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HomeMy WebLinkAboutFinal OfferGRAINGER. FOR nu ONES WHO Gf 1- it DUNL' November 10, 2005 State of Nevada Department of Administration Purchasing Division 515 East Musser Street, Suite 300 Carson City, Nevada 89701 Attn: Gail Burchett, Purchasing Officer Re: WSCA Bid 7066 — Best and Final Offer Dear Ms. Burchett, On behalf of Grainger Industrial Supply, I would like to thank the Western States Contracting Alliance (WSCA) and the evaluation committee for the opportunity to provide Grainger's best and final offer for Bid 7066, a Multi -State Contract for Industrial Supplies & Equipment, Lighting Products, Janitorial Supplies and Equipment. Grainger would like to further extend an offer to clarify our proposal beyond the details included below, at WSCA's convenience. As a result of the initial phase evaluation, WSCA has invited Grainger to improve our bid while specifically addressing the following: • A best and final pricing schedule for market basket sections 1, 5, 7 and 12 • A more robust Balance of the Line Offering • Revisit exceptions to the solicitation terms and conditions; specifically subsections 3.6, 3.8 and 8.8 • Identification of all Participating State assigned contacts, i.e., Sales Managers and Representatives including contact information for each • Identification of a National Government Strategic Marketing Team The attached Best and Final Offer addresses the points outlined above. I look forward to continued discussions regarding Grainger's comprehensive maintenance, repair and operating (MRO) supplies offering, Sincerely. Doug D'Alessio Senior Government Sales Manager WSCA Program Manager Grainger Industrial Supply, division of W.W. Grainger, Inc. Ph: 916.503.0229 doug.d'alessio@grainger.com GRAINGER FOR THE ONES. WHO GET- 6ONE WSCA Bid # 7066 Grainger's Best and Final Offer November 10, 2005 Best and Final Pricing Schedule for Market Basket Sections 1, 5, 7, and 12 Grainger is pleased to provide the enhanced pricing schedule set forth in the attached Exhibit C, "WSCA Grainger #7066 Market Basket.xls" as its best and final pricing offer. Grainger has been diligently working with its suppliers to provide better pricing for this opportunity. We are extremely satisfied with the results of this effort and trust that the WSCA committee will be as well. Prior to the submittal of our response, Grainger conducted a review of actual items purchased by Participating States over the last two years; coupled with knowledge of WSCA contract purchasing patterns over the entire contract term. This review revealed high -usage items not included in the Market Basket for Bid 7066. Grainger has priced the high -usage items mentioned above and attached the pricing herein as Exhibit D, "WSCA High Usage Items". Highlighted in Exhibit D are 16 most commonly purchased items that through additional negotiations with our suppliers resulted in a significant savings to the WSCA organization based on prior year usage. The table below summarizes Grainger's Best and Final pricing offer and represents the pricing concessions that we are providing as a part of the revised ITB 7066 Market Basket. Market Basket Section original Solicitation Price Best and Final Negotiations Price Dollar Difference Percentage Difference 1 $ 429,459.12 $ 381,231.43 $ 48,227.69 13% 5 $ 2,182,851.38 $ 2,107,305.99 $ 76,536.55 4% 7 $ 236,237.69 $ 214,674.67 $ 21,563.02 10% 12 $ 663,261.03 $ 614,413.29 $ 48,847.74 8% Totals $ 3,511,809.22 $ 3,316,634.22 $ 195,175.00 6% A More Robust Balance of the Line Offering Grainger's discount structure, outlined in the original WSCA "Exhibit A Discount Structure", is Grainger's best primary pricing offering. This discount program applies to all of the products in the catalog, representing approximately 140,000 products and thousands of name brand manufacturers. Grainger is uniquely positioned to offer WSCA the broadest choice in industrial grade facilities maintenance products at competitive prices. When looking at Grainger's pricing structure it is critical to understand that Grainger's offering consists of high grade industrial products which allow our customers to safely perform their jobs. -2- GRAINGER FOR 'flU ONCE WHO Ott fJ' DONE Again, once Grainger received the invitation to provide a Best and Final Offer, Grainger began working to enhance its offering. Grainger is pleased to provide the discounts below as additional pricing concessions. (See original Exhibit A attached) The summary below outlines the significantly improved offering located in Exhibit A that will, based on historical usage, increase the overall value Grainger provides WSCA. Manufacturer DeWalt Original Solicitation MSLP Discount by Manufacturer Up to 48% off DeWalt Current Industry Net Price Schedule Best and Final Negotiations MSLP Discount by Manufacturer Up to 50% off DeWalt Current Industry Net Price Schedule Stanley Up to 52% off Stanley Manufacturer Current List Price Up to 66% Off Stanley Manufacturer Current List Price Advance Transformer - all Discounts apply from June 1, 2005 CATALOG 155CC Advance -Electronic 80% Off Manufacturer Current List Price 83.5% Off Manufacturer Current List Price Advance - FLB 75% Off Manufacturer Current List Price 77.5% Off Manufacturer Current List Price Advance - HID 75% Off Manufacturer Current List Price 77.5% Off Manufacturer Current List Price Exceptions to Solicitation Terms and Conditions (3.6, 3.8 and 8.8) Section 3.6 Prices for all items associated with this contract are to be FOB Destination anywhere within the participating WSCA states or geographic area offered. and Section 8.8 DELIVERY, INSPECTION, ACCEPTANCE, TITLE, RISK OF LOSS: Vendor agrees to deliver the goods as indicated in the Contract, and upon acceptance by the State, title to the goods shall pass to the State. After careful consideration and significant work, Grainger retracts our original objections and clarifications to Sections 3.6 and 8.8 as submitted in Grainger's Bid 7066 Letter of Clarification and Grainger's Bid 7066 Technical Response and agrees to implement a manual internal process to track accounting and tax ramifications for these free freight, delayed title transfer orders. Additionally, Grainger offers the following for consideration relative to Grainger's confidential and proprietary information. Section 3.8 Page 7; Subsection 3.8. Under this offer, the following will apply to reports provided under the contract: "All reports and the information contained in the reports are considered confidential and proprietary. To the extent permitted by law, WSCA and Purchasing Entity Buyer's agree that they will keep this information confidential and only use it for their own benefit, including this WSCA Contract Number 7066 To the extent permitted by law, WSCA or Purchasing Entity Buyers may share such confidential and proprietary information with third party consultants if such third parties agree to keep the information confidential and agree to not disclose it to any other third parties and agree to use it solely for the purpose of work on behalf of and for the benefit of WSCA or the Purchasing Entity Buyer engaging the consultant. -3- GRAINGER POP 7'r1[: ONES WWO OEr 1r UONE Identification of all Participating States Assigned Contacts Experienced Grainger Government Account Managers are responsible for individual government customer locations. Grainger's government sales coverage model provides a comprehensive, unmatched customer service solution. Attached herein are examples of Grainger's complete coverage model representing Grainger's vast sales force. The comprehensive outline is detailed in the following Exhibits: Exhibit F Exhibit F-1 Exhibit F-2 Grainger United States Government Customer Coverage Map Grainger United States Government Customer Coverage Contact List Grainger WSCA Contract Contact List Identification of National Government Strategic Marketing Team Grainger believes the dual concepts of strategic marketing and contract implementation are inextricably intertwined; the success of any long-term contract hinges on the understanding of mutual expectations and consistent implementation across all Participating State Agencies. Grainger's post -award approach, therefore, links two complementary strategies; Award Implementation and Marketing. Implementation Immediately upon award, Grainger will host conference calls inviting all WSCA Participating State representatives. The purpose of the call will be to highlight the features of the new contract. Grainger will immediately contact each designated WSCA Procurement Official to execute the WSCA Participating Addendum. Concurrently, Grainger's entire experienced WSCA sales, branch network and sales support force will be thoroughly educated on the specific contract terms. Immediately following the execution of each Participating Addendum, all current 15,413 WSCA customers will be contacted to drive awareness of the new award. Promotion of WSCA to Grainger's government customer base will create additional brand awareness for the WSCA organization. Upon award, Grainger's Sales and Implementation Team will assist in facilitating the new WSCA Industrial Supplies Contract. Grainger's vast experience with these customers will be an invaluable resource toward a successful and timely contract launch. Focusing Grainger's Sales and Implementation Team's considerable resources on the WSCA customer base will ensure speed -to -cost savings for Participating State Agencies utilizing scalable and repeatable processes. Grainger's Sales and Implementation team, in conjunction with Grainger WSCA-aligned Government Sales Managers, Government Account Managers, extensive Branch network, and WSCA members, will be responsible for executing a comprehensive implementation plan that meets and exceeds our mutual objectives. Grainger has had success in the past utilizing on -site workshops to coordinate and begin to implement local contract goals and objectives. -4- GRAINGER. Jr OR rut ONE 5 WOO Gi r o' l)oNr Contract Implementation Workshop Meeting 1. Initial WSCA geographical customer workshops will occur in all participating states. Attached as Exhibit E is a list of host cities and proposed WSCA Customer Implementation Planning workshop dates. 2. Each workshop will include the State Aligned Government Sales Manager, Grainger Account Manager, local Grainger District Sales Manager, local Grainger Branch Contact, and local Grainger Branch Manager. This team will focus primarily on a specific WSCA customer's initial Implementation Strategy. 3. Each Regional Workshop will include WSCA customer -specific implementation plans spotlighting WSCA's largest customers; implementation plans will be tailored to specific customer needs. These planning sessions will include time lines; roles and responsibilities; and action steps to meet and exceed WSCA customer expectations. 4. Grainger's workshop strategies will assist states, cities, counties and educational organizations to consolidate spend within unique product lines. Grainger's complete and robust product offering can assist WSCA customers in reducing overall procurement process costs. The emphasis will be on unplanned, infrequently purchased product. Grainger's implementation plan includes engaging the highest level purchasing authority to re- emphasize the value of the WSCA contract. 5. Below is a template of a strategic WSCA Customer Planning Workshop: Pre -work ➢ Review Scope of Work ➢ Document a preliminary implementation strategy ➢ Determine number of sites > Identify internal resources ➢ Determine customer contacts ➢ Identify suppliers needed Planning Session ➢ Confirm implementation strategy with planning team ➢ Develop implementation checklist including dates with customer and team ➢Develop communication documents >Align internal and external resources > Develop site workshop agenda Key Actions > Conduct conference calls with the Grainger internal team > Conduct conference calls with WSCA customer > Conduct implementation workshop at customer sites Assign workshop objectives and timelines unique to that location > Conduct site assessments ➢ Establish team barrier removal process ➢ Identify functional process ➢ Engage Grainger cross-referencing at customer sites, if necessary -5- GRAINGER. row? TIE ONES WHO GE 1 1r DONE > Reports built by Grainger cross-referencing of SKU level data ➢ Deliver data back to customer Monitoring > Implementation Project Manager and Government Sales Manager reviews ➢ Measure compliance > Develop Standardization Strategy > Identify gaps / remove barriers 6. Upon selection, Grainger will utilize our award -winning eBusiness website to host important contract information specific to each individual Participating WSCA State's Homepage. This site will host state -specific WSCA contact information, benefits of the contract and discount structure. Grainger contact information will be provided with the ability to email your Grainger representative. The Homepage links each user directly to either their Participating State's Internet site or WSCA website through hyperlink technology. Grainger invites WSCA to co - brand this material to further drive WSCA brand awareness at no cost to WSCA. 7. Grainger has developed marketing materials designed to articulate complete contract details consistent with the appearance of each aforementioned Homepage. The marketing collateral is intended to be used as a tool for our sales team and WSCA customers to discuss the features and benefits of the Industrial Supplies Contract. Grainger invites WSCA to co -brand this material to further drive WSCA brand awareness at no cost to WSCA. Marketing Grainger's State and Local Government Marketing team is dedicated to promoting Grainger's value and capabilities to the Government market. Grainger's Marketing team collaborates with other industry -leading organizations for the mutual benefit of both parties. Specifically, the WSCA organization will be one of the most valued strategic partners identified by the Marketing Team for future activities. Upon successful award of the contract, the Grainger Marketing team will work closely with WSCA to develop a strategic National marketing plan focused on promoting the value both organizations bring to our mutual Government customers. Grainger has extensive experience in developing strategic marketing plans supporting other national organizations and contracts in the Government market. These include the Education and Institutional (E & I) contract, our Federal GSA contract and the United States Postal Service (USPS) Maintenance Repair and Operating supplies contract. Several of the potential tactical elements that will be contained, post award, within the joint Marketing plan are listed below. Grainger has experience in all these areas. Direct Marketing The WSCA contract and related benefits can be promoted to all member states through Grainger's direct mail program. This program has been successfully utilized in the past, communicating the WSCA contract value to thousands of members each quarter. Together, we can build upon this success and drive contract awareness deeper into our customer/member base. In addition, this communication -6- GRAINGER FON 7Hf ONUS WHO Gtl rr' ooNE program can be extended to include other topics of interest. Communications could include specific products, services, and solutions of interest to our target audience. Web -Based Marketing As mentioned above, Grainger's world class website, www.grainger.com, is a proven, effective and efficient marketing tool. Grainger.com hosts our "Home Page" concept and related information. Each Home Page is unique to a specific contract or customer and is designed to drive awareness of a specific contract message. The Home Page can be customized and designed to meet specific communication needs. Again, this concept has been used in the past with WSCA and can be enhanced to the mutual benefit of both organizations. Grainger's email marketing has demonstrated significant success in alerting our customers instantly of contract updates, new product alerts, and other information of interest. This method of communication allows our customers to make more informed buying decisions quicker. Grainger also develops and distributes electronic newsletters. These newsletters contain articles and other information of interest to customers. A WSCA-specific electronic newsletter will be developed to further promote the value of both organizations. Trade Shows Grainger participates in many national, regional, and local trade shows and similar events throughout the year supporting targeted organizations. Examples of these events include the National Association of State Procurement Officials, National Association of State Chief Administrators, National Association of State Facility Administrators, National Association of Education Buyers, National Association of College and University Business Officials, and Association of Higher Education Facilities Officers. National and regional/local WSCA events will become part of the larger joint strategic plan. Over the last seven years, Grainger's dedicated government marketing team invested a significant amount of the marketing budget to support the cost of these efforts. Grainger's Government Marketing Team: Laura Brown Don Scheibenreif Kristen Johnson -Holz Leann Griebner Mamie Andry Maria Keevins-Kogen Marty Johnson Mary Beth Parker Jan Parks Rachael Cronin VP Marketing Director of Government Marketing Director of Marketing Communications Sales Service Manager Government Customer Marketing Manager Integrated Planning Manager Government Marketing Manager Government Customer Marketing Manager Associate Government Marketing Manager Associate Government Marketing Manager -7-