Program Manager, Supplier Diversity 2017 National 8(a) Association Conference Doing Business with the U.S. Postal Service February 7, 2017 Rupert R. Warner, Jr. Program Manager, Supplier Diversity rupert.r.warner.jr@usps.gov

Postal Service Overview Independent establishment of the Executive Branch Presidential appointed, congressionally confirmed board 154.2 billion — number of pieces processed and delivered Size: 625,113 Employees 214,933 Vehicle Fleet 0 Tax dollars $4.5 billion — 2015 small business contract commitments Mandated by Congress to be self-sufficient and operate in a businesslike manner Presidentially appointed Board of Governors We move over 150 billion pieces of mail per year We are one of the largest civilian employers 0 Tax Dollars Over 4 billion dollars in contract commits to small business in 2015.

Universal Service Obligation As part of its Universal Service Obligation, the Postal Service maintains 31,606 retail locations ---The Postal Service is prohibited from closing retail locations solely for economic reasons ▪ 600 processing facilities allow for overnight delivery of local mail and experience decreased economies of scale with volume declines ▪ A robust delivery network delivered to 155 (an increase) million addresses per day

Postal Marketplace How We Buy USPS does not adhere to Federal Acquisition Regulations (FAR). Solicit and award contracts based on regulations contained in 39 Code of Federal Regulation Part 601 and the Supplying Principles and Practices. Purchases valued above $10,000 are based on: Adequate Competition Best Value (not necessarily the lowest cost) We do not follow the far but rather have our own Supplying Principles and Practices Supplying Principles and Practices can be found on the Postal website at:   www.usps.gov Of importance to you is that under our Supplying Principles and Practices we look for ‘best value’ in our procurements and not the lowest cost.

Postal Marketplace What We Buy Purchasing Portfolios Technology Infrastructure Commercial Products & Services Mail & Operational Equipment Facilities Transportation Technology Infrastructure – It Software, Services, Retail Systems, Telecommunications Commercial Products & Service – Professional & Technical Services, Customer Products & fulfillment, Employee & Financial Services Mail & Operational Equipment – Automation & Material Handling, Operational Supplies, Vehicles & Delivery Equipment Facilities - Facility Equipment and Signage, Construction Repairs, & Alterations Transportation - Air, Surface Transportation, and Fuel Management Asset Management Group – Not necessarily a buying organization but supports the management of all Postal Assets

USPS Purchase Spend – FY10 ~$13.5B Postal Marketplace Facilities USPS Purchase Spend – FY10 ~$13.5B $1.3B Transportation $6.8B Technology Infrastructure $1.3B In Fiscal Year 2016, the Postal Service had contract commitments that exceeded $4.5 billion with small business; $527 million with minority businesses; and $766 million with woman-owned businesses. Minority Woman Small Accomplishment FY 2016 4.8% 6.5% 39.2% 37.9% FY 2015 4.8% 6.8% 37.9% 40.1% FY 2014 5.0% 6.6% 35.2% 4.63% FY 2013 5.0% 5.7% 29.8% 6.72% As a $68.8 billion dollar company, Supply Management, $13-14 Billion in procurements. As you can see they are broken down into the five portfolios. Mail & Operational Equipment Commercial Products & Services $2.1B $1.4B

Postal Marketplace Who Buys What Points of Entry Local, area, and national buyers Purchase Card Buys Over 30K active purchase cardholders Purchases $10K or less Contracting Locations Portfolios, CMC (13) Area locations (7) that manage assets – Great Lakes, Northeast, Eastern, Western, Southern Capital Metro and Pacific. Postal Purchase Card Threshold $10,000 per purchase Federal Purchase Card Threshold $2,500 per purchase

Policies and Practices to Encourage MBE Participation Policies and Practices to Encourage Participation Supplier Registration Solicitations and Awards in FedBizOpps Supplier Forums to share USPS Objectives Unsolicited Proposal Program Policies and Practices to Encourage MBE Participation Forums - Active Memberships to Industry and Trade Associations RFI – Requests for Information RFP – Requests for Proposals RFQ – Requests for quote Reverse Auctions Optimization UPP Pub 131

Current Business Opportunity Village Post Office Limited Postal Operations In your community In your storefront

Doing Business with the USPS So I hope that I have provided you with an overview on our procurement process. I encourage you to: Learn as much as you can about the USPS mission. Register your Company with us. Respond to open solicitations Deliver Excellence! Deliver

Program Manager, Supplier Diversity Rupert R. Warner, Jr. Program Manager, Supplier Diversity rupert.r.warner.jr@usps.gov