PURCHASE CARD PROBLEMS OMB M0205

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REGION IV ENTERPRISE WIDE BLANKET PURCHASE
AGREEMENTS(BPA) WITH PRIVATE SECTOR
NATIONAL LOGISTICS COORDINATION FORUM March 27,
2008 ANNETTE R. WRIGHT-RIV CONTRACTING OFFICER
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AGENDA

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

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BACKGROUND

• 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

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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

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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

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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

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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)

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DHS ENTERPRISE WIDE AGREEMENT BPAs (REGIONAL)
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(No Transcript)
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CORPORATE EXPRESS BPA for OFFICE PRODUCTS
SUCCESS STORY

• 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

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PRICE COMPARISON
OPEN MARKET v.s. CONTRACT
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DISASTER COMPARISONOFFICE PRODUCTS
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CLOSING REMARKS-
4 R'S
RIGHT PARTERNSHIPS
RIGHT TIME
RIGHT DELIVERY
RIGHT PRICE
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QUESTIONS AND ANSWERS