PRINT MANAGEMENT PROGRAM OFFICE

Program Overview

FEDERAL STRATEGIC SOURCING INITIATIVE

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

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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

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Over twenty-four agencies and organizations collaborated to develop a Print Management program which meets the needs of the Federal community

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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

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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

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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

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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

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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

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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

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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

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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

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• 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 print.management@gsa.gov

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