print management program office program overview f ederal s trategic s ourcing i nitiative
TRANSCRIPT
FSSI VALUE DRIVERS SUMMARY OF FSSI SOLUTIONS
The Federal Strategic Sourcing Initiative (FSSI) promotes an effective acquisition system to meet government needs & ensure prudent use of taxpayer dollars
IMPROVES VENDOR
PERFORMANCE
• Increases clarity of requirements• Optimizes supplier relationships• Improves competition & contract
structures
DRIVES EFFICIENT
GOVERNMENT OPERATIONS
• Lowers Total Cost of Ownership• Enables better and more
informed decisions by employees• Minimizes complexity
SUPPORTS ADMINISTRATI
ON GOALS
• Drives achievement of sustainability and socio-economic goals
• Helps agencies achieve Administration savings targets
• Increases transparency & accountability
GSA is leading a cross-agency FSSI Commodity Team to develop a government-wide strategic sourcing solution for Print Management
FSSI SOLUTION
KEY BENEFITS
Office Supplies
• Savings estimated at ~$50M per year
• 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
Wireless TEMS
• Identification of “optimal” rate plans based on analysis of usage
• Reduced inventory costs and billing errors
Print Managemen
t
• Pilot programs in place at VA and GSA
• Savings estimated at 25% - 40% to date
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
Multi-Function Device (MFD) / Multi-Function Printer (MFP)
Network Printer Desktop Printer
Stand Alone Copier / Stand
Alone Fax
Traditionally managed by facility / administrative staff
Best practice is to eliminate / minimize use
Traditionally managed by CIO
Office
Best practice is to manage as IT equipment
Best practice management approach
Traditional agency 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
strategy overview | 4
ADDITIONAL CONTRIBUTORS
ADDITIONAL CONTRIBUTORS
• Office of Management and Budget
• Office of Federal Procurement Policy
• Various industry groups
REQUIREMENTS DEFINITION & ACQUISITION STRATEGY TEAMREQUIREMENTS DEFINITION & ACQUISITION STRATEGY TEAM
• Defense Logistics Agency
• Department of Agriculture
• Department of Commerce
• Department of Defense
• Department of Homeland Security
• Department of Energy
• Department of Health and Human Services
• Department of Justice
• Department of Labor
• Department of State
• Department of Transportation
• Department of Treasury
• Department of Veterans Affairs
• Environmental Protection Agency
• Executive Office of the President
• Federal Aviation Agency
• Food & Drug Administration
• Environmental Protection Agency
• General Services Administration
• Internal Revenue Service
• NASA
• Peace Corps
• Small Business Administration
• US Department of Agriculture
The program is comprised of three interrelated components to lower the Total Cost of Ownership of print devices
BEHAVIORAL CHANGE STRATEGY
A set of guidelines and tools to increase awareness of print costs and
best practices to drive improved employee decision making
FIRST GENERATION ACQUISITION STRATEGYAn easy to use procurement vehicle
for all print devices & services that will deliver savings and enable improved
agency print management
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
• 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
• 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
IMPLICATIONS
Notes: 1) Other Direct Costs include maintenance agreements outside of lease contracts and other consumables such as toner drums2) Support Costs include downtime costs; time to order consumables; device acquisition costs; asset management; support & help desk
500
1,000
1,500
2,000
$2,500M
Purchase& Lease
$225M
Paper
$169M
Toner
$623M
OtherDirectCosts
$23M
SupportCosts
$1,041M
TotalCost of
Ownership
$2,082M
FPDS
GSA Advantage
Estimated Based onUsage
Estimate Based onMarket Analysis
Source: FPDS Spend Data for FY08 , GSA Advantage Line Level Spend Data for FY08, Censeo Analysis
The direct costs for devices are a small
fraction of TCO
Consideration of consumables is critical to understanding the TCO of print devices
potential acquisition strategy | 6
Although device vendors do not commercially provide paper, data collected through the solution will
enable agencies to manage this
spend
Support costs are generally proportional to the number of installed
devices & the approach used to manage the devices
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
strategy overview | 7
RFQ Component
Products / Services Key Benefits
Fleet Assessment
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)
“Device Plus” 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
BENEFITS OVERVIEW
The Print Management program will support Federal sustainability, budgetary and operational goals
Objective Description
Sustainability
Improved environmental performance
Projected annual paper reduction equivalent to up to 550,000 trees
Auditable reduction in electricity consumption
Compliance with Executive Order 13514
Alignment with EO requirements including improved transparency, electronic product stewardship, and waste reduction
Budgetary
Over $1.1B in annual savings
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 government-wide
Operational
Complexity reduction & security management
Reduction in number of deployed print devices (includes MFDs) and rationalization of print device models
Formalization of security requirements for print devices
Improved mission focus
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
Sustainability Category
Improvement Driver
Details
Reduced Energy
Consumption & Carbon Emissions
Energy STAR & Efficiency
All devices must be Energy STAR certified, and energy consumption will be considered when devices are evaluated
EPEAT RatingsMinimum 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
Improved Recyclability & End of
Life Manageme
nt
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
Key Sustainability Features of the Print Management Program
strategy overview | 9
Seven change management guidelines are provided to agencies to drive cost savings
Category GuidelineOverall Savings / Sustainability
Potential
Changes To Device Settings
• Default use of ‘duplex’ (double-sided) printing
• Default use of ‘black and white’ printing
• Default use of ‘draft’ quality (rather than ‘high’ quality) printing
• Improved use of sleep mode• 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
Changes To End User Applications
• Default use of toner-efficient fonts
Changes To The Print Fleet
• 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 GUIDELINE ELEMENTS
potential acquisition strategy | 10
The program is the first step in the government’s evolution to a low-cost, low-print environment
PRINT MANAGEMENT MATURITY MODEL
FUTURE GENERATIONS:
Document Lifecycle
Management
Minimization of document print
output through use of electronic archiving, workflow
management, and other digital technologies
CURRENT STATE:Unmanaged
PrintLack of visibility and control over print Total Cost of
Ownership
IMMEDIATE IMPROVEMENTS:
Behavior Changes
Improved print decisions by end
users
1st GENERATION ACQUISITION:
Acquisition Improvement
Selection of devices based on Total Cost of Ownership and
emerging understanding of enterprise print
patterns
2nd GENERATION ACQUISITION:
Continuous Process
Improvements
Balancing of print demand with device capability, resulting in net decreases in number of deployed
devices and minimized
enterprise Total Cost of Ownership
The first generation program provides agencies with the immediate cost savings and green benefits, and captures the data necessary for continued evolution
Long term Commodity
Management objective
Achieved over multiple years as current agency contracts expire
Current State (most agencies)
Achieved in 90-days through
development of behavior guidelines
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
Data-driven management
strategy overview | 11
2011
APR MAY JUN JUL AUG SEP
The Commodity Team is on pace to award an acquisition vehicle by mid-August with program kickoff occurring by August 30
Today
Evaluation & Preparation for
Program Launch
Final RFQ Edits
Draft RFQ
Support of Agency Guideline Implementation
RFQ Release to Industry and Vendor Bids
Award
Implementation
SSWG Review
Implementation Planning
OFPPReview
Notify Industry
KEY DATES
Commodity Team Meeting | 12
• SSWG Review – June 9• RFQ Posted – June 16
• Evaluation (Crystal City) – August 8-10• BPA Awards – August 18-19• Program Launch – August 30
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