2. Who is FedBid?
• A multi-billion dollar buyer-powered online marketplace where buyers access a
managed network of over 50,000 qualified sellers
• A buyer-powered marketplace that utilizes a reverse auction model to connect
buyers with the most competitive sellers
• A marketplace that allows buyers to easily, FedBid Highlights
responsibly, and competitively achieve
Launched in 2001
supplier diversity objectives
50% year-over-year growth
• A managed marketplace with customer >$2 billion in annual marketplace volume
support teams always available to provide Leading reverse auction marketplace
outstanding service and assistance used by U.S. Federal Government
Over 45,000 buys in 2012
• A new way for buyers to monitor
Over 50,000 sellers on network
purchasing, giving them increased control Average net savings rate >11%
of their transactions 80% of award dollars to small / diverse
suppliers
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• Proprietary/Confidential
3. BSN Central & FedBid Alliance
• BSN Central is an authorized channel partner of FedBid
• We are jointly interested in expanding the number of buying
organizations who use and benefit from the FedBid
Marketplace
• We are aggressively promoting the FedBid Marketplace to
certified minority and woman owned business enterprises
• BSN Central offers a variety of solutions for buyers and
suppliers, which compliment the value proposition of the
FedBid Marketplace
3 FedBid, Inc. • www.fedbid.com •
Proprietary/Confidential
4. BSN Central Solutions
• Supplier Training and Development (1st & 2nd Tier)
• Strategic Sourcing
– Setup and Run RFx’s
– Support “Buying Desk” Activities
– Supplier Recruitment
• Supplier On-boarding
• Spend Analysis Services
• Other Procurement Services
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5. How we assist clients:
• Provide efficient process to compete more spend in conjunction with
existing procurement processes and systems
• Easy access to more opportunities for small, diverse & local businesses
resulting in improved supplier diversity results
• Help ensure quality buying decisions are made with increased
transparency
• Become an extension to your team bringing no-cost additional resource
• Provide regular performance reports and an audit trail
• Deliver an incremental 10% savings on average
We excel in helping clients buy Scholastic Needs, Equipment,
IT, Medical, MRO, Lab & Safety, Furniture, Office Supplies,
Fixed Price Construction, and a wide range of Services!
5 FedBid, Inc. • www.fedbid.com • Proprietary/Confidential
6. What we do
• Better Buying: a fully managed marketplace using a buyer-driven reverse auction
process to connect buyers with the most competitive sellers of commodity goods and
simple services, providing:
– Increased savings
– Improved efficiency
– Greater transparency
• Smarter Selling: a no-cost source of significant real business opportunities from
government and commercial buyers
Network Services
– Increased revenue opportunity •>50k Sellers •Small Business •Seller services •Buyer Services
•3k new/month •Diversity •Market Ops •QA
– Reduced sales costs
– Improved efficiency
Technology
•Reverse Auction •ePayment* * = planned
•Business Intel* •Mobility*
6 FedBid, Inc. • www.fedbid.com •
Proprietary/Confidential
7. FedBid’s Clients
“Not only did [FedBid] help with the
documentation and the price negotiation
process, but it was easy to use, and it
allowed [buyers] to be more efficient as
they did their job.”
– Senior Procurement Official, U.S. Army
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FedBid, Inc. • www.fedbid.com •
Proprietary/Confidential
8. Marketplace Process and Value
Proposition
FedBid, Inc. • www.fedbid.com •
8 Proprietary/Confidential
9. A Simple Solution
Client Services
Registration, training,
and helpdesk resources
support seller
Market Operations utilization Buyer Support
Active seller sourcing and support Dedicated department to facilitate
keeps the market engaged and communication and documentation
competitive between buyers and sellers
Account Each Buy is Quality Assurance
Management touched, not just
by the Buyer, but Tracking and monitoring services
by an entire help ensure sellers understand their
Comprehensive training,
team driven to obligations, receive orders, and ship
monitoring and assistance ensure results on time
supports buyer use
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FedBid, Inc. • www.fedbid.com •
Proprietary/Confidential
10. Marketplace Ready?
• Clear specifications: Can you paint an accurate
picture of exactly what you want to buy (products
or services)?
• Competitive supply base: Are there enough
qualified suppliers to generate competition?
• Compelling spend: Is the opportunity large
enough to get a supplier’s interest?
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11. A Better Bidding Process
The only thing sellers see is LEAD or LAG
When a Seller Submits a Bid:
Submitting a Competing Against a Competing Against
Blind Bid Projected Cost Other Sellers
Sellers Do Not Know:
Competitor Competitor
Projected Cost Ranking
Names Prices
11 FedBid, Inc. • www.fedbid.com
Proprietary/Confidential
12. Risk Free Structure
• Users incur no upfront investment, license fees or
maintenance costs
• FedBid receives a minimal transaction fee up to 4%, included
in the seller’s bid (and invoiced to the seller), and only if the
buyer makes an award
• Buyer is in control of the process…
– setting terms for success and selecting a bid ONLY if
advantageous to the buyer
– reposting or canceling at no cost
– controlling and making the ultimate award
12 FedBid, Inc. • www.fedbid.com •
Proprietary/Confidential
13. Transaction Fee
– Buyer sets the terms for success and selects a seller’s bid ONLY if the buyer
finds it to be advantageous – can repost or cancel at no cost
– On awarded buys, FedBid receives a service transaction fee of 0-4% which will
be included in the seller’s bid price shown on the results page
Buyer Target Price: $11,259. 56
Seller’s submitted price: $10,000.00
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FedBid Price: $10,400.00
Price for PO: $10,400.00
– Total price will be used when building and cutting the PO to selected seller
– FedBid lowers fee if fee causes bid to exceed published contract price
– FedBid lowers fee if fee causes a seller’s bid to exceed Buyer Target price
– FedBid invoices seller for the transaction fee portion of the award
– The 100% performance-based fee
FedBid, Inc. • www.fedbid.com •
Proprietary/Confidential
13
15. A “Better Way”: The Marketplace
• In business over 10 years
• $2 Billion in new business awards FY 2012; primarily US
Government agencies
• Rapidly expanding into Commercial, State, Local and
Education sectors
• Over 12,000 buyers use the marketplace today
• Over 57,000 sellers currently registered in the
marketplace … 80% are small or disadvantaged
businesses
• We specialize in sourcing common goods and basic
services
15 FedBid, Inc. • www.fedbid.com
Proprietary/Confidential
16. The Marketplace favors small business
• Designed to allow minority-owned, women-owned, and
small business enterprises (collectively “M/W/SBE”)
businesses to compete with large corporations
• Has the capability of restricting competition to only
M/W/SBE’s or to the open market
• Over 80% of the awards go to small and minority owned
businesses
• We have a long history of successfully “leveling the playing
field”
16 FedBid, Inc. • www.fedbid.com
Proprietary/Confidential
17. There is no cost to MBE’s to participate
• There is never a cost for MBE’s to join and participate in the
marketplace
• Seller training is always free and as frequent as required
– Webinars
– Full seller support available for ad hoc training or specific buying
event help
• We have a fully managed marketplace in place to make
sure sellers get good specifications, have their questions
answered and can always be confident that every buy is
fair, open and transparent to all participants
17 FedBid, Inc. • www.fedbid.com
Proprietary/Confidential
18. There is no up front costs to buyers
• There are no investment dollars needed for a buying
organization to join and participate in our marketplace
• All buyer training and ongoing support is free
• We will onboard all sellers at the buyer’s request who
are not already in our marketplace at no cost
• We will train all sellers at the buyer’s request at no
charge
• We make money by charging a small transactional fee
(paid by the buyer and added to the purchase price)
• We only get paid if an award is made … a no risk
guarantee
18 FedBid, Inc. • www.fedbid.com
Proprietary/Confidential
19. Diversity Reporting
FY2012 Sample Agency Socio-Economic Use Statistics
Socio-Economic Classification Agency A Agency B Agency C
Small Business 68% 86% 93%
Minority-Owned Business 18% 22% 40%
Woman-Owned Business 12% 24% 32%
Small Disadvantaged Business 20% 23% 23%
Veteran-Owned Business 16% 11% 9%
HUBZone Business 1% 5% 7%
SDVOSB 14% 7% 6%
8(A) Business 5% 4% 9%
AbilityOne Program Participant 0.5% 0.8% 2%
Source: FedBid Marketplace Data
Results for small businesses: Access and Opportunity
FedBid, Inc. • www.fedbid.com •
Proprietary/Confidential
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20. Proposed Next Step: Pilot
Scope
20-50 Marketplace-Ready buys mutually selected by AMAC and BSN Central
Complete within 45 days briefing results to customer leadership team
Spend per buys $3k-~$300k, average ~$40k
Simple indirect spend items with clear specifications and competitive supply bases
Goals
Generate savings for AMAC Buyers
Limit resource requirements from customer
Include incumbent suppliers
Pilot results will determine
Increase diversity supplier participation/award
feasibility and decision on full
No upfront costs
implementation of FedBid
Marketplace
Success Criteria
Savings ~10% on average
Positive user experience
Quick turns on buys
90% successful completion
20 FedBid, Inc. • www.fedbid.com •
Proprietary/Confidential
22. Case Studies
Transportation Service School Furniture
Buy Number & Description: 325744 – Bus Transportation Buy Number & Description: 376067 – Office Furniture
Awarded Seller: NASON PARTNERS LLC DBA KELLEY TRANSIT COMPANY Awarded Seller: HERTZ FURNITURE SYSTEMS LLC
Line Items: 2 Purchase Description: Meet or Exceed
Target Price: $14,000 Line Items: 4
Target Price: $5,474
Award Price: $9,270
Award Price: $3,349
Savings: $4,730
Savings: $2,125
Savings %: 34%
Savings %: 39%
# Sellers Bidding: 8
# Sellers Bidding: 6
# Bids: 11
# Bids: 19
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FedBid, Inc. • www.fedbid.com • Proprietary/Confidential
23. Case Studies
Student Handbooks School Books
Buy Number & Description: 376150_02 – Student Handbooks
Category Books, Maps, and Other Publications
Awarded Seller: FOLLETT EDUCATIONAL SERVICES, INC. [DUNS:195202739]
Line Items 6
Purchase Description: Purchase Description Determined by Line Item
Line Items: 9 Target Price $4,509
Target Price: $20,468 Award Price $3,594
Award Price: $15,481
Savings Amount $914
Savings: $4,987
Savings Percentage 20.3%
Savings %: 24%
Number of Sellers Responded 5
# Sellers Bidding: 4
# Bids: 12 Number of Bids 17
23 FedBid, Inc. • www.fedbid.com • Proprietary/Confidential
24. Case Studies
Toner Cleaning Supplies
Buy Number & Description: 257467_02 – Cleaning Supplies
Buy Number & Description: 328575 – Toner
Awarded Seller: PSI RECRUITING, INC. DBA A1 BARCODE SYSTEMS
Awarded Seller: COMPUTER NETWORKING, INC.
Purchase Requirement: Exact Match Line Items: 4
Line Items: 4 Target Price: $19,372
Target Price: $9,092 Award Price: $16,552
Award Price: $7,832
Savings: $2,820
Savings: $1,259
Savings %: 15%
Savings %: 13%
# Sellers Bidding: 12 # Sellers Bidding: 3
# Bids: 26 # Bids: 16
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FedBid, Inc. • www.fedbid.com • Proprietary/Confidential
25. Case Studies
Landscaping Services Court Reporting Services
Category Administrative Support Service
Category Landscaping Services
Line Items 3 – 1 base, two option years Line Items 1
Target Price $18,000 – Base year Target Price $17,310
Award Price $12,360 – Base year
Award Price $9,711
Savings Amount $5,640
Savings Percentage 31.3%
Savings Amount $7,598
Number of Sellers Responded 5 Savings Percentage 43.8%
Number of Bids 13
Number of Sellers Bidding 3
Number of Bids 14
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FedBid, Inc. • www.fedbid.com • Proprietary/Confidential
26. Sample Buyer Savings Report FedBid, Inc. • www.fedbid.com •
Proprietary/Confidential
FY 2012 FedBid Activity Summary for Sample Buyer: Sample Agency
FedBid, Inc. • www.fedbid.com •
Proprietary/Confidential
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27. Spend Categories
FedBid, Inc. • www.fedbid.com •
Proprietary/Confidential
Spend Category Metrics for Sample Agency B
FY10 FY11 FY12 FY12
Spend Categories Actions Actions Actions Savings
(#) (#) (#) (%)
IT Equipment, Software, Supplies & Support Equipment 3 1,045 1,654 10%
Instruments and Laboratory Equipment 2 62 210 3%
Electrical and Electronic Equipment Components 1 15 39 7%
Communication, Detection, and Coherent Radiation Equipment 3 29 79 10%
Office Supplies and Devices 1 24 38 13%
Fire Fighting, Rescue, and Safety Equipment; Environmental Protection Equipment 0 9 12 10%
Furniture 1 56 60 7%
Office Machines, Text Processing Systems and Visible Record Equipment 0 28 31 9%
Construction, Mining, Excavating, and Highway Maintenance Equipment 2 21 106 9%
Agricultural Machinery and Equipment 2 16 7 3%
88 other categories including: Musical Instruments, Phonographs, and Home-Type 15 355 1,116 9%
Radios; Containers, Packaging, and Packing Supplies; Training Aids and Devices;
Materials Handling Equipment; Medical, Dental, and Veterinary Equipment and
Supplies; Pumps and Compressors; Electric Wire, and Power and Distribution
Equipment; and more…
Source: FedBid Marketplace Data 27
28. The Beneficiaries: Buyers of all Sizes FedBid, Inc. • www.fedbid.com •
Proprietary/Confidential
2011 Sample Customers Buying Outcomes with FedBid
Buy Metrics Sample Org A Sample Org B Sample Org C
Number of Buys 6,005 1,026 373
Independent Cost Estimate $330,132,043 $24,072,879 $15,210,721
Final Awarded Volume $283,322,634 $21,679,929 $13,586,282
Net Savings in Dollars $46,809,409 $2,392,950 $1,624,438
Net Savings Percentage 14% 10% 11%
Average # of Sellers Bidding 5 5 4
Average # of Bids Per Buy 13 12 10
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% of Award Dollars to Small Businesses 75% 88% 60%
29. The Beneficiaries: Small Business as Sellers FedBid, Inc. • www.fedbid.com •
Proprietary/Confidential
Number of Awards 2011 SMB Award Volume ($mm)
$951
Drives volume for underrepresented businesses
18%
$334
$212 $186 $186
$134
82%
Small Other
In 2011, nearly $1 billion was awarded to Small Businesses through the FedBid marketplace
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30. Spend Categories
FedBid, Inc. • www.fedbid.com •
Proprietary/Confidential
FedBid, Inc. • www.fedbid.com 30
Dramatically reduces costs and creates efficienciesIncreases small, minority, and local business utilization and opportunitiesFacilitates transparency, accountability, and auditabilityProvides enhanced documentation of competition and bid informationImproves product sourcing by increasing competition Generates important, timely and accurate management reports
On awarded buys, FedBid receives a service transaction fee of 0-4% which will be included in the seller’s bid price shown on the results page
Total awarded volume of $378mm resulted in savings of $55mm (13%)