BPM006272_Solicitation_Attachment_-_Experience_and_Capacity_Response_r1_11-22.docx

Attachment 2.1.3.10 – Experience and Capacity Response

THE STATE MAY DETERMINE YOUR PROPOSAL NON-RESPONSIVE IF YOU DO NOT FULLY RESPOND.

The Offeror shall provide a narrative response to each section that demonstrates their understanding of the Scope of Work requirements and describes the company’s overall experience and capacity in providing the Services stated in this Solicitation. If there is a section that is not applicable to the Services required by the Scope of Work, you may mark it “N/A”.

Offeror shall provide a response either after each section or in a separate document entitled: “Attachment - Experience and Capacity Response.” If a separate document is used, please clearly designate each section and double-check to ensure that each question has been answered. If any information provided is considered CONFIDENTIAL by Offeror, the information must be specifically included in the Confidential Information Designation Attachment and related documentation to be assessed for confidential treatment under A.A.C. R2-7-103.

1.0 Company Profile. The Offeror must include a narrative description of its organization. The narrative must include the following:

1.1 Brief overview of business operations, with an emphasis on experience in regards to the Scope of Work;

See Attachment – Experience and Capacity Response_MSC for our detailed response regarding how we would support the State’s Scope of Work.

1.2 Location in which the Offeror is incorporated;

MSC is incorporated in the State of New York

1.3 Address of “Main Office” (e.g. Corporate Headquarters and any satellite offices responsible for performance of proposed tasks;

MSC co-headquarters are located at 525 Harbour Place Drive, Davidson, North Carolina, 28036 ad at 515 Broadhollow Road, Melville, NY 11747.

We operate five primary CFCs located in Atlanta, GA; Elkhart, IN; Hanover Park, IL; Harrisburg, PA; and Reno, NV. MSC also maintains seven regional inventory centers and over 30 additional warehouses.

Please note that due to our extensive network of field sales associates and specialists; same day shipping; inventory management solutions (Vending, VMI, etc.), and the speed at which we pick, pack and ship orders, we have minimized the need for retail locations and will-call orders.

1.4 Offeror's organizational chart relevant to the Contract, specifically identifying the key point of contact for all questions related to the submitted Offer;

See attached our MSC Account Management Organizational Chart submitted with our response. For all questions regarding MSC’s response to the State’s RFP, please contact:

Brandon Buell, Account Manager, Public Sector 623-203-8509 Brandon.Buell@mscdirect.com

1.5 Full disclosure of any potential conflict of interest between the Offeror and any State employee who functions or has responsibilities in the review or approval of the undertaking or carrying out of the Contract;

There is no conflict of interest that would affect the MSC performance under the contract.

1.6 A Statement of whether, in the last five (5) years, the Offeror has filed (or had filed against it) any bankruptcy or insolvency proceeding, whether voluntary or involuntary, or undergone the appointment of a receiver, trustee, or assignee for the benefit of creditors, and if so, an explanation providing relevant details and current status;

MSC has not undergone any bankruptcy or insolvency proceedings, and has not undergone the appointment of a receiver, trustee, or assignee for the benefit of creditors.

1.7 A Statement of whether there are any pending Securities Exchange Commission investigations involving the Offeror, and if such are pending or in progress, an explanation providing relevant details and an attached opinion of counsel as to whether the pending investigation(s) may impair the Offeror’s performance in a Contract under this Solicitation;

There are no pending Securities Exchange Commission investigations that would impair MSC’s performance in a contract under this solicitation.

1.8 A Statement documenting all open or pending litigation initiated by Offeror or where Offeror is a defendant or party in any litigation that may have a material impact on Offeror’s ability to deliver the contracted Services;

As part of MSC’s ordinary course of business as a large, public company, MSC from time-to-time is involved in litigation. Any matters having a material adverse effect on MSC’s financial position would be mentioned in our quarterly and annual reports filed with the SEC as required by law. However, there are no known lawsuits that would compromise MSC’s ability to perform under the contract.

1.9 A Statement documenting all open or pending litigation initiated by Offeror or where Offeror is a defendant or party in any litigation with a public sector client;

See above response.

1.10 Full disclosure of any public sector contracts terminated for cause or convenience in the past five (5) years;

As part of MSC’s ordinary course of business as a large, public company, it has contracts of all types ranging from supply contracts to binding purchase orders with thousands of customers. There may be a small percentage of contracts or purchase orders that were terminated by MSC or a customer for any number of reasons. Any matters having a material adverse effect on MSC’s financial position would be mentioned in our quarterly and annual reports filed with the SEC as required by law. There are no actions relating to commercial or governmental contract breaches or premature termination that would compromise MSC’s ability to perform under the proposed contract.

1.11 Full disclosure of any criminal or civil offense;

MSC has no history of any criminal or civil offense.

1.12 Offeror shall provide evidence of any Arizona required business license to provide these Services; AND See the following link to the Arizona Corporation Commission which shows MSC as in good standing:

https://ecorp.azcc.gov/BusinessSearch/BusinessInfo?entityNumber=F08518578

1.13 Offeror shall provide copies of any professional or industry certifications that represent the Services detailed in this Solicitation.

MSC is ISO 9001:2015 certified. View our certificate at:

ISO 9001:2015 Certificate

Offeror Response:

X

2.0 Company Experience

2.1 What market(s) are your current clients primarily in?

MSC has extensive experience successfully supporting our Public Sector customers through individual contracts and national purchasing cooperative programs. In addition, we also partner with agencies at the Federal, State and Local level across the U.S., including military bases, the United States Postal Service, municipalities, higher education, school districts and public sector healthcare systems and providers. We proudly maintain an over 20-year relationship with General Services Administration (GSA).

Other industries we service include: pharmaceutical, food and beverage, energy, chemicals, automotive and aerospace.

2.2 What experience do you have serving clients in business markets within the State of Arizona?

MSC is currently services a wide range of Arizona State agencies, including the Department of Transportation, Department of Corrections, the National Guard, Higher Education and K through 12 schools.

2.3 What is the range in size of your current clients?

MSC maintains approximately 400,000 customers ranging in size to small machine shops to large federal customers and national purchasing cooperatives.

2.4 Provide two (2) examples that exhibit your experience with Materials or Services for clients relevant to the Scope of Work? Provide supporting documentation as a separate attachment and title the document: “Attachment - Company Experience”.

Examples of the numerous state / local government contracts and national cooperative programs include:

· State and Local Government Contracts: MSC currently holds and supports over 84 separate State / Municipal contracts for MRO and Industrial products. A directory is provided at our website:

https://www.mscdirect.com/solutions/government-state-local

· NASPO ValuePoint (8499) MRO and Industrial Supplies: MSC has been an incumbent supplier since 2011. Current 5-year Term contract with one-year extension. Expires June 30, 2024

· United States Postal Service (USPS) MRO Contract No. 3CMROP-21-8-0022: In October 2021, MSC was awarded our third consecutive contract with the USPS. MSC supports four major MRO categories: Industrial, Janitorial, Building and Equipment and Electrical.

2.5 In the last five (5) years, did any of your clients cancel their contracts with your company? If “yes”, why? Please provide as much detail as possible.

As part of MSC’s ordinary course of business as a large, public company, it has contracts of all types ranging from supply contracts to binding purchase orders with thousands of customers. There may be a small percentage of contracts or purchase orders that were terminated by MSC or a customer for any number of reasons. Any matters having a material adverse effect on MSC’s financial position would be mentioned in our quarterly and annual reports filed with the SEC as required by law. There are no actions relating to commercial or governmental contract breaches or premature termination that would compromise MSC’s ability to perform under the proposed contract.

2.6 With what relevant trade and/or professional associations are you involved? How does this participation give you an advantage over your competition?

MSC is a member of the Industrial Supply Association.

Offeror Response:

X

3.0 Financial/Accounting Information

Offeror must provide evidence of financial stability and capability to fund all costs associated with providing the relevant Materials or Services throughout the term of the Contract. The latest two (2) years audited annual financial statements including total revenue, net income, and total assets must be submitted with the Offeror’s proposal. If audited financial data is unavailable, explain in full, the reason and provide the latest non-audited financial information including but not limited to balance sheet, income statement, as well as statements of cash flows, and change in financial position. Include information to attest to the accuracy of the information provided.

Offeror shall provide information regarding any irregularities that were discovered in any accounts maintained by the Offeror on behalf of others. Describe the circumstances and disposition of the irregularities.

Request for Proposal

Solicitation No. BPM006272

Statewide Facilities and Building Supplies Arizona Department of Administration State Procurement Office 1802 W. Jackson, #100 Phoenix, AZ 85007

Offeror Response:

Solicitation Attachment – Experience and Capacity Response | Revision No. 1 | Revised 11-22 As a large, publicly owned corporation trading on the NYSE under the ‘MSM’ symbol, all financial information disclosed to the public is available in our Annual Reports, which may be found at:

https://investor.mscdirect.com/annual-reports.

We have also attached our 2023 Annual Report with our response.

4.0 Certificates/Licenses

Submit copies of all applicable certificates and licenses that support Offeror’s ability to provide the proposed Materials or Services. At a minimum, this shall include all certifications and licenses referenced in the Solicitation Attachment - Organization Profile.

Offeror Response:

See the following link to the Arizona Corporation Commission which shows MSC as in good standing:

https://ecorp.azcc.gov/BusinessSearch/BusinessInfo?entityNumber=F08518578

Solicitation Attachment – Method of Approach | Revision No. 1 | Revised 11-22 image1.jpg