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BSN Central / FedBid
     Alliance
      www.bsncentral.com
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


                                                  2
                                                                               • Proprietary/Confidential
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
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


                                                       4
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
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
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




                                   7
                                                            FedBid, Inc. • www.fedbid.com •
                                                                     Proprietary/Confidential
Marketplace Process and Value
Proposition




                         FedBid, Inc. • www.fedbid.com •
                 8                Proprietary/Confidential
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




                                                             9
                                                                                        FedBid, Inc. • www.fedbid.com •
                                                                                                 Proprietary/Confidential
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?


                           10
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
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
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
                                          13
              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
Accelerate Supplier Diversity
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
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
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
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
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
                                                   19
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
Appendix

Marketplace Results
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




                                                                22
                                                                                              FedBid, Inc. • www.fedbid.com • Proprietary/Confidential
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
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




                                            24
                                                                       FedBid, Inc. • www.fedbid.com • Proprietary/Confidential
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




                                                             25
                                                                                   FedBid, Inc. • www.fedbid.com • Proprietary/Confidential
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
                                    26
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
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
                                                 28

% of Award Dollars to Small Businesses                 75%               88%                            60%
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
                                                 29
Spend Categories
                                          FedBid, Inc. • www.fedbid.com •
                                                   Proprietary/Confidential




     FedBid, Inc. • www.fedbid.com   30
Contacts

•   Seyi Oduolowu                                      •   Lou Schiavone
•   Account Executive, State, Local & Education        •   SVP, State, Local & Education
•   703.389.5783                                       •   908.619.7275
•   Seyi.Oduolowu@FedBid.com                           •   Lou.Schiavone@Fedbid.com


•   Curtis Wynn                                        •   Bobby Feigler
                                                       •   Chief Marketplace Officer
•   CEO, BSN Central
                                                       •   571.455.8411
•   252.578.3333
                                                       •   Bobby.Feigler@FedBid.com
•   Cwynn@RoanokeOnline.net




                                                  31                       FedBid, Inc. • www.fedbid.com •
                                                                                    Proprietary/Confidential

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BSN Central FedBid Presentation

  • 1. BSN Central / FedBid Alliance www.bsncentral.com
  • 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 2 • 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 4
  • 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 7 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 9 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? 10
  • 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 13 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 19
  • 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 22 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 24 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 25 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 26
  • 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 $1,624,438 Net Savings Percentage 14% 10% 11% Average # of Sellers Bidding 5 5 4 Average # of Bids Per Buy 13 12 10 28 % of Award Dollars to Small Businesses 75% 88% 60%
  • 29. The Beneficiaries: Small Business as Sellers FedBid, Inc. • www.fedbid.com • Proprietary/Confidential Number of Awards 2011 SMB Award Volume ($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 29
  • 30. Spend Categories FedBid, Inc. • www.fedbid.com • Proprietary/Confidential FedBid, Inc. • www.fedbid.com 30
  • 31. Contacts • Seyi Oduolowu • Lou Schiavone • Account Executive, State, Local & Education • SVP, State, Local & Education • 703.389.5783 • 908.619.7275 • Seyi.Oduolowu@FedBid.com • Lou.Schiavone@Fedbid.com • Curtis Wynn • Bobby Feigler • Chief Marketplace Officer • CEO, BSN Central • 571.455.8411 • 252.578.3333 • Bobby.Feigler@FedBid.com • Cwynn@RoanokeOnline.net 31 FedBid, Inc. • www.fedbid.com • Proprietary/Confidential

Editor's Notes

  1. 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
  2. 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
  3. Total awarded volume of $378mm resulted in savings of $55mm (13%)