Q UALITY P ARTNERSHIP C OUNCIL M EETING Tuesday, May 10, 2011 Hilton San Diego Bayfront San Diego, CA

A GENDA  Welcome  Acquisition Operations FY11  GSA National Account Management  USACE Presentation  BIFMA Certification  Round Table Discussion  Closing Remarks

Pam Blumenstein Center Director GSA Integrated Workplace Acquisition Center

Federal Acquisition Service U.S. General Services Administration Acquisitions Operations FY11 Jeffrey Koses, Director Acquisition Operations May 2011

Federal Acquisition Service Agenda  Fiscal Year 2010 Accomplishments  Key Measures  Fiscal Year 2011 Initiatives 5

Federal Acquisition Service AO Key Nationwide Measures – September MeasureFY09 (Actual) AO FY10 Baseline/ Target FY10 (Actual) Projection G/Y/R * Business Volume$21,704,826,111$22,054,800,000 $22,184,831,477 (MAS/SOP) G Customer Satisfaction / G % of Options Exercised for Five Year Period 49.6% 49.6%/60.1% 62.3% (September) 52% (FY10 YTD Cum) G Percentage of Electronic Mods (20%)10.5%10.5%/15.5%44% G Percentage of Electronic Offers (15%)30.3%30.3%/39.3%61.05% G Plan Versus Actual FAS Direct Costs-5.1%-13%/-5%-6.8%G FAS Direct Costs as a % of FAS Gross Margin 30.61%30.61%/21.75%32.97%Y AO Direct Costs as a Percentage of Gross Margin 24.8% 24.8%/ 20.8% 29.4%Y Cycle Time to Process Mods14.1 Days 14.1 Days/12 Days 12.9 DaysY Cycle Time to Process Offers69.1 Days 75 Days/ 72 Days 93.4 DaysY GSS AO Socioeconomic Business Volume33.8% 33.8%/ 36.8% 32.6%Y % of CORS File Processed Within 5 Days77.7% 77.7%/ 82.7%.79% 77.2% (FY10 YTD Cum) G * G – Within Baseline/Target Y – Within 50% of Baseline/Target R – Greater than 50% from Baseline Contribute to Corporate Incentivized Measures

Federal Acquisition Service 7 AO Key Nationwide Measures – March 2011 MeasureFY10 (Actual) AO FY11 Baseline/ Target FY11 (Actual) Projection G/Y/R * Business Volume$22,184,672,087$22,809,270,952 $11,756,990,753 (CASH/SOP) G Customer Satisfaction /75.6TBD G % of Options Exercised for Five Year Period (FAS Index Measure) 52% 52%/65% 59.7% 62.5% (FY11 YTD Cum) G Percentage of Electronic Mods44%44%/85%73.9% G Percentage of Electronic Offers61.1%61.1%/98%96.9% G AO Direct Costs as a Percentage of Gross Margin 29.4% 33.4%/ 29.4% 28.4%G Cycle Time to Process Mods12.9 Days 12.9 Days/12 Days 13.3 DaysY Cycle Time to Process Offers93.4 Days 75 Days/ 72 Days 120 DaysR % of CORS File Processed Within 5 Days77.3% 77.3%/ 77.9% 71.9% 74.5% (FY11 YTD Cum) Y * G – Within Baseline/Target Y – Within 50% of Baseline/Target R – Greater than 50% from Baseline Actual or Contributor to Corporate Incentivized Measures

Federal Acquisition Service 2010 Acquisition Excellence Accomplishments 8  Established FSSI Office Supplies BPA  Proved Schedule Prices are Excellent through Study of Office Supply Pricing  Transitioned HUDs M&M program to FABS completed, a $1 billion new program  Numerous new SINS established  30 point increase in e-mod and e-offer. E-Contracting became standard process.

Federal Acquisition Service 2010 Workforce Excellence Accomplishments  Supported Workforce through Contract Quality ON  Stood up Centralized Training Program  Moved work between regions to address surge demands 9

Federal Acquisition Service 2010 Environmental Sustainability Accomplishments  Established first green schedule, with Energy Star requirement for Schedule 36.  Comprehensive Professional Energy Services BPAs established and 6 orders placed  Migrated from paper based to web-based publications and information under products/services tab 10

Federal Acquisition Service 2010 Customer Focused Offerings Accomplishments 11  AO Opportunities project with CAR captured 38 opportunities totaling $598 million for FY  Developed consistent marketing materials  Mapped Customer Support model defining different levels of service  Drafted standard product solicitation

Federal Acquisition Service FY11 Key Initiatives  Workforce Excellence  Training program rollout  Standard desk guide for all AO MAS workforce  Defined Customer Service Standards 12  Acquisition Excellence  Digitization  E-SOW  MaD Mod  Launch FSSI Print Management  Fully deploy FSSI OSII  Customer Focused Offerings  Level III Data and Point of Sale  Application of Social Media  Second Pricing Study  Customer portal improvements  Standard product solicitation rollout  Environmental Sustainability Greening of Schedules Implement end-to-end electronic contracting

Tonya Butler Kurt Regep GSA National Account Management

US Army Corps of Engineers BUILDING STRONG ® Army Furnishings Program Alicia Allen Furnishings Program Manager US Army Engineering and Support Center, Huntsville FY11

BUILDING STRONG ® Centralized Furnishings Overview  FY10 Summary  Centralized Furnishings Process  Challenges  Huntsville Engineering and Support Center (HNC) Initiatives  Forecast 15

BUILDING STRONG ® 16

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BUILDING STRONG ® CENTRALIZED FURNITURE PROCESS 19

BUILDING STRONG ®

Order Preparation  Comprehensive Interior Design is typically based on one manufacturer, with a minimum of two alternates  Descriptions must be generic  Huntsville Engineering and Support Center (HNC) lifts the descriptions and inserts them into Section 3 of the Furniture Item Description (FID), removing any remaining proprietary features  Garrison / Corps of Engineers District reviews the final FID and Line Items before solicitation 21

BUILDING STRONG ® Solicitation  HNC’s goal ► two weeks minimum for quote preparation ► Up to four weeks for large jobs  Questions need to be submitted early in the quote period  Quote must include a tech data sheet that addresses each element of the FID for each line item in the solicitation 22

BUILDING STRONG ® Tech Review  Pass / Fail analysis ► Make acceptable tech data sheets available to dealers ► No guarantee of multiple rounds of clarifications  Technically acceptable quotes are forwarded to Contracting Officer (KO) for a best value analysis  Primary factors typically delivery or cost ► Delivery Furniture Install Start Date Furniture Install Completion Date 23

BUILDING STRONG ® Contractor Delivery  HNC Contracting Officers hold manufacturer’s quoted after receipt of order (ARO) to be effective as of the signature of the Contracting Officer, not when the order is placed in the factory.  Mfr performance ratings will be degraded if delivery is not made in accordance with the contract dates for any unchanged items. 24

BUILDING STRONG ® Post-Award Walk Thru  Purpose ► Verify final colors / finishes ► Check for construction interferences ► Look at unloading / movement routes ► Confirm specific delivery instructions ► NOT INTENDED TO CHANGE PRODUCT 25

BUILDING STRONG ® Contract Modifications  Process mirrors a solicitation ► HQ approval for user changes ► Mod tech prep ► Customer approval ► Solicitation ► Tech Review ► Obtain funding from customer ► Award 26

BUILDING STRONG ® Delivery / Install  Visual inspection of the facility prior to install is useful  Refer to Scope of Work appendix F for installation specific instructions, such as access gates, hours of operation, safety apparel, etc 27

BUILDING STRONG ® Payment  Receiving reports ► Garrisons may hold the receiving report until missing / damaged items are replaced ► HNC has a discrepancy form for partial receiving reports ► Manufacturers need to prompt dealers about completion status  Invoices ► Must match the line item (quote) sheet of the contract ► Pricing must match contract pricing 28

BUILDING STRONG ® CHALLENGES 29

BUILDING STRONG ® Incomplete Quotes  Mfrs have opportunities to work with HNC to understand requirements  Culture at HNC is changing to award to first technically acceptable quoter  Rounds of revised quotes / tech reviews are costly, time consuming, and benefit no one. 30

BUILDING STRONG ® Changes  Better ideas need to be submitted with quote – not brought up after award  Contract is fixed price – not level of effort. Cannot substitute items or do puts and takes.  Require user / Garrison funding, which can create delays  Only the Contracting Officer at Huntsville can authorize a change, through the modification process 31

BUILDING STRONG ® 32 Joint Occupancy  Agreements need to be put in place prior to the beginning of a project furniture install.

BUILDING STRONG ® Delivery / Install – Joint Occupancy  Demand a visual inspection of the facility prior to install, especially for joint occupancy ► Photos or video of prior damage, especially in transfer corridors, may save time later  Follow all safety procedures, including safety equipment, if required 33

BUILDING STRONG ® INITIATIVES 34

BUILDING STRONG ® HNC Quality Assurance (QA) Program  Army’s Furniture Program Procedure ► Garrison / District performs QA ► HNC provides occasional “back check”  Policy on Non-Conforming Items ► Repair in place, if feasible ► Replace what cannot be repaired  HNC’s QA team: Gail Hodge, MSG Mitch Jackson, Andy Black 35

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Brad Miller BIFMA

Sustainability and level ® Overview

Environmental Claim Trends Marketplace is moving from single attribute claims: Certified wood Energy efficiency Indoor air quality To multi-attribute sustainability protocols for products. And ultimately, Environmental Product Declarations (EPD) based on established Product Category Rules (PCR) and Life Cycle Impact Assessment (LCA) data.

Environmental Claims Multi-attribute standards address numerous environmental impact categories. Provides more of a life-cycle perspective. Multi-attribute environmental programs. Prescriptive criteria MBDC C2C SMaRT Optional criteria (point based systems) LEED level NSF – 140 (carpet)

Environmental Claims Prescriptive Criteria Programs Advantages Certainty regarding what elements have been addressed Disadvantages Lack of transparency Cost inhibits widespread adoption Optional Criteria Programs Advantages Increased flexibility for producers, facilitates widespread adoption Easier/cost effective to engage in the process Disadvantages Some impacts could, initially, be ignored

Benefit of e3/level No longer need to understand and pursue numerous independent single attribute certifications. VOC emissions Recycled content Certified wood Locally sourced PVC free Energy efficiency Social responsibility Multi-attribute, BIFMA e3 and level address all elements of sustainability.

Scope of e3 Standard The e3 Standard establishes a common set of metrics to define “green” for furniture. It is a finished product assessment protocol, applicable to all types of furniture. Also applicable to materials and components manufactured by suppliers to furniture manufacturers.

Basics of the Standard Four areas of focus 6 prerequisites Numerous optional credit criteria Accumulate points toward a final score and conformance tier

The Standard & level Certified level certification requires 3 rd party verification of the score. Six certification bodies presently approved to participate. e3 Standard – Evaluate & Report Score level – Validate & Certify Score

Certification Bodies Multiple certification bodies Bureau Veritas Intertek NSF SCS LGA UL Environment ANSI accredited to ISO Guide 65

Elements addressed in the Standard The standard is divided into four basic elements consisting of various prerequisites and credits that are potentially available to organizations seeking product conformance to the standard.

Element Review

Materials

Energy & Atmosphere

Human & Ecosystem Health

Social Responsibility

Levels of level Certification

What Makes level Unique? Multi-attribute standard Product, process and organization-wide evaluation metrics Optional credit structure with conformance tiers ANSI approved standard Multiple 3 rd party certification bodies ANSI accredited to ISO Guide 65. Competition between the certification bodies

Status of the Program Standard available for public use in 2008 level launched in 2009 As of April 2011, 25 product manufacturers Over 830 product lines 76% at level 1; 23% at level 2; <1% at level 3 Re-certifications coming due now (required every 3 years)

level Web Resources

Brad Miller

R OUND T ABLE P ANEL Pam Blumenstein IWACenter Linda Valdes IWACenter Tonya Butler GSA National Account Management Kurt Regep GSA National Account Management Alicia Allen US Army Engineering and Support Center Lisa Hexom NAVFAC

S OCIAL M EDIA Visit us on Twitter and register to receive our tweets. Join our group on LinkedIn: GSA IWACenter Receive updates on new initiatives and upcoming events!

I NDUSTRY D AYS Specific Schedule Industry Days held throughout the calendar year 2010 Industry Days: Schedule 71 II K Schedule 58 I Schedule 72 – Carpeting Forum only Potential 2011 Industry Days Schedule 78 Schedule 71 Schedule 36

N EXT QPC… NeoCon East Baltimore, MD Tuesday, November 1st 12PM – 4PM Baltimore Convention Center

T HANK Y OU

Q UALITY P ARTNERSHIP C OUNCIL M EETING Tuesday, May 10, 2011 Hilton San Diego Bayfront San Diego, CA