Procurement Strategy

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• Procurement Strategy
• For Panel Systems
• July 23, 2008

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NMSOs for PanelsBusiness Volumes 2006/07

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Panel Systems Strategy

• Two separate procurement strategies for panel
  systems
• NMSOs to maintain an installed base through the
  procurement of new product
• NMSOs for new installations

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Maintain the installed base

• A call up limitation of 40,000 for goods and
  40,000 for services will be established to
  maintain an installed base.
• PWGSC Acquisitions Branch will consider
  processing call-ups over 40,000 if required
• Historical contract data and NMSO data will be
  used to determine which series will be
  maintained.
• Firm prices for 24 months with no price increase
• Items offered must be technically compliant, i.e.
  meeting the same standards as new product
• Pricing for the maintenance of the installed base
  will be negotiated with each selected supplier
  and the identified series will be added to that
  suppliers NMSO for the installed base

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Maintain the installed base

• If suppliers feel that additional series are
  required to maintain the installed base, they
  will have to provide a business case with
  supporting data
• A minimum installation fee of 100 will be
  accepted

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Strategy for new installations

• Overview
• Firm prices for 24 months with no price increase
• Limit the number of series to a maximum of 2
• Firms are to quote list price, less discount,
  plus installation for each series
• Evaluation will be based on median 10 including
  hardware, installation as a percentage of the
  price quoted
• Evaluated median price will be based on generic
  floor plans, i.e. a three tier pricing, one
  representing 8 to 12 workstations, one
  representing 25 to 50 workstations and the other
  100 to 125 workstations.
• Each pricing tier will be given equal weight to
  establish the median

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Strategy for new installations

• Overview (Continued)
• If firms wish to delete freight costs which are
  currently incorporated into their list prices,
  they will have to provide a percentage decrease
  to PWGSC solely for the purposes of evaluating
  the median 10
• Call up limitation for services will be 40,000.
• Additional items from the same series meeting the
  technical requirements will be considered but not
  included in the median calculation
• All RFSO documentation, including technical and
  environmental details to be submitted at time and
  date of solicitation closing. Clarifications will
  be requested only once with firm having 5 working
  days to respond.

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Strategy for new installations

• Overview (Continued)
• RFSO closing will be in late November
• CGSB QPL listings on the CGSB website at date and
  time of closing will be considered. However, it
  is the firms responsibility to ensure that
  listing is up to date and meets the RFSO
  requirements.
• A minimum installation fee of 100 will be
  accepted.

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Strategy for new installations

• Overview (Continued)
• Aboriginal RMSOs/NMSOs items must be on the non-
  Aboriginal NMSOs
• The same series cannot appear on both the NMSO to
  maintain an installed base and the NMSO for new
  installations. If duplication does occur, the
  series will appear on the NMSO for new
  installations only

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Strategy for new installations less than 40K

• Firm prices below 40,000. The discount offered
  below 40,000 shall be firm for the duration of
  the Standing Offer

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Strategy for new installations from 40K - 400K

• Volume discounts will be utilized with
  e-purchasing and can be increased or decreased
  only on a monthly basis. Discounts offered will
  never be less than the original quote. Discounts
  will be accepted for two tiers
• 25 to 50 workstations
• 100 to 125 workstations
• The additional items, in the form of layouts, may
  be added to e- purchasing provided there is
  competition, ie. Two manufacturers offering the
  same items
• E-purchasing will be modified to incorporate
  environmental attributes, provided there is
  competition in what is being offered, i.e. Two
  manufacturers offering the same attributes
• E-purchasing will be modified to incorporate up
  to five value added attributes provided there is
  competition in what is being offered, i.e. two
  manufacturers offering the same value added
  attributes

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Strategy for new installations above 400K

• Above 400K RVDs will be utilized