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Requisition Channel Industry Meeting (OS, MRO and JanSan )

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

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Presentation Transcript
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Requisition Channel Industry Meeting

(OS, MRO and JanSan)

February 19, 2014

slide2

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.
slide3

Opening Remarks

Speaker: Mr. Walter Eckbreth

Program AnalystGeneral Services Administration

agenda
Agenda
  • Supply Transformation (ST) Background and Overview
  • Federal Strategic Sourcing Initiative (FSSI) as Key ST Enabler
  • ST Milestones & Key Dates
supply transformation concept
Supply Transformation Concept
  • Wholesale Transformation: transition commercially available items from GSA Stock to Strategic Partner Delivery (SPD)
  • ST will utilize commercial vendor supply chains to transform GSS wholesale and retail programs
  • Retail Transformation: transition retail operations from GSA-managed inventory solution to the fourth party logistics (4PL) solution
supply transformation background
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

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
Supply Transformation Impetus and Goals
federal strategic sourcing initiative fssi as key enabler

SPD

Federal Strategic Sourcing Initiative (FSSI) as Key Enabler

Quality Product, Competitive Pricing, and Fast Delivery

Develop deep insight into markets and lifecycle costs

Leverage Government-Wide Spend

Foster Usage of Socio-economic Firms

Constantly Capture and Refine Best Practices

FSSI

Worldwide Delivery

FEDSTD and MILSTD Compliant

Automated End-to-End Supply Chain Process

supply transformation milestones and key dates
Supply Transformation Milestones and Key Dates

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

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

customers buy through several unique methods necessitating a multi channeled sourcing strategy
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

slide15
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
contractor evaluation and category representation uses a market basket approach

2

1

3

Path to Establishment

Market Basket Created

Vendors Submit Quotes on Pools

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
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Example: Vendor XYZ, Inc. sells tools and would like to quote on the MRO Tools and Tool Cabinets Pool

FOR ILLUSTRATIVE PURPOSES ONLY

Quotes on Market Basket items (to be provided on the quote sheet) are the basis for Contractor evaluation

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

XYZ, Inc. is evaluated based on the prices quoted

  • 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.)

planned administrative go no go e valuation f actors
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
planned technical go no go evaluation factors cont
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)
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
OS Requisition Channel Acquisition Plan
proposed os aggregate volume thresholds
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

key terms and conditions for os
Key Terms and Conditions for OS

Period of Performance

  • 1 Base Year with4 One-Year Options
  • CONUS – 4 Calendar Days
  • OCONUS – 7 Calendar Days
  • $0.00
  • FOB Destination

Delivery Days

Minimum Order Size

Delivery Terms

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
JanSan and MRO Requisition Channel Acquisition Plan
jansan and mro product categories
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

proposed jansan mro aggregate volume thresholds
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

MRO Proposed Aggregate Tiers

key terms and conditions for mro and jansan
Key Terms and Conditions for MRO and JanSan

Period of Performance

  • 1 Base Year with4 One-Year Options
  • CONUS – 4 Calendar Days
  • OCONUS – 7 Calendar Days
  • $0.00
  • FOB Destination

Delivery Days

Minimum Order Size

Delivery Terms

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

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