Florida STC 991-160-11-2: Statewide and Global Courier Services Training Overview

Florida STC 991-160-11-2:

Statewide and Global Courier Services

Training Overview

Supported by

WebEx HousekeepingOnce again, to prevent background noise and assure sound quality for all participants, please press *6 to mute your phone, and #6 to un-mute, or use your phones mute button.Please do not use your phones hold feature.Submit questions any time by using the Chat Box feature in the lower right-hand corner of the WebEx screen.Well have a formal Q/A wrap-up at the end of our presentation.2AgendaHow we came to the new contract.Why!Historical OverviewNew ContractAward VendorsDeliverables

Contract OverviewBenefits of new contract.Contract BenefitsCost Saving Tips & IdeasAny Questions?

Contact Information Questions / Contact Us3Ways to reduce cost.Historical Contract OverviewCourier Services Contract 991-160-11-1 began Aug. 13, 2010. This contract included county-based couriers for same day service and FedEx for statewide and global.On November 12, 2010 Terminated for Convenience FedEx end date January 30, 2011 @ 11:59 pm.On November 17, 2010 New Contract solicitation launch.Awarded on December 20, 2010 to both FedEx and UPSContract Signed by the contractors January 13, 2011.

4Region 1 includes Leon , Wakulla and Jefferson counties and all counties West of Jefferson County.

Bay, Calhoun, Escambia, Franklin, Gadsden, Gulf, Holmes, Jackson, Jefferson, Leon, Liberty, Okaloosa, Santa Rosa, Wakulla, Walton, Washington4Contract OverviewNew State Term Contract No.: 991-160-11-2.Term 5 years with 5 years renewal.Contract Date: January 31, 2011 January 30, 2016.Two Awarded Vendors:FedEx and UPS Each State Agency has the option to choose either Contractor for services.FedEx account numbers should not change.

5

Contract Information: STC Web page:http://dms.myflorida.com/contract_search/(category)/2

Discount SummaryVendor informationPrice SheetsFull ContractContract Manager Information

6Contract Overview7Air Express TermsTime of DeliveryFedExUPSNext Day First Delivery8:30 a.m.First OvernightAir Early AMNext Business Day AM10:30 a.m.Priority OvernightNext Day AirNext Business Day PM3:30 p.m.Priority StandardNext Day Air Saver2nd Business Day PM3:30 p.m.2nd Day2nd Day Air3rd Business Day3:30 p.m.Express Saver3rd Day SelectMONEY BACK GUARANTEE: if packages are not delivered within 5 minutes of the chosen Service Level.Two Vendors Declared Value 50 percent less than standard.Estimated Reduction of $50,000 per year.Fuel Surcharge CAPs: Ground 6 percent and Express 10 percent.Estimated Reduction of $150,000.Better than State of New York Pricing in most areas.Major reductions than current contract pricingSavings Models

8Contract Benefits9Savings Model First Overnight Next Day First Delivery By 8:30 a.m. Current FedEx UPS Best Value PercentDifference Best Value Percent Difference ZoneWeight 2 3 2 3 2 3 2 3 Letter $ 42.00 $ 45.20 $ 42.00 $ 45.20 $ 43.64 $ 46.00 Fed Ex 0.00% Fed Ex 0.00%1 $ 45.25 $ 52.15 $ 45.25 $ 52.15 $ 46.04 $ 51.16 Fed Ex 0.00% UPS 1.90%2 $ 45.90 $ 54.55 $ 45.90 $ 54.55 $ 46.52 $ 52.92 Fed Ex 0.00% UPS 2.99%3 $ 48.55 $ 56.35 $ 48.55 $ 56.35 $ 48.48 $ 54.28 UPS 0.14% UPS 3.67%4 $ 50.35 $ 57.85 $ 50.35 $ 57.85 $ 49.80 $ 55.36 UPS 1.09% UPS 4.30%5 $ 50.65 $ 59.25 $ 50.65 $ 59.25 $ 50.04 $ 56.40 UPS 1.20% UPS 4.81%10Savings Model Next Day AM Next Business Day AM By 10:30 a.m . Current FedEx UPS Best Value PercentDifference Best Value Percent Difference ZoneWeight 2 3 2 3 2 3 2 3 Letter $ 6.50 $ 6.50 $ 5.56 $ 5.74 $ 5.50 $ 5.68 UPS 15.38% UPS 12.60% 1 lb pak $ 6.50 $ 8.14 $ 5.95 $ 7.90 $ 5.56 $ 7.38 UPS 14.54% UPS 9.32% 2 lb pak $ 6.50 $ 8.86 $ 6.07 $ 8.60 $ 5.68 $ 8.03 UPS 12.58% UPS 9.42%1 $ 6.50 $ 8.14 $ 5.95 $ 7.90 $ 5.56 $ 7.38 UPS 14.54% UPS 9.32%2 $ 6.50 $ 8.86 $ 6.07 $ 8.60 $ 5.68 $ 8.03 UPS 12.58% UPS 9.42%3 $ 7.06 $ 9.40 $ 6.84 $ 9.12 $ 6.40 $ 8.52 UPS 9.35% UPS 9.33%4 $ 7.60 $ 9.85 $ 7.36 $ 9.54 $ 6.88 $ 8.92 UPS 9.43% UPS 9.45%5 $ 7.69 $ 10.27 $ 7.45 $ 9.96 $ 6.97 $ 9.30 UPS 9.35% UPS 9.45%11Savings Model Next Day PM Next Business Day PM By 3:30 p.m . Current FedEx UPS Best Value PercentDifference Best Value Percent Difference ZoneWeight 2 3 2 3 2 3 2 3 Letter $ 6.50 $ 6.50 $ 4.85 $ 4.85 $ 5.16 $ 5.25 FedEx 25.38% FedEx 25.38% 1 lb pak $ 6.50 $ 6.82 $ 5.51 $ 6.36 $ 5.25 $ 6.12 UPS 19.23% UPS 10.23% 2 lb pak $ 6.50 $ 7.23 $ 5.51 $ 6.73 $ 5.30 $ 6.48 UPS 18.42% UPS 10.43%1 $ 6.50 $ 6.82 $ 5.51 $ 6.36 $ 5.25 $ 6.12 UPS 19.23% UPS 10.23%2 $ 6.50 $ 7.23 $ 5.51 $ 6.73 $ 5.30 $ 6.48 UPS 18.42% UPS 10.43%3 $ 6.50 $ 7.65 $ 5.51 $ 7.12 $ 5.30 $ 6.86 UPS 18.42% UPS 10.35%4 $ 6.50 $ 8.16 $ 5.85 $ 7.60 $ 5.63 $ 7.31 UPS 13.42% UPS 10.41%5 $ 6.50 $ 8.26 $ 6.00 $ 7.70 $ 5.78 $ 7.41 UPS 11.03% UPS 10.30%12Savings Model - 2nd Day Express Air 2nd Business Day By 3:30 p.m . Current FedEx UPS Best Value PercentDifference Best Value Percent Difference ZoneWeight 2 3 2 3 2 3 2 3 Letter $ 6.50 $ 6.50 $ 5.03 $ 5.03 $ 4.53 $ 4.53 UPS 30.31% UPS 30.31% 1 lb pak $ 6.50 $ 6.82 $ 5.03 $ 5.03 $ 4.53 $ 4.53 UPS 30.31% UPS 33.58% 2 lb pak $ 6.50 $ 7.23 $ 5.03 $ 5.03 $ 4.53 $ 4.53 UPS 30.31% UPS 37.34%1 $ 6.50 $ 6.82 $ 5.03 $ 5.03 $ 4.53 $ 4.53 UPS 30.31% UPS 33.58%2 $ 6.50 $ 7.23 $ 5.03 $ 5.03 $ 4.53 $ 4.53 UPS 30.31% UPS 37.34%3 $ 6.50 $ 7.65 $ 5.03 $ 5.03 $ 4.53 $ 4.53 UPS 30.31% UPS 40.78%4 $ 6.50 $ 8.16 $ 5.03 $ 5.03 $ 4.53 $ 4.53 UPS 30.31% UPS 44.49%5 $ 6.50 $ 8.26 $ 5.03 $ 5.03 $ 4.53 $ 4.56 UPS 30.31% UPS 44.79%13Savings Model 3rd Day Express Air 3rd Business Day By 3:30 p.m . Current FedEx UPS Best Value PercentDifference Best Value Percent Difference ZoneWeight 2 3 2 3 2 3 2 3 Letter $ 6.50 $ 6.50 $ 4.98 $ 4.98 $ 4.30 $ 4.30 UPS 33.79% UPS 33.79% 1 lb pak $ 6.50 $ 6.82 $ 4.98 $ 4.98 $ 4.30 $ 4.30 UPS 33.79% UPS 36.90% 2 lb pak $ 6.50 $ 7.23 $ 4.98 $ 4.98 $ 4.30 $ 4.30 UPS 33.79% UPS 40.48%1 $ 6.50 $ 6.82 $ 4.98 $ 4.98 $ 4.30 $ 4.30 UPS 33.79% UPS 36.90%2 $ 6.50 $ 7.23 $ 4.98 $ 4.98 $ 4.30 $ 4.30 UPS 33.79% UPS 40.48%3 $ 6.50 $ 7.65 $ 4.98 $ 4.98 $ 4.30 $ 4.30 UPS 33.79% UPS 43.75%4 $ 6.50 $ 8.16 $ 4.98 $ 4.98 $ 4.30 $ 4.30 UPS 33.79% UPS 47.26%5 $ 6.50 $ 8.26 $ 4.98 $ 4.98 $ 4.30 $ 4.33 UPS 33.79% UPS 47.55%14Savings Model Ground Ground Current FedEx UPS Best Value PercentDifference Best Value Percent Difference ZoneWeight 2 3 2 3 2 3 2 3 1 $ 3.68 $ 3.68 $ 3.72 $ 3.72 $ 3.27 $ 3.28 UPS 11.14% UPS 10.87%2 $ 3.68 $ 3.68 $ 3.72 $ 3.72 $ 3.28 $ 3.29 UPS 10.87% UPS 10.60%3 $ 3.68 $ 3.68 $ 3.72 $ 3.72 $ 3.29 $ 3.30 UPS 10.60% UPS 10.33%4 $ 3.68 $ 3.71 $ 3.72 $ 3.72 $ 3.30 $ 3.32 UPS 10.33% UPS 10.51%5 $ 3.68 $ 3.76 $ 3.72 $ 3.72 $ 3.31 $ 3.46 UPS 10.05% UPS 7.98%Cost Saving Tips and IdeasCombine shipments to the same address:

Example : a person in Tallahassee sends average 10 individual pieces of mail a day to Jacksonville. Coming from the same person and signed by the same person each one pound Priority Standard (FedEx Term)

15Not Including any additional charges:Daily CostsWeekly CostsYearly Cost10 Packages$48.50 $242.50 $12,610.00 1 Combined$7.53 $37.65 $1,957.80 SAVINGS$40.97 $204.85 $10,652.20 Cost Saving Tips and IdeasPapers should not normally have declared value

Example : Sending of Checks with declared value:

16COST DECLAREDDeclared Value ChargesACTUAL COST OF CHECKPOTENTIAL SAVINGS$1000 $ 3.50 $ 0.05 $ 3.45 $2000 $ 7.00 $ 0.05 $ 6.95 $3000 $ 10.50 $ 0.05 $ 10.45 $4000 $ 14.00 $ 0.05 $ 13.95 $5000 $ 17.50 $ 0.05 $ 17.45 Cost Saving Tips and IdeasAvoid using First Overnight

Example First Overnight costs $42 for the letter pack: From Tallahassee to Anywhere in the State:17Not Including any additional charges: $42.00 per package Same City use Local Courier Same Day Priority AM Priority PM Ground 2 Hour Service Cost with New Rates $15.00 $5.50 $5.16 $3.27 SAVINGS $27.00 $36.50 $36.84 $38.73 Yearly Savings(4000 Items) $108,000.00 $146,000.00 $147,360.00 $154,920.00 Cost Saving Tips and IdeasUse Ground Not Express in State

1825% in a monthReduction of ExpressEstimated Savings per MonthEstimated Savings per YearTotal Express Air Shipments$68,492.46$22,085.98$265,031.772nd Day$17,950.43$3,955.82$47,469.863rd Day$2,243.24$177.41$2,128.92First Overnight$4,377.34$4,012.40$48,148.81Next Day PM$17,428.72$3,490.38$41,884.52Next Day AM$26,492.73$10,449.97$125,399.67Cost Saving Tips and IdeasUse on line shipping tools provided at:http://www.fedex.com/us/http://www.ups.com/

19

No Ground on Hand Written TicketsCost Saving Tips and IdeasUse on line shippingSaves time - about 2 minutes per package.That can calculate to savings with 20,000 packages2 minutes extra per package @ .20 per minute - $12/hr.Savings of $8,000/month or $96,000/year.Saves money online system checks addresses to make sure they are deliverable.Each address correction adds $10 to $15 to each shipment.No discrepancies like with handwriting errors.

20Entity NameContact PersonContact informationState Purchasing Contract ManagerAngela CaldwellPurchasing [email protected](850) 488-4946FedExBobby BledsoeGovt Account [email protected](901) 219-6964UPSStepphone MackGovt Account [email protected](502) 821-1793State PurchasingCustomer [email protected](850) 488-8440MFMPBuyer [email protected](866) 352-3776http://dms.myflorida.com/contract_search/(category)/221Contract ResourcesQuestions:22

Thank you for joining us!23Contact InformationTeam MemberE-MailPhone NumberContract [email protected](850) 488-4946

MFMP BuyerHelp [email protected](866) 352-3776

MFMP F&A [email protected](850) 294-0739MFMP Communications [email protected](850) 363-0628MFMP Operations [email protected](850) 766-0772State [email protected](850) 488-8440

24