Memo to File



|03311 |WSCA Small Package Delivery Services |Tariq Ohab |

|Contract Type: New Replacement WSCA Enterprise General Use Restricted to:_____________ |

|Contract Duration: Initial Term: ___2__ years months Maximum life: ___6__ Years |

|Estimated Term Worth: $__5,500,000____ Estimated Annual Worth: $____$2,750,000____ |

|Number of: Bids received: 7 Bids Rejected: ____2___ |

| BidSync was used to notify bidders. |

|WEBS was used to notify bidders. |

|Executive Summary: |The State of Utah issued a Solicitation for Small Package Delivery Services. This solicitation is a Western States Contracting |

| |Alliance (multi-state) solicitation. The solicitation was posted publicly via BidSync as Solicitation # DR 11031-1-01-WSCA Small |

| |Package Delivery Services and WEBS as solicitation # DR11031 WSCA RFP for Small Package Delivery Services. |

|Bid Development |

|Stakeholder work |The State of Utah is the acting lead state for this solicitation. Representing the State of Utah is, Mr. Dan Reisner, Purchasing |

| |Manager. Mr. Reisner worked in conjunction with his sourcing team in the development of this solicitation. |

|Customer Forum? | |

|Vendor Forum? |Sourcing team members are as follows: |

| |Dan Reisner – Utah (Lead State) |

| |Elaine Hall -- California |

| |Christine Weber -- Colorado |

| |Tim Hay – Oregon |

| |Douglas Richins – WSCA |

|Bid Development: |The solicitation was drafted taking into consideration the needs of all above noted Stakeholders. A Draft RFP was released to all 28|

| |states intending to participate. Individual states could request intrastate service offers unique to their state. Current |

| |specification and items list were updated in accordance to the above Stakeholder’s and Customer’s needs. |

|Bid Process |

|Bid Release Through BidSync: |Compliant with the Utah Procurement Code, the RFP was released through BidSync on February 14, 2011 with a RFP close date of March |

|Date: ___02/14/11__ |30, 2011. |

|[pic] | |

|Bid Release Through WEBS: | |

|Date: ___02/15/11__ | |

| |Compliant with the Washington State Competitive Procurement Process, the RFP was released through WEBS on February 15, 2011 with a |

|[pic] |RFP close date of March 30, 2011. |

|Bid Evaluation—Responsiveness |

|Bid Opening: |7 proposals received |

|Date 03/30/11 |2 proposals deemed non-responsive for award based upon not meeting one or more of the mandatory solicitation criteria |

| |5 proposals were fully evaluated |

| |5 offerors received awards |

|Bid Results |

|[pic] |Master Price Agreements awarded to five Offerors: |

| |(In alphabetical order) |

| |FedEx |

| |Golden State Overnight (California intrastate only) |

| |OnTrac (California intrastate only) |

| |UPS |

| |WPX (Alaska intrastate only) |

| |New MPA Start Date: August 28, 2011 |

| |Initial Term: August 28, 2011 through August 27, 2012 |

| |Renewal Options: Four (4) one-year periods |

| |Maximum Contract Term: 5 years |

| | |

|Results & Recommendation |

|Price Comparison: |The State of Washington has reviewed the State of Utah’s evaluation results for the Small Package Delivery Services Contract and is |

| |in agreement with the State of Utah’s Evaluation; Thus, recommending participation via a WSCA Participating Addendum utilizing FedEx |

|[pic] |as a sole provider as FedEx was the lowest responsive responsible bidder in accordance with Washington State’s Competitive |

| |Procurement Process. |

|[pic] | |

| |The State recommends contracting with FedEx utilizing its Money Back Guarantee (MBG) Single Carrier Rates, which is a 3% lower cost |

| |as compared to the Non Money Back Guarantee (NMBG) Multiple Carrier Rates, and is also a 2.97% lower cost as compared to the next |

| |lowest responsive responsible bidder. |

| | |

| |The State will realize a 7.6% savings over previous contract pricing. |

| | |

| |Based on past usage, the new contract will be saving the states customers an estimated $512,550 per 2 year term. |

|Recommendation: |It is in the best interest of the state to award this contract as it has been reviewed and evaluated. |

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