Office Office Furniture Furniture

USAUSA

GSA GSA ProgramProgram

June 2010June 2010

Points to be covered

OFUSA and Manufacturers’ Contracts

Marketing to the GSA Customer

Catalog layout

Items and manufacturers not on contract

Dealer’s role and responsibility

Invoicing

GSA payments

Dealer payment terms

OFUSA’s role

Contract benefits

The OFUSA GSA Contract

This contract is the OFUSA Program being sold at pre-established terms to the Government

Participating GSA dealers handle GSA sales in same fashion as commercial sales

OFUSA is the contract holder (dealers are OFUSA)

Stand alone contract separate from manufacturers directly held contracts

Contract #DiscountTermsDealer PaymentOrder Process

Contract #DiscountTermsDealer PaymentOrder Process

Contract #DiscountTermsDealer PaymentOrder Process

Contract #DiscountTermsDealer PaymentOrder Process

MFG A MFG B MFG C MFG D

Contract #DiscountTermsDealer PaymentOrder Process

Our contract is dependent on the manufacturers’ contracts.

Items have to be in our catalog AND on a manufacturer’s contract to be on our contract.

Manufacturer Contracts vs OFUSA’s Contract

Our contract is separate from the manufacturers’ contracts

15 manufacturers 15 manufacturers and 3200 sku’sand 3200 sku’sare included on the are included on the OFUSA GSA OFUSA GSA contract contract

The OFUSA catalog on contractThe OFUSA catalog on contract

AIS

ART

CLA

DAR

DMI

HPC

INW

KFI

LAC

LAS

LEG

MLN

RIT

UNC

VIR

CONTRACT CONTRACT DETAILDETAIL

GSA Price: GSA Price:

54% off list54% off listdock delivereddock delivered

(GSA’s price includes delivery; dealer can’t charge)(GSA’s price includes delivery; dealer can’t charge)

OFUSA Dealer Margin:OFUSA Dealer Margin:

20%*20%*+ installation + installation

+ design+ design* Due to rounding actual GP is fractionally below 20% (19._ _%)

Marketing to the GSA customerQuick-ship

- 14 day delivery ARO (after receipt of order)

Consolidated - Multiple manufacturers under one

contract with one discount

Convenient- One dealer to service account- One catalog wide selection of product

QUICK QUICK SHIPSHIP

Delivery terms of 14 daysDelivery terms of 14 days

(quick ship quantities)(quick ship quantities)

GSA given the same maximum GSA given the same maximum quantities as standard quantities as standard OFUSA maximums OFUSA maximums

Guaranteed delivery in 90 daysGuaranteed delivery in 90 days

CONSOLIDATEDCONSOLIDATED

• 1 purchase order 1 purchase order for multiple linesfor multiple lines

• Dealer delivers Dealer delivers order completeorder complete

• One discount for One discount for product on contractproduct on contract

CONVENIENCECONVENIENCE

• Simplifies procurement processSimplifies procurement process- Fill multiple needs from one source- Fill multiple needs from one source

- Provide consistent terms for all products- Provide consistent terms for all products - Reduce administrative processes- Reduce administrative processes

• Dealer serviceDealer service

We have a specifically customized catalog as our GSA Contract Catalog.

GSA-approved product from the commercial catalog is included, with GSA pricing for all items. The catalog also has a customized front and inside front cover.

GSA Contract Catalog

OFUSA GSA Contract Terms

The terms of our GSA contract are summarized on the inside front cover of the GSA catalog.

These points answer most GSA customers’ questions about technical aspects of our contract.

GSA Contract Items

List prices are printed for GSA items & 54%

off is calculated

Items Not on Contract (“NOC”)

DEFINITION:

a) Any item available through the OFUSA program that is NOT included

in our GSA contract

b) Any item in the commercial catalog that is not in the GSA catalog, and any

“un-cataloged” item from the manufacturer binder-wide offering

_______

If an item is not in our GSA catalog, it cannot possibly be included in our

contract

“NOC” Items“NOC” items can be included in your order placed through the OFUSA System, just quoted to the customer as “open market”

- If allowed by their own purchasing rules, customers can put On-contract and NOC items on ONE purchase order. YOU can enter all OFUSA product on the same order in the OFUSA system.

- Not contracted at 54% off; therefore increase youroverall GP on NOC items!

Dealer’s Role

Catalog Commitment

Minimum order 250 at Minimum order 250 at $4.25 = $1,062.50$4.25 = $1,062.50

About $5,000 in sales pays About $5,000 in sales pays for your GSA for your GSA

investmentinvestment

Dealer’s Responsibility

Deliver to customer within the terms of the contract

Retain records of GSA purchase orders

Invoicing:

- Dealer invoices GSA as ‘OFUSA City Name’

- The remit to address is:

Office Furniture USA

273 Cahaba Valley Pkwy

Pelham, AL 35124

Attn: GSA

Dealer’s Responsibility

Dealer Payments:

OFUSA will receive payments from GSA. Our accounting department will determine the selling dealer and immediately forward the payment (same day turnaround)

Credit card purchases:

Processed by dealer

Electronic Funds Transfer:

Available

Payment Options

Payment Terms:

Credit / Purchase card payments encouraged and accepted for immediate payment! (processed by dealer)

Terms to GSA customer:

Net 30 if not paid by credit or purchase card

Dealer payment terms:

Standard OFUSA payment terms

Payment Terms

OFUSA’s Role

• Pay Industrial Funding Fee (.75%)

• Provide and maintain the GSA website

• Manage and maintain the contract

• Generate leads from GSA Advantage! and eBuy

• Our GSA.com website will list participating Our GSA.com website will list participating dealers (dealer locator)dealers (dealer locator)

• OFUSA will refer inquiries according to OFUSA will refer inquiries according to OFUSA territories (if participating dealer)OFUSA territories (if participating dealer)

• OFUSA will alternate referrals in dual OFUSA will alternate referrals in dual markets with participating GSA dealersmarkets with participating GSA dealers

GSA GSA Contract Contract BenefitsBenefits

Higher marginsHigher margins

Private contractPrivate contract

Ordering simplicityOrdering simplicity

Credit card payment opportunityCredit card payment opportunity

Selling options Selling options

No intermarket feesNo intermarket fees

Differentiate your dealershipDifferentiate your dealership