# Presentation: 040113

## REGION IV ENTERPRISE WIDE BLANKET PURCHASE AGREEMENTS(BPA) WITH PRIVATE SECTOR

- NATIONAL LOGISTICS COORDINATION FORUM
- March 27, 2008
- ANNETTE R. WRIGHT-RIV CONTRACTING OFFICER

## AGENDA

- BACKGROUND  INFORMATION
-  ENTERPRISE WIDE BLANKET PURCHASE AGREEMENTS (BPA) WITH PRIVATE SECTOR
- CLOSING REMARKS
- QUESTIONS AND COMMENTS

## Region IV Purchase Card Internal Audit Review
Audit Region IV Key Internal Controls for managing Government Purchase Card Program
Cardholders invoices obtained written authorization
Independent receipt and acceptance of goods and services
Split purchase requirements, routine commodity purchases and utilizing preferred vendors
Statutory Requirements and Legislative Mandates Compliances

Findings
Rating Methodology (Key Internal Controls)
Blue-Exceptional, Green-Acceptable, Yellow-Caution, Red-On Fire
Results of data samplings for Key Internal Controls
Lack of written authorization -100%
Independent receipts and Acceptance-100%
Split purchases and Routine Commodity Purchases-98%
Non-Compliant to Statutory Laws 90%

- Audit Region IV Key Internal Controls for managing Government Purchase Card Program
- Cardholders invoices obtained written authorization
- Independent receipt and acceptance of goods and services
- Split purchase requirements, routine commodity purchases and utilizing preferred vendors
- Statutory Requirements and Legislative Mandates Compliances
**Findings**
- Rating Methodology *(Key Internal Controls)*
- Blue-Exceptional, Green-Acceptable, Yellow-Caution, Red-On Fire
- Results of data samplings for Key Internal Controls
- Lack of written authorization -100%
- Independent receipts and Acceptance-100%
- Split purchases and Routine Commodity Purchases-98%
- Non-Compliant to Statutory Laws 90%

**BACKGROUND**

## BACKGROUND cont.

- Recommendations
- Establish Nine (9)  Regional Enterprise-Wide Blanket Purchase Agreements (BPA's) With Private Sector Engagement for Routine P-Card Commodities
**Office Products, IT Supplies, Copier/Copier Services**
- Common contracting vehicles that can be leveraged by users in  the Region (GSA Advantage/DHS SSI BPA's Vendors)
- Online automation of sales receipts, order acknowledgment, and receipt of shipments (Acceptance of BPA and P-card)
- BPA items are Trade Agreements Act (TAA) Compliant 19 U.S.C., JWOD, NIB/NISH
- Cost Effective Pricing and Customer Focused Delivery - within 24 hours or same day
- National and Regional Footprint of branch locations and distribution points  in 48 States (*including Puerto Rico and Virgin Islands)*
- Standard Pricing, Negotiated Terms and Conditions

## NEGOTIATED BPA's TERMS

**Order and Account Management**
- Order fulfillment same day or next day delivery
- Staging of “Disaster Starter Kits” for high usage items for rapid shipments at no cost to  FEMA
- Business Reviews to include sales statistics, performance measurements, billing and Independent Business Reviews
- Online Ordering (web portal) and document reports to include sales slips, invoices, receipts, order acknowledgement, fill rate, order authorization and shipment notification
- Acceptance of p-card or purchase order
- Assigned/Designated Account Manager and branch locations in the Southeast Region

## NEGOTIATED BPA's TERMS Cont.

- PRICING
- Extend same aggressive pricing negotiated with DHS existing Enterprise Wide Agreements
- Standard GSA pricing plus additional 10% to 30% discount on over 10,000 items
- Additional tiered discounts by increased order size (Online orders only)
- DISCOUNTS
- $150 to $274 = 2% discount
- $274 to $499 = 3% additional discounts
- $500 to $999 = 4% additional discounts
- $2,0000 or greater = 6% additional discounts
- 40% discount for in-store purchases

## NEGOTIATED BPA's TERMS Cont.

- STATUORY COMPLIANCE WITH PROCUREMENT LAWS
- Guarantee compliance with JWOD Act, Trade Agreement Act, DOD Emall, GSA Advantage, and Non Compliant Product
- Social - Economic Programs to develop minority, women and Small Business Segments
- Local Community Recovery Act of 2006 (Pending FAR Case 2006-014)

## DHS ENTERPRISE WIDE AGREEMENT BPA’s (REGIONAL)

## Slide 9

## CORPORATE EXPRESS BPA for OFFICE PRODUCTS

- DR-1745-TN
- Tax payer Expense = $23,871.00
- Fill Rate
- Overall Fill Rate   93.20%
- Contract and Non Contract Fill Rate   95.29%
- CEXP Catalog Item Fill Rate   96.97%
- Catalog Item Fill Rate   100%
- Top  four (4) Commodities Spend Analysis

- SUCCESS STORY

## PRICE COMPARISON

| NSN/
ITEM NO. |  ITEM | QTY | CE 4 Website | OPEN MARKET  | GSA E-BUY PRICING |
| --- | --- | --- | --- | --- | --- |
| HEWC9352AN | HP22 |   36 ea | Unit Cost: $15.88 | Unit Cost: $29.99 |  Unit Cost: 
$ 17.45 |
| Memory Card, 1GB, SD |  VER94964 |   30 ea |  Unit Cost:  $23.56 | Unit Cost: $46.99 |  Unit Cost: $23.83 |
| Hand Sanitizer
(3) oz size | GOJ960624 |  192 ea |  Unit Cost:  $2.24  |  Unit Cost:  $3.99  |  Unit Cost:  $3.59 |
| Wastebasket  | RUB29560 |   48 ea | Unit Cost:  $9.21 |  Unit Cost:  $14.99 | Unit Cost:  $9.61 |

- OPEN MARKET v.s. CONTRACT

## DISASTER

| Disaster | Location | Dollars expended for Office Products | BPA and P-card | Open Market P-card
   (No existing Contract) |
| --- | --- | --- | --- | --- |
| 1686 | Alabama | $60,000.00 | N | Y |
| 1687 | Georgia | $39,000.00 | N | Y |
| 1745 | Tennessee | $23,871.00 | Y | N |
| 1746 | Kentucky | $40,000.00 | N | Y |

- COMPARISONOFFICE PRODUCTS

## CLOSING REMARKS-

- RIGHT PARTERNSHIPS

- RIGHT TIME

- RIGHT DELIVERY

- RIGHT PRICE

- 4 R'S

## QUESTIONS AND ANSWERS