Print Management in the US Federal Government Streamline Your Printing Environment Key Note Speaker Presentation Meredith Parker FSSI Print Management PMO May 10, 2012 FSSI Print Management

Federal Strategic Sourcing Initiative History and Stakeholders GSA and the Department of Treasury collaborated to implement strategic sourcing policy in November 2005 in response to a May 2005 memo issued by the Office of Management and Budget. GSA develops acquisition vehicles designed to leverage the purchasing power of the government. Benefits include the re-engineering and streamlining of acquisitions, data collection and trend analysis. 24 federal agencies collaborated to pool federal knowledge and develop the Print Management Program

Nov Market and Government Requirements research lead GSA to a phased adaption of the Managed Print Services model. A Managed Print Services Schedule offering is eventually created September 2011 Two acquisition vehicles are awarded that provide vendor- neutral fleet assessment services and transparency into five year lifecycle costs May 2012 A managed print services government-wide acquisition vehicle is currently being developed. Print and Document Management software offerings are planned Federal Print Management Evolution

2012 FLEET ASSESSMENT Vendor-neutral, comprehensive imaging equipment inventory creation, creation of energy and cost baselines and future state goals Organizational analyses Vendor-neutral, comprehensive imaging equipment inventory creation, creation of energy and cost baselines and future state goals Organizational analyses NEW PURCHASES Ceiling quotations were established for hardware, consumables, and warranty/maintenance for month terms under purchase, lease, and rental financing plans FSSI Print Management Program

Streamlined Procurement The Schedule 36 SIN , Managed Print Services, combines Network Printer and MFD offerings in recognition of functional convergence of the two device designs Purchase, Lease to Own, and Leasing plans were procured for a wide range of MFDs and single function network printers in one contract line item price quote with the 60 month total cost of ownership and cost per image evaluated A performance-based service level agreement and standard device configuration considering typical government requirements was created for customer convenience Streamlined Procurement The Schedule 36 SIN , Managed Print Services, combines Network Printer and MFD offerings in recognition of functional convergence of the two device designs Purchase, Lease to Own, and Leasing plans were procured for a wide range of MFDs and single function network printers in one contract line item price quote with the 60 month total cost of ownership and cost per image evaluated A performance-based service level agreement and standard device configuration considering typical government requirements was created for customer convenience Key Innovations of the Print Management BPAs

Cost Savings Vendor-neutral Fleet Assessment services are available to begin internal fleet cost management and critical evaluation of cost effective new purchase strategies New procurements require an agency to research their existing monthly print output volume and purchase appropriately. Five volume bands were established for monthly impressions between 1 and 100,000+ and lower cost devices were quoted in the lower volume bands Real pricing data was pooled among federal agencies to establish total cost of ownership cost per impression pricing objectives Cost Savings Vendor-neutral Fleet Assessment services are available to begin internal fleet cost management and critical evaluation of cost effective new purchase strategies New procurements require an agency to research their existing monthly print output volume and purchase appropriately. Five volume bands were established for monthly impressions between 1 and 100,000+ and lower cost devices were quoted in the lower volume bands Real pricing data was pooled among federal agencies to establish total cost of ownership cost per impression pricing objectives Key Innovations of the Print Management BPAs

Sustainability The Driving Environmentally Sustainable Solutions contract line item was established to encourage industry to showcase their most sustainable innovations. Devices qualified on the basis of one of three criteria: being the most energy efficient in the fleet by volume band, built with re-manufactured or recycled parts, or designed for use with a sustainable consumables package ISO 9000 Certified Re-manufactured Toner is available from an FA II re-seller The SLAs required individual devices to be operational 95% of the time using 100% recycled, 50% post-consumer fiber content and the standard configuration requires the devices to be set to automatically duplex Sustainability The Driving Environmentally Sustainable Solutions contract line item was established to encourage industry to showcase their most sustainable innovations. Devices qualified on the basis of one of three criteria: being the most energy efficient in the fleet by volume band, built with re-manufactured or recycled parts, or designed for use with a sustainable consumables package ISO 9000 Certified Re-manufactured Toner is available from an FA II re-seller The SLAs required individual devices to be operational 95% of the time using 100% recycled, 50% post-consumer fiber content and the standard configuration requires the devices to be set to automatically duplex Key Innovations of the Print Management BPAs

Small Business Three small businesses have FA II awards; ABM Federal, Cannon IV, and CTI Two small businesses have FA I awards; ASE Direct and Printree Small Business Three small businesses have FA II awards; ABM Federal, Cannon IV, and CTI Two small businesses have FA I awards; ASE Direct and Printree Key Innovations of the Print Management BPAs

| 9 State of Government Print Common Characteristics of Printing Environments Throughout The Federal Government De-Centralized Purchasing Procurement for P/C/MFD is not controlled by a central entity Unmanaged Environments Significant numbers of imaging fleets are not covered by maintenance/consumables agreements Unknown Costs De-centralized purchasing and unmanaged environments leads to an environment where Total Cost of Ownership is unknown Over-Buying Typical procurements result in a like-for- like replacement approach without fully understanding actual printing needs Common characteristics of today’s imaging environments present the need for Fleet Assessment services An effective Fleet Assessment will combat each of the barriers to effective fleet management

| 10 What is a Fleet Assessment?  Before an organization can enter into effective MPS deployment designed to reduce costs, the following must be identified: What costs are occurring Why costs occurring and what are the cost drivers Where are print costs occurring How costs can be reduced while maximizing performance of the overall fleet  The purpose of a full-scale fleet assessment is to assist an organization in gaining insight into what, where and why print costs are occurring within a given environment, and to assist in developing a plan to reduce those costs.  Fleet assessments can be performed using in-house resources, or external industry experts A variety of Fleet Assessment tools are available in the market place today to assist in the process

| 11 What is a Fleet Assessment? Detailed discovery of fleet inventory and output volumes Assessment of business needs based on day-to-day operations Historical analysis of fleet costs (hardware, software, network capabilities, imaging output, imaging costs) Establishment of cost baselines Recommendations for asset rationalization, re- deployment and overall optimization and right- sizing Vendor neutral device recommendations based on work flow and business needs On-going data collection and analysis Fleet Assessment Phases as Defined by FSSIFleet Assessment Core Competencies Phase I: Device Discovery Phase II: Cost Baseline Phase III: Optimization and Right-Sizing Fleet Assessment projects can be tailored to include various elements of the overall process, based on the specific needs of the organization

| 12 Phase I: Device Discovery The device discovery process involves identification of devices providing service within the fleet, as well as the volumes being produced by those devices Data Collection Processes Network Data Collection Agent (DCA) Software tool installed on the network USB Key inserted into a networked workstation SNMP protocol used to “sniff” devices All networked devices within the selected IP range are identified Devices report MIB data to the software application Local DCA Software installed at individual workstations to capture locally connected devices USB Key inserted into individual workstations to capture locally connected devices Local DCA reports MIB data to the software application Physical Walkthrough “Boots on the ground” approach to physically survey device environments Detailed floor mapping to identify device landscape Manual data extrapolation from devices not discovered through DCA’s Basic Data Elements Included in the Discovery Process: Device make, model, and ID number Location Device classification (e.g. printer, MFD) Meter read (Mono and Color) Error alerts Supply levels Key Considerations for Device Discovery Include: IT/CIO security requirements approval process for DCA use Public versus private MIB data Independent versus brand-specific tools Geographical coverage Project timelines

| 13 Phase II: Cost Baseline Once the discovery process is complete, the data is analyzed to identify a cost baseline for the existing fleet FSSI recommendations for cost baselines include at a minimum: Equipment costs Consumable supply cost Maintenance and repair costs Energy consumption Sources used to identify costs include: Historical procurement/contract data Invoices/Receipts 3rd party industry tools Assumptive analysis Cost baselines can be expressed in different metrics: Total Cost of Ownership: A combination of all costs associated with a fleet over an identified period of time TCO per fleet TCO per device TCO per employee Cost Per Impression (CPI): The total cost of ownership associated with a print output device fleet divided by the number of impressions produced by the fleet Cost Baseline Data Elements Cost Baseline Data Sources Cost Baseline Metrics The cost baseline can serve as the benchmark against which MPS progress can be measured

| 14 Phase III: Optimization and Right-Sizing Once the device discovery and cost baseline phases are complete, recommendations for Optimization and Right- Sizing the fleet can be made  The primary goal of the optimization and right-sizing plan is to maximize the value of the existing fleet and to provide guidance for future additions to the fleet. Optimization and right-sizing plans may include:  Re-location/re-deployment of existing devices  Removal of devices  Disposal recommendations  Additions of new devices based on technical requirements; not brand names  Technological additions to the existing fleet to maximize efficiencies  Potential savings to be achieved through the optimization/right-sizing recommendations should be clearly outlined