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DocuSign Envelope ID: FA12C758-3EF4-45F3-BODF-724674D71270
<br />10
<br />What are your company's expectations in the
<br />Whether it's the internal expectations we set for ourselves, or external expectations financial
<br />event of an award?
<br />analysts place on us every three months when it comes time to publicly report our financials,
<br />CDWG has a history of exceeding expectations. We are successful in exceeding expectations
<br />in part due to discipline and a forward -thinking approach. We think carefully about what the
<br />future will look like and use internal metrics to make sure we are tracking our forecasts
<br />(Please see Question 65 for sample metrics). This process makes us confident going on the
<br />record with our projections, knowing we will be held to these standards and expected to
<br />deliver. A highlight of the Sourcewell and CDWG relationship over the years has been the
<br />alignment of expectations and the roadmap to meeting and often exceeding those. Before we
<br />dive in to our expectations upon award of this contract, we'd like to revisit our financial
<br />expectations set forth in the last Technology Solutions proposal and how we performed against
<br />those: Expected peak growth for 2018 as described in CDWG 2014 Sourcewell/NJPA
<br />Technology Solutions proposal: $350,000,000
<br />Actual growth for 2018: $550,000,000 For the next five years of this contract, we project the fc
<br />revenue targets under a sole source award:
<br />2020: $594,930,000
<br />2021: $624,680,000
<br />2022: $655,910,000
<br />2023: $688,710,000
<br />2024: $723,140,000
<br />Here are five big ideas on how CDWG and Sourcewell will get there together: 1) We
<br />expect Canadian performance on this contract will be a key differentiator. We have more than
<br />400 coworkers in Canada to support Sourcewell members across the country. Our recent
<br />acquisition of Scalar Decisions Inc., a leading IT solutions provider in Canada, enhances the
<br />value that we can deliver to customers. Scalar's expertise is in professional and managed
<br />services, infrastructure, and security.
<br />2) We expect to further diverse partnerships to continue ongoing focus on all communities
<br />Sourcewell serves. We do this in a number of ways. Externally, such as in 2018 when we
<br />were invited to join the New York City Mayor's Corporate Alliance Program, which provides
<br />diverse businesses direct access to select partner corporations. And internally, with diverse
<br />supplier trainings for our sales force that enable better understanding of customers' diversity
<br />goals and initiatives, and CDW•G's diverse spend solutions.
<br />3) We expect collaboration on marketing to drive increased contract usage and growth. We
<br />will generate a spotlight media piece detailing the exclusivity of the CDWG & Sourcewell
<br />agreement that can be shared through various channels, participate in cobranding marketing
<br />opportunities, continue sales enablement and training activities, and generate awareness of the
<br />agreement through key events and collateral primarily distributed electronically but also with
<br />printed releases. 4) We expect to continue our effective partnerships with the Sourcewell
<br />organization and other valued Sourcewell vendors. As one of the longest -tenured Sourcewell
<br />vendors and one of the largest in terms of sales volume, CDWG brings tremendous resources
<br />to the relationship. We have actively participated in support of Sourcewell leadership and its
<br />annual vendor conference for fifteen years. Mark Ellis, from CDW•G's Program Management
<br />team, has been an active participant on Sourcewell's Vendor Advisory Board, collaborating on
<br />past initiatives, such as collecting data from the vendor community on ideas for improved
<br />collaboration with Sourcewell, and in Sourcewell's recent transition from NJPA, connecting
<br />Sourcewell to CDWG marketing leaders and executives to review and solicit feedback. 5)
<br />We expect regular strategy meetings with Sourcewell to achieve the following goals: a.
<br />Align Sourcewell goals with CDWG business development and sales leadership to create
<br />targeted lists of customers based on membership status, which we're already serving but with
<br />less activity than expected, and which we're not serving but should be. For example, CDWG
<br />and Sourcewell's joint success in leveraging our strong public safety offerings to establish a
<br />relationship with the National Sherriff's Association is a blueprint for the future. b. Contribute
<br />research on key legislation that impacts cooperative purchasing. For example, we know
<br />recently Utah and Illinois passed legislation that should benefit cooperative
<br />purchasing initiatives in those states.
<br />Demonstrate your financial strength and stability
<br />Sourcewell can be confident of CDW•G's financial stability. We are a subsidiary of CDW, LLC,
<br />with meaningful data. This could include such
<br />which is a subsidiary of CDW Corporation, a publicly -owned Fortune 500 company. As a
<br />items as financial statements, SEC filings, credit
<br />government agency, Sourcewell is familiar with the trust established through transparency. Four
<br />and bond ratings, letters of credit, and detailed
<br />times a year our CEO, Christine Leahy, and CFO make public the results of our recent
<br />reference letters. Upload supporting documents
<br />financial performance and the overall health of our company. We are very proud of our
<br />(as applicable) in the document upload section of
<br />financial record. Selected current financial data:
<br />your response.
<br />Current CDW corporate credit ratings are all stable:
<br />o Moody's: Ba2 o
<br />Standard and Poor's: BB+ o
<br />Moody's Outlook: Positive o
<br />S&P Outlook: Stable
<br />o Our cash plus revolver availability (open agreements to borrow) is at $1.2B as of June
<br />30, 2019, demonstrating strong financial credit.
<br />Over the past decade our net sales have almost doubled U.S. IT spending as measured
<br />by Compound Annual Growth Rate ("CAGR")
<br />CDW has been steadily increasing revenue for each year since we went public in 2013,
<br />reaching our highest -ever net sales at $16.2B We have also uploaded CDW's past three
<br />health.
<br />City Council
<br />Our complete financial po4oka, ailable at 12/6/2022
<br />https://investor.cdw.com/
<br />
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