University Consortia

1. NEUPC - North Eastern Universities Purchasing ConsortiumNWUPC - North Western Universities Purchasing ConsortiumSUPC - Southern Universities Purchasing ConsortiumLUPC - London Universities Purchasing ConsortiumAPUC - Advanced Procurement for Universities and Colleges (Scotland)HEPCW - Higher Education Purchasing Consortium WalesUCISA-PG - Universities and Colleges Information Systems Association – Procurement Group University Consortia

2. Higher Education Institutions Anglia Ruskin University Arts University College at Bournemouth Aston University University of Bath University of Bedfordshire Birmingham City University Bournemouth University University of Brighton University of Bristol Brunel University Buckinghamshire New University University of Cambridge Canterbury Christ Church University University of Chichester City University Coventry University Cranfield University De Montfort University University of East Anglia University of Essex University of Exeter University College Falmouth University of Gloucestershire University of Hertfordshire University of Kent Kings College London University of Lincoln The College of St Mark & St John Middlesex University Newman University College University of Northampton University of Nottingham Norwich University College of the Arts University of Oxford Oxford Brookes University University of Plymouth University of Portsmouth The Quality Assurance Agency for Higher Education Royal Agricultural College University of Reading Roehampton University University of Southampton Southampton Solent University St Mary's University College, Twickenham University of Surrey University of Sussex Thames Valley University University for the Creative Arts UCAS UCL University Campus Suffolk University of the West of England University of Warwick University of Winchester University of Wolverhampton SUPC Members

3. Further Education Institutions Amersham & Wycombe College Anglo European College of Chiropractic Barnet College Berkshire College of Agriculture Bournemouth & Poole College of FE Brockenhurst College Brooklands College Central Sussex College Chelmsford College City Academy, Bristol City College Norwich City College Plymouth City of Bristol College College of North East London College of Traditional Acupuncture Cornwall College East Berkshire College East Surrey College Epping Forest College Exeter College Farnborough College of Technology Filton College Franciscan International Study Centre Gloucestershire College Halesowen College Harlow College Hartpury College Hertford Regional College Highbury College Leicester College London School of Theology Lowestoft College Luton Sixth Form College Merchants Academy Moulton College North Devon College Northampton College Norton Radstock College Oaklands College Oxford & Cherwell Valley College Peterborough Regional College Plymouth College of Art & Design Solihull College Somerset College of Arts & Technology South Devon College South Kent College Strode College Suffolk New College Swindon College Thurrock & Basildon College Tresham Institute of Further & Higher Education Truro College Uxbridge College Waltham Forest College West Herts College Wiltshire College Yeovil College SUPC Members

4. Why Tender • Threshold values: • Level of spend for goods, services and works set periodically by the European Union (and embodied in UK law), above which purchasing requirements must be subject to competition throughout Europe. Due to the fact that these values are subject to change and requirements are generally understated the University works to a consistent threshold of £100,000(GBP)

5. Consortia IT Agreements ITRAP IT Related Accessories and Parts NPA National Printer Agreement NWPCSS National Working Party for Computer and Stationary Supplies NSSA National Servers and Storage Agreement NDNA National Desktop and Notebook Agreement

6. National Desktop and Notebook Agreement (NDNA) Mike Kilner (LUPC) NDNA Contract Manager m.kilner@lupc.lon.ac.uk Presentation can be found at: http://ndna.procureweb.ac.uk/desktop/links.aspx

7. Aims and Objectives of Today • Tier one Global Production overview • Review of the Tender Process • Summary of Main Terms and Supplier Responses • Topics on the Green Agenda • Supplier Overview • Market Intelligence • A Trip Through the NDNA web site

8. Quality Manuals are Prepared in Several Languages…………

9. Notebook manufacturing dominated by Taiwanese ODMs building predominantly in China “HP expected to order 3.5 million notebooks from Taiwan in September” Max Wang, Taipei; Joseph Tsai, DIGITIMES [Wednesday 2 September 2009] Hewlett-Packard (HP) ordered an estimated 3.2-3.3 million notebooks from Taiwan’s top-four ODMs in August 2009, rising by 15% on month, and the volume will rise further to 3.5 million units in September due to seasonality and the launch of Windows 7, according to industry sources. Inventec landed orders for over one million units from HP for August, while Quanta Computer and Compal Electronics each received around 700,000 units, and Wistron saw August shipments increase by 30,000-50,000 units compared to July, the sources noted. However, sources from notebook makers expect Acer to become the leader in the notebook market in September with its shipments having a chance to surpass 3.6 million units as market demand for its ultra-thin notebooks and netbooks is rising in both North America and Europe. Acer could ship over nine million notebooks in the third quarter, narrowing its shipment gap with HP to only 200,000 units, the sources noted.

10. Notebook manufacturing dominated by Taiwanese ODMs building predominantly in China (2) “Forecasts on Inventec 2010 notebook shipments vary” Max Wang, Taipei; Joseph Tsai, DIGITIMES [Friday 9 October 2009] Some market watchers in Taiwan have revised upward their notebook shipment forecast for Inventec for 2010 to 28-30 million units, from 24-26 million units projected previously, as they claim the company has managed to win back Hewlett-Packard’s (HP’s) 2010 orders for mainstream business and consumer models. The notebook maker is expected to reach shipments of 22 million units this year meaning growth could be as strong as 36% in 2010. The market watchers explained that HP reportedly had shifted some orders for mainstream notebook models (both consumer and enterprise models) that are currently being supplied by Inventec to Quanta Computer and Wistron for 2010. However, Inventec has now renegotiated with HP and will be able to continue supplying HP with mainstream models next year. Digitimes Research, on the other hand, has a different perspective concerning Inventec’s order status with HP. An analyst with the research arm of Digitimes noted that the orders reportedly gained by Inventec for next year were in fact simply delayed HP orders from 2009. Therefore, Inventec’s 2010 shipments will not see the robust growth forecast by the market watchers and, in fact, should instead drop about 20%.

11. Lodz (‘Wootch’); 2nd City by pop. Construction commenced: Nov 2006 First product shipped: Nov 2007 More than 1,800 in daily workforce Operating on 3 lines and cell manufacture 2 shifts x 6 days per week. Dynamic scalable capacity up to tens of thousands of units per day Dell in PolandEMF-P Existing Planned 11

12. HP Supply Chain Network IDS NB & HH factories China • Monitors, ThinClients Hub • Pan-HP C/E consolidation Hub • Netherlands Flextronics DT, WS & NB (RCTO) Factory Czech Republic Foxconn/Honhai Inventec Compal Wistron Foxconn/Honhai LG HTC MMI (Taiwan) 12 27 October 2014

13. Review of the Tender Process • “An engine is only as good as its components.” • Alec McSkimming and Steve Moore (HEPCW), Mark Hardy and Nick Cope (NEUPC), Gordon Duerden and Matt Storey (NWUPC), David Coles (LUPC), Daron Gibb (APUC), Steve Gill, Paul Hill, Melissa Day, Carolyn Wood, Andrew Lee and Inez Scudder (SUPC) and Mark Enderby (Research Councils). • Hardware and/or Support evaluation sites: Brunel, Loughborough, Glamorgan, Brighton, Swansea, Cardiff, Newport, Bath, Plymouth, Bristol, Aberystwyth and Southampton. • Plus 72 others who responded to the NDNA questionnaire in early 2009. Supplier comments invaluable as part of later discussions as were responses to several questions such as – “Is there anything else that you would like to see delivered by the new agreement or any further comment you consider relevant to the NDNA tender process?” • Process reviewed and overseen by UCISA-PG. • IRDA and NNA groups ‘merged’ to form NDNA. • Manufacturer (OEM) led agreements as previously.

14. Review of the Tender Process (2) • Desktops Lot 1: Personal computational devices including Desktop PCs, All-In-One solutions, Thin Client machines, Eco PCs, Workstation PCs and Thin-Client solutions (at desk) designed for fixed use. • Notebooks Lot 2: Portable computational devices including Notebook/ Laptop PCs, Tablet PCs, Netbooks, Workstation Notebooks and Notebook Thin-Client solutions and PDAs. • Lot 3 One-Stop Shop (post-completion of above). • Weightings determined including environmental factors. No area greater than 25%. Flexibility allowed for within original PQQ as part of conducted mini-competitions. • Open-book pricing via BOM. Advantage of variance allowance. • Hardware and Support evaluation. • Site Visits and Presentations.

15. Review of the Tender Process (3) • Framework Guidance document, master evaluation document, summary of main NDNA terms and abbreviated version of the Supplier's offering as a comparison table based on their response to Schedule A and B including all post-tender clarification at: http://ndna.procureweb.ac.uk/notebook/agreement.aspx • NDNA benchmarking exercise for both Desktops and Notebooks coming soon. • Lot 3 process to commence soon.

16. Summary of Main Terms and Supplier Responses • Orders acknowledged by no later than the next working day. • Quotations acknowledged as received within 4 hours and provided in full unless mutually agreed by the next working day from the time of initial request. Valid for 30 days from issue. • Delivery to department, faculty or building within 10 working days from receipt of order. • DOAs rectified in 5 working days. • Warranty events should be responded to within 8 hours. • On-site repairs targeted to 2 working days or within 7 working days where a collect and return service applies. • Suppliers’ quotation, delivery, DOA and repair performance backed by liquidated damages. Some had been criticised in the past for “no cost of failure” in certain areas. • Payment permitted at the end of the following month on receipt of the invoice, thus averaging to 45 days net credit. • Staff and students can purchase from the framework. • Free Campus OS and Imaging requests (min volume).

17. Summary of Main Terms and Supplier Responses (2) • Pricing should be very robust – escalate all issues to the CM for resolution. Volume pricing available; case-by-case. • Free lifetime support at technician-to-technician level including hands-on training sessions. Target pick-up of < 30 seconds and no single event > 1 minute. • ‘Three-Strikes’ guidelines; machines with recurring faults will be escalated for potential replacement. • Parts, modules, whole units and/or spares available for a minimum of five years from date of purchase. • Assistance with evaluation machines, 30-days typical period. • Free collection and recycling of redundant ICT equipment. • Minimal packaging used where possible (e.g. Multipack). • Tailored web pages exclusive to each institution on request. • Most can provide MAC address information on the delivery note, electronically in a spreadsheet or on the outer packaging as required.

18. Account Management • A typical firm but fair approach to supplier discussions ……………… • Meetings every 4 to 5 months with locally interim meetings as and when required.

19. Topics on the Green Agenda • Energy savings often identified as one of the quick wins (stats). • Most reputable desktop manufacturers had migrated to 80-Plus standard PSUs by this summer. • By late Q3/Q4, many will have moved to Bronze standard (82%) as part of Energy Star 5 compliance. BUT • Energy savings often come at some kind of cost to the ICT department even before their own management time is taken into consideration when attempting to accurately record and model those made. The 'cost' is often in the form of: • Reduced machine performance, for example, low-transistor/ low-frequency CPUs such as the Intel Atom drawing less power from the grid.

20. Topics on the Green Agenda (2) • Higher initial costs for example, notebook components within desktop 'eco' systems, 85%+ efficient power-supply units and/or using a full Intel vPro solution to allow remote machine shutdown versus lower-cost alternatives. • These higher costs more often than not have to be met out of the IT budget while the environmental pay-back in the form of reduced energy costs for example, is frequently dislocated and captured as savings by the likes of estates. • Uncertain criteria across several industry standards. Defra is reviewing their Green Claims Code in response to increasing number of complaints on green claims as the likes of Apple and Dell battle over “my box is greener than your box”. • Higher Education Environmental Performance Improvement Project (HEEPI), funded by JISC to investigate and advise on best practice within the sector. AUPO Sustainable Procurement Group also active. Presentations from event held 2/7/09 can be found at www.susteit.org.uk

21. Supplier Overview - Dell • On IRDA since v1 2001 and NNA since 2005. • A new Glasgow-based Customer Engagement team created to assist with acquisitions and mini-competitions. • LFA team provides general support to both internal and external account managers. • Global sourcing strategy with the leverage of the latest technology delivered from one of the lowest cost bases. Major R&D centre in Taiwan working closely with the ODMs. • Business machines with 3 years International Warranty. • Premier Pages seen as one of the more sophisticated ordering systems including multiple authorisation levels. Promoting a discount-from-list model as cost-plus seen as unmanageable. • Quarterly price reviews with Contract Manager and Finance team to discuss competitiveness, currency position, special builds/offers etc.

22. Supplier Overview – Dell (2) • Single supplier contracts attract addition of an negotiated extra Discount off List. Easier for individual institutions to benchmark and quantify additional savings. • Rolling out their Employee Purchase Programme (EPP) for staff and student purchases with a range of discounts from 3% to 10% depending on order value. • All Latitude notebooks and Optiplex desktops EPEAT Gold or Silver self-certified and Energy Star 4 compliant; moving to ES5. Plans to move all notebooks to WLED screens by H2 2009 with improved power management and removing potentially hazardous mercury. Utilising up to 88% efficient power supplies. • “Dell is the first IT company to commit to – and meet – a carbon-neutral goal...”. • Discounts for Vostro and Inspiron builds.

23. Supplier Overview - Ergo • Participation since NNA v1 (pre-2000) with consistent senior level Account Management. • Support highly aligned to Technician-to-Technician level. • 3 years on-site warranty with all notebooks undertaken by an in-house engineering force. • Strong focus on the needs of Education and the HE sector. • Semi-automated manufacturing process with notebook test and burn-in process controlled using robotics. • Reliability record 0.07% DOA within 30 days (May 08 – May 09). • Customised screenbacks. • CAPS approved encryption – pre-installed on all notebooks

24. Supplier Overview - HP • Participated on IRDA v1 2001-6 as a direct; unsuccessful with previous attempts to gain access to the NNA. • HP ran a mini-competition amongst 15 resellers with HP Gold Partner status. A number of core criteria required - pre-imaging of machines, first-line support, bonded stock, removal of packaging, collection of old equipment from site, evaluation units and so forth. • RM and DTP selected from the process. • Business machines with 3 years International Warranty. • Global sourcing strategy with the leverage of the latest technology delivered from one of the lowest cost bases. Major R&D centre in Taiwan working closely with the ODMs. • Willingness to work with HE on open-book pricing.

25. Supplier Overview – HP (2) • Working very closely in support of AMD making greater inroads into Higher Education. • Staff and Student store being developed with connectivity through RM and DTP. • Active answers and active updates web tools. • DTP has ASP status; all service calls logged pre-1600 should be closed next working day. Both have access to Global Support One, HP’s 2nd line support based in Eire. • Technical Consultants are part-HP funded and based at the resellers to assist with training and problem resolution.

26. Supplier Overview - RM • Participated on IRDA v1 2001-6 and v2 2006-9. New agreement sees their addition as an HP Partner to complement their own range of machines. • Products are designed to meet education needs e.g. RM One AIO and Ecoquiet with vPro management tools. Ongoing dialogue with customer base. • Free phone Technical Support. Shortcomings picked up by the NDNA tender evaluation team being rapidly addressed. • Fully support open-book pricing model based on OPEX and agreed margin. Additional discounts for volume and single-source arrangements. • Portal being built for staff and student purchases. • Integrated field warranty partnership with 2e2 following late’07 tender process.

27. Added value for NDNA

28. Supplier Overview - Samsung • Participation since NNA v2 (2001) via resellers. • Stone and Getech chosen, 2 of 4 Samsung DSCs (Dedicated Support Centres) in the UK. • 3 years C&R International warranty with all notebooks undertaken by DSC engineering force in the UK. • Highly regarded industry-leading notebooks incorporating a high percentage of proprietary technology e.g. TFT screens. • Plymouth case study: Over 500 R70 machines ordered and delivered against a specific build. • Samsung netbook widely seen as one of the most popular on the market. • All notebook products meet Energy Star 4.0 standards and moving to ES5.

29. Supplier Overview – Stone Computers • Participated on IRDA v2 2006-9. • Machines include 3 years on-site warranty as standard under the agreement. • Highly competitively priced products and willing to work on an open-book basis with HE. • Stone AIO project near completion. • All incoming support calls answered in 15 seconds. • Emails/online answered in 1 hour. • Same day engineer available in “most” locations. • In-house collection and recycling service. No WEEE is sent to landfill. • Bulk packaging service using re-usable containers allowing large deliveries with virtually no waste.

30. Supplier Overview - Toshiba • Participation since NNA v1 (pre-2000) with consistent senior level Account Management. Getech and XMA remain long-standing partners providing direct sales and warranty support. • Overall FYF rate for NNA Toshiba was 0.24% over 3 years; 3-years warranty on all NDNA machines with the Reliability Refund Guarantee also extended to 3-years where RRG applies. • Additional discount applied to 2009 agreement across several builds. New keen pricing for docks, batteries & adaptors – NDNA only • Leading-edge products with several new innovations in the pipeline such as rapid-charge batteries. • Improved parts logistics with authorised repairers. • Multipack available.

31. Quality Activities ■Control of quality maintenance through all Business Units and all products based on Quality Management Systems, ISO9001 ■Traceability of product parts and manufacturing history ■Test and quality check under strict evaluation standard considering actual use HALT test Vibration test Spill-resistance test Electronic shock test Keyboard endurance and pressure test Drop test Hinge open/close endurance test Keyboard trampoline test Display impact test Palm rest pressure test Pin-point pressure test

33. Supplier Overview - Viglen • Participated on IRDA v1 2001-6 and v2 2006-9. • Users can place calls straight onto a single, integrated system platform (Tesseract) for both Viglen and Xenon, their maintenance partner. Goldcard support scheme. • Early UK adopter of ISO20000 and Six Sigma procedures in IT Support best practice. • Machines can be palletised or sent in reusable packaging. • Strong focus on the needs of the HE sector including for example, AIO and low-power systems. • Heavy promotion of energy-saving solutions and new technologies. • Consistent Senior Management. • Pricing reviewed monthly; set builds include 3 years on-site warranty.

34. Technical Product Briefing Customising your purchase - CPI - Customer custom builds, unique parts - Customer storage for pre-builds - Frozen parts for extended rollout - Disk imaging - Pre provisioning - Production-fitted security options including etching, Selecta marking, asset tagging, electronic and physical devices - Pre delivery information – Serial number, Mac address, GUID - Microsoft SharePoint – Installation asset management - Express delivery - Palletised delivery - Deliver/Installation to desk - Removal of packaging - Onsite PAT testing - Packaging solutions -Toshiba customisation through to full fault support Xenon (Toshiba Repair Centre)

35. Market Intelligence • * DigiTimes: http://www.digitimes.com • * DRAM Exchange: http://www.dramexchange.com/ • * Inquirer: http://www.theinquirer.net/ • Intel CPU price list (1k): http://www.intc.com/priceList.cfm • * iSuppli: http://www.isuppli.com • * The Register: http://www.theregister.co.uk/ * Headline based auto-email available

36. A Trip Through the NDNA web site • http://ndna.procureweb.ac.uk/

37. OEM & Operating System Licensing The OEM Desktop OS licence is tied to the motherboard Generally, an end user can upgrade or replace all of the hardware components on a computer—except the motherboard—and still retain the license for the original Microsoft OEM operating system software. If the motherboard is upgraded or replaced for reasons other than a defect, then a new computer has been created. Microsoft OEM operating system software cannot be transferred to the new computer, and the license of new operating system software is required. If the motherboard is replaced because it is defective, you do not need to acquire a new operating system license for the PC as long as the replacement motherboard is the same make/model or the same manufacturer's replacement/equivalent, as defined by the manufacturer's warranty. The system builder is required to support the software on the original PC. Understanding that end users, over time, upgrade their PCs with different components, Microsoft needed to have one base component "left standing" that would still define the original PC. Since the motherboard contains the CPU and is the "heart and soul" of the PC, when the motherboard is replaced (for reasons other than defect) a new PC is essentially created. The original system builder did not manufacture this new PC, and therefore cannot be expected to support it.

38. OEM & Operating System Licensing • COA - A Certificate of Authenticity (COA) label helps customers identify genuine Microsoft Windows software. Without it, customers will not have a legal license to run their Windows software. Each COA label includes advanced anti-counterfeiting features to help verify the software's authenticity. The COA label is included with each individual software license. For preinstalled Microsoft Windows operating systems, the COA label must be affixed by the system builder to the PC chassis. The COA label also includes the product key, which will be needed in the event the operating system needs to be reinstalled. COA labels must be distributed as part of the full System Builder software license, which also includes the hologram CD and documentation. A COA is not a software license. It is a visual aid that helps in determining whether Microsoft software is genuine. A COA should never be purchased, sold, or distributed by itself without the software it authenticates. COA labels cannot be distributed as standalone items. • OEM Licence Dual-Boot – A customer who wants Microsoft Windows installed onto two partitions of a computer system will need to obtain two OEM System Builder Windows software licenses. OEM software generally does not permit simultaneous usage of a PC by two end users.

39. OEM & Operating System Licensing Naked PCs There is nothing illegal about selling a computer system without an operating system. However, getting the operating system preinstalled is a customer's most cost-effective way to acquire a genuine Windows operating system license. A customer who subsequently wants to install a Microsoft Windows desktop operating system on that naked PC will need to acquire it through the retail (full packaged product) channel which is a more costly option. Full Windows operating systems are not available through any Microsoft Volume Licensing program, and an OEM operating system license cannot be transferred from an "old" PC to a new one.