Strategic Business Development

1
Strategic Business Development
May 22-24, 2005
2
Agenda

• Session I
• Team Introductions
• Strategic Business Development Overview
• Lines of Business Overview
• Laundry Operations (Rhett Linke)
• Secure Mailrooms (Suzette Gross)
• Army Custodial (Greg Braniff)
• Warehousing Distribution (Nate Kilgore)

3
Agenda

• Session II
• Lines of Business Overview
• Tele-Services (Ryan Blackman)
• Secure Document Destruction (Jack Ottaway)
• Fleet Management (Susan Retter)
• Hospital Housekeeping (Byard Bower)
• MAPROI Opportunity Research (Howard Beck)
• Q A Session
• Session III Meet the LOB Managers

4
Strategic Business Development

• SBDT Members (Introduction)
• History
• Current Efforts
• Future Plans

5
Laundry Services
May 22-24, 2005
6
Laundry Services

• Traditional Services
• Receiving
• Sorting
• Washing
• Drying
• Pressing
• Folding
• Delivery

• Special Services
• Dry Cleaning
• Specialty Items
• Linen Supply

7
Laundry Services

• Research Performed by Victor Kramer Company
• Market Segments
• Department of Veterans Affairs 83.1 million
• Military 43.3 million
• U S Public Health Native American 10.2 million
• Total 136.6 million

8
Laundry Services

• Market Size and Volume by NISH Region

9
Laundry Services

• Market Potential and Penetration by Region

10
Laundry Services

11
Laundry Services

• Current NISH Business
• 17,475,300 and growing
• 12.8 of the market

12
Laundry Services

• Plan for growth
• Hire industry Laundry Program Manager for NISH
• Focus on Veterans Affairs
• Commercial Partnerships
• CRP Consulting and Support
• Assessment of Current Situation
• Centers of Excellence
• Best Practices Model

13
Laundry Services

• Issues and Concerns
• Cost of entry into market (capital intensive)
• Time to build capacity and capabilities/past
  performance
• Consistent Quality
• VA distributed purchasing policy
• Textile Rental Services Association
• Lobbying Efforts

14
Secure Mailroom Operations
May 22-24, 2005
15
Secure Mail Centers

• Description of LOB
• NISH helps to provide National Secure Mail Center
  Solutions for federal customers.
• Current JWOD Contractors operate more than 100
  facilities nationwide and have created over 500
  jobs for People with Disabilities.
• NISH acts as a honest broker with a focus on
  business partners needs, and securing the mail
  for our customers.
• Strive to develop and utilize the best, most cost
  effective management of Mail Center operations.

16
Secure Mail Centers

• Market Research available
• IRS 98 FTEs Over 7.4 million in sales
• Department of Homeland Security (DHS) 100-125
  Forecasted FTEs

17
Secure Mail Centers

• IRS Success to date
• 34 sites currently active under the IRS Contract.
• Automation process almost completely in place.
• Proven protection of IRS Customers - Bobby Dodd
  pipe bomb incident.
• SSI Working to complete an accurate/comprehensive
  contact database, a first for the IRS.

18
Secure Mail Centers

• Plan for growth
• Several more mail centers identified to fall
  under the IRS Contract.
• Department of Homeland Security projected to
  rollout over the next 5 to 7 years.
• FBI to be pursued.

19
Secure Mail Centers

• Issues and Concerns
• Staying proactive in the areas of threat
  detection and safety.
• Taking a lead role in disseminating mail policy
  for all Federal Agencies.

20
Secure Mail Centers

• Current and Projected Actions
• Pursuing DHS and FBI contracts.
• Assuring that the IRS project maintains a high
  level of quality and performance.

21
Army Custodial
May 22-24, 2005
22
Army Custodial

• A Strategic Sourcing Initiative

23
What is Strategic Sourcing?

• Acquisition/Purchasing Initiative
• Evolving business practices
• Dr. Deming
• End the practice of awarding business on the
  basis of price tag alone. Out of the Crisis -
  1982
• Supply Chain Management
• Outsourcing
• Intelligent Enterprise (1992)

24
Dept. of Defense Definition
25
State Definition

• Strategic Sourcing is an approach where the buyer
  (California) analyzes what its buying, what the
  market conditions are and who can supply those
  goods and services. Then the buyer uses that
  information plus innovative contracting
  techniques to find the best values in the
  marketplace.
• Strategic sourcing is a commercial best practice
  thats gaining strength among state and local
  governments facing budget shortfalls or looking
  for savings to fund other programs. (Pennsylvania)

26
Commercial Definition5 ways strategic sourcing
is different

• Total cost, not just purchase price
• Consolidating purchasing power
• Tighter supplier relationships
• Realigned business processes, work and
  information flow
• Improved teamwork/purchasing skills.

27
Strategic Sourcing My Definition
28
Elements of Strategic Sourcing

• Spend Analysis
• Market Knowledge
• Innovative contracts
• e-Commerce
• Standardization
• Long-term relationships

29
Use Your Market Advantages

• Nationwide solutions
• Network of providers
• State and local knowledge base
• Spend Knowledge
• Market Expertise
• No competitive bidding pressures
• Simplify complex procurements.

30
Army Custodial Set-Aside

• JWOD Set-aside for Custodial Services at ALL Army
  facilities in United States
• 4 Regional Contracts Strategic Sourcing
• CRP as Prime Contractor
• Central Control/Local Flexibility

31
Unique Business Approach

• CRP Regional Prime Contractor
• Delivery Orders to local CRPs as Subcontractors
• CRP Program Management Support
• Funded through NISH fee
• Standardization
• Statement of Work
• Pricing Model
• Quality System

32
Benefits to the Army

• Quality Service, Fair Price, Long-Term
• Central/Simple Program Management
• Regional Cost Visibility and Control
• Standard Service Levels
• Simplified Acquisition

33
Benefits to CRPs

• JOBS! (2,000)
• New contract model
• More JWOD JOBS!
• Use for State, Local, and Commercial
• Simplified contract management

34
Plan of Action

• Phase I (Southeast)
• Negotiations in process
• FY 06 Procurement List Addition
• Long Term Phase-In
• Impact
• Contract Cycles

35
Are you ready?

• Web site/electronic ordering
• Resources available
• Time to develop
• to Invest
• Entrepreneurial Agencies
• Receptive Buyers

36
Warehousing and Distribution
May 22-24, 2005
37
Warehousing and Distribution

• The operation of various storage facilities
  and the management and dispersal of goods within
  those facilities.
• Services include
• Receiving
• Inventory
• Order Taking
• Order Picking
• Packaging
• Shipping

38
Warehousing and Distribution

• Market Research
•     Federal Market Estimated 120 Million
•     DoD has more than 75 percent of total market
  (106 M)
•     DLA is largest source of warehousing
  opportunities (54M)
•     Warehousing operations are decreasing in the
  Federal sector
•     Operations that survive are being outsourced
  Opportunity for JWOD!

39
Warehousing and Distribution

• Success to Date
•  
• Currently under the JWOD program
• Warehouse contracts in excess of 18M annually
• NPAs manage more than 200M in inventory daily
• Created jobs for over 240 persons with
  disabilities
• Demonstrated warehousing capabilities

40
Warehousing and Distribution

• Success to Date (cont)
• Diverse capabilities
• DOT Warehouse at Landover MD (Publications)
• Army CIFs at Fort Drum NY and FT Lewis WA (OCIE)
• DLA Prime Vendors at Lansing MI and Austin TX
  (Uniforms and Accessories).
• Lighting/Springs Distribution Centers, Greensboro
  NC and Phoenix AZ
• Red Hat Warehouse at Ft Hood TX (Class IX
  repair parts)
• Battery Acquisition and Distribution in
  Greenville NC

41
Warehousing and Distribution

• Issues and Concerns
• The Top 5 Concerns of Federal Warehousing
  Customers
• Optimizing space
• Trimming time needed to retrieve parts
• Reducing costs
• Improving response time
• Managing supply chain

42
Warehousing and Distribution

• Current and Projected Actions
• Consultant Recommendations completed - May/2005
• Business Plan Submission Summer 2005
• Business model
• Marketing strategy
• Capability development requirements
• Rollout Fall 2005

43
Warehousing and Distribution

• What Can You Do?
• NPAs
• Update Capabilities Database!
• Monitor JWOD Opportunities at www.nish.org
• Federal Agencies
• Support and Promote your JWOD program
• Maximize use of JWOD for WHD consolidation or
  BOS
• Use JWOD to Streamline Outsourcing

44
Warehousing and Distribution

• For more information, please contact
• Nate Kilgore
• Business Development Manager
• NISH S/C Region
• [phone]
• nkilgore_at_nish.org

45
Tele-services
May 22-24, 2005
46
Tele-services Overview

• Introduction
• Definition of tele-services
• Market potential

47
Tele-services

• Business line development efforts to date
• Next steps
• Question and answer session

48
Definition of Tele-services
Through our research, we found that the terms
tele-services, call centers, and contact centers
frequently are used interchangeably.
Tele-services, the broadest term of the three,
refers to four main types of services voice,
data, video, and multimedia.
49
Tele-services Service Types
Voice Services Switchboard operation, voice
recording transcription, medical/legal
transcription, translation (e.g., interpreting
foreign languages), and other telephony services
(e.g., call center and messaging services, such
as doctor messaging services for military
hospitals). Data Services Web/live chat,
e-mail, or facsimile communication services and
messaging services such as telex services
50
Tele-services Service Types
Video Services Video services include
interactive services provided over the Internet
or television Multimedia Services Interactive
services that combine voice and image, such as
video conferencing. These services typically
require an operator to provide assistance in
initiating the calls.
51
Tele-services Service Types

• We are currently investigating the following
  tele-services service lines
• Customer Contact Center Services
• Medical Transcription Service
• Switchboard Operations
• Legal Transcription Service
• Messaging Service
• Appointment Setting Service
• Translation Service

52
Tele-services Market Potential
Based on the research performed by LMI Government
Consulting, the following has been learned about
opportunities within the Federal Sector that
offer JWOD potential Estimated dollar value of
Federal tele-services requirements 371,000,000
Estimated tele-services salaries and benefits
260,000,000 Employment potential 9,000
positions Average annual employee wages
(includes benefits) 28,000
53
Tele-services Market Potential

• Based on the research performed by LMI Government
  Consulting, over 25 Federal agencies have been
  identified to have tele-services opportunities
  which will be available for development from FY06
  through FY08 including
• Department of Health and Human Services (HHS)
• National Institutes of Health (NIH)
• Department of Commerce (DOC)
• Trade Information Center (TIC)
• Department of Education (DOE)
• Federal Elections Commission (FEC)
• Social Security Administration (SSA)
• Transportation Security Administration (TSA)
• Veterans Benefits Administration (VBA)

54
Tele-services Market Potential Call Center
Industry Snapshot
55
Tele-services market potential NPA Capacity and
Capability
Based on analysis of the NISH corporate database
and NPA capabilities database, the following
Tele-services capability and capacity information
has been identified

• - NPAs with interest in Call Center
  Operations 37
• - JWOD Call Center Providers (based on existing
  contracts) 2
• - Current JWOD Call Center Contracts 2
• NPAs with interest in Medical Transcription 3
• JWOD Medical Transcription Providers (based on
  existing contracts) 1
• - Current JWOD Medical Transcription
  Contracts 4
• - NPAs with interest in Switchboard
  Operations 15
• - JWOD (NISH) Switchboard Operations
  Providers 26
• - Current JWOD (NISH) Switchboard Operations
  Contracts 33
• - Total Tele-services providers with existing
  JWOD contracts 29
• - Total number of NPAs with interest or
  experience in tele-services 61

56
Tele-services market potential JWOD Solution
Strengths

• Some of the benefits to potential customers
  include
• Lower turn-over of employees in a high turnover
  industry
• Potential to have both facility-based and
  home-based solutions
• Mission focused solution
• Excellent opportunity for NISH / NIB
  collaboration

57
Market potential JWOD Solution Challenges

• Some of the challenges we face in developing the
  tele-services business line include
• While we have identified a substantial number of
  opportunities through LMIs research, many
  additional tele-services requirements appear to
  be bundled in numerous other service categories
  including information technology services, market
  research services, miscellaneous communications
  services, administrative and professional
  services and facility support services.
• There are several schools of thought on whether
  to leverage facility-based solutions versus
  home-based solutions.
• Many tele-services requirements are not location
  specific and allow performance anywhere in the
  United States. This allows commercial providers
  to locate operations in areas of the country with
  very low wages, putting a unique spin on JWOD
  project location and competitiveness.

58
Market potential JWOD Solution Challenges

• Some of the challenges we face in developing the
  tele-services business line include
• Lessons learned from prior call center business
  development activities include the need to
  develop a customer contact center solution that
  offers
• - Demonstrated past performance based on
  call volumes / complexity of call
  functions
• - Established / existing IT infrastructure
• - Available disaster recovery infrastructure
  (redundant systems/sites)
• Industry information and statistics are
  generalized to encompass both in-bound and
  out-bound data for call center components.

59
Market potential JWOD Solution Challenges

• Some of the challenges we face in developing the
  tele-services business line include
• Inability to add subcontracts to the Procurement
  List hinders the ability to create mentoring
  relationships with commercial partners to engage
  Federal contact center opportunities for JWOD
  participation.
• The Department of Labor has recently indicated
  that commensurate wages are not applicable to
  home-based employment opportunities.
• Limited reported data on tele-services provider
  profitability statistics.

60
Tele-services Business Development Activities
To-Date
Completed two research studies capturing industry
and Federal market information. Located
industry experts and consultants for business
plan development and operational support
requirements. Completed interviews of 35
Federal Agency Tele-services management
organizations to determine key metrics, and areas
of opportunity for JWOD opportunity
development. Completed an analysis of NPA
capability and capacity for tele-services service
lines.
61
Tele-services Business Development Activities
To-Date
Released an RFI for consulting partners for
business plan development in December
2004. Released an RFP for a tele-services
consultant to support development of a business
plan in February 2005. Completed the RFP
review process and provided a recommendation to
NISH executive leadership of the selected
consultant and approach to business plan
development.
62
Tele-services Business Development Next Steps
Complete an additional research study for medical
transcription service line. Build and sell
business plan and strategy (estimated time frame
for completion is 12 to 16 weeks). Interface
with NPAs for rules of engagement development and
business model creation. Implement sales and
marketing activities to Federal Customers.
63
Tele-services Business Development Next Steps

• Market opportunities to NPAs for potential
  participation
• Grow successes FY2006 and beyond
• Develop Centers of Excellence platform and
  mentors

64
Questions and Answer Session

• For additional questions, please contact
• Ryan J. Blackman
• Business Development Director
• NISH North Central
• rblackman_at_nish.org
• 847-789-8408

65
Secure Document Destruction
May 22-24, 2005
66
Document Destruction

• Provide Secure Handling and Destruction of
  sensitive or classified paper documents for
  Federal and Commercial customers.
• Collect paper at customer locations and transport
  to secure facility at CRP offices
• Sort paper by grade Jobs for PWSD
• Shred and Bale paper
• Sell processed paper

67
Typical SDD Facility
68
Document Destruction

• Started with a casual conversation with IRS
  Contracting Officer at a NISH Sponsored Training
  Session.
• Can you help me solve this problem?
• Provide Document Destruction for IRS Offices in
  Western US States.
• Initial contract for offices in 8 states / metro
  areas
• AZ,CA,CO,NV,NM,UT,WA,WY

69
Document Destruction

• Success to Date
• IRS West
• IRS Midstates
• Added 8 new operations in Midwest
  (MN,WI,IL,MO,TX)
• NARA Serve 14 Federal Records Centers nationwide
• VA Serve 4 VISNs across 7 States
• 21 SDD Operations doing JWOD work
• Significant Penetration of Local commercial
  markets by CRPs
• Many additional jobs
• Secure Document Alliance formed to pursue
  regional and national opportunities

70
Jobs!
71
More Jobs!
72
Document Destruction

• Federal Growth Opportunities
• IRS South and Northeast
• VA
• DHS
• DFAS
• Commercial Growth Opportunities
• Financial Institutions / Businesses
• Medical Institutions / Businesses
• State Offices

73
Document Destruction

• LOB Challenges
• Competition from commercial firms.

74
Fleet Management Services
May 22-24, 2005
75
Fleet Management ServicesIntroduction

• Growing line of business
• Focuses on providing a wide array of integrated
  services
• A diverse mix of activities
• A wide range of job creation opportunities for
  individuals with different interests, skills sets
  and disabilities.
• THREE BUSINESS DEVELOPMENT APPROACHES
• Compete in existing markets.
• Challenge Unbundling
• Create new markets.
• Challenge Moving from in-house to outsource
• Create Pilot Projects

76
Fleet Management InitiativeCategories of Work

• Fleet Management consists of two broad categories
  
• ASSET MANAGEMENT ACTIVITIES
• Acquisition, deployment, use, upkeep, replacement
  and disposal of vehicles and equipment.
• SERVICE MANAGEMENT ACTIVITIES
• Securing and supplying these assets and services
  to fleet users.

77
Fleet Management InitiativeRecommended Services

• Begin pursuing contracts in the following service
  areas
• Fleet Maintenance
• Parts Management
• Commercial Maintenance Services Management
• Motor Pool Management and Employee Shuttle
  Operation
• Asset Management and Administration Services

78
Fleet Management Services Benefits Everyone

• How Fleet Management services offers added value
  to your customers
• Focus on fleet not vehicle management
• Large, skilled work force, contractual
  relationships, and security clearances already in
  place
• Ability to scale services to meet changing
  customer needs
• Utilization of outside engineering support to
  maintain best-in-class systems for operations
• Technical expertise and solutions

79
Fleet Management InitiativeBest Practices Model

• The Best Practices Manual is intended as a guide
  to NPAs
• SCOPE
• Documents responsibilities, duties and practices
  of the CRP Fleet Management Teams
• Formalizes policy and procedures
• Outlines the reasons for the policies and
  controls
• Provides staff with a guide to performing the
  tasks required.
• ISO FORMAT
• The manual is written in ISO format.
• The manual will be divided into chapters
• The manual will have an appendix and FAQs

80
Fleet Management InitiativeManagement
Information System
Sample Equipment AppletProvides access to all
information about a vehicle including its
maintenance history.

• Fundamental Benefit of FMIS
• Achieve operational efficiencies
• Captures data produces reports
• Facilitates standardization

CCG Inc. / Faster Web-based FMIS
81
Fleet Management InitiativeApprenticeship Program

• Journeyman mechanic level of skill
• A journeyman mechanic requires
• Classroom instruction
• On the job experience
• Competency based tests
• Supporting mechanics
• Automotive worker
• Mechanic helper
• Approved by the US Department of Labor,
  Employment and Training Administration
• 1st level Apprentice wage is 77 of the
  journeyman mechanic wage
• Pay increasing increments

82
Fleet Management InitiativeTraining Component

• TRAINING PLAN FOR FLEET MANAGEMENT
• PURPOSE
• Participants will gain an overview of the
  essentials necessary for successful launching of
  a project.
• Suggested Courses for JWOD/NISH Points of Contact
• The Art of Negotiation
• Compliance 2005 Conference Series
• Contract Claims Management
• Contract Management for Service Projects
• Federal Compliance The Regulations and
  Requirements
• ISO 90012000 A Roadmap for successful
  Implementation
• JWOD University
• Mastering the Art of customer Care
• Reinventing PR-3
• Service Contract Pricing
• Workplace Legal Issues
• Leading the Way to Quality
• Best Practices Manual (ISO Formatted)
• Contracts

83
Fleet Management InitiativeStrategic Partnerships

• Steps taken to multiply the provision of fleet
  maintenance and fleet management services across
  the nation.
• Support of the Committee for Purchase from People
  Who Are Blind or Severely Disabled
• Partnership with Mercury Associates, Inc
• Strategic alliance with CCG Systems, Inc.,

84
Fleet Management InitiativeConclusion
Fort Lewis Vehicle Maintenance

• Many opportunities in the state, local, and
  commercial fields.
• Lets work together to find opportunities
• This Win-Win
• Line of Business is now
• OPEN FOR BUSINESS!

Brooks AFB Motor Pool and Bus Shuttle
Norfolk POV
85
Fleet Management Services
QUESTIONS?
For More Information Contact Susan Retter
(206-272-3509) sretter_at_nish.org, Rick Van Hoose
(206-272-3504) rvanhoose_at_nish.org Byard Bower
(206-272-3507) bbower_at_nish.org John Bradford
(206-272-3544) jbradford_at_nish.org
86
Hospital Housekeeping
May 22-24, 2005
87
Hospital Housekeeping (HHK)

• Introduction
• Definition
• Strategy
• Summation

88
HHK What is it?

• Custodial/Janitorial in Medical Environment
• Enhance Patient Care
• Total Disinfection Cleaning
• Critical, errorless, regulated performance stds.

89
Where are the opportunities?

• Medical facilities
• Department of Defense
• Veterans Administration
• Other Government Agencies
• Includes hospitals, dental clinics, veterinary
  offices, pharmacies, and laboratories

90
What Opportunities?

• HHK Targeted Market
• DoD Build relations with major users
• 8(a) graduates
• Build superior, reliable performance
• VA needs, opportunities, and out-sourcing
• Goals to capture up to 100 FTEs per year
• May lead to other medical unit opportunities
• Administrative services
• Grounds maintenance
• Document storage and destruction

91
NPAs Capabilities

• Requires exceptional, professional, certified
  performance
• Executive Housekeeper certification all shifts
• Other professional certifications JCAHO, AHA,
  ASHES, IEHA, or CHESP
• Experience requirement 24 36 month

92
JWOD/NISH Successes

• Center of Excellence (COE) Established
• PCSI Fort Carson CO
• Successfully performing contracts
• Fort Carson CO (MEDCOM)
• Fort Belvoir VA (MEDCOM)
• San Diego Naval CA (NAVFAC)
• Camp Lejeune Marine NC
• Great Lakes Naval IL (NAVFAC)

93
LOB Market Opportunities

• Target Department of Defense
• Army program MEDCOM
• Navy and Marine program NAVFAC
• Air Force program HAMS (Brooks AFB TX)
• Target Veterans Integrated Service Networks
  (VISN)
• Geographically decentralized
• Clinics and Community-Based Outpatient Clinics
  (CBOC)
• Long vision capabilities, relationships, and
  trust

94
Issues and Concerns

• Qualified, capable and demonstrated excellence
• Highly experienced (24-36 months)
• Employment hazards for workers/clients
• Certifications and trainings for supervisors and
  workers
• Will Federal agencies set requirements aside?
• Centralized and Decentralized LOB strategy

95
LOB Action Plan

• Complete NISH Research and LOB feasibility
• Hire HHK Industry Consultant
• Complete and seek approval of Business Plan
• If approved, perform Business Plan

96
Summation HHK

• Complete investigation with HHK Consultant
• Reassess data, findings, and present
  recommendations
• Complete Business Plan
• Approval and inputs from Regional Directors
• Present Business Plan to NISH Board
• Follow recommendations and directions of NISH
  Board make HHK a priority!

97
Closing

• Final Comments
• Questions?
• POC Byard Bower
• Business Development Manager
• 206-272-3507
• bbower_at_nish.org
• 200 West Mercer, E-301
• Seattle WA 98119

98
Opportunity Research MAPROI
May 22-24, 2005
99
Closing

• Final Comments
• Questions?
• Next Session Meet and Greet the Line of
  Business Managers