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DocuSign Envelope ID: FA12C758-3EF4-45F3-BODF-724674D71270
<br />56
<br />Describe any quantity or volume discounts or rebate programs
<br />Sourcewell prices and percentage off discounts listed in our proposal are the
<br />that you offer.
<br />ceiling price at QTY 1. It is our experience, both on the Sourcewell contract
<br />and across the broader scope of our business, that few purchases are
<br />made for QTY 1 and that often we can share additional discounts with
<br />customers through our close relationships with key OEMs. On the current
<br />contract, we advocated for Sourcewell members and secured volume
<br />discounts on a number of OEMs, including HP and Nutanix. By purchasing
<br />in volume or as part of a larger project, approximately 20% of Members
<br />enjoyed discounts between 10-20% below the contract ceiling price
<br />throughout 2018. Additionally, CDWG maintains our two distribution facilities
<br />with over one million square feet of inventory space available. While our
<br />competition tries to paint these facilities as an unnecessary expense, they
<br />miss out on one of the key benefits of our model. CDWG can regularly
<br />take action on strategic buy -in programs offered by distributors and OEMs
<br />as they feel pressure of product accumulating in their supply chain or need
<br />to attain a certain sales threshold for a financial milestone, such as their
<br />end -of- quarter or fiscal year. When these opportunities arise, CDWG has
<br />adequate space available to buy in hundreds of units at a reduced cost —
<br />and we choose to blend that cost with the general inventory, driving down
<br />prices for Sourcewell members in the process. And let us say the ways
<br />and means of discount/rebate programs offered from competing vendors on
<br />this contract will certainly all sound appealing. But take note that without a
<br />team dedicated to tracking and managing purchases, and applying those
<br />special discounts appropriately, any resulting oversights will be as
<br />inexcusable as letting a puck slip through the five- hole. As part of the
<br />CDW Experience, we have a team of program management professionals,
<br />including a contract manager and contract analyst dedicated to Sourcewell,
<br />who ensure that Sourcewell members receive all program benefits.
<br />57
<br />Propose a method of facilitating "sourced" products or related
<br />Due to our routine partner reviews, we rarely run into having to onboard
<br />services, which may be referred to as "open market" items or
<br />new vendors or products for specific requests. When we do, our scrupulous
<br />"nonstandard options". For example, you may supply such items
<br />process ensures that new partners work with us in delivering the CDW
<br />"at cost" or "at cost plus a percentage," or you may supply a
<br />Experience. This process features collaboration with customers, sales teams,
<br />quote for each such request.
<br />distribution coworkers, internal analysts, Product and Partner Management
<br />teams, and our legal department. Again, this is one of those components of
<br />technology procurement that is extremely complex behind the curtain, but
<br />for Sourcewell members the benefit of working with CDWG is simple:
<br />security. When sourced products or related services are needed, CDWG
<br />can easily facilitate this process for Sourcewell members. In instances
<br />where an entirely new product or related service becomes available
<br />through our catalog, such as when we began selling AWS on the current
<br />contract, our Program Management team works with Sourcewell to add it to
<br />the contract at a reasonable percentage discount for Members, taking into
<br />account relative category discounts already established on the contract.
<br />As for facilitating related services, CDWG has the resources to develop and
<br />deliver services that require nonstandard options, or unique scopes of work,
<br />pricing and specific terms. We work with our solution architects and partners
<br />to create these project scopes and provide a wide range of services. We
<br />then have a team of service contract specialists and service contract
<br />negotiators dedicated to drafting, editing, reviewing, and negotiating service
<br />contracts to meet the specific needs of our customers. In addition, CDWG
<br />has legal resources to negotiate customer -specific terms and project -specific
<br />terms for our customers. The contracts team handles service contracts from
<br />initial drafting to full execution of a statement of work, ensuring the
<br />Sourcewell members'
<br />experience is streamlined and services can begin in a timely manner.
<br />58
<br />Identify any element of the total cost of acquisition that is NOT
<br />All costs to serve Sourcewell members are included in the pricing. Services
<br />included in the pricing submitted with your response. This includes
<br />are quotes as designed by the Member and may include training or
<br />all additional charges associated with a purchase that are not
<br />implementation costs, which are included at the time of quote and never
<br />directly identified as freight or shipping charges. For example, list
<br />'tacked on' after purchase.
<br />costs for items like pre -delivery inspection, installation, set up,
<br />mandatory training, or initial inspection. Identify any parties that
<br />impose such costs and their relationship to the Proposer.
<br />59
<br />If freight, delivery, or shipping is an additional cost to the
<br />Free ground shipping is for the cheapest ground option. For all other
<br />Sourcewell Member, describe in detail the complete freight,
<br />options, we offer Members a freight difference option. An example of this is
<br />shipping, and delivery program.
<br />our Discounted Overnight Shipping program. Members can elect a faster
<br />delivery method and receive a discount from our standard overnight price
<br />equivalent to the standard ground shipping benefit they would have received
<br />for the same items. For example, if standard ground freight would have cost
<br />$10 and the 2-day air option costs $25, then the Member is asked to pay
<br />$15 for 2-day air — the difference. In this methodology, the Member retains
<br />the benefit of the 'free round' consideration.
<br />Citv Council
<br />1 7 — 48 12/6/2022
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