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Federal Strategic Sourcing Initiative Second Generation Domestic Delivery Services (DDS2)

2012 Government Transportation Forum February 19-20, 2013. Federal Strategic Sourcing Initiative Second Generation Domestic Delivery Services (DDS2). "Leveraging spending via governmentwide strategic sourcing for Domestic Delivery Services". Agenda.

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Federal Strategic Sourcing Initiative Second Generation Domestic Delivery Services (DDS2)

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  1. 2012 Government Transportation Forum February 19-20, 2013 Federal Strategic Sourcing InitiativeSecond Generation Domestic Delivery Services (DDS2)

  2. "Leveraging spending via governmentwide strategic sourcing for Domestic Delivery Services" Agenda • DDS2 History, Update and Insights – Stevie Graham, GSA

  3. Definition of Strategic Sourcing 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

  4. "Leveraging spending via governmentwide strategic sourcing for Domestic Delivery Services

  5. TECHNICAL EVALUATION TEAM CONTRACTING OFFICER • Jason Holloway, GSA • Diane Kanauka, IRS • Bill Bardwell, VA • Ernie Stevens, GSA The DDS2 program is the result of a year-long collaboration between dozens of government experts REQUIREMENTS DEFINITION & ACQUISITION STRATEGY TEAM • 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 • 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 • 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 Page 4

  6. DDS1 to DDS2 "Leveraging spending via governmentwide strategic sourcing for Domestic Delivery Services" • DDS1 • FedEx Oct 2006 – Sep 2010 • Over $676M savings • Discounted accessorials • No fuel surcharges (FSCs) • Quarterly shipping reports • 61 participating customers • 40% ground shipments • DDS2 • 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 167 participating customers • 58% ground shipments

  7. Multiple Award Schedule Contract Vendors • United Parcel Service • Federal Express Service • United Postal Service • Cortrans Logistics • Panther Transportation • Airnet Systems • Team Air Express • Air Freight Plus • Astar USA • Proex Logistics • J&J Logistics

  8. "Leveraging spending via governmentwide strategic sourcing for Domestic Delivery Services" • Regular town hall meetings to share best practices • UPS reviews to help agencies achieve their DDS2 goals • Fourth year statistics • Over 20,000 new UPS accounts created • $130M spend • 17.2M packages shipped • 8.75 LBS average package weight • $7.01 average cost per package • 98.2% on-time performance • 42% Express and 58% Ground

  9. "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

  10. Agencies can further reduce costs by helping users select the optimal service for their domestic packages UPS Ground service typically delivers packages traveling less than 200-300 miles in 1 day… … at significantly lower costs than Next Day Mid-A.M. and even Two Day Express Service! Next Day Mid-A.M. APPROXIMATE TRANSIT TIME FOR GROUND SHIPMENTS FROM THE DC AREA SAMPLE 10 LB ZONE 2 PACKAGE $11.86 70% Savings $9.01 Two Day 60% Savings $3.49 Ground Total cost to ship excludes surcharges Source: UPS.com Source: UPS DDS rate chart; GSAAdvantage shipment box prices

  11. Additional Talking Points • DDS3 Award • Dashboard Reporting • Improve Customer Engagement

  12. "Leveraging spending via government wide strategic sourcing for Domestic Delivery Services" For more information • Stevie Graham (703) 605-5569 or stevie.graham@gsa.gov www.gsa.gov/dds Page 11

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