Federal Strategic Sourcing Initiative

Report
F EDERAL S TRATEGIC S OURCING I NITIATIVE
PRINT MANAGEMENT PROGRAM OFFICE
Program Overview
The Federal Strategic Sourcing Initiative (FSSI) promotes an effective acquisition
system to meet government needs & ensure prudent use of taxpayer dollars
FSSI VALUE DRIVERS
DRIVES EFFICIENT
GOVERNMENT
OPERATIONS
IMPROVES
VENDOR
PERFORMANCE
SUPPORTS
ADMINISTRATION
GOALS
• Lowers Total Cost of Ownership
• Enables better and more informed
decisions by employees
• Minimizes complexity
• Increases clarity of requirements
• Optimizes supplier relationships
• Improves competition & contract
structures
• Drives achievement of
sustainability and socio-economic
goals
• Helps agencies achieve
Administration savings targets
• Increases transparency &
accountability
SUMMARY OF FSSI SOLUTIONS
FSSI
SOLUTION
KEY BENEFITS
• Savings estimated at
~$50M per year
Office
Supplies
• Incorporation of POS terms
to increase ease-of-use
• Improved socioeconomic
and green performance
Domestic
Delivery
Services
• Savings of $40M+ per year
• Increased visibly into
shipping patterns and
hidden feeds
• Identification of “optimal”
rate plans based on
analysis of usage
Wireless TEMS
• Reduced inventory costs
and billing errors
• Pilot programs in place at
VA and GSA
Print
Management • Savings estimated at 25% 40% to date
GSA is leading a cross-agency FSSI Commodity Team to develop a governmentwide strategic sourcing solution for Print Management
strategy overview | 2
In FY2009, a Commodity Team was formed to develop a strategy to reduce
the costs of network and personal printers, copiers, and multi-function devices
Traditional agency management approach
Traditionally managed
by CIO Office
Network Printer
Traditionally managed by facility / administrative staff
Multi-Function Device
(MFD) / Multi-Function
Printer (MFP)
Best practice is to manage as IT equipment
Desktop Printer
Stand Alone Copier /
Stand Alone Fax
Best practice is to eliminate / minimize use
Best practice management approach
Agencies can adopt the FSSI Print Management solution for their entire enterprise fleet, for only
printer or copiers/MFDs, or for individual office locations (or any combination thereof)
strategy overview | 3
Over twenty-four agencies and organizations collaborated to develop a Print
Management program which meets the needs of the Federal community
REQUIREMENTS DEFINITION & ACQUISITION STRATEGY TEAM
• Defense Logistics Agency
• Department of Agriculture
• Environmental Protection
Agency
• Department of Commerce
• Executive Office of the
President
• Department of Defense
• Federal Aviation Agency
• Department of Homeland
Security
• Food & Drug Administration
• Department of Energy
• Environmental Protection
Agency
• Department of Health and
Human Services
• General Services
Administration
• Department of Justice
• Internal Revenue Service
• Department of Labor
• NASA
• Department of State
• Peace Corps
• Department of Transportation
• Small Business Administration
• Department of Treasury
• US Department of Agriculture
ADDITIONAL
CONTRIBUTORS
• Office of
Management and
Budget
• Office of Federal
Procurement Policy
• Various industry
groups
• Department of Veterans Affairs
strategy overview | 4
The program is comprised of three interrelated components to lower the
Total Cost of Ownership of print devices
FIRST GENERATION ACQUISITION STRATEGY
An easy to use procurement vehicle for
all print devices & services that will
deliver savings and enable improved
agency print management
BEHAVIORAL CHANGE STRATEGY
A set of guidelines and tools to increase
awareness of print costs and best
practices to drive improved employee
decision making
CONTINUOUS IMPROVEMENT STRATEGY
Ongoing engagement, collaboration
and facilitation of print management
evolution through a government-wide
community of interest
strategy overview | 5
FSSI Commodity Team analysis has shown that the “sticker price” of print/copy
devices is only a small fraction of the Total Cost of Ownership (TCO)
ESTIMATED PRINTER / COPIER / MFD TOTAL COST OF OWNERSHIP FOR FY10
$2,500M
2,000
1,500
1,000
Although device
vendors do not
commercially
provide paper,
data collected
through the
solution will
enable agencies
to manage this
spend
500
Consideration of
consumables is
critical to
understanding
the TCO of print
devices
$623M
$1,041M
•Due to similarities in the
drivers of TCO and trends in
the supply market, the scope
of a Print Management
strategy should include both
printers and copiers/MFDs
$2,082M
$23M
Estimate Based on
Market Analysis
Estimated Based on
Usage
GSA Advantage
$169M
$225M
FPDS
Purchase
& Lease
Paper
The direct costs for
devices are a small
fraction of TCO
Toner
Other
Direct
Costs
Support
Costs
IMPLICATIONS
Total
Cost of
Ownership
Support costs are generally proportional
to the number of installed devices & the
approach used to manage the devices
Source: FPDS Spend Data for FY08 , GSA Advantage Line Level Spend Data for FY08, Censeo Analysis
Notes:
1) Other Direct Costs include maintenance agreements outside of lease contracts and other consumables such as toner drums
2) Support Costs include downtime costs; time to order consumables; device acquisition costs; asset management; support &
help desk
•Agencies will benefit from
ensuring visibility to enable
acquisition decisions based
on TCO
• Device costs
• Toner costs and yield
• Energy costs
• Maintenance costs
• End-of-life costs
•“Right-sizing” the print fleet
would drive significant
savings, but is not a
prerequisite for
implementation of a Print
Management solution
potential acquisition strategy | 6
The Commodity Team has developed an acquisition that will enable agencies to
reduce the size of their print fleet and lower printing and copying costs
RFQ
Component
Fleet
Assessment
“Device Plus”
Products / Services
Key Benefits
Identification of all print
devices in an agency /
bureau / location
•Enables agencies to understand total print costs and
carbon impact of operating the print fleet
Analysis of optimal number,
type, and placement of
devices based on agency
printing patterns
•Improves employee access to print devices while lowering
total costs
•Typically results in reduced total number of deployed print
devices (lowering costs and electricity consumption)
Compliant print & copy
devices with low Total Cost
of Ownership
•Ensures all print devices comply with security, accessibility,
and environmental requirements
•Provides access to devices with the lowest total costs
Consumables
•Reduces redundant contracts & enables complete
understanding of print costs
•Enables agency evaluation of total operating costs (not just
device “sticker price)
Service and Maintenance
•Ensures device uptime & availability
•Minimizes burden on agency CIO staff
Vendor Data Collection &
Reporting
•Provides visibility into agency purchase and usage patterns
•Enables rapid creation of reports to comply with OMB /
Executive Order requirements
strategy overview |
7
The Print Management program will support Federal sustainability, budgetary
and operational goals
BENEFITS OVERVIEW
Operational
Budgetary
Sustainability
Objective
Improved environmental
performance
Compliance with
Executive Order 13514
Over $1.1B in annual
savings
Complexity reduction &
security management
Improved mission focus
Description
 Projected annual paper reduction equivalent to up to 550,000
trees
 Auditable reduction in electricity consumption
 Alignment with EO requirements including improved
transparency, electronic product stewardship, and waste
reduction
 Savings from short and long term behavioral changes are
projected at up to $700M government-wide, driven by improved
device selection and reduced consumables costs
 Support cost savings are projected at up to $450M governmentwide
 Reduction in number of deployed print devices (includes MFDs)
and rationalization of print device models
 Formalization of security requirements for print devices
 Increased ability of agency staff to focus on strategic priorities
and mission delivery rather than the tactical management of
print devices
strategy overview | 8
The Print Management program will drive sustainability improvements
throughout the government
Key Sustainability Features of the Print Management Program
Sustainability
Category
Improvement
Driver
Details
Energy STAR &
Efficiency
All devices must be Energy STAR certified, and energy consumption will
be considered when devices are evaluated
EPEAT Ratings
Minimum EPEAT rating thresholds for printers and copiers will be
incorporated into requirements when they have been finalized by EPA
Improved Device
Energy Settings
Devices will be required to have optimized default settings for use of
‘sleep’ mode
Reduced Device
Footprint
Reduction in the number of devices deployed throughout the
government
Packaging
Requirements
Requirements will be included to drive minimization of device
packaging material and to increase packaging recycled content
Recycled Content
Requirement
Machines will be required to utilize a minimum percentage of recycled
content & vendors will be encouraged to use remanufactured toner
Device Disposal
Machines will be required to be disposed of in an environmentally
acceptable manner
Reduced
Paper
Consumption
Duplex Printing
Requirement
Devices will be required to have optimized default settings for use of
‘duplex’ printing
Misc.
Green Machine
CLIN
Separate CLIN awards will be made for devices that demonstrate the
most advanced sustainability technologies
Reduced
Energy
Consumption
& Carbon
Emissions
Improved
Recyclability
& End of Life
Management
strategy overview | 9
Seven change management guidelines are provided to agencies to drive
cost savings
POTENTIAL GUIDELINE ELEMENTS
Category
Guideline
Overall Savings / Sustainability Potential
• Default use of ‘duplex’ (double-sided)
printing
• Default use of ‘black and white’ printing
Changes To
Device Settings • Default use of ‘draft’ quality (rather than
‘high’ quality) printing
• Improved use of sleep mode
Changes To
End User
Applications
Changes To
The Print Fleet
• Default use of toner-efficient fonts
• Potential annual savings of over
$320M
• Up to 550,000 trees saved per year
• Annual carbon reduction equivalent
of up to 47,000 cars being taken off
the road
• Removal of existing personal printers
• Purchase freeze for new personal printers
The Commodity Team has also developed a tool to enable agencies to track the savings driven
by these guidelines
potential acquisition strategy | 10
The program is the first step in the government’s evolution to a low-cost, lowprint environment
PRINT MANAGEMENT MATURITY MODEL
The first generation program provides agencies with the
immediate cost savings and green benefits, and
captures the data necessary for continued evolution
CURRENT STATE:
Unmanaged Print
Lack of visibility and
control over print
Total Cost of
Ownership
Current State
(most agencies)
Data-driven
management
FUTURE
GENERATIONS:
2nd GENERATION
ACQUISITION:
Document Lifecycle
Management
1st GENERATION
ACQUISITION:
Continuous Process
Improvements
IMMEDIATE
IMPROVEMENTS:
Acquisition
Improvement
Behavior Changes
Improved print
decisions by end
users
Selection of devices
based on Total Cost
of Ownership and
emerging
understanding of
enterprise print
patterns
Balancing of print
demand with device
capability, resulting
in net decreases in
number of deployed
devices and
minimized enterprise
Total Cost of
Ownership
Minimization of
document print
output through use
of electronic
archiving, workflow
management, and
other digital
technologies
Achieved in 90-days
through development
of behavior guidelines
Achieved over multiple
years as current agency
contracts expire
Enabled by the data
collected through the
1st generation solution
Initial data
collection through
savings calculator
Limited / no
data
Vendor collection &
reporting of detailed
usage data
Data centricity
Long term Commodity
Management objective
strategy overview | 11
The Commodity Team is on pace to award an acquisition vehicle by midAugust with program kickoff occurring by August 30
2011
APR
MAY
JUN
JUL
AUG
Implementation Planning
Final
RFQ
Edits
Draft RFQ
RFQ Release to Industry and
Vendor Bids
Implementation
Evaluation &
Preparation for
Program Launch
SSWG
Review
OFPP
Review
SEP
Notify
Industry
Award
Support of Agency Guideline Implementation
Today
KEY DATES
•
•
SSWG Review – June 9
RFQ Posted – June 16
•
•
•
Evaluation (Crystal City) – August 8-10
BPA Awards – August 18-19
Program Launch – August 30
Commodity Team Meeting | 12
Agencies can help the Print Management program achieve its cost savings
and sustainability objectives
FESWG SUPPORT REQUESTED
• Champion and support the Print Management program within your
respective agencies
• Adopt the seven steps to lowering print costs within your agency
• For agencies who are not currently represented on the Commodity Team,
identify potential team members and submit names to
[email protected]
strategy overview | 13

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