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BSN Central FedBid Presentation

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BSN Central FedBid Presentation

  1. 1. BSN Central / FedBid Alliance
  2. 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. 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. • • Proprietary/Confidential
  4. 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. 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 averageWe 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. • • Proprietary/Confidential
  6. 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. • • Proprietary/Confidential
  7. 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. • • Proprietary/Confidential
  8. 8. Marketplace Process and ValueProposition FedBid, Inc. • • 8 Proprietary/Confidential
  9. 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. • • Proprietary/Confidential
  10. 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. 11. A Better Bidding ProcessThe 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. • Proprietary/Confidential
  12. 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. • • Proprietary/Confidential
  13. 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. • • Proprietary/Confidential 13
  14. 14. Accelerate Supplier Diversity
  15. 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. • Proprietary/Confidential
  16. 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. • Proprietary/Confidential
  17. 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. • Proprietary/Confidential
  18. 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. • Proprietary/Confidential
  19. 19. Diversity Reporting FY2012 Sample Agency Socio-Economic Use StatisticsSocio-Economic Classification Agency A Agency B Agency CSmall 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 DataResults for small businesses: Access and Opportunity FedBid, Inc. • • Proprietary/Confidential 19
  20. 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. • • Proprietary/Confidential
  21. 21. AppendixMarketplace Results
  22. 22. Case Studies Transportation Service School FurnitureBuy Number & Description: 325744 – Bus Transportation Buy Number & Description: 376067 – Office FurnitureAwarded Seller: NASON PARTNERS LLC DBA KELLEY TRANSIT COMPANY Awarded Seller: HERTZ FURNITURE SYSTEMS LLCLine Items: 2 Purchase Description: Meet or ExceedTarget Price: $14,000 Line Items: 4 Target Price: $5,474Award Price: $9,270 Award Price: $3,349Savings: $4,730 Savings: $2,125Savings %: 34% Savings %: 39%# Sellers Bidding: 8 # Sellers Bidding: 6# Bids: 11 # Bids: 19 22 FedBid, Inc. • • Proprietary/Confidential
  23. 23. Case Studies Student Handbooks School BooksBuy Number & Description: 376150_02 – Student Handbooks Category Books, Maps, and Other PublicationsAwarded Seller: FOLLETT EDUCATIONAL SERVICES, INC. [DUNS:195202739] Line Items 6Purchase Description: Purchase Description Determined by Line ItemLine Items: 9 Target Price $4,509Target Price: $20,468 Award Price $3,594Award Price: $15,481 Savings Amount $914Savings: $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. • • Proprietary/Confidential
  24. 24. Case Studies Toner Cleaning Supplies Buy Number & Description: 257467_02 – Cleaning SuppliesBuy Number & Description: 328575 – Toner Awarded Seller: PSI RECRUITING, INC. DBA A1 BARCODE SYSTEMSAwarded Seller: COMPUTER NETWORKING, INC.Purchase Requirement: Exact Match Line Items: 4Line Items: 4 Target Price: $19,372Target Price: $9,092 Award Price: $16,552Award Price: $7,832 Savings: $2,820Savings: $1,259 Savings %: 15%Savings %: 13%# Sellers Bidding: 12 # Sellers Bidding: 3# Bids: 26 # Bids: 16 24 FedBid, Inc. • • Proprietary/Confidential
  25. 25. Case Studies Landscaping Services Court Reporting Services Category Administrative Support ServiceCategory Landscaping ServicesLine Items 3 – 1 base, two option years Line Items 1Target Price $18,000 – Base year Target Price $17,310Award Price $12,360 – Base year Award Price $9,711Savings Amount $5,640Savings Percentage 31.3% Savings Amount $7,598Number of Sellers Responded 5 Savings Percentage 43.8%Number of Bids 13 Number of Sellers Bidding 3 Number of Bids 14 25 FedBid, Inc. • • Proprietary/Confidential
  26. 26. Sample Buyer Savings Report FedBid, Inc. • • Proprietary/ConfidentialFY 2012 FedBid Activity Summary for Sample Buyer: Sample Agency FedBid, Inc. • • Proprietary/Confidential 26
  27. 27. Spend Categories FedBid, Inc. • • Proprietary/Confidential Spend Category Metrics for Sample Agency B FY10 FY11 FY12 FY12Spend 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 andSupplies; Pumps and Compressors; Electric Wire, and Power and DistributionEquipment; and more… Source: FedBid Marketplace Data 27
  28. 28. The Beneficiaries: Buyers of all Sizes FedBid, Inc. • • Proprietary/Confidential 2011 Sample Customers Buying Outcomes with FedBidBuy Metrics Sample Org A Sample Org B Sample Org CNumber of Buys 6,005 1,026 373Independent Cost Estimate $330,132,043 $24,072,879 $15,210,721Final Awarded Volume $283,322,634 $21,679,929 $13,586,282Net Savings in Dollars $46,809,409 $2,392,950 $1,624,438Net Savings Percentage 14% 10% 11%Average # of Sellers Bidding 5 5 4Average # of Bids Per Buy 13 12 10 28% of Award Dollars to Small Businesses 75% 88% 60%
  29. 29. The Beneficiaries: Small Business as Sellers FedBid, Inc. • • Proprietary/Confidential Number of Awards 2011 SMB Award Volume ($mm) $951 Drives volume for underrepresented businesses 18% $334 $212 $186 $186 $134 82% Small OtherIn 2011, nearly $1 billion was awarded to Small Businesses through the FedBid marketplace 29
  30. 30. Spend Categories FedBid, Inc. • • Proprietary/Confidential FedBid, Inc. • 30
  31. 31. Contacts• Seyi Oduolowu • Lou Schiavone• Account Executive, State, Local & Education • SVP, State, Local & Education• 703.389.5783 • 908.619.7275• •• Curtis Wynn • Bobby Feigler • Chief Marketplace Officer• CEO, BSN Central • 571.455.8411• 252.578.3333 •• 31 FedBid, Inc. • • Proprietary/Confidential