Florida STC 991-160-11-2:

Statewide and Global Courier Services

Training Overview

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Agenda• How we

came to the new contract.

• Why!Historical Overview

• New Contract

• Award Vendors

• DeliverablesContract Overview

• Benefits of new contract.

Contract Benefits

Cost Saving Tips & Ideas

• Any Questions?

• Contact Information

Questions / Contact Us

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Ways 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 UPS

Contract Signed by the contractors January 13, 2011.

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Contract 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.

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Contract Information: STC Web page:

http://dms.myflorida.com/contract_search/(category)/2

Discount Summary Vendor information Price Sheets Full Contract Contract Manager Information

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Contract Overview

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Air Express Terms Time of Delivery FedEx UPS

Next Day First Delivery 8:30 a.m. First Overnight Air Early AM

Next Business Day AM 10:30 a.m. Priority

Overnight Next Day Air

Next Business Day PM 3:30 p.m. Priority

StandardNext Day Air

Saver

2nd Business Day PM 3:30 p.m. 2nd Day 2nd Day Air

3rd Business Day 3:30 p.m. Express Saver 3rd Day Select

MONEY 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

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Contract Benefits

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Savings Model – First Overnight Next Day First Delivery – By

8:30 a.m.

Current FedEx UPS Best Value Percent

Difference Best Value

Percent Difference

Zone

Weight 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%

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Savings Model – Next Day AM Next Business

Day AM – By 10:30 a.m .

Current FedEx UPS Best Value Percent

Difference Best Value

Percent Difference

Zone

Weight 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%

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Savings Model – Next Day PM Next Business

Day PM – By 3:30 p.m .

Current FedEx UPS Best Value Percent

Difference Best Value

Percent Difference

Zone

Weight 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%

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Savings Model - 2nd Day Express Air 2nd Business Day –By 3:30

p.m . Current FedEx UPS Best Value

PercentDifference

Best Value Percent

Difference

Zone

Weight 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%

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Savings Model – 3rd Day Express Air 3rd Business Day –By 3:30

p.m . Current FedEx UPS Best Value Percent

Difference Best Value Percent

Difference

Zone

Weight 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%

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Savings Model – Ground Ground Current FedEx UPS Best Value

PercentDifference

Best Value Percent

Difference

Zone

Weight 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)

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Not Including any additional charges:  Daily Costs Weekly Costs Yearly Cost

10 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:

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COST DECLARED

DECLARED 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:

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Not 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

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25% in a month Reduction of Express Estimated Savings per Month

Estimated Savings per Year

Total Express Air Shipments $68,492.46 $22,085.98 $265,031.77

2nd Day $17,950.43 $3,955.82 $47,469.86

3rd Day $2,243.24 $177.41 $2,128.92

First Overnight $4,377.34 $4,012.40 $48,148.81

Next Day PM $17,428.72 $3,490.38 $41,884.52

Next Day AM $26,492.73 $10,449.97 $125,399.67

Cost Saving Tips and IdeasUse on line shipping tools provided at:http://www.fedex.com/us/http://www.ups.com/

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No Ground on Hand Written

Tickets

Cost Saving Tips and IdeasUse on line shipping Saves 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.

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Entity Name Contact Person

Contact information

State Purchasing Contract Manager

Angela CaldwellPurchasing Analyst

Angela.Caldwell@dms.MyFlorida.com(850) 488-4946

FedEx Bobby BledsoeGov’t Account Mgr.

rdbledsoe@fedex.com(901) 219-6964

UPS Stepphone MackGov’t Account Mgr.

semack@ups.com(502) 821-1793

State Purchasing

Customer Service

PurchasingCustomerService@dms.MyFlorida.com(850) 488-8440

MFMP Buyer Help BuyerHelp@MyFloridaMarketPlace.com(866) 352-3776

http://dms.myflorida.com/contract_search/(category)/221

Contract Resources

Questions:

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Thank you for joining us!

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Contact InformationTeam Member

E-Mail Phone Number

Contract Manager

Angela.Caldwell@dms.MyFlorida.com (850) 488-4946

MFMP BuyerHelp

BuyerHelp@MyFloridaMarketPlace.com

(866) 352-3776

MFMP F&A Analyst

Anne.Rabon@dms.MyFlorida.com (850) 294-0739

MFMP Communications Analyst

Linda.McDonald@dms.MyFlorida.com

(850) 363-0628

MFMP Operations Manager

Danielle.Kosberg@dms.MyFlorida.com

(850) 766-0772

State Purchasing

PurchasingCustomerService@dms.MyFlorida.com

(850) 488-8440 24