BSN Central FedBid Presentation

BSN Central / FedBidAlliance

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, responsibly, and competitively achieve supplier diversity objectives

• A managed marketplace with customer support teams always available to provide outstanding service and assistance

• A new way for buyers to monitor purchasing, giving them increased control of their transactions

• Proprietary/Confidential2

FedBid Highlights

Launched in 2001 50% year-over-year growth >$2 billion in annual marketplace volume Leading reverse auction marketplace used by U.S. Federal Government Over 45,000 buys in 2012 Over 50,000 sellers on network Average net savings rate >11% 80% of award dollars to small / diverse suppliers

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

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

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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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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

– Increased revenue opportunity

– Reduced sales costs

– Improved efficiency


•>50k Sellers•3k new/month

Network•Small Business •Diversity

•Seller services•Market Ops

Services•Buyer Services•QA

•Reverse Auction•Business Intel*

Technology•ePayment*•Mobility*

* = planned

FedBid’s Clients


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“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

Marketplace Process and Value Proposition

8FedBid, Inc. • www.fedbid.com •

Proprietary/Confidential

Each Buy is touched, not just by the Buyer, but

by an entire team driven to ensure results

Account Management Comprehensive training, monitoring and assistance

supports buyer use

Market Operations Active seller sourcing and support

keeps the market engaged and competitive

Client Services Registration, training,

and helpdesk resources support seller

utilization Buyer Support Dedicated department to facilitate

communication and documentation between buyers and sellers

Quality Assurance Tracking and monitoring services help ensure sellers understand their obligations, receive orders, and ship

on time


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A Simple Solution

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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A Better Bidding Process

Sellers Do Not Know:

Projected Cost Ranking Competitor Names

Competitor Prices

When a Seller Submits a Bid:Submitting a

Blind BidCompeting Against a

Projected CostCompeting Against

Other Sellers

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

The only thing sellers see is LEAD or LAG

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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



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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

– 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

Buyer Target Price: $11,259. 56Seller’s submitted price: $10,000.00FedBid Price: $10,400.00Price for PO: $10,400.00

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 FedBid, Inc. • www.fedbid.com


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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”


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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


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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 FedBid, Inc. • www.fedbid.com


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Diversity Reporting

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FY2012 Sample Agency Socio-Economic Use StatisticsSocio-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

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

Increase diversity supplier participation/award

No upfront costs

Success Criteria Savings ~10% on average

Positive user experience

Quick turns on buys

90% successful completionFedBid, Inc. • www.fedbid.com •


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Pilot results will determine feasibility and decision on full

implementation of FedBid Marketplace

Appendix

Marketplace Results

Transportation ServiceBuy Number & Description: 325744 – Bus Transportation

Awarded Seller: NASON PARTNERS LLC DBA KELLEY TRANSIT COMPANY

Line Items: 2

Target Price: $14,000

Award Price: $9,270

Savings: $4,730

Savings %: 34%

# Sellers Bidding: 8

# Bids: 11

School FurnitureBuy Number & Description: 376067 – Office Furniture

Awarded Seller: HERTZ FURNITURE SYSTEMS LLC

Purchase Description: Meet or Exceed

Line Items: 4


Award Price: $3,349

Savings: $2,125

Savings %: 39%


# Bids: 19

Case Studies

FedBid, Inc. • www.fedbid.com • Proprietary/Confidential22

23

Case Studies


School Books

Category Books, Maps, and Other Publications

Line Items 6

Target Price $4,509

Award Price $3,594

Savings Amount $914

Savings Percentage 20.3%

Number of Sellers Responded 5

Number of Bids 17

Student Handbooks

Buy Number & Description: 376150_02 – Student Handbooks

Awarded Seller: FOLLETT EDUCATIONAL SERVICES, INC. [DUNS:195202739]

Purchase Description: Purchase Description Determined by Line Item

Line Items: 9


Award Price: $15,481

Savings: $4,987

Savings %: 24%


# Bids: 12

24

Case Studies


Cleaning SuppliesBuy Number & Description: 257467_02 – Cleaning Supplies

Awarded Seller: PSI RECRUITING, INC. DBA A1 BARCODE SYSTEMS

Line Items: 4


Award Price: $16,552

Savings: $2,820

Savings %: 15%


# Bids: 16

Toner

Buy Number & Description: 328575 – Toner Awarded Seller: COMPUTER NETWORKING, INC. Purchase Requirement: Exact MatchLine Items: 4Target Price: $9,092Award Price: $7,832Savings: $1,259Savings %: 13%# Sellers Bidding: 12# Bids: 26

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Court Reporting Services

Category Administrative Support Service

Line Items 1

Target Price $17,310

Award Price $9,711

Savings Amount $7,598


Number of Sellers Bidding 3

Number of Bids 14

Case Studies


Landscaping Services

Category Landscaping Services

Line Items 3 – 1 base, two option years

Target Price $18,000 – Base year

Award Price $12,360 – Base year

Savings Amount $5,640


Number of Sellers Responded 5

Number of Bids 13

Sample Buyer Savings Report

FedBid, Inc. • www.fedbid.com • Proprietary/Confidential26

FY 2012 FedBid Activity Summary for Sample Buyer: Sample Agency


Spend Categories

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Spend Category Metrics for Sample Agency B

Spend Categories FY10 Actions (#)

FY11 Actions

(#)

FY12Actions

(#)

FY12 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 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…

15 355 1,116 9%

Source: FedBid Marketplace Data


The Beneficiaries: Buyers of all Sizes

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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

% of Award Dollars to Small Businesses 75% 88% 60%

The Beneficiaries: Small Business as Sellers

29In 2011, nearly $1 billion was awarded to Small Businesses through the FedBid marketplace

82%

18%

Number of Awards

Small Other

Total

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$951

$334$212 $186 $186 $134

2011 SMB Award Volume ($mm)

Drives volume for underrepresented businesses


Spend Categories

FedBid, Inc. • www.fedbid.com 30


Contacts

• Seyi Oduolowu

• Account Executive, State, Local & Education

• 703.389.5783

• [email protected]

• Curtis Wynn

• CEO, BSN Central

• 252.578.3333



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• Lou Schiavone

• SVP, State, Local & Education

• 908.619.7275


• Bobby Feigler

• Chief Marketplace Officer

• 571.455.8411


mailto:[email protected]




BSN Central FedBid Presentation

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Transcript of BSN Central FedBid Presentation