director for Management, OMB
Definition of Strategic Sourcing
Leveraging spending via governmentwide strategic sourcing for Domestic Delivery Services
Page 4
Strategic Sourcing is a structured, analytical, and collaborative process
Here’s a look at the high-level process the interagency commodity team used for DDS2
Page 5
Page 6
The DDS2 program is the result of a year-long collaboration between dozens of government experts
TECHNICAL TECHNICAL EVALUATION TEAMEVALUATION TEAM
TECHNICAL TECHNICAL EVALUATION TEAMEVALUATION TEAM
• Diane Kanauka, IRS
• Bill Bardwell, VA
• Ernie Stevens, GSA
REQUIREMENTS DEFINITION & ACQUISITION STRATEGY TEAMREQUIREMENTS DEFINITION & ACQUISITION STRATEGY TEAMREQUIREMENTS DEFINITION & ACQUISITION STRATEGY TEAMREQUIREMENTS DEFINITION & ACQUISITION STRATEGY TEAM CONTRACTING OFFICERCONTRACTING OFFICERCONTRACTING OFFICERCONTRACTING OFFICER
• Jason Holloway, GSA• Kesa Russell, DHHS
• Steve Schneider, DHHS-NIH
• Valerie Hood, DHHS-NIH
• Kathryn Calderone, DHS
• Acia (John) Parker, DHS-USCG
• Gerri Tzul, DOC
• Al Majors, DOE
• Anthony Nellums, DOE
• Tim Jackson, DOE
• Sondra White, DOI
• Romerio Moreno, DOL
• Becky Koses, GSA
• Blaine Jacobs, GSA
• Ed Kelliher, GSA
• Ernie Stevens, GSA
• John Blanchard, GSA
• Kristina Nelson, GSA
• Lynn Ju, GSA
• Marquita Washington, GSA
• Mary Anne Sykes, GSA
• Mary Davie, GSA
• Michel Kareis, GSA
• Tauna Delmonico, GSA
• Valerie Bagby, GSA
• Tim Burke, GSA
• Ames Owens, DOT
• Steve Hopkins, DOT-FAA
• James Burns, DOT-FMCSA
• Brian Dennis, NTSB
• Jack Kelly, OMB
• Rosalind Wright, OPM
• Brenda Jackson, Treasury-IRS
• Diane Kanuka, Treasury-IRS
• Christin Lawlor, USDA
• Todd Repass, USDA
• Victor Jefferson, USDA
• Bill Bardwell, VA
• Nelson Gonzalez, VA
"Leveraging spending via governmentwide strategic sourcing for Domestic Delivery Services"
Page 7
• FSSI DDS1&2 Background – Blaine Jacobs, GSA
• DDS2 Update and Insights – Stevie Graham, GSA
Agenda
"Leveraging spending via governmentwide strategic sourcing for Domestic Delivery Services"
Page 8
DDS2DDS2
UPS Oct 2009 – Sep 2010 + four options
Over $1B savings forecasted
Lower discounted common accessorials
Continue with no FSCs for parcels
Monthly enhanced shipping reports
Over 129 participating customers
49% ground shipments
DDS2DDS2
UPS Oct 2009 – Sep 2010 + four options
Over $1B savings forecasted
Lower discounted common accessorials
Continue with no FSCs for parcels
Monthly enhanced shipping reports
Over 129 participating customers
49% ground shipments
DDS1 DDS1
FedEx Oct 2006 – Sep 2010
Over $676M savings
Discounted accessorials
No fuel surcharges (FSCs)
Quarterly shipping reports
61 participating customers
9% ground shipments
DDS1 DDS1
FedEx Oct 2006 – Sep 2010
Over $676M savings
Discounted accessorials
No fuel surcharges (FSCs)
Quarterly shipping reports
61 participating customers
9% ground shipments
"Leveraging spending via governmentwide strategic sourcing for Domestic Delivery Services"
Page 9
Regular town hall meetings to share best practices UPS reviews to help agencies achieve their DDS2 goals Second year statistics
Over 19,000 new UPS accounts created $109.3M spend and $216.4M savings 15.7M packages shipped 7.6 LBS average package weight $6.93 average cost per package 98.8% on-time performance 51% air express and 49% ground
"Leveraging spending via governmentwide strategic sourcing for Domestic Delivery Services"
Using USPS First Class Mail for letters is still the best deal in town! Do you really need to send letters via express service?
Service Upgrade $9 weekly pick up charge waived
Avoiding or minimizing pickup fees Consolidate packages to a central pickup point, use a Drop Box, take
packages to an authorized UPS facility, hand them to a UPS courier
Realize optimal savings without degradation of service Use UPS Ground vs. Air services to the extent possible
Agencies can further reduce costs by helping users select the optimal service for their domestic packages
11
Ground $3.29
Two Day
Next DayMid-A.M.
Total Cost to Ship(excludes surcharges)
$0.84
$4.13
$7.78
$10.35
Shipping RateEst. Package cost
47% Savings
60% Savings
SAMPLE 10 LB ZONE 1 PACKAGESAMPLE 10 LB ZONE 1 PACKAGEAPPROXIMATE TRANSIT TIME FOR GROUND APPROXIMATE TRANSIT TIME FOR GROUND SHIPMENTS FROM THE DC AREASHIPMENTS FROM THE DC AREA
Source: UPS.com
… at significantly lower costs than Next Day Mid-A.M. and even Two Day Express Service!
UPS Ground service typically delivers packages traveling less than 200-300 miles in 1 day…
Source: UPS DDS rate chart; GSAAdvantage shipment box prices
TOTAL COST TO SHIP BY PACKAGE WEIGHTTOTAL COST TO SHIP BY PACKAGE WEIGHT(ZONE 1 SHIPMENT RATES)(ZONE 1 SHIPMENT RATES)
TOTAL COST TO SHIP BY PACKAGE WEIGHTTOTAL COST TO SHIP BY PACKAGE WEIGHT(ZONE 1 SHIPMENT RATES)(ZONE 1 SHIPMENT RATES)
The savings potential by substituting for Ground Service varies by weight
Page 12
0
10
20
30
40
$50
1 5 10 15 20 25 30 35 40 45 50
Package Weight (Lbs)
TotalCost
toShip
(excludessurcharges)
Ground(incl.
packagecosts)
Next DayMid-A.M.
NOTESNOTESNOTESNOTES
Source: UPS DDS rate chart; GSAAdvantage shipment box prices
$2.05 Savings
$6.22 Savings
$14.57 Savings
$27.69 Savings
$41.07 Savings
• UPS does not provide shipping boxes for Ground shipments
• Total Cost to Ship includes DDS2 shipping rates plus estimated packaging costs for Ground shipments
• The dollar differential between Ground and Next Day Mid-Morning is relatively low for packages under 5 lbs but widens as package weight increases
• Shipping a 50 lb. package via Ground Service saves 82% over Next Day Mid-Morning
"Leveraging spending via government wide strategic sourcing for Domestic Delivery Services"
Page 13
For more information
• Stevie Graham (703) 605-5569 or [email protected]
www.gsa.gov/dds