requisition channel industry meeting (os, mro and jansan )

General Supplies and Services (GS&S) Portfolio

Federal Acquisition Service

U.S. General Services Administration

Requisition Channel Industry Meeting(OS, MRO and JanSan)

February 19, 2014



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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

Opening Remarks

Speaker: Mr. Walter Eckbreth

Program AnalystGeneral Services Administration




GSS Supply Transformation



5

Supply Transformation (ST) Background and Overview

Federal Strategic Sourcing Initiative (FSSI) as Key ST Enabler

ST Milestones & Key Dates

Agenda



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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

FY07New Business

Models Study and Business Case

Analysis

FY09Launch of 4PL Retail Program

FY10Launch of Central

Asia Sourcing Program

FY11Launch of Direct Vendor Delivery

Pilots (FSSI)

FY12Launch of

Strategic Partner Delivery (SPD)

Pilots

FY13Preparation for

Supply Transformation

FY14Implementation

of Supply Transformation



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Supply Transformation Impetus and Goals

Impetus• 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



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Federal Strategic Sourcing Initiative (FSSI) as Key Enabler

SPDQuality 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



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Supply Transformation Milestones and Key Dates

FY 2014 FY 2015Q2 Q3 Q4 Q1 Q2

Engage Industry

Implement SPD

Transform GSS Internal Operations

Stop ship WDC

Stop ship EDC

Close WDC

Close EDC

Engage Industry

Transform GSS Internal Operations

Industry Day

Video Presentation

Letters to Contractors

Implement SPD

FSSI RFQs

JanSan & MRO Awards

OS3 Award

Convert Stores to 4PL



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Appendix: Glossary

4PL Fourth-Party Logistics: GSA manages customer’s logistical operations in partnership with GSA vendorsAcquisition 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 DepotEDC 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



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The Supply Transformation Team will now take any questions, comments or concerns. Please type questions in the chat window.




OS, MRO and JanSan Acquisition StrategiesFor the Requisition Channel



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4PLChannel

• Mainly DOD customers

• Vendors own and operate network of

on-site stores, manage inventory

and ensure delivery

Requisition Channel

• Acquire products available through

GSA Global Supply• Mainly DOD

customers

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

Customers buy through several unique methods necessitating a multi-channeled sourcing strategy

Government Purchase Card Holder or

Contracting OfficerMILSTRIP /

FEDSTRIP User

On-base Military Personnel

DOD eMall GSA Advantage

Vendor Website

Vendor Brick & Mortar

Store

Global Supply

On-Base 4PL Store

Contract



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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



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Contractor evaluation and category representation uses a market basket approach

• 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

Market Basket Created

Vendors Submit Quotes on Pools

Path to Establishment

1 2 3



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MRO Tools and Tool Cabinets

ProductSchedule

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%

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

• 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

XYZ, Inc. quotes discounts off of their Schedule pricing for every core item

XYZ, Inc. is evaluated based on the prices quoted

(NOTE: Schedule Price does not apply to OS.)



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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



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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)



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OS Acquisition Strategy



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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



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Proposed OS aggregate volume thresholds

OS Proposed Aggregate TiersCumulative Spend

Levels $10M+ $25M+ $50M+ $75M+ $100M+

Aggregate Volume Discounts: Vendors will be asked to provide additional discounts that go into effect upon reaching a cumulative level of spend



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Key Terms and Conditions for OS

1 Base Year with4 One-Year Options

CONUS – 4 Calendar DaysOCONUS – 7 Calendar

Days

$0.00

FOB Destination

Period of Performance

Delivery Days

Minimum Order Size

Delivery Terms



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MRO and JanSanAcquisition Strategy



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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



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JanSan and MRO Product Categories

MRO Categories

JanSan Categories

1. Hardware2. Tools and Tool Cabinets

1. Brooms, Brushes, Mops, Sponges, Cleaning Cloths, Pails & Wipers

2. Cleaning and Polishing Compounds, Miscellaneous Chemical Specialties & Dispensers

3. Motorized Floor Cleaning Equipment and Accessories, Floor Mats and Coverings

4. Personal Hygiene, Paper Products, Dispensers and Laundry Accessories

5. Trash Receptacles, Plastic and Paper Bags



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Proposed JanSan & MRO aggregate volume thresholds

JanSan Proposed Aggregate Tiers

MRO Proposed Aggregate Tiers

Cumulative Spend Levels $6M+ $12M+ $18M+ $24M+ $30M+

Cumulative Spend Levels

$12.5M+ $25M+ $37.5M

+ $50M+ $62.5M+

Aggregate Volume Discounts: Vendors will be asked to provide additional discounts that go into effect upon reaching a cumulative level of spend



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Key Terms and Conditions for MRO and JanSan

1 Base Year with4 One-Year Options

CONUS – 4 Calendar DaysOCONUS – 7 Calendar

Days

$0.00

FOB Destination

Period of Performance

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.

requisition channel industry meeting (os, mro and jansan )

Documents

supply transformation

gss wholesale

transition retail operations

later date

computer speakers

chat box

todays seminartodays

gsa stock