INVITATION TO NEGOTIATE FLORIDA STATE UNIVERSITY

INVITATION TO NEGOTIATE FLORIDA STATE UNIVERSITY OPERATION OF VENDOR-OWNED MRO STORE ON FSU CAMPUS & PARTICIPATING SUPPLIER IN FSU E-MARKET ON-LINE CATALOG Overview: In 2000, Florida State University issued a Request for Proposals and subsequently awarded a contract to W.W. Grainger, for its vendor operated storefront on its main campus in Tallahassee, FL., and to provide additional needed services. In 2008, the University purchased SciQuest catalog content software, allowing campus departments to make purchases from web-based vendor catalogs using. The contractor implemented this software at the request of FSU, allowing departments to punch out to the contractor s on-line catalog, while being charged FSU prices, terms, and conditions. FSU calls the SciQuest-enabled product the E-Market; it has proven to be a popular and successful way to make purchases. Purpose: The purpose of this Invitation to Negotiate (ITN) is to secure a firm to provide the continuation of our existing operations, as described in this document, and to give the University the option of securing additional services or products in the future. The successful respondent will operate its own store in University provided space on the University s Main Campus, selling maintenance materials and supplies, common repair parts and replacement assemblies, and consumable supplies necessary for the comfort of our facilities regular users. This will be accompanied by an on line catalog capability described herein. Mandatory Site Visit and Pre-ITN Conference: The University has scheduled a mandatory site visit and pre-itn conference at the location, date, and time specified in the Calendar of Events. Failure to have a company representative attend the mandatory site visit and conference at the date and time scheduled constitutes waiver of your firm s ability to participate further in the ITN process. Sole Point of Contact: The University s sole point of contact for this Invitation To Negotiate shall be: Dan A Dayhoff, Director, Facilities Financial & Administrative Suite 107, Building A, Mendenhall Complex 969 Learning Way, Tallahassee, FL 32306 E: ddayhoff@admin.fsu.edu 1

Respondents to this solicitation or persons acting on their behalf shall not contact any employee or officer of Florida State University, the Florida State University Board of Trustees, or a University Direct Support Organization concerning any aspect of this solicitation, other than the individual designated as the Sole Point of Contact for this ITN, from the date of release of this solicitation (February 11, 2010) through the end of the 72-hour period following the University s posting of the notice of intended award, in accordance with BOG Regulation l8.002. Violation of this provision may be grounds for rejecting your firm s response and/or discontinuing negotiations. The Invitation to Negotiate Process: FSU selected the ITN process as the best way to obtain the required combination of best value pricing and top notch customer service, from companies with a proven track record in the operation of campus MRO stores, with regard to both pricing and services, and in the implementation of integrated on-line catalog application software, as described herein. The ITN process will be: Step 1: Solicitation and evaluation of written responses leading to the selection of a short list of companies with whom the University will negotiate. Failure to make the short list means that the company is eliminated from further consideration. Step 2: Negotiations are conducted with short listed with firm(s), including the further refining or reprioritizing of specifications, terms, conditions, and pricing algorithms. As the best interests of the University indicate, negotiations may be conducted either consecutively or concurrently. If consecutive negotiations are conducted, FSU will attempt to reach a contract with the top ranked company. If we are able to reach an agreement with the top ranked firm regarding contract pricing, terms and conditions, the company will be asked to submit a best and final offer, and an award recommendation will then be made to the Senior Vice President for Finance and Administration, without conducting negotiations with other short-listed firm(s). If FSU elects to negotiate with two or more proposers concurrently, following the negotiation period the company or companies with whom the University determines negotiations have progressed satisfactorily will be invited to submit a Best and Final Offer. Best and final offers will be evaluated and an award recommendation will be made to the Senior Vice President for Finance and Administration. Step 3: (1) Recommendation for award of contract to the Vice President or (2) Evaluation of the best and final offers, followed by recommendation of contract award to the Vice President. Step 4: Electronic posting of intended decision to award contract to firm advanced in Step 3. Who May Respond To This ITN Fully capable and responsible Companies, who are in good standing with the State of Florida and Florida State University who can demonstrate the ability to fulfill the specifications outlined herein, and that possess the financial capability, experience, and personnel resources to provide all goods and services described in this Invitation To Negotiate. Current Storefront Operation: 2

The current contractor operates the on-campus Facilities Stores operation, which serves as the primary source of MRO supplies for the University Facilities operations. All University departments are eligible to use the store through the use of University purchasing cards. The store currently has a staff of five employees backed by their organization s logistics structure. The store occupies a University owned space of approximately 6,580 square feet in the southwest quadrant of Mendenhall Building A, which is located in the center of the Florida State University campus. Current hours of operation are: 7:30 AM through 4:30 PM, Monday thru Friday excepting legally accepted holidays. Additional staffing may be needed during breaks between class sessions/semesters which provide Facilities the opportunity to do intense work efforts in the absence of the facilities regular users. Current Catalog Ordering Operation: The contractor currently offers in excess of one hundred thousand products to all University departments through the catalog software operation supported by a purchasing card payment methodology. Relationship of the Parties: The successful respondent will operate the store selling maintenance materials and supplies, common repair parts and replacement assemblies, and consumable supplies necessary for the comfort of our facilities regular users. This will be accompanied by a MRO catalog process also described herein. Operation of the store will include respondent owned inventory including but not limited to currently purchased materials, repair and replacement parts, and consumable supplies commonly used in a large scale campus like education facility or commercial office application. Questionnaire: 1. Proposer qualifications, Store Operation: A: Describe your company s experience in the sale of MRO supplies and materials in general and experience with similar projects of this nature in particular. B. List other Universities where your company has a similar operation, if any. C. List other operations your company has that are similar in nature but not on a University campus. 2. Proposer qualifications, E-Market Catalog: A. Describe your company s experience with the electric market software products, with special emphasis on University catalog implementations. 3. Operational plan for store: A. Provide details of how your firm proposes to operate the store on a daily basis. Include in this section details about the size and make-up of the proposed inventory. 3

B. Provide information about the staffing proposed for of the store operation indicating the number of employees with job titles and a description of their duties. Section should include an organization-staffing chart depicting the employees to be utilized in performing the contract. If possible, section should contain detailed resumes of the key personnel, including relevant technical qualifications. C. Explain how you will ensure that minority subcontractors fully participate in sales to FSU, through the operation of the storefront and catalog. D. Describe any proposed capital improvements proposed for the space. 4. Customer References: A. References should be as pertinent as possible to the type of store operation in the proposal. Each reference should include the name of the firm or institution, the address of the firm or institution and the name and phone number of an individual employed at that reference address who can discuss the referenced firm s relationship with the proposer (other than the party to this invitation). B. Please provide the reference information requested above, applicable to enablement of electronic market catalog content. 5. Strategic alliance with Florida State University: A. Describe in detail any special resources, skills or services which your firm possesses, which have not otherwise been addressed as a part of this ITN. 6. Customer Service: A. Provide examples of how you have met or exceeded the expectations of customers on similar projects. B. Provide examples of how you have been responsive to changes in your industry that benefitted your customer. Include examples of how you identify possible product shortages or price increases, in order to reduce the risk to your customer that products would be unavailable or unaffordable. C. Provide examples of how you have identified and solved problems related to supplying MRO supplies and related services, including how your customer was affected and the benefits to your customer. Examples may include relationships with manufacturers and suppliers, ability to make prompt shipments on short notice, ability to call on a network of distribution outlets if the primary location was unable to meet a contractual obligation, and the like. D. Provide examples of how your company s overall communication policies and procedures have ensured the success of similar University or public sector contracts. Include information regarding your communications with manufacturers, regional offices, and your customer. Describe process to handle merchandise returns, credits for same and exchanges. E. Provide examples of how the effectiveness and reliability of key personnel within your company have ensured the success of past projects. Include all aspects of fulfillment of the contract, from ordering from the manufacturer or your supplier, receipt and processing of the customer s purchase order, shipping to the customer, invoicing accurately, and promptly resolving any issues related to order receipt or payment. 4

F. Provide examples of how your company has worked with University or public sector customers to assist your customer in controlling costs. G. Provide examples of services you would provide as an integral part of this contract, at no additional cost to the University, related to planning, assessment, analysis, monitoring of inventory items, and special order items. H. Provide examples of how you electronically supply the client with point of sale spending data to support a daily invoice from which the client will remit payment. Formatting around the Microsoft Excel spreadsheet product is the standard. 7. Cost algorithm proposed: Note: A more detailed pricing component will be added in Step 2. A. Describe how you would determine FSU s cost for MRO supplies purchased by Facilities, as part of the campus store operation. (For Step 1 we are seeking the algorithm and general information, not a detailed cost proposal.) B. Describe how you would determine FSU s cost for MRO supplies purchased on line, through our E-Market (i.e. SciQuest catalog software). (For Step 1 we are seeking the algorithm, and general information, not a detailed cost proposal.) C. Cost proposals must be independently auditable by the University. Briefly explain how your proposed cost algorithm complies with this requirement. D. Prompt pay discounts: Describe available cash discounts for accelerated, but not advance, invoice payments. E. Proposal s offering cost-plus pricing arrangements of any kind, under any name, will not be accepted, nor will negotiations be held with companies offering such an arrangement. 8. Incentive Programs A. Describe cash or other incentive programs you would be willing to offer, if you were awarded a contract pursuant to this ITN. Incentives might include: Pre-bates: Up-front payment upon signing of contract. Rebates: Cash bonus based upon annual spend. Support for Supplier Diversity initiatives, including financial support Scholarships for students attending FSU Agreement to hire FSU students as store staff Paid internships for FSU students Other (describe) 5

Company Profile Summary 1. Name and address of corporate headquarters: 2. Name and address of company location responsible for ultimate fulfillment of any contract awarded pursuant to this ITN: 3. Type of Entity (i.e., Sole Proprietor, Partnership, or Corporation): State in which that legal entity is registered. 4. How long has your company been involved in supplying the goods and services called for in this ITN? 5. How will FSU be able to determine whether or not your company has the long term financial health that will enable it to take on the obligations of this contract? Supply most recent certified annual financial statements or most current annual (10-K) filing with the Securities Exchange Commission. Basis for Selection of Short List of Companies Selected For Further Negotiations: The short list of Companies selected for further negotiations will be determined on the basis of company s ability to meet the needs of the University as stated in this ITN. Responding firms must describe and document their company s ability in the initial written response, identified as Step One in the ITN process. In order of importance, the University will evaluate written proposals to determine the company s ability to provide the following: A. Proposer qualifications and experience in the operation of an MRO store, similar in size and scope to the current FSU contract. B. Proposer s plan for the storefront operation that meets or exceeds our current operation C. Proposer s customer service history and plan for FSU D. Customer references, stores operation E. Proposer qualifications and experience and references with SciQuest catalog operations F. Cost proposal G. Incentive Programs INITIAL WRITTEN RESPONSE FORMAT: Companies responding to this ITN shall follow the instructions exactly as set forth below. Failure to submit your response in this format may be grounds for rejection of the response without further evaluation of any kind. Submit one signed original response and six (6) copies of your ITN response. The original and each copy shall be assembled in separate binders (preferably a 3-ring binder to facilitate copying if necessary), tabbed exactly as outlined below, with the original copy clearly marked. The original shall be in a separate envelope but all copies may be packaged together. Submit one copy of your response on disc or memory-stick; include the electronic copy in the original binder. 6

Within the binders themselves, each section of the response is to be inserted in the order shown below, and each section is to be set apart by labeled tabs (preferred) or pages that make each section easily identified by the evaluator. Pages within each tab should be numbered. Note: No documents are to be submitted in response to this ITN until the date and time specified in the Calendar of Events as the due date for the initial written proposals. Do not sign and submit any documents ahead of time, and expect that it will be placed in the binder on your behalf. We issue addenda as necessary throughout the ITN process, but they are not to be returned at the time of issuance; include them as shown below. Tab #1: Executive summary one page or less Tab #2: Fully executed Competitive Solicitation Cover Sheet and All Addenda Tab #3: Company Profile Summary Tab #4: Response to Questionnaire; Eight (8) questions, plus sub-headings When responding to the Questionnaire, Tab #4, you must repeat the question or request for information and then supply your written response. You may not reorganize the questions or supply required information out of the order requested, or in a format other than a clear and concise response to the question, as asked. Do not refer the evaluation committee members to information on a website. If you would like to include supplemental information you may do so after you have complied with all of the proposal response format requirements. Supplemental material will not be evaluated for responsiveness to this ITN; burying required information in supplemental material is strongly discouraged. Calendar of Events: A. ITN issued and advertised February 11, 2010 B. Mandatory Pre-ITN Conference and Site Visit February 23, 2010 Date: February 23, 2010 Time: 10:00 AM (EST) Location: Florida State University, Room 101 Building A, Mendenhall Complex 969 Learning Way, Tallahassee, FL 32306 C. Last Day to Submit Written Questions March 2, 2010 D. FSU Responds to Written Questions March 9, 2010 E. Written proposals due March 19, 2010 Time: 4:00 PM (EDT) Location: Florida State University Room 114, Building A Mendenhall Complex 969 Learning Way, Tallahassee, FL., 32306 F. Negotiation(s) begin, on or near March 23, 2010 G. Negotiation(s) concluded, on or near April 8, 2010 H. Posting of award, on or around April 15, 2020 7