Addendum #1 E&I RFP # Express Package & Delivery Related Service

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Eugenia Chambers
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October 2, 2017 RFP #683403 As a result of the Pre-Proposal Conference call held on September 20, 2017, certain questions were raised and discussed. These items are described in this addendum.

1 October 2, 2017 RFP # As a result of the Pre-Proposal Conference call held on September 20, 2017, certain questions were raised and discussed. These items are described in this addendum. 1) Regarding the last line under Proof of Delivery on page 8. If Supplier is instructed to return package to shipper, the package will be returned to the shipper at no additional charge. My experience is that the shipper is charged. Answer If you take exception to this, please put that in your RFP response. It can be on a case by case basis. This is something that the Member wanted to include in the RFP. 2) Under Part 7: Financial Offer Summary on page Pricing and (iv) Price changes contradict each other. Answer You are allowed to have a price increase once every 12 months. It can be based on the dual Producer Price Index (PPI). (One for Ground and one for Air). 3) Do you have a Master Membership list which shows who have used this agreement? Answer - We cannot disclose a list of members who have used this agreement. 4) Can you give us a service breakdown in terms of the $ spend for each service? Answer We can give you a usage breakdown in terms of percentage. Domestic Express 62% (consisting mainly of 2 day, priority overnight and standard overnight), International Express 26%, Ground (US Continental) 11%, SmartPost 0.5%, Intl-Ground 0.5%. 5) 1.3 Marketing Opportunity Why is the last sentence in this paragraph listed? There is interest in utilizing the potential contract by the Participating Oregon Community Colleges (POCC). Answer It is part of their compliance requirements. 6) Service Agreements Can you clarify what this entails? Answer This language is in the RFP in case the Member asks for something out of the box. We need to cover everything. 7) Is this RFP strictly for Carriers? Can a 3 rd party supplier respond? Answer Yes. You can respond to this RFP. 8) Would you consider a team pairing response to the RFP? For example, a separate inbound affiliate teaming with the Supplier? Page 1 of 6

2 Answer Yes. You can respond as a team pairing to this RFP. 9) 2.1 Statement of Work Do you see this contract being awarded to multiple suppliers? Answer We are looking for the most competitive, overall value for our members. It could be a multiple award but E&I prides itself in awarding one contract to one Supplier. 10) Can you give a dollar value of each service? Answer We can give you a percentage breakdown. Please see Question 4. Below is a list of questions submitted to E&I by the potential suppliers prior to the deadline for written questions: 1) Would you endorse a provider for the international business separately from the domestic business? Answer - Yes 2) Can you please provide the overall spend for the international business? Answer International Express is 26% of the overall business. International Ground is 0.5% of the overall business. 3) Do you endorse any shipping software solutions? If so, do you use the rates for the shipping software provider? Answer One of our business partners is Vantage Point Logistics which is a Freight Management solution. The rates that are used are E&I member rates. 4) Would the rebate be sent to E&I Cooperative or to the member directly? Answer The rebate is sent to E&I from the Supplier quarterly. E&I sends the rebate to the members on a yearly basis. 5) Note page 8 Please clarify daily pickup services. Answer Daily Pickup services is when the member schedules a regular scheduled pickup. 6) Please clarify last sentence in yellow on page 8, under Proof of Delivery. If Supplier is instructed to return package to shipper, the package will be returned to the shipper at no additional charge. Answer Please see answer to question #1 from the questions that were raised on the pre-proposal call. 7) Part 2: Scope of Services: Please clarify sentence in question. Dimensional weights will only be paid by a user entity based on the following formula: Length x Width x Height divided by (194 Domestic) (166 International). Is the current standard guide the dimensional weight formula and divisor you are requesting? Page 2 of 6

3 Answer Yes, please use the current Domestic and International dimensional weight formula and divisor. 8) Please clarify Internet/E-Commerce Site. Answer Please list all the item and services that are included on your Internet/E-Commerce site. 9) Please clarify 7.1 Pricing. The discount shall remain firm for the life of the Agreement unless improved to the benefit of E&I and the E&I Membership. We believe it may be in conflict with: Price Changes: Prices may be decreased at any time during the contract period. All pricing shall remain firm for the first year of the contract, after which price increases are allowable once every twelve (12) months and include escalation factors based on the Producer Price Index (PPI). Answer E&I would like the percentage discount to the member to remain firm for the life of the Agreement. The discount percentage should remain firm, even with price increases. 10) Will E&I manage the rebate back to the members if agreed upon directly with the members? Answer E&I does not have to manage the rebate back to the members if it is agreed upon with a member on an individual basis. Please explain on what you are proposing in your response. 11) Can we be provided a copy of this RFP in a word document for legal review? Answer Upon request, we can send you a word version of the RFP. 12) Based on the large scope of information provided and our ability to provide the most thorough response, we respectfully request a 30 day extension from October 31, Answer We will extend the response due date an additional two weeks. The new RFP deadline is Tuesday, November 14 th 2017 at 1 pm EST. 13) If a new carrier is selected, how many of your approximate 4,100 members do you estimate will use this contract? Answer We cannot estimate how many members will utilize the contract if a new carrier is selected. Approximately 25% of our members are currently utilizing the contract. 14) Based upon your members purchasing requirements, what percentage of them do you estimate will impose their own Terms & Conditions after the master agreement is finalized? Answer We ae unable to give an accurate percentage for this question. If you agree to most of the terms and conditions in the RFP, the percentage should be low. 15) Pricing is significantly different for a $10M vs. a $50M opportunity, what is the annual dollar value of this total opportunity? Answer We believe the opportunity should exceed $100M within 3 years. Page 3 of 6

4 16) Please provide a percentage contribution for the services listed below to this opportunity referenced in question three. a) Letter 150 pounds - b) Freight Less-than-truckload (palletized shipments 151 pounds and <) - c) SmartPost d) Custom Critical e) Same Day Freight - f) Priority and Economy Freight g) International Mail Answer Please see answer to question #4 from questions that were raised on the pre-proposal call. This is all the data that we can provide. 17) In order to price this business appropriately, please provide 30-days average historical shipping data that reflects E&I s membership. This data is in addition to the samples listed in the first two tabs of Attachment E. Please include: a) Number of packages by service level. b) Origin/destination zip code pairs c) Weight samples Answer Please submit the pricing based on the data shown on the first two tabs on Attachment E. 18) Please provide shipping locations. Answer Please submit the pricing based on the data shown on the first two tabs on Attachment E. 19) Page 10, Part 2: Scope of Services: Dimensional Weight = what is the origin of the dimensional weight formula listed? How was it formulated? Answer - please use the current Domestic and International dimensional weight formula and divisor. 20) Page 13, Part 3: Evaluation Criteria Process: 3.2 Evaluation Criteria a. To ensure vendors clearly understand the evaluation criteria, please define the quality points assigned to each of the sections under the technical and pricing components? Answer The factors below are the some of the most important factors in evaluating the RFP. A point system may be used for the evaluation. a. Pricing b. Adherence to Terms & Conditions/RFP Specifications c. Supplier Capabilities Page 4 of 6

5 d. Breadth and Quality of Products/Services e. Supplier s Qualifications f. Added Value Solutions/Incentives. 21) Can we assume that Part 6 Special Conditions and Attachment A General Terms and Conditions is referring to sellers of goods (instead of services) and will not actually govern the eventual awarded contract(s)? Answer No. There are some terms under Special Conditions that do not apply to Services. Please respond N/A Not Applicable in your response. 22) Page 26, Special Conditions 6.22 a. Please elaborate on what is meant by Expropriation. Answer Please list any property that has been surrendered to the state or government. 23) Attachment E: For the VRF Field Explanations tab, will E&I provide the member number and member name during the initial onboarding process? Answer Yes, the awarded business partner will receive a member list which will include member name and number. The Member Support Services Supervisor Coordinator will send you monthly updates and communication on new members. Part 6: Special Conditions 6.3 Term - There is a change in the renewal option. Paragraph should now read: The Agreement term will be for five (5) years with the option of one (5) year renewal. Exercise of any renewal option will require formal written notification to the Supplier(s) at least one (1) year prior to Agreement expiration. The Supplier(s) must then return formal written acknowledgement of the renewal option within 30 days. Part 4: Proposal Requirements 4.1 Tentative Schedule of Events There is a change in the Deadline for Receipt of proposals. The new deadline for receipt of proposals is 1 P.M. E.T. on Tuesday, November 14 th, Page 5 of 6

6 These changes constitute an addendum to the above referenced RFP and are made a part thereof. Please sign below and return the addendum with your RFP response to acknowledge receipt of the addendum. Should you have any questions or concerns, please do not hesitate to contact me, Jim LoGrasso at Thank you. Sincerely, Jim LoGrasso Contract Manager General Products and Services cc: Judy Schaffer, Executive Director, General Products & Services (Supplier) (Authorized Signature) (Printed Name) (Title) (Date) Page 6 of 6

Addendum # 1 E&I RFP Enterprise Resource Planning Software, Systems & Services

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