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

1. Florida STC 991-160-11-2: Statewide and Global Courier ServicesTraining Overview Supported by

2. WebEx “Housekeeping” • Once 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 phone’s mute button. • Please do not use your phone’s hold feature. • Submit questions any time by using the Chat Box feature in the lower right-hand corner of the WebEx screen. • We’ll have a formal Q/A wrap-up at the end of our presentation.

3. Agenda • How we came to the new contract. • Why! • New Contract • Award Vendors • Deliverables • Benefits of new contract. Historical Overview Contract Overview Contract Benefits • Any Questions? • Contact Information Ways to reduce cost. Cost Saving Tips & Ideas Questions / Contact Us

4. Historical Contract Overview • Courier 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 UPS • Contract Signed by the contractors January 13, 2011.

5. Contract Overview • New 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.

6. Contract Information: STC Web page: http://dms.myflorida.com/contract_search/(category)/2 • Discount Summary • Vendor information • Price Sheets • Full Contract • Contract Manager Information

7. Contract Overview • MONEY BACK GUARANTEE: if packages are not delivered within 5 minutes of the chosen Service Level.

8. Contract Benefits • 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 pricing • Savings Models

9. Savings Model – First Overnight

10. Savings Model – Next Day AM

11. Savings Model – Next Day PM

12. Savings Model - 2nd Day Express Air

13. Savings Model – 3rd Day Express Air

14. Savings Model – Ground

15. Cost Saving Tips and Ideas • Combine 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)

16. Cost Saving Tips and Ideas • Papers should not normally have declared value Example : Sending of Checks with declared value:

17. Cost Saving Tips and Ideas • Avoid using First Overnight Example First Overnight costs $42 for the letter pack: From Tallahassee to Anywhere in the State:

18. Cost Saving Tips and Ideas • Use Ground Not Express in State

19. Cost Saving Tips and Ideas Use on line shipping tools provided at: http://www.fedex.com/us/ http://www.ups.com/ No Ground on Hand Written Tickets

20. Cost Saving Tips and Ideas Use on line shipping • Saves time - about 2 minutes per package. • That can calculate to savings with 20,000 packages 2 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.

21. Contract Resources

22. Questions:

23. Thank you for joining us!

24. Contact Information