Electronic RFx Demystified

1. Electronic RFx Demystified Scott SearwayProcurement Manager, WellPoint August 26, 2010

2. Electronic RFx Demystified • Supplier Portals • eRFx Process Requirements • Insurance Requirements • Questions Agenda

3. Electronic RFx Demystified • Ariba Supplier Network • CVent • SAP – Supplier Network Collaboration – Inventory Collaboration Hub • Oracle Supplier Network Supplier Portals

4. Supplier Portals • ASN Advantages • B2B Commerce is more electronic than ever before. • Electronic POs and Invoice do not get lost in the mail • Accurate payment on time matching the contracted terms is more precise with an e-Procurement Portal(Invoices are not sitting on someone’s desk to be entered for a check request payment) • Budget management – the more committed funds on a PO, the better our business can managed to our forecasted budgets, commitments, and goals • Supplier Discovery • Over 300,000 companies on the network • Connect to publically posted RFx – attract new business • Diversity Information as part of your profile • Specific Supplier Discovery searches are made focusing on these profiles • Certification will be requested of all diverse suppliers by WellPoint Ariba Supplier Network

5. Supplier Portals ASN Fees • Ariba is WellPoint’s e-Procurement application of record for issuing POs and receiving invoices.   Please follow the link below to read about the Ariba fees directly from their website. • In summary, a supplier must first move past a minimum of $100,000 in transaction volume or 15 documents to have any fees.  Then (0.1%) of volume per qualifying relationship is the Ariba fee.  For example a $1,000,000 PO and invoicing will have $1,000 Ariba fee.  Then there is at transactional cap at $10MM. All activity above that is exempt from fees. • There are additional services and multiple membership levels, but this is the standard arrangement. • http://ariba.com/suppliermembership/en/smp_pricing.cfm Ariba Supplier Network

6. Supplier Portals • Event Management Solutions • These supplier networks save event planners time and money in planning meetings and events. The CVent Supplier Network has an integrated RFP tool for event sourcing and site selection • Over 100,000 suppliers at last review • Over 50 major cities with populated details on convention center, transportation, and city attraction information CVent

7. eRFx Process Steps Expectations for Prospective Supplier Responses to WellPoint Requests for Proposals (“RFPs”) • WellPoint shall provide its Request For Proposal (RFP) documents to those prospective and current Suppliers from whom it wishes to entertain bids on the provision of certain products and/or services. Generally, the RFP documents shall: (1) outline the current requirements of the WellPoint project; and (2) encourage Suppliers to respond in writing to the request with a proposal to meet the stated requirements. • The RFP is not an offer to contract but rather an attempt to establish a common framework within which an agreement may be reached. In contrast, responses submitted by a Supplier to the RFP shall be deemed a firm offer to contract for the provision of products and/or services, pursuant to the terms and conditions described in the Supplier’s response. WellPoint may accept the proposed terms and conditions, or may request modifications based upon business needs. Suppliers may not be accepted for further consideration should their proposal fail to fully comply with the specifications set forth in the RFP document. WellPoint Requirements

8. eRFx Process Steps Expectations for Prospective Supplier Responses to WellPoint Requests for Proposals (“RFPs”) • Competitive Bidding – the award will be made to the supplier whose overall proposal is determined to be the most advantages to WellPoint • Proposal Submission – supplier is responsible for all cost in preparation and presentation of the proposal • Proprietary Information – All data in the proposal shall be deemed non-proprietary unless specifically marked. A non-disclosure agreement normally accompanies all RFPs • Ownership of Documents – documents with the RFP or with a proposed SOW are proper of WellPoint, unless otherwise noted by the supplier • Supplier Diversity – is an integral part of the way WellPoint does business • WellPoint has moved up to a 10% Supplier Diversity goal • Publicity – prior written consent of WellPoint is required • Supplier Code of Conduct WellPoint Requirements

9. eRFx Process Steps Bidder Agreement with each eRFX • Obligation and Responsibilities – Submitting a bid is a firm offer • Goal – to acquire goods and/or services at the best value available • Bid Submission – must be provided online through the SourcePoint tool • Do not post, courier, fax, email, or verbally submit your bids unless specifically requested • Price Stability – Bidder may withdraw Bid within 90 days. • Bid to be supported at price for a minimum of 12 months after the date of acceptance with yearly renewals as appropriate • Procedure and Rules • Questions – A message board is available thru the SourcePoint tool • A final question deadline is listed in the project timeline of most events WellPoint Requirements

10. eRFx Process Steps Bidder Agreement with each eRFX • Technical Requirements - It is the Participant's responsibility to ensure that they meet the minimum technical requirements to participate in the On-Line Event and that they have sufficient Internet access and technical ability to participate in the event. Participants who do not meet the minimum system (i.e., hardware and software) requirements or who are otherwise unable to participate should contact the WellPoint procurement representative contact listed information section of this event to discuss alternatives.  System Requirements: Microsoft Internet Explorer versions 6.x or higher, and Netscape Navigator versions 7.x or higher with JavaScript enabled. • Confidentiality – All bids provided are in confidence and shall not be disclosed to any third party • Ethical Conduct – All parties will prohibit unethical behavior • Survival - The terms and conditions of this Bidder Agreement shall survive completion of the On-Line Event. WellPoint Requirements

11. Insurance Requirements • Supplier shall at all times during the term of the Agreement and for a period of 2 years following termination or expiration of the Agreement keep: • Workers’ Compensation insurance – as applicable by law • Employer’s liability insurance with minimal limits of $1,000,000 • Commercial general liability and automobile liability insurance of $2,000,000 • Errors and omission insurance with a minimum of $1,000,000 • Any materials or equipment brought on site shall be insured under an all risk property insurance • Supplier is responsible for its subcontractors • Certification of insurance indicating coverage is required upon execution of an agreement WellPoint Standards

12. Questions