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SHAMROCK SUPPLY COMPANY, INC. <br />City of Santa Ana <br />RFP No.: 20-019 <br />VMI Program/Value-Added Service Proposal <br />March 18, 2020 <br />Page 3 <br />Total Cost of Ownership (TCO) Reduction/Reporting <br />Shamrock will make available to the City of Santa Ana standard reports containing purchasing <br />and inventory information associated with this program. Furthermore, customized material <br />usage reporting by department will be provided, and Shamrock IT personnel will develop report <br />specifications in conjunction with the City of Santa Ana department managers. Additionally, in <br />our effort to strive for continuous improvement, Shamrock will provide documented TCO <br />reduction reporting. Presentation of TCO documentation will be presented periodically, during <br />performance review meetings, between Shamrock and the City of Santa Ana. <br />Continuous Improvement Opportunities <br />• Tri-Lateral Agreements with Manufacturers <br />• Product Standardization <br />• New Product Education and Training <br />• Safety Programs/Training <br />On -going Process Review/Enhancement <br />Support <br />As your business partner, Shamrock is committed to delivering innovative, value-added supply <br />chain solutions designed to improve your processes and to assist you with cost management. <br />To that end, Shamrock will provide experienced technical support and product training to help <br />eliminate production down time and continuously work to refine the program's effectiveness. <br />Plus, with an experienced sourcing department, we are in a position to respond to any unique <br />requirements or unforeseen production needs. <br />Pricing <br />In light of our commitments to TCO reduction and cost containment, Shamrock makes every <br />effort to ensure that material pricing (i.e., 'first cost') is market -competitive and that special <br />pricing arrangements and contract terms are optimized. Through management of inventory <br />levels on repetitive products/bulk purchasing, product standardization, tri-lateral agreements <br />with manufacturers, etc., Shamrock strives to maintain static material costs, where possible. <br />For this program, a fixed SKU price will apply to all contract material. Material pricing will be <br />reviewed semi-annually (January/July) to reflect manufacturer price increase/decrease and/or <br />market volatility, and documentation of supplier pricing increases, where applicable, will be <br />provided to substantiate requested price increases. Material pricing increases resulting from <br />force majeure (e.g., acts of God, natural disaster, war, political unrest, etc.) in excess of 5.00% <br />25D-39 <br />