Visalia City Council
February 6, 2023

Region 4 Education Service Center (ESC)
Contract # R192005
for
Maintenance, Repair and Operations (MRO) Supplies and Equipment with
Lawson Products
Effective: April 1, 2020
The following documents comprise the executed contract between the Region 4 Education Service Center and Lawson Prodcuts effective April 1, 2020:

I. Appendix A; Vendor Contract
II. Offer & Contract Signature Form
III. Supplier’s Response to the RFP, incorporated by reference

APPENDIX A

CONTRACT
This Contract ("Contract") is made as of April 01 , 2020 by and between Lawson Products Inc. ("Lawson") ("Contractor') and Region 4 Education SeNice Center ("Region 4 ESC'J for the purchase of Maintenance, Repair and Operations (MRO) Supplies & Related ("the products and seNices'J. Services

RECITALS
WHEREAS, Region 4 ESC issued Request for Proposals Number R 19-20 to which Contractor provided a response ("Proposal"); and for MRO ("RFP"),
Maintenance, Repair and Operations
(MRO) Supplies & Related Services
WHEREAS, Region 4 ESC selected Contractor's Proposal and wishes to engage Contractor in providing the services/materials described in the RFP and Proposal; WHEREAS, both parties agree and understand the following pages will constitute the Contract between the Contractor and Region 4 ESC, having its principal place of business at 7145 West Tidwell Road, Houston, TX 77092.

WHEREAS, Contractor included, in writing, any required exceptions or deviations from these terms, conditions, and specifications; and it is further understood that, if agreed to by Region 4 ESC, said exceptions or deviations are incorporated into the Contract.

WHEREAS, this Contract consists of the provisions set forth below, including provisions of all attachments referenced herein. In the event of a conflict between the provisions set forth below and those contained in any attachment, the provisions set forth below shall control.

WHEREAS, the Contract will provide that any state and local governmental entities, public and private primary, secondary and higher education entities, non-profit entities, and agencies for the public benefit ("Public Agencies") may purchase products and services at prices indicated in the Contract upon the Public Agency's registration with OMNIA Partners. 1) Term of agreement. The term of the Contract is for a period of three (3) years unless terminated, canceled or extended as otherwise provided herein. Region 4 ESC shall have the right to renew the Contract for two (2) additional one-year periods or portions thereof.

Region 4 ESC shall review the Contract prior to the renewal date and notify the Contractor of Region 4 ESC's intent renew the Contract. Contractor may elect not to renew by providing three hundred sixty-five days' (365} notice to Region 4 ESC. Notwithstanding the expiration of the initial term or any subsequent term or all renewal options, Region 4 ESC and Contractor may mutually agree to extend the term of this Agreement. Contractor acknowledges and understands Region 4 ESC is under no obligation whatsoever to extend the term of this Agreement.
2) Scope: Contractor shall perform all duties, responsibilities and obligations, set forth in this agreement, and described in the RFP, incorporated herein by reference as though fully set forth herein.

3) Form of Contract. The form of Contract shall be the RFP, the Offeror's proposal and Best and Final Offer(s).
4) Order of Precedence. In the event of a conflict in the provisions of the Contract as accepted by Region 4 ESC, the following order of precedence shall prevail:
i. This Contract
ii. Offeror's Best and Final Offer
iii. Offeror's proposal
iv. RFP and any addenda
5) Commencement of Work. The Contractor is cautioned not to commence any billable work or provide any material or service under this Contract until Contractor receives a purchase order for such work or is otherwise directed to do so in writing by Region 4 ESC. 6) Entire Agreement (Parol evidence). The Contract, as specified above, represents the final written expression of agreement. All agreements are contained herein and no other agreements or representations that materially alter it are acceptable. 7) Assignment of Contract. No assignment of Contract may be made without the prior written approval of Region 4 ESC. Contractor is required to notify Region 4 ESC when any material change in operations is made (i.e. bankruptcy, change of ownership, merger, etc.). 8) Novation. If Contractor sells or transfers all assets or the entire portion of the assets used to perform this Contract, a successor in interest must guarantee to perform all obligations under this Contract. Region 4 ESC reserves the right to accept or reject any new party. A change of name agreement will not change the contractual obligations of Contractor. 9) Contract Alterations. No alterations to the terms of this Contract shall be valid or binding unless authorized and signed by Region 4 ESC.
10) Adding Authorized Distributors/Dealers. Contractor is prohibited from authorizing additional distributors or dealers, other than those identified at the time of submitting their proposal, to sell under the Contract without notification and prior written approval from Region 4 ESC.

Contractor must notify Region 4 ESC each time it wishes to add an authorized distributor or dealer. Purchase orders and payment can only be made to the Contractor unless otherwise approved by Region 4 ESC. Pricing provided to members by added distributors or dealers must also be less than or equal to the Contractor's pricing. 11) TERMINATION OF CONTRACT
a) Cancellation for Non-Performance or Contractor Deficiency. Region 4 ESC may terminate the Contract if purchase volume is determined to be low volume in any 12-month period.

Region 4 ESC reserves the right to cancel the whole or any part of this Contract due to failure by Contractor to carry out any obligation, term or condition of the contract. Region 4 ESC may issue a written deficiency notice to Contractor for acting or failing to act in any of the following:
i. Providing material that does not meet the specifications of the Contract; ii. Providing work or material was not awarded under the Contract; iii. Failing to adequately perform the services set forth in the scope of work and specifications;

12) Licenses. Contractor shall maintain in current status all federal, state and local licenses, bonds and permits required for the operation of the business conducted by Contractor. Contractor shall remain fully informed of and in compliance with all ordinances and regulations pertaining to the lawful provision of services under the Contract. Region 4 ESC reserves the right to stop work and/or cancel the Contract if Contractor's license(s) expire, lapse, are suspended or terminated.
13) Survival Clause. All applicable software license agreements, warranties or service agreements that are entered into between Contractor and Region 4 ESC under the terms and conditions of the Contract shall survive the expiration or termination of the Contract. All Purchase Orders issued and accepted by Contractor shall survive expiration or termination of the Contract.
14) Delivery. Conforming product shall be shipped within 7 days of receipt of Purchase Order. If delivery is not or cannot be made within this time period, the Contractor must receive authorization for the delayed delivery. The order may be canceled if the estimated shipping time is not acceptable. All deliveries shall be freight prepaid, F.O.B. Destination and shall be included in all pricing offered unless otherwise clearly stated in writing. 15) Inspection & Acceptance. If defective or incorrect material is delivered, Region 4 ESC may make the determination to return the material to the Contractor at no cost to Region 4 ESC.

The Contractor agrees to pay all shipping costs for the return shipment. Contractor shall be responsible for arranging the return of the defective or incorrect material. 16) Payments. Payment shall be made after satisfactory performance, in accordance with all provisions thereof, and upon receipt of a properly completed invoice. 17) Price Adjustments. Should it become necessary or proper during the term of this Contract to make any change in design or any alterations that will increase price, Region 4 ESC must be notified immediately. Price increases must be approved by Region 4 ESC and no payment for additional materials or services, beyond the amount stipulated in the Contract shall be paid without prior approval. All price increases must be supported by manufacturer documentation, or a formal cost justification letter. Contractor must honor previous prices for thirty (30) days after approval and written notification from Region 4 ESC. It is the Contractor's responsibility to keep all pricing up to date and on file with Region 4 ESC. All price changes must be provided to Region 4 ESC, using the same format as was provided and accepted in the Contractor's proposal.

Price reductions may be offered at any time during Contract. Special, time-limited reductions are permissible under the following conditions: 1) reduction is available to all users equally; 2) reduction is for a specific period, normally not less than thirty (30) days; and 3) original price is not exceeded after the time-limit; 4) change in market conditions. 18) Audit Rights. Contractor shall, at its sole expense, maintain appropriate due diligence of all purchases made by Region 4 ESC and any entity that utilizes this Contract. Region 4 ESC reserves the right to audit the accounting for a period of three (3) years from the time such purchases are made. This audit right shall survive termination of this Agreement for a period of one (1) year from the effective date of termination. Region 4 ESC shall have the authority to conduct random audits of Contractor's pricing at Region 4 ESC's sole cost and expense.

Notwithstanding the foregoing, in the event that Region 4 ESC is made aware of any pricing being offered that is materially inconsistent with the pricing under this agreement, Region 4 ESC shall have the ability to conduct an extensive audit of Contractor's pricing at Contractor's

Accepeted
Lawson Products, Inc. Page 17
TAB 2 – Products & Services Pricing and market basket (Appendix E)

2. Offeror’s proposal should, at a minimum, include the following for Region 4 ESC’s evaluation:
a) Products/Pricing
a. Complete Appendix E – Price Sheet for Products/Services/Market Basket/Core List
L
awson Products’ Response:

Please see Price Sheet for Products/Services/Market Basket/Core List. b. Provide details of and propose, special manufacturer’s offers, minimum order quantity, free goods program, total annual spend, etc.

Lawson Products’ Response:

Lawson Products, Inc. (“Lawson”) will offer specific discount percentages per category off of Lawson’s distributor list price. If a sale item falls below contracted price, the OMNIA Partners’ participants will receive the better price for the item. Lawson does not have minimum order restrictions but will offer discounts for bulk purchases, evaluated on a case-by-case basis.

Every April 1st of each contract year, Lawson will pay a 5% rebate to any single entity that purchased a minimum of $30,000 with Lawson the previous 12 months. For example, an account that purchased $100,000 with Lawson between April 1st 2020 – March 31st 2021 will receive 5% or $5,000 paid out in April 2021. This will apply to both current and new customers.

Lawson’s sales teams can provide your members with high quality steel storage bins and cabinets after analyzing the customer’s needs and determining any potential costs associated with the final analysis. In addition, Lawson has a Ready Allowance Program where customers can receive credit in exchange for obsolete or damaged product which can be applied toward future purchases. c
. Contractor(s) shall offer Region 4 ESC and participating agencies any published price reduction during the Contract term.

L
awson Products’ Response:

Lawson will offer Region 4 ESC and its participants published price reductions during the term of the contract.
d. Region 4 ESC requests pricing be submitted as not to exceed pricing.

Unlike fixed pricing, the Contractor can adjust submitted pricing lower if needed but, cannot exceed original pricing submitted. Contractor must allow for lower pricing to be available for similar product and service purchases. Cost plus pricing as a primary pricing structure is not acceptable.

Lawson Products, Inc. Page 18

Lawson Products’ Response:

Lawson agrees to submit pricing as not to exceed pricing. Lawson will maintain the discounts structure off Lawson’s distributor catalog list price throughout the term of this agreement.

e. Electronic price lists must contain manufacturer part #, Offeror part # (if different from manufacturer part #) ; description; manufacturers list price and net price to Region 4 ESC and participating members (including freight).

Lawson Products’ Response:

Lawson, as a distributor of MRO products, uses its own part numbers which are different from the manufacturer part numbers; therefore, Lawson will include the manufacturers’ part numbers in addition to its own part numbers. Lawson will also provide a discount off Lawson’s distributor list price and net pricing information to Region 4 ESC.

f. Media submitted for price list must include the respondents’ company name, name of the solicitation, and date on Flash Drive (i.e. Jump Drives).

Lawson Products’ Response:

Lawson has submitted our full catalog price list on Flash Drives included in a labeled, brown envelope.

g. Please submit price lists and/or catalogs in excel or delimited format only minimizing file size.

Lawson Products’ Response:

Lawson has submitted our full catalog price list on Flash Drives in an Excel format, included in a labeled, brown envelope.

Lawson Products, Inc. Page 23

Exhibit A - 3.1 Company (Page 35 – OMNIA)
A. Brief history and description of Supplier.

Lawson Products’ Response:

Please reference Lawson Product’s Responses in Appendix D, Exhibit A, OMNIA Partners Response for National Cooperative Contract. Lawson Products has also replicated the entire OMNIA Partners Response for a National Cooperative Contract below:

Sidney L. Port founded Lawson in 1952 with a simple goal —to provide for his family. He accomplished that and much more.

After early careers as a publisher and an attorney, Mr. Port joined his father- in-law’s company, Lion Auto Parts. During his time there he recognized an opportunity and confirmed its potential by first selling fasteners out of the trunk of his car. That experience convinced him that no one else was effectively supplying businesses with small, consumable parts necessary to keeping their op erations running.

At the age of 40, with a $25,000 loan, Mr. Port opened Lawson. For those who knew Mr. Port they’d say, “his word was his bond,” and customers and suppliers quickly recognized his integrity. That, combined with Mr. Port’s knack for finding the right people, helped continue the Company’s growth.

Lawson went public in 1970 (currently traded on the NASDAQ – LAWS), but Mr. Port retained a very active role until his death in 2007. When asked about founding his Company, Mr. Port often replied that he simply wanted to create an organization that offered employees a way to make a good living and support their families. As an entrepreneur himself, Mr. Port encouraged that spirit by offering employee benefits such as profit sharing, which was unusual at the time.

Mr. Port named Lawson after Victor Lawson, owner of the Chicago Daily News and a philanthropist whom he admired. As the Company’s success grew, so did Mr. Port’s generosity and philanthropic efforts in the arts, medical research and education.

Today, Lawson in North America…
• is a wholly owned subsidiary of Lawson, Inc. with other divisions of Kent Automotive, a Delaware Corporation ("Lawson Delaware") and Bolt Supply (Canada only); • is a publicly held company traded on the NASDAQ as LAWS; • carries over 240,000 consumable MRO products like fasteners, electrical supplies, fluid power fittings and hoses, cutting tools, safety supplies, maintenance chemicals and more; • serves over 300,000 public and private sector customers in the areas of vehicle and automotive repair, manufacturing equipment repair, facility maintenance, food processing, construction, oil and gas, mining and others;
• maintains a 98% -99% fill rate and ships 99% of all products complete within 24 hours from six strategically located distribution centers in North America and 13 branch locations in Canada via its subsidiary Bolt Supply;
• has over 1,800 employees, 1,000 of which are local field sales representatives that monitor, put away, and manage inventory levels at the site-level for state and local government entities;

Lawson Products, Inc. Page 24

Under the leadership of President & CEO Michael G. DeCata, Lawson continues to value the entrepreneurial spirit, results -driven attitude and integrity of its employees and customers alike. At the same time, the Company continues to evolve, recognizing that now more than ever, success depends on teamwork and being progressive in response to meeting customers’ needs.

Lawson delivers a full range of consu mable MRO products coupled with on -site inventory management services that help fleet and facility maintenance personnel keep their operations up and running without interruption. Our goal is to be sure the right products are on hand at the moment they’re needed so vehicles and facilities can operate at their full capacity and avoid downtime. Said otherwise, we strive to be sure our customers have “the right part, in the right place, at the right time.”

Following the principles of 5S methodology (a workplace organization method) approximately 1,000 Lawson field sales representatives partner with maintenance and repair personnel to maximize their operational effectiveness and efficiency. Our ultimate goal is to develop a fully integrated maintenance supply and inventory management partnership with OMNIA Partners and participating state, local and education entities to provide quality products and vendor -managed inventory services for consumable maintenance and repair products across the U.S. and Canada.

Lawson has been continuously in business since its founding in 1952. Over the last three years, Lawson’ sales reflect a company -wide average of 10% growth, with the Government sector comprising 12% of total 2017 revenue. Lawson’s four-year annual sales include:
2015 $257,834,000.00
2016 $276,573,000.00 (increase of 7.3% vs. 2015)
2017 $305,907,000.00 (increase of 10.6% vs. 2016)
2018 $349,637,000.00 (increase of 14.3% vs. 2017)

• In 2017, the government sector garnered 10% of total company sales with this year’s projection being 12% of total sales.
• Lawson has over 250 direct contracts around the world with government agencies that include:
contracts at the state and/or city/county level in every U.S. state, the Federal Government, USPS and the Department of Defense.
• In the state, lo cal government and education sectors (SLED) Lawson does business in the U.S. and Canada directly with entities and via cooperative agreements. The SLED sectors comprise 75% of our total government business.
• Some examples of government agencies and departments that use our products and services include: K -12 schools, higher education institutions, vocational and technical schools, Departments of Public Works, Parks Departments, Departments of Transportation, Transit Authorities and more.

Lawson currently ha s contracts with six cooperatives serving the U.S. and Canada. Our contracts with these cooperatives have grown 364% over the last 2 years. Our largest cooperative, OMNIA Partners, was awarded in 2015 (as TCPN) and in a 3 year timeframe has grown from no s ales to comprising over 25,000 publically funded sites around the U.S. with annual sales projected to exceed $9M by Dec. 31, 2019. Some of Lawson’s more substantial contracts include:

Lawson Products, Inc. Page 25

Contract Approximate Annual Value Held Since
The Federal Government through
General Services Administration
$5,000,000 2001
The United States Postal Service $1,100,000 2011
The State of California $625,000 2016 (3rd contract)
The State of Mississippi $155,000 2018
The State of Louisiana $383,000 2004

Our product offerings are listed on our websites and in catalogs distributed to our customers. Sales percentages by broad product categories of our product mix in 2018 were as follows:

Fastening systems (nuts, bolts, screws, etc.) 21%
Fluid power (hoses and fittings) 15%
Chemicals (adhesives, coatings, paints, drain maintenance) 14% Cutting tools and abrasives (drill bits, saw blades, grinding discs) 14% Electrical (adapters, wire, connectors, battery maintenance) 11% Aftermarket automotive accessories (repair clips, wheel weights, bulbs) 9% Safety (personal protective equipment, apparel, signs, logout tag-out) 4% Welding and metal repair(welding rods, helmets and accessories) 2% Other (shop supplies and hand tools) 10%

B. Total number and location of sales persons employed by Supplier.

Lawson Products’ Response:

There are 1,845 total employees at Lawson displayed below in three separate categories – Corporate employees, Distribution Center employees and field sales representatives.

Lawson Corporate Team:

Corporate Team # of Employees
 Corporate (Executive Mgmt)  2
 Corporate (Finance)  32
 Corporate (Human Resources)  17
 Corporate (Information Tech)  46
 Corporate (Legal)  3
 Corporate (Mktg & Cont Improve)  5
 Corporate (Prod Mgmt & Pricing)  42
 Corporate (Sales Operations)  70
 Corporate (Sales, US Lawson)  5
Lawson Products, Inc. Page 26

 Corporate (Supply Chain)  27

Lawson Distribution Center:

Distribution Center Team # of Employees
 McCook (Supply Chain)  164
 Suwanee (Supply Chain)  48
 Reno (Supply Chain)  34
 Bolt (Supply Chain)  162
 Mississauga (Supply Chain)  30
 Surrey (Supply Chain)  5

Lawson Sales representatives regionally:

Region / Province # of Field Sales
Representatives
 Southeastern US  204
 Eastern US/Mid-America  375
 Southwestern US  185
 Western US  209
 Canada Ontario  31
 Canada Quebec  31
 Canada British Columbia  22
 Canada Alberta  21
 Canada Saskatchewan/Manitoba  22
 Canada Nova Scotia  21
 Canada New Brunswick  15
 Canada Newfoundland/Labrador  12
 Canada Prince Edward Island  5

C. Number and location of support centers (if applicable) and location of corporate office.

Lawson Products’ Response:

Lawson Corporate Headquarters is located at 8770 W. Bryn Mawr, Chicago, Illinois 60631.

Lawson Distribution Centers are located:

Lawson McCook – USA
Lawson Products, Inc. Page 27

Size: 306,805 SF
8801 W. 47th St.

McCook, Illinois 60525
708-225-0100

Lawson Suwanee – USA
size: 101,800 SF
1197 Satellite Blvd. Suwanee, GA 30024

Lawson Reno – USA
size: 105,769 SF
1381 Capital Boulevard
Reno, Nevada 89502
Canada
Lawson – Canada
size: 65,100 SF
7315 Rapistan Court
Mississauga, Ontario

Lawson – Canada
size: 15,000 SF
Calgary, Alberta
Canada T1X0L3

Lawson – Canada
size: 5,900 SF
Surrey, British Columbia
Canada V1M3G5

D. Annual sales for the three previous fiscal years.

Lawson Products’ Response:

Lawson has been continuously in business since its founding in 1952. Over the last three years, Lawson’s sales reflect a company -wide average of 10% growth, with the Government sector comprising 12% of total 2018 revenue. Lawson’s three-year annual sales include:

2016 $276,573,000.00 (increase of 7.3% vs. 2015)
2017 $305,907,000.00 (increase of 10.6% vs. 2016)
2018 $349,637,000.00 (increase of 14.3% vs. 2017)

E. Submit FEIN and Dunn & Bradstreet report.

Lawson Products’ Response:

Lawson holds Dun & Bradstreet number 00 -543-8890. Below is Lawson’s Dunn & Bradstreet report segmented. Please see electronic file on jump drive for full report.

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Lawson Products, Inc. Page 29

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F. Describe any green or environmental initiatives or policies.

Lawson Products’ Response:

Lawson believ es the incorporation of sustainable business practices increases our operational effectiveness, can decrease costs and promotes a positive corporate culture.

Lawson’ sustainability core team includes Rick Pufpaf, VP, Compensation & Benefits and Chief Compliance Officer, Heather Buck, Senior Director, Technical Services and Product Information Management, and Nick Del Vecchio, Manager, Safety.

Lawson is cognizant and endeavors to promote environmental sustainability goals that help position our company to succeed in an increasingly resource -constrained world. Lawson is very versed in the Government Sales/Public Sector space. Lawson’s sustainability standards for products are based on life cycle research and are developed in an open and transparent stakeholder process. Lawson continues to acquire and source more environmentally sound products that are GS -37 certified (Green Seal), NEMA certified, and RoHS certified. Throughout 2019, we have worked to develop a new set of goals by assessing the external influences that could potentially impact our company and in turn, our customers, over the near and long term. All required product from Lawson is labeled to meet all ECCO Standard requirements with Eco-labels, Green Stickers Design for the Environment, Energy Star, Certifications, etc. This labeling of product is overseen and audited following Lawson’s ISO 9001.

The environmental footprint of our prod ucts can be favorably impacted by how we decided to make them and purchase them. So, we use green and sustainable design principles and other environmental design criteria in the development of our manufactured spec processes within our proprietary product , our distribution and our packaging right from the start.

Through a broad mix of initiatives, Lawson is increasingly focused on how to operate as a "green" company. Here are some of our recent accomplishments:

1. A pilot program that removed 12 tons of corru gate usage from one distribution center location in less than four months (this program is being evaluated for expansion into other distribution centers)

2. Over a six -month period, Lawson disposed of 2,000 boxes of old files that were shredded and recycled. That spared 150 skids worth of waste

3. A Six Sigma project identified an opportunity to reformat our invoices, more effectively using quite space and resulting in 750,000 fewer pages in printed invoices annually

4. A Six Sigma project resulted in orders shipping in fewer corrugate boxes and a reduction in the use of packing materials by more effectively using space within each box

5. Instituting recycling programs for lamps/ballasts, dry cell batteries and mercury cont aining devices

6. Retrofitting all distribution centers with energy-efficient lighting systems

7. Shifting our electrical sourcing program away from GHG emitting sources and towards wind and solar energy
Lawson Products, Inc. Page 31

8. Incorporating sustainability metrics into our supplier score card to ensure suppliers of products and services to Lawson operate in an environmentally responsible way Our analysis shows that a large portion of our water use and greenhouse gas emissions are generated upstream of our own o perations in various tiers of our supply chain and downstream by our suppliers and transport companies. We realize that in order to make a truly meaningful reduction in our overall environmental impact, we must engage with our suppliers to drive positive change.

We partner with our carriers to create efficient routing systems to not only meet our logistical needs but also minimize emissions and gas consumption.

United Parcel Service Transport: Lawson has partnered with UPS for inbound and outbound shipping and transportation services. UPS has an established documented Environmental Policy and is a SmartWay Partner. In an effort to maintain a leadership role in protecting the environment, UPS continually strives to improve technology and environmental perf ormance. Link to UPS sustainability policy in which Lawson partners with: https://sustainability.ups.com/resources/policies-and- procedures/
United States Postal Service : The U.S. Postal Service joined SmartWay several years ago as a logistics partner. Additionally, the U.S. Postal Service has a long -established alternative fuel vehicle program working in tandem with SmartWay. Currently, the USPS is on track to increase alternative fuel use 10% annually.

In addition to recycling and more efficient energy usage initiatives, Lawson continues to acquire and source more environmentally sound products that are GS-37 certified (Green Seal) and RoHS certified.

GS-37 certified (Green Seal): Green Seal® is the nation’s premier non -for-profit ecolabel, symbolizing transparency and integrity in identifying products that reduce toxicity to the environment.

The Green Seal Standard for Industrial and Institutional Cleaners, GS -37, establishes requirements for industrial and institutional general- purpose, restroom, glass, carpet cleaners, and biologically -active cleaning products (enzymatic and microbial products for routine cleaning). Green Seal’s evaluations are conducted within scie ntific facilities and use internationally accepted standards. For a full list of evaluation criteria, please see https://www.greenseal.org/green-seal-standards/gs-37/.

RoHS certified: The RoHS directive aims to restrict certain dangerous substances commonly used in electronic and electronic equipment. The Reduction of Hazardous Substances (RoHS) regulations set limits for the following substances:
• Lead
• Mercury
• Cadmium
• Hexavalent Chromium
• Polybrominated Biphenyls (PBB)
• Polybrominated Diphenyl Ethers (PBDE)
Lawson Products, Inc. Page 32

For a full list of evaluation criteria, please see http://rohscertificate.com/.

Lawson also uses these benchmarks to help build our companies social and environmental responsibilities: OSHA (Occupational Safety and Health Administration), EEOC (Equal Employment Opportunity Commission), CPSC (Consumer Product Safety Commission), and the EPA (Environmental Protection Agency).

Lawson recognizes different government entities employ varying degrees and methodologies for evaluating a supplier’s sustainability level. We are committed to shape our future sustainability initiatives with input from Region 4 ESC / OMNIA Partners’ participants.

G. Describe any diversity programs or partners supplier does business with and how Participating Agencies may use diverse partners through the Master Agreement. Indicate how, if at all, pricing changes when using the diversity program.

Lawson Products’ Response:

Lawson is committed and supports the growth of businesses owned by minorities and women by giving these businesses the opportunity to compete for our business. An expanding distribution network, wide selection of product offering and delivery options help customers save time and money.

Lawson has an affirmative action policy, which is supported by Senior Leadership throughout the organization. Lawson works with minority placement agencies to source applicants from protected classes, including females, minorities, individuals with disabilities and veterans. Lawson is proactive in encouraging employee referrals, including and especially from our current workforce who fall within protected classes.

H. Describe any historically underutilized business certifications supplier holds and the certifying agency. This may include business enterprises such as minority and women owned, small or disadvantaged, disable veterans, etc.

Lawson Products’ Response:

Lawson currently has subcontracting goals of 40% for Small Business (SB), 3% for HUBZone Small Business (HZSB), 6% for Small Disadvantaged Business (SDB), 5% for Women-Owned Small Business (WOSB), 5% for Veteran-Owned Small Business (VOSB) and 3% for Service-Disabled Veteran-Owned Small Business (SDVOSB).

Lawson actively promotes the inclusion and growth of small disadvantaged business types in its supplier base.

As shown in the numbers above, in order to achieve even modest growth toward Lawson's goals requires a large reallocation of supply dollars to small business vendors. Lawson's goods are often manufactured to exact engineering specifications, backed by a Lawson's liability policy. As a result, finding alternative sources of supply for core products is not always an easy task.

Following is a list of several activities or programs that we have instituted in support of these goals:

Lawson Products, Inc. Page 33

1. Program Management
a. We have designated a team member responsible for increasing the diversity of our supplier base. This individual attends local trade fairs sponsored by the SBA and the Lake County Procurement Assistance Center to promote local small and disadvantaged businesses. The sourcing team at Lawson will continue to identify potential minority suppliers with whom we believe will help us to attain our category goals.
b. We hold Subcontracting meetings that are hosted by the Government Sales Department. These meetings are held to identify areas for improvement and also to discuss success within each quarter.

2. Vendor Sourcing and Selection
a. As part of our annual recertification process, we contact each of our existing vendors to review their full line of capabilities and better understand if Lawson might be able to increase its spend with small business. We continue to place particular emphasis on any HUBZone, Small Disadvantaged and SDVOSB businesses to increase the percentage of Lawson business with these minority groups. Upon request, we can provide our entire vendor listing (724 vendors) and the Business Classification based on our annual self-certification surveys. b. The entire printing and merchandising function at Lawson has been sourced to a local Chicago based Small Business as of FY2007. This includes the annual printing of Lawson's product catalog — and all collateral available for use with our sales force and customers.

3. Small and Disadvantaged Business Partners
a. Outside of these efforts, Lawson has also established a "Diversity Marketing Program" for both Strategic and Government accounts. The aim of this program is to establish relationships with Veteran Owned and Veteran Disabled companies through teaming relationships. We have established such business relationships with select companies and continue to actively pursue others in order to have a footprint of relationships with small business partners that are nationwide.

I. Describe how supplier differentiates itself from its competitors.

Lawson Products’ Response:

Lawson goes to market very differently from its competitors – we offer value added services that differentiates us from typical Retail vendors through our service intensive value proposition, vendor managed inventory solutions, broad product knowledge for best use applications, product education and investment back into the company to empower customers and field sales representatives people alike.
• Through Service intensive/”high touch” value proposition to our customers Our credo is to be our customer’s first choice for Maintenance, Repair and Operational solutions that improves their operating performance. Lawson’s Mission is to work closely with our customers to maintain and enhance their operations through products, services and innovative solutions. La wson’s Values is to act with integrity in every aspect of our business, are open to change, focused on the future and continuously learning and improving, focused on delivering value and results, and finally are team orientated as in we share ideas, talents and solutions to achieve maximum results.

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• Through Vendor Managed Inventory/”keep fill” to our customers Lawson’s goal of onsite distribution and supply stocking services is to provide a mutually beneficial relationship where both sides will be able to more smoothly and accurately control the availability and flow of goods for all participating locations. In onsite distribution and supply stocking services, Lawson assumes the role of inventory planning for the customer. Extensive information sharing between Lawson and the customer is required so that the Lawson can maintain a high degree of visibility of goods/requirements at each location. Instead of the customer reordering when its supply has been exhausted, Lawson is responsible for replenishing and stocking the customer at appropriate agreed upon levels. Lawson has mastered onsite distribution and supply stocking services and Lawson takes the lead against many other organizations and how they benchmark themselves.

Our field sales representatives are the most experienced and tenured in the industry and are skilled at identifying maintenance challenges and re commending product solutions to address them. They are backed by our team of technical and engineering professionals. A Lawson field sales representative will call on OMNIA Partners’ participants on a participant -initiated schedule to take inventory, creat e a replenishment order for approval, and re -stock inventory once it arrives at the participant’s location. In effect, each location will have an additional, unpaid parts expert to care for their consumable MRO inventory. Each Lawson field sales representative’s ultimate goal is to be seen as a valued and integrated member of each participant’s team.
• Through deep product knowledge for our customers
The primary goal of our vendor managed inventory business model is for our customers to have, “the right part, in the right place, at the right time.” To ensure they have “the right part” Lawson offers product application and safety training to all customers, including OMNIA Partners’ participants.

Training is offered by one of two individuals or teams: 1) our ind ustry-seasoned Lawson sales representatives or 2) our Technical and Engineering personnel. Training can be offered on -site in an interactive, hands-on format or virtual education depending on each customer’s unique needs.

Our comprehensive level of technical knowledge and engineering depth is a key strength, and a definite advantage to OMNIA Partners’ participants. We bring a personal, hands -on approach, while helping the end user customer anticipate business needs and prevent costly downtime. Engineering is the back bone of everything we do at Lawson from product development to application analysis. • Through broad geographic sales and service coverage throughout North America Lawson’s Distribution Centers are full stocking. The Distribution Centers can guarantee next day delivery in an emergency utilizing air freight services. Lawson Customer Pick -Up service in an emergency to pick up the necessary parts is available at our Distribution Centers. Lawson ships 99% of all lines complete within 24 hours from 6 Distribution Centers strategically located throughout North America. Lawson ships via all ordering methods FOB Destination for standard shipping methods. The following illustration demonstrates the geography serviced by each D.C.

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• Through investment in people, facilities and technologies Lawson believes in providing the right part at the right time to our customers. Educational training whether through our first line of customer interaction – the field sales representative, or the last line of customer interaction – customer service, is critical to conducting mutually beneficial business partnerships to meet the needs of our valued customers. Understanding Region 4 ESC and OMNIA Partners’ participants, needs and expectations are paramount to a succes sful business relationship and are exacted through consistent and positively reinforced training. Training is re -evaluated on a consistent basis and assessed through metrics and customer satisfaction surveys. This data mining at the customer level helps Lawson design and implement concise training vehicles to promote total customer satisfaction.
• Through lowest total cost for our customers
A company's ability to reduce transaction cost and control spend have become increasingly important in today's economy. Lawson can assist OMNIA Partners’ participants with their spend management initiatives by using one of our E-Business Solutions. We have several advantages such as:
- A dedicated E -Procurement website which offers one of the fastest integrations in the industry
- A standards-based E-Procurement Solutions for hassle free integration - E-Invoicing capabilities
- Ariba-Ready certification for Catalog and “punch-out” options - Customized catalog
- Customer-specific pricing
- A knowledgeable team of seasoned professionals for supporting implementations

J. Describe any present or past litigation, bankruptcy or reorganization involving supplier.

Lawson Products’ Response:

On August 11, 2008, Lawson entered into a Deferred Prosecution Agreement (“DPA”) with the United States Attorney General for the Northern District of Illinois. Lawson filed a copy of the Deferred Prosecution Agreement with the Securities and Exchange Commission upholding and fully complying with its obligations set forth under the Agreement. O n August 19, 2011 the United States District Court Lawson Products, Inc. Page 36

for the Northern District of Illinois issued an order dismissing the information against Lawson with prejudice in Case No. 08-CR-633.

K. Felony Conviction Notice: Indicate if the supplier
a. is a publicly held corporation and this reporting requirement is not applicable; Lawson Products’ Response:

Lawson Products is a publicly held corporation and this reporting requirement is not applicable. b. is not owned or operated by anyone who has been convicted of a felony; or c. is owned or operated by and individual(s) who has been convicted of a felony and provide the names and convictions.

L. Describe any debarment or suspension actions taken against supplier

Lawson Products’ Response:

Lawson is not presently and has not been debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any Federal department or agency.

3.2 Distribution, Logistics
A. Describe the full line of products and services offered by supplier.

Lawson Products’ Response:

Lawson’s product offerings are listed on our websites and in catalogs distributed to our customers. Sales percentages by broad product categories of our product mix in 2018 were as follows:

Fastening systems (nuts, bolts, screws, etc.) 21%
Fluid power (hoses and fittings) 15%
Chemicals (adhesives, coatings, paints, drain maintenance) 14% Cutting tools and abrasives (drill bits, saw blades, grinding discs) 14% Electrical (adapters, wire, connectors, battery maintenance) 11% Aftermarket automotive accessories (repair clips, wheel weights, bulbs) 9% Safety (personal protective equipment, apparel, signs, logout tag-out) 4% Welding and metal repair(welding rods, helmets and accessories) 2% Other (shop supplies and hand tools) 10%

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Lawson’s strength within the Maintenance, Repair & Operations (MRO) industry is two-fold:

1) Product Specialization: Our expertise in offering consumable MRO parts able to meet different performance specifications: from commodity -grade quality, to national brands, to private -label maintenance-engineered quality
2) VMI Service Capabilities: Our vendor- managed inventory services are delivered by approximately 1,000 field sales representatives around the U.S. and Canada and app roximately 50 within the State, giving Lawson the ability to serve virtually every community with a hands-on approach regardless of size or geographical location

For each major product category listed below, we have identified the approximate number of SKUs in the category and a sampling of significant manufacturer/supplier partners as an idea of what is available to all OMNIA Partners’ participants should Lawson be selected as OMNIA’s cooperative partner.

Fasteners: nuts, bolts, screws, etc.

Lawson offers 25,365 products within this category and includes the following manufacturers/suppliers:

• Alcoa • Fontana
• Brighton • Titan
• Car-Pak • Precision
• Lindstrom • Alleghany

Pneumatics: tools and system components.

Lawson offers 18,645 products within this category and includes the following manufacturers/suppliers:

• Parker-Hannifan • Eaton-Weatherhead
• Legris • Milton
• Coxreels • Brennan
• Dixon • Gates

Hand Tools: hand and power tools.

Lawson offers 4,063 products within this category and includes the following manufacturers/suppliers:

• Chicago Brand • Greenlee
• Klein Tools • Makita
• Black & Decker • Milwaukee Electric
• Dewalt • Bosch
• SK • Ingersol Rand

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Cutting Tools: drill bits, abrasives, and blades.

Lawson offers 7,209 products within this category and includes the following manufacturers/suppliers:

• Black & Decker • Precision
• Snap-On • 3M
• Greenfield • Republic
• Viking • Lavalee

Electric: lamps, flashlights, ballasts, and batteries.

Lawson offers 6,154 products within this category and includes the following manufacturers/suppliers:

• Greenlee • Thomas & Betts
• Hubbell • Molex
• Klein • Littlefuse
• Revere • Breeze
• East Penn • Pelican

Shop Supplies: equipment and janitorial-type products.

Lawson offers 835 products within this category and includes the following manufacturer/suppliers:
• Kimberly-Clark • Airgas
• 3M • Pelican
• Weiler Brush • Shop Vac

Welding: welding equipment and supplies.

Lawson offers 1,156 products within this category and includes the following manufacturers/suppliers:

• Steiner • Victor
• Atlas • ArcSmith
• Washington Alloy • Weld Wire
• Eutectic • American

Material Handling: ladders, cabinets, carts, and storage.

Lawson offers 3,198 products within this category and includes the following manufacturers/suppliers:

• Columbus McKinnon • Chicago Hardware
• Louisville Ladder • Timken
• Apex Tool • E R Wagner
• Lift All • OK Rig
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Safety Supplies: personal protective equipment, signage, and instruments.

Lawson offers 3,823 products within this category and includes the following manufacturers/suppliers:

• 3M • Airgas
• Justrite • Brady
• Ergodyne • Eagle
• Benchmark • R3 Safety
• Anderson • Global

Automotive Supplemental Supplies: Fasteners, clips, and cleaning supplies.

Lawson offers 6,049 products within this category and includes the following manufacturers/suppliers:

• Car-Pak • Grote
• US Tool • Bosch
• Dorman • Busch
• Great Lakes • Perfect

Chemicals: lubricants, seals, paints, and adhesives.

Lawson offers 1,768 products within this category and includes the following manufacturers/suppliers:

• Krylon • Loctite
• Metalcote • Cox
• Sherwin • Rubbermaid
• Milwaukee Sprayer • Nyco
• US Chemical • Sealmaster

In addition to our extensive in -stock product offering, we offer special product sourcing personnel to support any product needs outside of our stocked offering for OMNIA Partners’ participants at no additional cost and if the need arises. Lawson believes in sourcing products using a simple philosophy – “like or better.” Our special products sourcing specialists work hand in hand with customers, procurement personnel and our own sales representatives to understand all necessary specifications and performance requirements, then submit our recommendations for solutions that meet their needs.

In Lawson’s opinion, vendor-managed inventory service is inextricable from consumable MRO products. “Like mom and apple pie,” they go together for many reasons and ought to be provided if a supplier is to offer a truly valuable customer solution. This is because consumable MRO products are inherently:
• low cost per piece which leads them to be overlooked in terms of spend and budget; • numerous within a customer’s shop or parts room which makes inventory levels easy to lose track of;
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• easily confused with one another due to the broad range of sizes, material types, and specification levels which leads to confusion on the part of maintenance professionals seeking the right part for the job they’re performing
The confluence of the three challenges above typically result in:
• neglected inventory levels
• products out-of-stock or overstocked based on typical usage patterns • already-stretched-thin maintenance staff spending hours tracking and maintaining their own inventory
• rogue spending, overspending and lost productivity when mai ntenance professionals have to run out to buy parts on the fly
Lawson’s approximately 1,000 field sales representatives not only take orders for product from the maintenance professionals they serve but also provide inventory management services for them. This valuable service is offered free of charge to all Lawson customers and:
• establishes min/max inventory levels for each item in a shop avoiding outages and overstocked products
• decreases the variety of different products a shop has on hand, identifying opportunities where buying one kind of product can replace buying many varieties of a product • frees up maintenance staff to repair the equipment and maintain the facilities they’re required to maintain instead of managing parts inventory level
• gives maintenance staff and procurement professionals visibility into what they’re spending on consumable MRO products using data and reports provided to them by their Lawson field sales representative
To achieve these benefits, Lawson field sales representatives employ a process-oriented and data-driven approach to managing their customers’ inventory.

This combination of products and service results in more efficient and cost -effective operations for our customers. Lawson’s proven track record of longevity provides validation that customers value our core purpose and business philosophy to provide “the right parts, in the right place, at the right time.”

B. Describe how supplier proposes to distribute the products/service nationwide. Include any states where products and services will not be offered under the Master Agreement, including U.S. Territories and Outlying Areas.

Lawson Products’ Response:

Lawson has six state -of-the-art distribution centers across the U.S. and Canada. Lawson ships 99% of all lines complete within 24 hours from these six distribution centers and also offers will- call services at each center. Lawson ships FOB Destination for standard shipping methods. Lawson can guarantee next day delivery in an emergency utilizing air freight services, for an additional cost to the customer, if necessary. Lawson Distribution Centers are full stocking. Lawson Customer Pick -Up service in an Lawson Products, Inc. Page 41

emergency to pick up the necessary parts is available at our Distribution Centers through our will- call window.

Our McCook facility location is over 306,805 square feet housing more than $25,600,000.00 in annual stock and is the center point of all our other distribution centers in the US market. The McCook, IL location helps feed the product into all our other 2 centers around the USA which allows Lawson the ability to always ensure there is a ready available of stock on hand at all times. With our “Just In Time” inventory solutions, OMNIA Partners’ participants will virtually eliminate immediate inventory needs.

USA
Lawson McCook – USA / Size: 306,805 SF
8801 W. 47th St., McCook, Illinois 60525

Lawson Suwanee – USA / Size: 101,800 SF
1197 Satellite Blvd., Suwanee, GA 30024

Lawson Reno – USA / Size: 105,769 SF
1381 Capital Boulevard, Reno, Nevada 89502

Canada
Lawson – Canada / Size: 65,100 SF
7315 Rapistan Court, Mississauga, Ontario

Lawson – Canada / Size: 15,000 SF
Calgary, Alberta, Canada T1X0L3

Lawson – Canada / Size: 5,900 SF
Surrey, British Columbia, Canada V1M3G5

Lawson has been in business since 1952. Our ability to service our customers with just in time VMI inventory set us apart for our competitors. OMNIA Partners’ participants will have access to our full distribution centers, their staff, our dedicated custom er service staff, field sales representatives that have unparalleled MRO experience (most with over 25+ years in this industry), a fully supported engineering staff and training staff at the ready to service OMNIA Partners’ participants, and a full Specials Team that has the ability to source product needed that may fall outside of this proposal. A dedicated sales staff, distribution staff, management staff and support staff will be in place to service OMNIA Partners’ participants.

In additional to Lawson’ s long-standing presence in the Canadian market, we have acquired three MRO hardware distributors in Canada over the past two years, further enhancing our ability to serve OMNIA Partners’ participants in Canada. Our extensive list of distribution centers and branch locations in Canada are as follows:

Mississauga, Ontario Distribution Center 78,000 SF
Calgary, Alberta Distribution Center 43,700 SF
Calgary, Alberta (Foothills) Branch 11,200 SF
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Calgary, Alberta (South) Branch 10,300 SF
Calgary, Alberta (North) Branch 6,900 SF
Edmonton, Alberta (North) Branch 6,000 SF
Edmonton, Alberta (South) Branch 5,600 SF
Fort McMurray, Alberta Branch 7,500 SF
Lethbridge, Alberta Branch 3,400 SF
Medicine Hat, Alberta Branch 4,900 SF
Prince Albert, Saskatchewan Branch 4,300 SF
Red Deer, Alberta Branch 4,100 SF
Regina, Saskatchewan Branch 4,800 SF
Saskatoon, Saskatchewan Branch 10,800 SF
Winnipeg, Manitoba Branch 5,800 SF

The Lawson field sales representative is an on -site product and inventory management expert for OMNIA Partners’ participants. Our representatives are the most experienced and tenured in the industry and are skilled at identifying maintenance challenges and recommending product solutions to address them. They are backed by our team of technical and engineering professionals. A Lawson field sales representative will call on OMNIA Partners’ participants on an participant -initiated schedule to take inventory, create a replenishment order for appro val, and re-stock inventory once it arrives at the participant’s location. In effect, each location will have an additional, unpaid parts expert to care for their consumable MRO inventory. Each Lawson field sales representative’s ultimate goal is to be seen as a valued and integrated member of each participant’s team.

Being on site with end users allows Lawson’s field sales representatives the opportunity to get to know their customers’ operations firsthand. This includes understanding each customer’s MRO p roduct usage patterns so they can manage their inventory levels more closely, minimizing the overstocking and understocking challenges commonly associated with self- managed inventory. Extensive information sharing between Lawson and OMNIA Partners’ partici pants is required so that the Lawson can maintain a high degree of visibility of goods/requirements at each location. At the same time, the Lawson field sales representative will review the condition and status of all bin equipment and a site-specific plan will be developed between Lawson and participant customer shop individually. Lawson’s Field Sales Representative Service Model and our Vendor Managed Inventory system integrates the OMNIA Partners’ participants’ buying algorithms (based on consumption and acceptable min/max inventory levels) into customized and organized inventory. Inventory consolidation and standardization results in significant cost savings and can potentially minimize any capital investment in inventory while providing “package friendly” quantities that assure maximum productivity to the customer locations.

Our field sales representatives take inventory of existing items, recommend items and quantities for re- order, and returning to put the inventory away in its proper place. It’s impor tant to note that in Lawson’s vendor managed inventory model orders are never placed without the buyer’s prior knowledge and approval.

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C. Describe how Participating Agencies are ensure they will receive the Master Agreement pricing; include all distribution channels such as direct ordering, retail or in- store locations, through distributors, etc. Describe how Participating Agencies verify and audit pricing to ensure its compliance with the Master Agreement.

Lawson Products’ Response:

Lawson has strict compliance with regard to ensuring OMNIA Partners’ participants obtain accurate, contractual pricing from the time an account is established with Lawson.

New account creation protocol requires our Lawson field sales representatives work through our Government Operations Team to ensure proper and comprehensive set -up of all OMNIA Partners’ requiring new Lawson accounts at the granular account level.

The Government Operations Team then verifies the customer against the OMNIA Partners’ participant list to determine if they are a bona fide member of the cooperative. The account request is then associated with correct Region 4 ESC / OMNIA Partners pricing and is grouped together with other OMNIA Partners’ participants’ accounts for the purposes of reporting.

On the first business day of the week, Lawson audits the prior week’s new accounts using a customized report to target potential problematic areas (i.e., improper pricing or inexact report tagging). Any incorrectly identified accounts are gathered and corrected. Internal service -level agreements between the departments responsible for auditing and fixing errors assure a 24 -hour turnaround tim e and in most cases, do not exceed a 2 hour timeframe.

The report is then re- run on the second day of the week for those now corrected accounts to confirm completeness and correctness.

Monthly reports to OMNIA Partners are identified and timed in advance and are managed through our contract management system to ensure timeliness of reporting and remittance of the administrative fee.

Lawson has the ability to create any kind of report for OMNIA Partners’ participants on an ad hoc, monthly, quarterly or annual basis. Reporting can include the following:
• Cost savings reports
• Product usage reports
• Comparison reports over time (e.g. year-over-year, month-over-month) • Fill rate reports
• Monthly contract sales reporting

On a frequency determined by OMNIA Partners, L awson will report the results of all Region 4 ESC / OMNIA Partners Cooperative contract sales using the template provided by OMNIA Partners, drilling down to the required level of detail specified by OMNIA Partners in order to assess funding fees due to the cooperative. Fields typical of contract reporting include the participant name, address, participating Lawson Products, Inc. Page 44

agency membership number, date of transaction, contract sales for that participant, the percentage of funding fee and the total dollar of the funding f ee. The aggregated total is then remitted by Lawson via check or electronic transfer as required by OMNIA Partners and all completed within the allowable timeframe as dictated by the contracting officer.

Lawson also welcomes the opportunity to host business reviews with Region 4 ESC / OMNIA Partners at regular intervals to provide more in -depth quantitative and qualitative analysis of our performance. See the examples that follow illustrating the type of information that could be shared at a business review. (See the following sample reports.)

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D. Identify all other companies that will be involved in processing, handling or shipping the products/service to the end user.

Lawson Products’ Response:

Lawson has partnered with UPS, FedEx, USPS and R&L Carriers as their primary carriers for shipping Lawson’s products to the end user. These companies comprise 95% of Lawson’s shipping methods for the end user. The remaining 5% are specialized shipping companies to transport products either to extreme rural areas or overseas which require specialized logistics.

E. Provide the number, size and location of Supplier’s distribution facilities, warehouses and retail network as applicable.

Lawson Products’ Response:

Lawson has six state -of-the-art distribution centers across the U.S. and Canada help support the entire USA including Alaska, Hawaii and Puerto Rico. Lawson ships 99% of all lines complete within 24 hours from these six distribution centers and also offers will -call services at each center which is open from 6 a.m. through midnight.

Our McCook fac ility location is over 306,805 square feet housing more than $25,600,000.00 in annual stock and is the center point of all our other distribution centers in the US market. The McCook, IL location helps feed the product into all our other 2 centers around the USA which allows Lawson the ability to always ensure there is a ready available of stock on hand at all times. With our “Just In Time” inventory solutions, OMNIA Partners’ participants will virtually eliminate immediate inventory needs.

USA
Lawson McCook – USA / Size: 306,805 SF
8801 W. 47th St., McCook, Illinois 60525

Lawson Suwanee – USA / Size: 101,800 SF
1197 Satellite Blvd., Suwanee, GA 30024

Lawson Reno – USA / Size: 105,769 SF
1381 Capital Boulevard, Reno, Nevada 89502

Canada
Lawson – Canada / Size: 65,100 SF
7315 Rapistan Court, Mississauga, Ontario

Lawson – Canada / Size: 15,000 SF
Calgary, Alberta, Canada T1X0L3

Lawson – Canada / Size: 5,900 SF
Surrey, British Columbia, Canada V1M3G5
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3.3 Marketing and Sales
A. Provide a detailed ninety-day plan beginning from award date of the Master Agreement describing the strategy to immediately implement the Master Agreement as supplier’s primary go to market strategy for Public Agencies to supplier’s teams nationwide, to include, but not limited to:
i. Executive leadership endorsement and sponsorship of the award as the public sector go-to-market strategy within first 10 days ii. Training and education of Supplier’s national sales force with participation from the Supplier’s executive leadership, along with the OMNIA Partners, Public Sector team within first 90 days

Lawson Products’ Response:

The first 90 days after award are critical in creating alignment, engagement, and excitement amongst our corporate support departments (e.g. marketing, customer service, sales operations, contracting, legal, etc.) and 1,000 field sales representatives and sales leaders.

Lawson’s team of Government Sales Managers, public sector contracting specialists, sale s leaders, and executive leaders will be the primary individuals responsible for setting the go -to-market strategy and ensuring its consistent and continuous execution.

Below is an example of a 90 -day plan describing the strategy to immediately implement with Lawson’s sales organization and corporate support teams the Master Agreement as Lawson’s primary go -to- market strategy for public sector agencies. This plan is designed to be flexible and informed by OMNIA Partners and Region 4 ESC.

Days 1-10:
• Work w ith OMNIA Partners’ development team and sales managers to collaborate on implementation strategy for the contract overall and separately by SLED segments, including communication plan and training best practices
• Announcement of award and describing key i mplementation tactics to follow from executive leadership, including CEO, Mike DeCata and SVP of Sales, Matt Brown, using inter- company communications platforms and media:
o Stand-alone email announcement
o “Sales News” newsletter announcement
o Message on homepage of Lawson Central, Lawson’s intranet o Messages in newsfeeds of Microsoft Teams, Lawson’s internal sales “social networking” platform
• Webinars and lunch-and-learns to deliver targeted information specific to each department regarding their role in s upporting the Region 4 ESC contract and OMNIA Partners’ participants. Departments receiving targeted information include:
o Sales
o Sales Operations
o Customer Service
o Contracting
o Legal
o Accounting
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o Marketing (communications and digital)
o PR
o Sourcing
o Pricing Operations
• Update the Region 4 ESC / OMNIA Partners page on Lawson’s intranet with new contract documentation and revised marketing materials
• Assign regional sales managers, district sales managers and field sales representatives to mandatory digital curriculum in Lawson University, Lawson’s interactive training and education platform. State and local sales education curriculum includes:
o Selling the lead agency and cooperative procurement model o Compliance to contract terms and conditions
o Understanding the public procurement process
o Positioning Lawson in public sector accounts

Days 11-45:
• Load latest OMNIA Partners’ participant list into customer management system for assignment to individual regional sales managers, district sales managers and field sales representatives
• Send district managers and field sales representatives supporting marketing tools, including flyers and brochures that specifically promote the Region 4 ESC contract with Lawson • Based on strategy, establish OMNIA Partners -hosted training opportunities for Lawson’s regional sales managers and district sales managers
• Deploy government sales account managers to each district to assist district managers and field sales representatives with opening new accounts and transitioning existing eligib le public sector accounts to the Region 4 ESC contract
• Check in regularly with all Lawson departments impacted by the new contract (e.g. customer service, accounting, etc.) for feedback on progress and challenges

Days 46-90:
• Government sales account manag ers host district workshops in each U.S. sales district to deliver contract details, customer- level implementation plans, and reinforce previously delivered digital education topics on how to sell cooperative agreements (with OMNIA Partners’ participation depending on schedule/availability) • Monitor and measure conversion of new accounts to the Region 4 ESC agreement • Follow-up with district managers and field sales representatives for feedback on their experiences and progress proliferating the new contract • Continue to check in with all Lawson departments impacted by the new contract to ensure seamless experiences for all Region 4 ESC contract users and OMNIA Partners’ participants • Follow-up with OMNIA Partners’ development and sales teams to gauge success an d determine next steps

Key members of Lawson’s public sector sales and operations team will lead the team responsible for the successful execution of the plan above. They are:

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Christina Nielsen
Director, Government Sales and Operations
Christina has spent 13 years in the industrial manufacturing and distribution industry, 10 years of which were spent leading the development and execution of customer engagement and demand generation programs. Under Christina’s leadership of public sector sales at Lawson, sales to public sector customers have grown an average of 15% year- over-year. Sales attributed specifically to OMNIA Partners cooperative agreement resulted in 12% growth in 2018 vs. 2017. Christina will be responsible for both the 90-day go-to-market strategy outlined here in Appendix D, Exhibit A, Section 3.3, Letter A and the 90-day implementation and marketing program outlined in Appendix D, Exhibit A, Section 3.3, Letter B.

Lisa Castanon
Manager, Contracts and Compliance
Lisa brings 28 years of experience in the MRO industry with the last 11 years of her career focused exclusively on the public sector. Lisa and her team manage the bid response process, ensure contract compliance, and manage implementation programs for awarded contracts , including Lawson’s existing Region 4 ESC MRO contract. In 2016, she received her Six Sigma Black Belt Certification which reflects in the way she manages projects and solves problems. The combination of this experience and credentials highly qualifies Lisa to be the project leader for the 90-day plan outlined here.

Bernice “BJ” Najfus
Business Information Manager
BJ has spent 5 years in the MRO space, all of which have been with Lawson as a business information analyst. BJ’s 20+ year career before Lawson included roles in finance, accounting, and business analytics.

She holds an undergraduate degree in Finance and a Master degree in Information Systems. BJ will assist Lisa in managing the data and reporting necessary to ensure successful execution o f the go -to-market strategy.

John Swierc, Cainan Benoit, and Ryan Mullally
Government Sales Managers
John, Cainan and Ryan bring with them a combined 20 years of experience in the MRO industry and with Lawson. They are responsible for securing contractual agreements with public sector entities and agencies across the United States in cooperation with our 1,000 field sales representatives and leaders.

John, Cainan and Ryan have all had previous positions at Lawson in the field sales organizations, either as field sales representatives or district sales managers. This credibility and experience will serve them greatly as they work across the country to implement the 90 -day go-to-market strategy in partnership with our field sales organization.

B. Provide a detailed ninety-day plan beginning from award date of the Master Agreement describing the strategy to market the Master Agreement to current Participating Public Agencies, existing Public Agency customers of Supplier, as well as to prospective Public Agencies nationwide immediately upon award, to include, but not limited to:
i. Creation and distribution of a co-branded press release to trade publications
ii. Announcement, Master Agreement details and contact information published on the Supplier’s website within first 90 days Lawson Products, Inc. Page 49

iii. Design, publication and distribution of co-branded marketing materials within first 90 days
iv. Commitment to attendance and participation with OMNIA Partners, Public Sector at national (i.e. NIGP Annual Forum, NPI
Conference, etc.), regional (i.e. Regional NIGP Chapter Meetings, Regional Cooperative Summits, etc.) and supplier-specific trade shows, conferences and meetings throughout the term of the Master Agreement
v. Commitment to attend, exhibit and participate at the NIGP Annual Forum in an area reserved by OMNIA Partners, Public Sector for partner suppliers. Booth space will be purchased and staffed by Supplier. In addition, Supplier commits to provide reasonable assistance to the overall promotion and marketing efforts for the NIGP Annual Forum, as directed by OMNIA Partners, Public Sector.
vi. Design and publication of national and regional advertising in trade publications throughout the term of the Master Agreement vii. Ongoing marketing and promotion of the Master Agreement throughout its term (case studies, collateral pieces, presentations, promotions, etc.)
viii. Dedicated OMNIA Partners, Public Sector internet web-based homepage on Supplier’s website with:

• OMNIA Partners, Public Sector standard logo;
• Copy of original Request for Proposal;
• Copy of Master Agreement and amendments between Principal Procurement Agency and Supplier;
• Summary of Products and pricing;
• Marketing Materials
• Electronic link to OMNIA Partners, Public Sector’s website including the online registration page;
• A dedicated toll-free number and email address for OMNIA Partners, Public Sector

Lawson Products’ Response:

With the full support, strategic vision, and enthusiasm of Lawson’s Government Sales Managers, public sector contracting specialists, sales leaders, and executive leaders, our marketing program will be implemented quickly and with the full scope of public sector touchpoints in mind. This team will be led by Christina Nielsen, Director of Government Sales and Operations. Christina has spent 13 years in the industrial manufacturing and distribution industry, 10 years of which were spent leading the development and execution of customer engag ement and demand generation programs. Lawson will leverage winning aspects of its successful implementation of the previous Region 4 ESC MRO Supplies and Related Services contract to create an engaging and exciting year- long launch in support of a new award.

Overall our marketing materials will be delivered to public sector customers and prospects via the following channels/platforms:

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1. In person via our direct sales force of over 1,000 sales representatives and managers

2. Digitally on our website and through our direct marketing email program

3. Broad-based marketing using tactics like advertising and tradeshow activation with key national and regional procurement associations

4. Co-branded marketing in partnership with OMNIA Partners (including presence at OMNIA Partners’ events and regional engagements)

Marketing communications in channels 1 -3 above will be segmented according to the following audiences to ensure appropriate messaging and call-to-action:
• Public agencies piggybacking Lawson’s existing Region 4 ESC contract • Eligible public agencies that are current customers of Lawson, but are not leveraging our partnership with OMNIA Partners and the Region 4 ESC contract • New public agencies not currently doing business with Lawson

Days 1-10:
• Host conference call with OMNIA Partners’ development and marketing teams to discuss best practices and framework for marketing program • Confirm existing registration at key national and regional tradeshows:
- NIGP, NAEP, NPI
- Other regional tradeshows where Lawson has strategic opportunities: e.g. state specific ASBO (association of school business officials) shows, APT (association for pupil transportation) shows, and other shows for public procurement officials
• Extend registration to other regional tradeshows with dates TBD (at the time of bid response)
- OMNIA Partners regional meetings
- Regional NIGP chapter meetings
• Release co-branded press release to trade and public sector procurement publications • Engage Lawson’s PR firm to identify opportunities for case studies with OMNIA Partners’ participants continuing their relationship with Lawson and Region 4 ESC on the new award, emphasizing the value and efficiency of the cooperative model • Host kick-off meeting to assign roles and responsibilities to the implementation team, including representatives from the following disciplines:
- Sales
- Sales Operations
- Customer Service
- Contracting
- Legal
- Accounting
- Marketing (communications and digital)
- PR
- Sourcing
- Pricing Operations

Days 11-45
• Update all existing printed marketing materials with new award details and identify new materials to be created; deploy to sales representatives and managers for use Lawson Products, Inc. Page 51

• Update OMNIA Partners section on Lawson’s intranet site to reflect new award details • Update OMNIA Partners page on Law son’s public website to reflect new award details and digital versions of marketing materials (see current page by visiting:
lawsonproducts.com/resources/omnia-partners.jsp)
• Schedule and socialize availability of customer training webinars for existing customers and prospective agencies considering a cooperative agreement • Create framework for email program to all of Lawson’s public sector email subscribers • Identify case study participants and begin working accordingly with willing agencies • Solidify PR and advertising opportunities with pre -vetted publications recommended by PR firm (e.g. editorial placements, op-eds, paid advertisements) • Begin production of state and local government product marketing flyers, segmented by department/agency (e.g. Facilities maintenance, fleet and transit maintenance, etc.) • Set goals for existing account growth and new account conversion to OMNIA Partners by sales district
• Regular implementation team meetings and updates on progress to OMNIA Partners team

Days 46-90
• Create reporting format for monthly district -level reporting, and mechanism for auto - generation and distribution to district sales managers
• Rollout email program, case studies, PR engagements and product marketing flyers • Regular implementation team meetings and updates on progress to OMNIA Partners team

The knowledge and experience our entire sales organization, corporate partner departments, and executive leadership has gained over the course of Lawson’s existing Region 4 ESC MRO contract will be an asset to another contract implementation, were we to be awarded the opportunity.

C. Describe how Supplier will transition any existing Public Agency customers’ accounts to the Master Agreement available nationally through OMNIA Partners, Public Sector. Include a list of current cooperative contracts (regional and national) Supplier holds and describe how the Master Agreement will be positioned among the other cooperative agreements.

Lawson Products’ Response:

A large part of Lawson’s success in growing its public sector business an average of 15% year- over-year has been through utilizing a cooperative -centric selling strategy with state, local, and education customers. Via our mandatory state, local, and education sales education program, each of our field sales representatives and managers are trained on how to position and sell cooperat ive agreements.

Through our field sales representatives’ tens of thousands of non -contractual selling relationships with public sector agencies nationwide, we encourage their ability to grow and create longstanding relationships using cooperative contracts like the Region 4 ESC contract through OMNIA Partners. To aid in this effort, Government Sales Managers are also involved in the conversion of non -contractual customers to cooperative contract customers.

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Lawson currently holds public sector cooperative contracts with the following organizations:
• OMNIA Partners - National
• TIPS (The Interlocal Purchasing System) - National
• BuyBoard - National
• PSA (Purchasing Solutions Alliance) - National
• SAVE (Strategic Alliance for Volume Expenditures) - Arizona • COSTARS (Pennsylvania Department of General Services) – Pennsylvania • CREC (Capital Region Education Council) – Connecticut

Lawson’s go-to-market strategy for positioning cooperatives encourages OMNIA Partners as the primary choice. In fact, total sales for 2018 o n the Region 4 ESC contract marketed by OMNIA Partners are 4x as much as our next largest cooperative agreement.

D. Acknowledge Supplier agrees to provide its logo(s) to OMNIA Partners, Public Sector and agrees to provide permission for reproduction of such logo in marketing communications and promotions. Acknowledge that use of OMNIA Partners, Public Sector logo will require permission for reproduction, as well.

Lawson Products’ Response:

Lawson gives permission to OMNIA Partners to use its official logo supplied to OMNIA Partners by Lawson for reproduction in marketing communications and promotions.

Lawson acknowledges that use of OMNIA Partners, Public Sector logo will require permission and agrees to seek permission before any use or reproduction.

E. Confirm Supplier will be proactive in direct sales of Supplier’s goods and services to Public Agencies nationwide and the timely follow up to leads established by OMNIA Partners, Public Sector. All sales materials are to use the OMNIA Partners, Public Sector logo. At a minimum, the Supplier’s sales initiatives should communicate:
i. Master Agreement was competitively solicited and publicly awarded by a Principal Procurement Agency
ii. Best government pricing
iii. No cost to participate
iv. Non-exclusive

Lawson Products’ Response:

Lawson confirms our commitment to being proactive in our sales of goods and services to public agencies nationwide. Lawson’s government sales and operations team is uniquely dedicated to public sector sales and includes government sales account managers across the U.S., contract specialists, business analysis, and inside sales personnel. This team will ensure that OMNIA Partners’ leads are loaded into Lawson’s customer management system and assignment to each of o ur 1,000 field sales representatives. Field sales representatives will then be held accountable to district level retention, Lawson Products, Inc. Page 53

penetration, and conversion goals by their district sales manager and regional sales director. Over all of these efforts will be the support and commitment of Lawson’s executive management.

Lawson also commits to the presence of the following information on all sales education and marketing materials: 1) That the Master Agreement was competitively solicited and publicly awarded by a Principal Procurement Agency, 2) that our prices reflect best government pricing, 3) that there is no cost to participate, and 4) that the relationship is non-exclusive.

F. Confirm Supplier will train its national sales force on the Master Agreement. At a minimum, sales training should include:
i. Key features of Master Agreement
ii. Working knowledge of the solicitation process
iii. Awareness of the range of Public Agencies that can utilize the Master Agreement through OMNIA Partners, Public Sector
iv. Knowledge of benefits of the use of cooperative contracts

Lawson Products’ Response:

Lawson assures Region 4 ESC and OMNIA Partners that our sales education program includes the following: 1) Key features of Master Agreement, 2) Working knowledge of the solicitation process, 3) Awareness of the range of Public Agencies that can utilize the Master Agreement through OMNIA Partners, Public Sector, 4) Knowledge of benefits of the use of cooperative contracts.

Additionally our field sales representatives are trained on how to position cooperative contracts and lead with OMNIA Partners.

For a full description of Lawson’s 90 -day plan to enable our sales and corporate teams to be successful marketing this contract as our primary go -to-market strategy for pub lic sector business, please see Appendix D, Exhibit A, Section 3.3, Letter A.

G. Provide the name, title, email and phone number for the person(s), who will be responsible for:
i. Executive Support
ii. Marketing
iii. Sales
iv. Sales Support
v. Financial Reporting
vi. Accounts Payable
vii. Contracts

Lawson Products’ Response:

Lawson is committed at every level of our organization to be responsive and effective partners for the OMNIA Partners cooperative agreement. Here are just some of the indivi duals that are directly responsible for prioritizing the importance of the OMNIA Partners cooperative agreement and proliferating its continued success:

Lawson Products, Inc. Page 54

Executive Support:

Michael DeCata
President and CEO
[email protected]
773-304-5203
Matt Brown
Senior Vice President, Sales
[email protected]
773-304-5216

Marketing:

Ilan Rodzynek
Sr. Director, Marketing and Product Management
[email protected]
773-304-5663

Jeannie Dentamaro
Marketing Manager
[email protected]
773-304-5316

Sales:

Christina Nielsen
Director, Government Sales and Operations
[email protected]
773-304-5345

Ryan Mullally
Government Sales Manager
[email protected]
469-400-7400

Cainan Benoit
Government Sales Manager
[email protected]
337-581-8487

John Swierc
Government Sales Manager
[email protected]
615-490-2911
Lawson Products, Inc. Page 55

Sales Support:

Mike Guill
Manager, Sales Operations
[email protected]
773-304-5693

Howard Kalish
Sr. Manager, Sales Education
[email protected]
773-304-5030

Financial Reporting:

Bernice “BJ” Najfus
Business Information Analyst
[email protected]
773-304-5071

Accounts Payable:

Doris Pape
Director, Accounting
[email protected]
773-304-5437

Contracts:

Lisa Castanon
Manager, Contracts and Compliance
[email protected]
773-304-5438

Maria Cassin
Paralegal – Public Sector Contracts
[email protected]
773-304-5214

H. Describe in detail how Supplier’s national sales force is structured, including contact information for the highest -level executive in charge of the sales team.

Lawson Products’ Response:

Lawson’s field sales representatives sets Lawson apart from our competition in the MRO industry. Not only do Lawson’s 1,000 field sales representatives, district sales managers, and regional sales managers visit with their customers at maintenance locations on a daily basis, they also provide ven dor managed inventory services and product usage training, including safety seminars, for all of Lawson’s product lines. The primary role of the field sales organization is to be on site with end users of our products:

Lawson Products, Inc. Page 56

managing their inventory, helping the m select products that meet their needs, placing orders, and putting orders away.

Being on site with end users allows Lawson’s field sales representatives the opportunity to get to know their customers’ operations firsthand. This includes understanding ea ch customer’s MRO product usage patterns so they can manage their inventory levels more closely, minimizing the overstocking and understocking challenges commonly associated with self- managed inventory. Because of the sheer number of field sales representa tives, district sales managers, and regional managers Lawson has, we are able to service agencies of all sizes, regardless of geographic location. Vendor managed inventory service includes: taking inventory of existing items, recommending items and quantit ies for re -order, and returning to put the inventory away in its proper place. It’s important to note that in Lawson’s vendor managed inventory model orders are never placed without the buyer’s prior knowledge and approval.

The following is a summary of t he distribution of field sales representative, district sales managers and regional sales managers across the U.S. and Canada:

• 8 regional sales managers
• 76 district sales managers
• 1069 field sales representatives

These sales personnel are strategicall y and evenly distributed across North America in order to provide inventory management service and product and safety training to customers of all sizes regardless of geographic location.

Another critical component of our sales organization is the Governm ent Sales Managers. Government Sales Managers are aligned to specific geographies. Their primary role is to secure partnerships and work to form contracts with public agencies. They then work with the field sales organization to roll out these contracts an d create awareness of Lawson’s value proposition amongst departments and end users. A roll out includes sales education specific to the contract including compliance rules, key terms and conditions of the contract, and where/how the contract can be used so ensure proper execution and usage. It also includes corresponding marketing materials. The magnitude of each rollout is different based on the size and scope of the contract; for details on how Lawson plans to roll out the OMNIA Partners cooperative agreement, please see section Appendix D, Exhibit A, Section 3.3, Letters A and B.

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Matt Brown, the Senior Vice President of Sales, is the highest level executive responsible for the entire sales organization at Lawson. His contact information is:

Email: [email protected]
Phone: 773-304-5216

I. Explain in detail how the sales teams will work with the OMNIA Partners, Public Sector team to implement, grow and service the national program.

Lawson Products’ Response:

Should Lawson be an awardee of the Region 4 ESC contract and OMNIA Partners, Public Sector cooperative agreement, our implementation would begin with seeking feedback from OMNIA Partners’ teams regarding our national implementa tion plan for both internal Lawson audiences and external public sector audiences. Our partnership and shared experience is ideally reflected in the final plan outlined in Appendix D, Exhibit A, Section 3.3, Letters A and B.

The Government Sales Managers, Director of Government Sales and Operations, and contracting team will be the primary points of contact for the OMNIA Partners, Public Sector sales teams. The Government Sales Managers are Lawson’s front line with public sector procurement and are responsible for winning, growing and retaining public sector contracts. There are several ways the Government Sales Managers can engage with OMNIA Partners team:
• Sharing intel on shared pursuits with OMNIA Partners’ sales team • Co-calling on large procurement opportunities
• Giving OMNIA Partners team visibility to local information that impacts existing contracts
• Brainstorming promotions and opportunities for targeted sales programs (by segment, and/or by geography)

The Director of Government Sales and Operations p roposes to be the primary point of contact for large scale or nation -wide programming in partnership with OMNIA Partners partner development, marketing, and training teams. It is the responsibility of the Director of Government Sales and Operations to ensu re Lawson’s entire sales force is aligned towards the mutual goals established by Lawson and OMNIA Partners. Desired outcomes resulting from this arrangement include:
• Consistent execution of programs and activities between OMNIA Partners team, Government Sales Managers, and Lawson’s field sales management • Creating training events
• Developing national sales growth programs and sales incentives • Driving systemic adoption of sales resources and tools by the Lawson sales organization (e.g. marketing materials, OMNIA Connect, etc.)
• Holding Lawson’s sales teams accountable to meeting sales targets and goals mutually agreed to by Lawson and OMNIA Partners

I. Explain in detail how Supplier will manage the overall national program throughout the term of the M aster Agreement, including ongoing coordination of marketing and sales efforts, timely new Participating Public Agency account set-up, timely contract administration, etc.

Lawson Products, Inc. Page 58

Lawson Products’ Response:

Lawson is fortunate to have had experience implementing and managing the existing Region 4 ESC MRO contract and corresponding cooperative agreement and will bring to bear the knowledge and learnings from that contract term. In Lawson’s second year of holding this contract it grew 78% vs. the first year, and grew again by 36% the next year. In the most recent fiscal year, Lawson grew contract sales by 12% YOY, outpacing general Company growth two -fold and seating the Region 4 ESC contract as Lawson’s largest public sector contract.

We are confident these results will continue as a result of continuous oversight and attention to be sure Lawson’s field sales organization and government sales team is focused on growing sales on the agreement. We foresee this coming to life in several ways including but not limited to:

• Partnering with OMNIA Partners partner development and training team to host annual regional meetings where district sales managers can engage first hand with OMNIA Partners education content, corporate personnel, and local sales managers • Partnering with OMNIA Partners team to rollout new sales tools and resources as they become available
• Involving OMNIA Partners in the creation of Lawson’s in -house public sector sales training program
• Creating exciting and rewarding marketing promotions and pricing promotions based on geography, segment, or seasonality
• Monthly reporting on regional performance on growing and retaining business on the contract

Lawson’ standard operating procedures require accounts be set up on the same day they are requested.

This will ensure orders, especially by new customers, are processed and fulfilled promptly.

Lawson’s team of contract specialists is dedicated exclusively to servicing public sector contract business and prior itizes contractual administration and topics concerning Region 4 ESC contract adoptions and piggybacks above other needs or requests in the general workflow.

J. State the amount of Supplier’s Public Agency sales for the previous fiscal year. Provide a list of Supplier’s top 10 Public Agency customers, the total purchases for each for the previous fiscal year along with a key contact for each.

Lawson Products’ Response:

In the 2018 fiscal year Lawson’s total public sector sales equaled $31,434,286

Agency 2018 Sales Contact Name
GWINNETT COUNTY PUBLIC, GA $ 226,406.14 April Denna
HOWARD COUNTY, MD $ 171,787.39 Dean Hof
Lawson Products, Inc. Page 59

SUFFOLK COUNTY, NY $ 168,066.75 Robert Pierro
PALM BEACH COUNTY, FL $ 142,077.92 Kathleen Scarlett
VICTORIA ISD, TX $ 126,363.72 Tisha Wallace
LOS ANGELES WORLD AIRPORTS, CA $ 123,230.14 Kevin Harris CALTRANS, CA $ 104,300.58 Jason Cook
MASSACHUSETTS BAY TRANSPORTATION AUTHORITY, MA $ 98,010.81 Kevin Frechette NATIONAL CAPITAL PARK AND PLANNING COMMISSION, MD $ 68,776.14 Dave Sexton CAPITAL DISTRICT TRANSPORTATION AUTHORITY, NY $ 64,229.70 Stacy Sansky MONTGOMERY COUNTY, MD $ 63,547.70 Cheri Branson
CITY OF ST. PAUL, MN $ 61,585.52 Fleet Services
CITY OF TACOMA, WA $ 61,171.65 Elizabeth Pauli
COLLIER COUNTY, FL $ 59,052.93 Opal Vann
CITY OF LAKEWOOD, CO $ 54,000.54 Mary O’Halloran
SEMINOLE COUNTY, FL $ 51,840.62 Michael Guild

K. Describe Supplier’s information systems capabilities and limitations regarding order management through receipt of payment, including description of multiple platforms that may be used for any of these functions.

Lawson Products’ Response:

Lawson’s in formation technology systems are reliable, interconnected and give employees and customers access to robust data analytics on a secure, yet accessible platform.

Our central enterprise resource planning system (ERP) is SAP. SAP houses Lawson’s critical cus tomer, product, pricing and shipping data. Our SAP system not only houses all of Lawson’s critical data, but allows us to generate pre -built and custom reports that can tell our employees or customers virtually anything about their account or product usage.

The workflow and customer experience of initiating an order through payment is as follows:
• A field sales representative or customer initiates the creation of an account • The account is created in SAP with all pertinent terms and conditions included (e.g. tax exempt, price file reflecting contract pricing, billing address, etc.). During account creation an account’s affiliation with OMNIA Partners cooperative agreement is Lawson Products, Inc. Page 60

identified for tracking and reporting purposes to share with OMNIA Partners and to allow for quick and accurate calculation of the funding fee • Once the account is created a quote can be generated in SAP by Lawson’s field sales representatives or customer service team on an easy -to-read form for the customer to approve or deny. If a cart is built by the customer on Lawson’s e -commerce website or on the customers designated e -procurement platform the customer will see the total amount to be charged (reflecting contract pricing) before they process the order • After an order is placed a confirmation email is sent to the customer with the contents of the order and pricing
• The order is received and SAP and routes the order to the nearest distribution center for fulfillment
• The distribution center employees pick and process the order using guidance from SAP on what size box should be used based on the dimensions of the products and recommended packing materials that will accompany the products. Product and packaging dimensional data allows Lawson to minimize the number of shipments the customer receives, cuts down on packaging waste, and minimizes freight charges • The shipment leaves the distribution center on the same day the order was received • All shipments on stocked items are received within 1 -2 business days from any one of our North American distribution centers
• Upon shipments for FOB customers, SAP sends an invoice to the billing address and contact on file for the account
• When the box is opened and products are unpacked the customer sees a packing slip with the contents of the box and notes any additional items that are shipping separately and arriving in different boxes
• The invoice can be paid via credit card, ACH/EFT or check according to the contracted payment terms
• Once payment is received the balance on the account updates to $0 in SAP and the order process can begin again
• All sales attributed to OMNIA Partners’ participants are stored in SAP for tracking and reporting purposes to share with OMNIA and to allow for quick and accurate calculation of the funding fee

As briefly referenced in the description above, there are several ways orders can be placed, all of which get processed through Lawson’s central SAP system:
• Field sales representative – The customer can place their order with the field sales representative directly and the field sales representative can enter the products and quantities desired to generate a quotation and request a P.O. or credit card number from the customer before moving forward with the order
• Customer service team – The customer can call Lawson’s customer service team to place an order. OMNIA Partners’ participants are supported by a highly -trained and empowered Customer Service Team. Each customer service representative is equipped for one-touch resolution, resulting in limited to no hold times or call transfe rs. Because they use the centralized SAP system to place orders, they have full access to OMNIA Partners’ participant’s order history, order status, delivery information, back -order information, contract pricing, category discounts, product availability, p roduct information, account and billing information, and contract compliance requirements.

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Because e-commerce is a requirement of today’s consumer and business customers we have a subset of our Customer Service Team that specializes in web support • E-commerce website – Lawson’s e -commerce website integrates seamlessly with the SAP platform and provides a shopping experience commensurate with best -in-class business-to-consumer websites. It offers access to the entire catalog of products with the ability to d isplay contract -specific pricing and suppress items based on their exclusion from a contract offering. Since we are proposing a full catalog contract for the OMNIA Partners cooperative agreement this feature will not be necessary. Customers with a web acco unt can see their full order history, track orders and view detailed product and specification information including MSDS/SDS sheets. Our website also enables workflow management which allows customers to define multiple account users and assign them roles with allowable actions they can and cannot take in the ordering and approval process. Finally, we employ third party processing of all procurement card information to protect the security of our customer’s information • E-procurement - Lawson’ standards -based e -procurement solutions allow OMNIA Partners’ participants to easily connect to third party e -procurement systems including, but not limited to: Ariba, Birch Street Systems, BuyEfficient, Direct EDI, eVA, Exostar, Infor / Datastream, Oracle Exchange, Pe oplesoft, SAP, SciQuest, SiteStuff, Easy Purchase, etc. Our e-procurement specialists provide OMNIA Partners the most efficient and effective system for their e-business integration requirements L. Provide the Contract Sales (as defined in Section 10 of the OMNIA Partners, Public Sector Administration Agreement) that Supplier will guarantee each year under the Master Agreement for the initial three years of the Master Agreement (“Guaranteed Contract Sales”).

Lawson Products’ Response:
$_8,337,939______.00 in year one
$_9,421,872______.00 in year two
$10,458,277______.00 in year three
To the extent Supplier guarantees minimum Contract Sales, the administration fee shall be calculated based on the greater of the actual Contract Sales and the Guaranteed Contract Sales.

Lawson Products’ Response:

Lawson agrees to pay an administrative fee of 3% of the greater of the Contract Sales under the Master Agreement and Guaranteed Contract Sales under this Request for Proposal.

M. Even though it is anticipated many Public Agencies will be able to utilize the Master Agreement without further formal solicitation, there may be circumstances where Public Agencies will issue their own solicitations.

The following options are available when responding to a solicitation for Products covered under the Master Agreement.

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i. Respond with Master Agreement pricing (Contract Sales reported to OMNIA Partners, Public Sector).
ii. If competitive conditions require pricing lower than the standard Master Agreement not-to-exceed pricing, Supplier may respond with lower pricing through the Master Agreement. If Supplier is awarded the contract, the sales are reported as Contract Sales to OMNIA Partners, Public Sector under the Master Agreement.
iii. Respond with pricing higher than Master Agreement only in the unlikely event that the Public Agency refuses to utilize Master Agreement (Contract Sales are not reported to OMNIA Partners, Public Sector).
iv. If alternative or multiple proposals are permitted, respond with pricing higher than Master Agreement, and include Master Agreement as the alternate or additional proposal.

Detail Supplier’s strategies under these options when responding to a solicitation.

Lawson Products’ Response:

It has been and will continue to be Lawson’s preference to promote usage of the Master Agreement and the competitive pricing and discounts associated with it. Lawson will report these as Contract Sales to OMNIA Partners, Public Sector.

If this is not acceptable to the agency in light of a competitive situation, Lawson will surgically lower pricing on select items to meet the competitive demands of the situation. Lawson will report these as Contract Sales to OMNIA Partners, Public Sector.

If an agency refuses to piggyback the Master Agreement their pricing will reflect the sales volume associated with their individual agency’s projected or historical usage. Lawson will not report these as Contract Sales to OMNIA Partners, Public Sector.

While to date Lawson has not found itself in a situation where multiple proposals are permitted, we are open to proceeding with a multiple proposal approach as described in situation four above. However, if an agency appreciated Lawson’s service -centric value proposition, quality products, and training capabilities but needed better pricing than we originally provided by bidding directly we would propose they adopt the OMNIA Partners cooperative agreement as an alternative. Should they decide to adopt the Master Agreement i nstead, Lawson will report these as contract sales to OMNIA Partners, Public Sector.
b. The successful Offeror will be required to sign Appendix D, Exhibit B, OMNIA Partners Administration Agreement prior to Contract award.

Offerors should have any reviews required to sign the document prior to submitting a response. Offeror’s response should include any proposed Lawson Products, Inc. Page 63

exceptions to OMNIA Partners Administration Agreement on Appendix B, Terms and Conditions Acceptance Form.

Lawson Products’ Response:

Please refere nce Lawson Product’s Signed Response in Appendix D, Exhibit B, OMNIA Partners Administration Agreement.

c. Include completed Appendix D, Exhibits F. Federal Funds Certifications and G. New Jersey Business Compliance.

Lawson Products’ Response:

Please reference Lawson Product’s Signed Response in Appendix D, Exhibit F – Federal Funds Certificate and Exhibit G – New Jersey Business Compliance.

d. Describe how Offeror responds to emergency orders.

Lawson Products’ Response:

With Lawson’s 1,000 field sales repres entatives, district sales managers, and regional managers, we are able to support customers’ needs during times of emergency in -person (depending on the nature of the emergency) combined with our fulfillment infrastructure.

After-hours customer concerns and care are available through a dedicated OMNIA Partners Hotline Representative who will collect caller information, take note of the caller’s needs, and get the caller in contact with the correct on call field sales representative for the location of that account. Our customer service team will record and review an electronic history of each contact and keep it available for the agency to reference to ensure a proper crisis response has been made.

Lawson’s distribution centers are also stocked with our full catalog of contracted products and takes pride in shipping 99% of all products complete the same day the order is received and can ship overnight if needed.

For participants within driving distance from one of our distribution centers we can arrange for will call pick-up by the customer or a hand-carried delivery by the field sales representative or delivery service, depending on the nature of the emergency.
e. Describe Offeror’s customer service/problem resolution process. I nclude hours of operation, number of services, etc.

Lawson Products’ Response:

Lawson believes customer service is critical to conducting a mutually beneficial business partnership to meet the needs of our valued customers. Lawson is poised to provide Region 4 ESC contract users with three different support levels depending on the nature of each participant’s need:

1. Customer Service Team

2. Technical and Engineering Support Team

3. Government Customer Support Team
Lawson Products, Inc. Page 64

Customer Service Team
Participants will be supp orted by a highly -trained and empowered Customer Service Team. Each customer service representative is equipped for one -touch resolution, resulting in limited to no hold times or call transfers for Region 4 ESC contract users. They also have full access to the participant’s order history, order status, delivery information, back -order information, contract pricing, category discounts, product availability, product information, account and billing information, and contract compliance requirements. Because e- commerce is a requirement of today’s consumer and business customers we have a subset of our Customer Service Team that specializes in web support.

Lawson’s Customer Service Team is available during the following times to Region 4 ESC contract users:
7:00 AM to 7:00 PM, CST; Monday -Friday at 1 -866-Lawson-4U (866- 529-7664) or via email ([email protected]) and fax (312-267-1684).

Technical and Engineering Support Team
Lawson’s Technical and Engineering Support Team is available to answer any product application or usage questions. They can also address safety requirements and concerns. Consider them the ultimate MRO product experts when enhanced technical experience and knowledge is needed.

Lawson’s Technical and Engineering Support Team is available during the following times to Region 4 ESC contract users: 7:00 AM to 7:00 PM, CST; Monday -Friday at 1-866-Lawson-4U (866-529-7664) or via email ([email protected]) and fax (312-962-4946).

Government Customer Support Team
Government Customer Support Team is available to help answer specialized contract and compliance questions. They are available to participants to ensure the requirements of the contract are met by both Lawson and Region 4 ESC contract users.

Lawson’s Government Customer Support Team is available during the following times to Region 4 ESC contract users: 6:00 AM to 5:30 PM, CST; Monday -Friday at 1 -800-890-8198 or via email ([email protected]) and fax (312-267-1734).

Customer Service Team Metrics
Overall service level: The Lawson Customer Service Team consistently meets the service level goal of answering phone calls in less than 45 seconds 90.32% of the time.

Four metrics/pillars: Each Customer Service Representative (CSR) is accountable for shaping the overall customer experience and maintaining their performance metrics.

• Daily Ready/Not Ready Report (Timeliness Metric) – YTD average 94% o Measures each CSR is available to answer the phones for 6.5 hours a day o Lists the number of calls each CSR takes on a daily basis Lawson Products, Inc. Page 65

o Gauges how much “offline” time a CSR spends
• Login/Logout Report (Timeliness Metric) – YTD average 98% o Displays the login and logout times for each CSR
o Attendance is key to make sure each phone call that is handled in a timely manner
• Transaction Audits (Accuracy Metric) – YTD average 91% o Each CSR has 8 transactions audited on a weekly basis and the goal is to score 75% or above on first-time resolution
o Producing error free work is our purpose with weekly transactional audits • Call Coaching & Development (Quality Metric) – YTD average 90% o Each CSR has 1 call monitored on a weekly basis and the goal is to score 90% or above
o Scorecard has 20 marks they have to hit during the call o Measures the greeting, solution, soft skills, and ending during a call

f. Describe Offeror’s invoicing process.

Lawson Products’ Response:

Lawson’s information technology systems are reliable, interconnected and give employees and customers access to robust data analytics on a secure, yet accessible platform.

Our central enterprise resource planning system (ERP) is SAP. SAP houses Lawson’s critical customer, product, pricing and shipping data. As it is our centralized data warehouse, SAP is also responsible for generating invoices and managing the workflow process associated with invoicing and payment.

The workflow and customer experience of initiating an order through payment is as follows:

• A field sales representative or customer initiates the creation of an account • The account is created in SAP with all pertine nt terms and conditions included (e.g. tax exempt, price file reflecting contract pricing, billing address, etc.). During account creation an account’s affiliation with OMNIA Partners cooperative agreement is identified for tracking and reporting purposes to share with OMNIA Partners and to allow for quick and accurate calculation of the funding fee • Once the account is created a quote can be generated in SAP by Lawson’s field sales representatives or by Lawson’s customer service team on an easy -to-read form for the customer to approve or deny. If a cart is built by the customer on Lawson’s e -commerce website or on the customers designated e -procurement platform the customer will see the total amount to be charged (reflecting contract pricing) before they pro cess the order
• After an order is placed a confirmation email is sent to the customer with the contents of the order and pricing
• The order is received and SAP routes the order to the nearest distribution center for fulfillment
• The distribution center employ ees pick and process the order using guidance from SAP on what size box should be used based on the dimensions of the products and recommended packing materials that will accompany the products. Product and Lawson Products, Inc. Page 66

packaging dimensional data allows Lawson to minim ize the number of shipments which the customer receives, cuts down on packaging waste, and minimizes freight costs incurred by Lawson
• The shipment leaves the distribution center on the same day the order was received • All shipments on stocked items are received within 1 -2 business days from any one of our North American distribution centers
• Upon shipments for FOB customers, SAP sends an invoice to the billing address and contact on file for the account
• When the box is opened and products are unpacked the customer sees a packing slip with the contents of the box and notes any additional items that are shipping separately and arriving in different boxes
• The invoice can be paid via credit card, ACH/EFT or check according to the contracted payment terms
• Once p ayment is received the balance on the account updates to $0 in SAP and the order process can begin again
• All sales attributed to OMNIA Partners’ participants are stored in SAP for tracking and reporting purposes to share with OMNIA Partners and to allow fo r quick and accurate calculation of the funding fee
• It is Lawson’s policy to invoice orders within 24 -48 hours of the complete shipment of the order. In the event of an incomplete order shipment, Lawson offers a combined invoice solution that consolidates invoices. In these cases, an invoice will be generated when the final items of the order ship within ten days after the order is processed. In instances where a backorder takes longer than the holding period, a unique invoice will be generated for that bac korder. Invoices can be mailed or sent electronically via email to any and all OMNIA Partners’ participant’s locations. Payments can be remitted electronically and the customer can benefit with a 1% discount if payment is made within 10 days; otherwise, net due in 30 days

g. Describe Offeror’s contract implementation/customer transition plan. As an example, attach a high- level project schedule, with milestones from each implementation phase. Include training that customer will receive as part of the transition.

Lawson Products’ Response:

There are two aspects to implementing an award and transitioning customers to the new agreement:

1. Preparing internal Lawson teams

2. Communicating to customers

Lawson’s team of Government Sales Managers, public sector contract ing specialists, sales leaders, and executive leaders will be the primary individuals responsible for setting the go -to-market strategy and ensuring its consistent and continuous execution.

Below is an example of a 90 -day plan describing the key milestones and activities to prepare Lawson’s sales organization and internal teams to implement a new contract.

Lawson Products, Inc. Page 67

Days 1-10:

Key milestones:

1. Create awareness within Lawson of award and how it effects each departments operating procedures

2. Refresh sales organization with training on Region 4 ESC contract / OMNIA Partners cooperative agreement

Key activities:
• Work with OMNIA Partner development team and sales managers to collaborate on implementation strategy for the contract overall and separately by SLED segments, including communication plan and training best practices • Announcement of award and describing key implementation tactics to follow from executive leadership, including CEO, Mike DeCat a and Senior Vice President of Sales, Matt Brown, using inter-company communications platforms and media • Webinars and lunch -and-learns to deliver targeted information specific to each department (e.g. field sales, sales operations, customer service, marketing, etc.) regarding their role in supporting the Region 4 ESC contract and OMNIA’s public agency members
• Update the Region 4 ESC / OMNIA Partners page on Lawson’s intranet with new contract documentation and revised marketing materials
• Assign regional sales managers, district sales managers and field sales representatives to mandatory digital curriculum in Lawson University, Lawson’s interactive training and education platform. State and local sales education curriculum includes:
o Selling the lead agency and cooperative procurement model o Compliance to contract terms and conditions
o Understanding the public procurement process
o Positioning Lawson in public sector accounts

Days 11-45:

Key milestones:

1. Prescribe existing and new agency transition targets to field sales representatives for follow-up

2. Deploy Government Sales Managers to help create agency awareness of new contract

Key activities:
• Load latest OMNIA Partners’ participant list into customer management system for assignment to individual field sales representatives
• Send district managers and field sales representatives supporting marketing tools, including flyers and brochures that specifically promote the Region 4 ESC contract with Lawson
• Based on strategy, establish OMNIA Partners-hosted training opportunities for Lawson’s regional sales managers and district sales managers
• Deploy government sales account managers to each district to assist district managers and field sales representatives with opening new accounts and transitioning existing eligible public sector accounts to the Region 4 ESC contract • Check in regularly with all Lawson departments impacted by the new contract (e.g. customer service, accounting, etc.) for feedback on progress and challenges Lawson Products, Inc. Page 68

Days 46-90:

Key milestones:

1. Measure conversion success of agencies to the new contract

2. Continue transition and manage performance to targets distributed to field sales representatives

Key activities:
• Government sales account managers host district workshops in each U.S. sales district to deliver contract details, customer -level implementation plans, and reinforce previously delivered digital education topics on how to sell cooperative agreements (with OMNIA Partners’ participation depending on schedule/availability) • Monitor and measure conversion of new accounts to the Region 4 ESC agreement • Follow-up with district managers and field sales representatives for feedback on their experiences and progress proliferating the new contract • Continue to check in with all Lawson departments impacted by the new contract to ensure seamless experiences for all Region 4 ESC contract users and OMNIA Partners’ participants
• Follow-up with OMNIA Partners’ development and sales teams to gauge success an d determine next steps

Below is an example of a 90 -day plan describing the key milestones and activities to communicate to customers about the new contract and enable them to use it.

Days 1-10:

Key milestones:

1. Align implementation/customer transition plan with Region 4 ESC / OMNIA Partners

2. Confirm tradeshow/expo opportunities locally in Region 4 ESC and nationally to market the cooperative agreement

3. Host meeting with Lawson’s internal teams to confirm tactics, timelines and officially kick off the implementation project

Key activities:
• Host conference call with OMNIA Partners’ development and marketing teams to discuss best practices and framework for marketing program • Confirm existing registration at key national and regional tradeshows • Extend registrati on to other regional tradeshows with dates TBD (at the time of bid response)
• Release co-branded press release to trade and public sector procurement publications • Engage Lawson’s PR firm to identify opportunities for case studies with OMNIA Partners’ participants continuing their relationship with Lawson and Region 4 ESC on the new award, emphasizing the value and efficiency of the cooperative model • Host kick-off meeting to assign roles and responsibilities to the implementation team

Lawson Products, Inc. Page 69

Days 11-45
Key milestones:

1. Update and deploy all customer-facing printed and digital marketing materials

2. Build and socialize availability of customer training sessions via webinar

3. Establish contract implementation customer awareness and sales goals

Key activities:
• Update all existing printed marketing materials with new award details and identify new materials to be created; deploy to field sales representatives and managers for use • Update OMNIA Partners section on Lawson’s intranet site to reflect new award details • Update OMNIA Partners page on Lawson’s public website to reflect new award details and digital versions of marketing materials (see current page by visiting:
lawsonproducts.com/resources/omnia-partners.jsp)
• Schedule and socialize availability of customer training webinars for existing customers and prospective agencies considering a cooperative agreement • Create framework for email program to all of Lawson’s public sector email subscribers • Identify case study participants and begin working accordingly with willing agencies • Solidify PR and advertising opportunities with pre -vetted publications recommended by PR firm (e.g. editorial placements, op-eds, paid advertisements) • Begin production of state and local government product marketing flyers, segmented by department/agency (e.g. Facilities maintenance, fleet and transit maintenance, etc.) • Set goals for existing account growth and new account conversion to OMNIA Partners by sales district
• Regular implementation team meetings and updates on progress to OMNIA Partners’ team

Days 46-90
Key milestones:

1. Establish reporting format to track results long-term

2. Rollout remaining marketing materials

Key activities:
• Create reporting format for monthly district -level reporting, and mechanism for auto - generation and distribution to district sales managers
• Rollout email program, case studies, PR engagements and product marketing flyers • Regular implementation team meetings and updates on progress to OMNIA Partners’ team

The knowledge and experience our entire sales organization, corporate partner departments, and executive leadership has gained over the course of Lawson’s existing Region 4 ESC MRO contract will be an asset to another contract implementation, were we to be awarded the opportunity.

h. Describe the financial condition of Offeror.

Lawson Products, Inc. Page 70

Lawson Products’ Response:

Lawson’s financial position is strong and has shown a trend of continuous improvement for several years. Our historical net sales are as follows:

2015 $257,834,000.00
2016 $276,573,000.00 (increase of 7.3% vs. 2015)
2017 $305,907,000.00 (increase of 10.6% vs. 2016)
2018 $349,637,000.00 (increase of 14.3% vs. 2017)

Additionally, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) is considered to be the best measure of the profitability of any business and Lawson’s has continuously improved, increasing from 6.2% at the end of 2015 to 10.9% through Q3 2019.

Lawson actively follows corporate governance practices that are consistent with best practices and fully comply with the requirements of the Sarbanes -Oxley Act of 2002, public procurement standards and The United States Securities Exchange Commission (SEC). Additional standards require that our Board of Directors and Audit Committee Charter oversee the company with a forward -looking governance structure implemented by a diverse and independent board focused on serving the interests of all our stockholders and shareholders. Concerns or questions about accounting, internal accounting controls, financial reporting, auditing matters or any illegal or unethical situations can be reported anonymously to the Lawson Ethics Helpline 24 hours a d ay, 7 days a week at 1 -800-425-8109 or online at www.lawsonproducts.alertline.com.

Lawson holds Dun & Bradstreet number 00 -543-8890. Below is Lawson’s Dunn & Bradstreet report segmented. Please see electronic file for the full report.

Lawson Products, Inc. Page 71

i. Contractors that have retail stores shall have appropriate procedures in place to ensure contract pricing on all product lines to member agencies.

Describe how agencies choosing to pick up orders will receive the correct contract pricing. Indicate how volume will be tracked and reported to OMNIA Partners.

Lawson Products, Inc. Page 72

Lawson Products’ Response:

Lawson’s service delivery model is based on vendor managed inventory meaning our field sales representatives ensure products are on hand at the customer’s location when needed so the need for off-site visits to retail locations is greatly reduced. Therefore, we do not have retail stores in our network. All pricing is housed centrally in our enterprise resource planning (ERP) system SAP and is administered consistently with every order whether placed through the field sales representative, customer service, website, or using an e-procurement platform. Reporting is extracted using the central data in SAP and accounts that qualify as Region 4 ESC contract/OMNIA Partners’ cooperative agreement users are indicated as such at the time of account set up, assuring that all sales are captured and reported accurately to OMNIA Partners, Public Sector.

j. Payment terms/options. Include standard payment terms, early payment discounts and forms of payment accepted. Also state the Convenience Fee, if allowable, per the Visa Operating Regulations.

Lawson Products’ Response:

For customers with established credit, Lawson’s payment terms are 1 % discount if paid within 10 days, and net 30 for the full amount owed. If the customer pays within 10 days via check or ACH/EFT Lawson offers a 1% discount on goods only, not including tax if applicable. Payments by credit card are not eligible for the 1% discount on goods. Specialized payment terms, if needed, will be decided on a case - by-case basis.

Forms of payment accepted are:
- Check
- ACH/EFT
- Visa/MC/Amex/Discover

Lawson does not assess a convenience fee if the customer chooses to pay with a credit card.

Lawson Products, Inc. Page 19

TAB 4 – Qualification and Experience

c) Qualification and Experience
a. Provide a brief history of the Offeror, including year it was established and corporate office location.

Lawson Products’ Response:

Sidney L. Port founded Lawson in 1952 with a simple goal —to provide for his family. He accomplished that and much more.

After early careers as a publisher and an attorney, Mr. Port joined his father- in-law’s company, Lion Auto Parts. During his time there he recognized an opportunity and confirmed its potential by first selling fasteners out of the trunk of his car. That expe rience convinced him that no one else was effectively supplying businesses with small, consumable parts necessary to keeping their operations running.

At the age of 40, with a $25,000 loan, Mr. Port opened Lawson. For those who knew Mr. Port they’d say, “h is word was his bond,” and customers and suppliers quickly recognized his integrity. That, combined with Mr. Port’s knack for finding the right people, helped continue the Company’s growth.

Lawson went public in 1970 (currently traded on the NASDAQ – LAWS), but Mr. Port retained a very active role until his death in 2007. When asked about founding his Company, Mr. Port often replied that he simply wanted to create an organization that offered employees a way to make a good living and support their fami lies. As an entrepreneur himself, Mr. Port encouraged that spirit by offering employee benefits such as profit sharing, which was unusual at the time.

Mr. Port named Lawson after Victor Lawson, owner of the Chicago Daily News and a philanthropist whom he a dmired. As the Company’s success grew, so did Mr. Port’s generosity and philanthropic efforts in the arts, medical research and education.

Today, Lawson in North America…
• Lawson’s corporate location is located in Chicago – 8770 W, Bryn Mawr, Suite 900, Chi cago, Illinois 60631 with six distribution centers located throughout North America.

b. Describe Offeror’s reputation in the marketplace.

Lawson Products’ Response:

Lawson has been in the MRO business for over 67 years, during which time the company has grown from a ‘car-trunk’ sales operation to servicing 300,000 industrial, commercial, institutional and government customers in all 50 states, Canada, Mexico, and the Caribbean, and exporting products that support U.S. military efforts overseas, in the Middle East, Asia and Europe .

Lawson currently holds public sector cooperative contracts with the following organizations:
• OMNIA Partners - National
• TIPS (The Interlocal Purchasing System) - National
• BuyBoard - National
Lawson Products, Inc. Page 20

• PSA (Purchasing Solutions Alliance) - National
• SAVE (Strategic Alliance for Volume Expenditures) - Arizona • COSTARS (Pennsylvania Department of General Services) – Pennsylvania • CREC (Capital Region Education Council) – Connecticut • Kinetic – Canadian GPO

Lawson’s extensive experience in developing strategic marketing decisions supporting other national organizations and contracts in the Government market has seen 364% growth in the last two years.

These include our Federal GSA contract and DOD contract, our many State and local government contracts, Lawson’s additional Cooperative Contracts around the USA and Canada (as listed above), the Canadian government customers at the Provincial level, Federal level, Crown level, and special programs Lawson has in place with the Defense Logistics Agency (DLA) in support of our troops here at home and overseas. Lawson is experienced in each marketplace, poised to retain and driven to exceed its customer base by delivering exceptional Vendor Managed systems sensitive to customer needs. c. Describe Offeror’s reputation of products and services in the marketplace Lawson Products’ Response:

In the 67 year history, Lawson delivers a full range of consumable MRO products coupled with on -site inventory management services that help fleet and facility maintenance personnel keep their operations up and running without interruption. Lawson’s proven track record of business credibility, reputation and decade-long international commerce experiences with key suppliers is an important strength. Our philosophy is to pro vide “ the right part, in the right place, at the right time”. Service and cost effectiveness is one of our primary considerations.

Following the principles of 5S methodology (a workplace organization method) approximately 1,000 Lawson sales representativ es partner with maintenance and repair personnel to maximize their operational effectiveness and efficiency. Our ultimate goal is to develop a fully integrated maintenance supply and inventory management partnership with OMNIA Partners and participating st ate, local and education entities to provide quality products and vendor -managed inventory services for consumable maintenance and repair products across the U.S. and Canada.

We work at increasing customer productivity in several ways including:
 Reduce the amount of time searching for / purchasing parts  Avoid emergency off- site trips for a part by insuring adequate inventory is available at all times
 Assign a knowledgeable Sales Professional who will inventory, review, and order for those areas where authorized the responsibility

Lawson’s demand-based planning is a forecasted system that has the ability to use up to 26 different algorithms to generate a raw forecast based on historical data, seeing this would be new business to Lawson and not part of our c urrent history, we would control demand planning through communication/ forecasting data provided by your location and the field sales representative. After 60 days of historical demand from the new account the system will detect sales trend increase and Lawson Products, Inc. Page 21

automatically start to increase the raw forecast, at the same time the communication with your locations/field sales representative and the government team will continue to identify the items in demand and future forecast needs. We do have the flexibility to adjust or hard key safety stock levels to protect or control inventory levels, we have found in the past that a combination of forecast and safety stock level adjustments best support the customer needs.

Lawson, a value -add distributor can demonstrate h ow we impact a customer's total cost of ownership by following this four-step process:

1. Identify value-added services

2. Determine the total cost of ownership

3. Determine the impact on the customer's bottom line

4. Report the results

Here are some ways we manage these four steps:
• Revenue Focused: Lawson helps customers get back on -line quicker. Reduce turnaround time.

Provide efficiencies in output. Provide new products to each customer market • Asset Focused: Lawson provides system optimization. Overstoc k reduction. Obsolete inventory removal. Re-allocation of space
• Process focused: Lawson provides Vendor Managed Inventory (VMI) options. Self -service inventory monitoring systems. EDI & EFT efficiencies
• Expenditure Focused: Lawson offers integrated purc hasing. Price protection. Product substitution options.
• Service Focused: Lawson offers 24/7 service. Technical and Product support. Seminar & Training options for all our customers is the form of Fastener Safety Seminar, Cutting Tool Safety Seminar, Pne umatic Safety Seminar, Electrical Safety Seminar, Hydraulic Safety Seminar, and Unique Customer Requests for any seminar or training your facilities would need • Customer Focused: Lawson offers additional cost savings opportunities in areas of Safety cost reduction. Environmental cost reduction, and equipment cost reduction / exchanges

Lawson’s demand management for Maintenance, Repair and Operations products strives to manage all the activities associated with discovering the customer location needs, plan ning products or services for those locations and then fulfilling the customers ‘demand’. It is an integrative set of processes across, not just the enterprise, but the trade partner network and ensures that we truly understand the market; we know who the OMNIA Partners’ participants are and what draws them to doing business with us. It also ensures that they are happy with their product assortment, our product offering and our service.

Our reputation for merging customer needs through analytics with plain old customer service and inventory management, Lawson serves a niche in the marketplace that drives price, distribution, product awareness and fulfilling unmet needs with each customer.

d. Describe the experience and qualification of key employees.

Lawson Products’ Response:

Key members of Lawson’s public sector sales and operations team will lead the team responsible for the successful execution of the plan above. They are:

Lawson Products, Inc. Page 22

Christina Nielsen
Director, Government Sales and Operations
Christina has spent 13 years in the industrial manufacturing and distribution industry, 10 years of which were spent leading the development and execution of customer engagement and demand generation programs. Under Christina’s leadership of public sector sales at Lawson, sales to public sector customers have grown an average of 15% year- over-year. Sales attributed specifically to OMNIA Partner s cooperative agreement resulted in 12% growth in 2018 vs. 2017. Christina will be responsible for both the 90-day go-to-market strategy outlined here in Appendix D, Exhibit A, Section 3.3, Letter A and the 90-day implementation and marketing program outlined in Appendix D, Exhibit A, Section 3.3, Letter B. [email protected]; 773-304-5345

Lisa Castanon
Manager, Contracts and Compliance
Lisa brings 28 years of experience in the MRO industry with the last 11 years of her career focused exclusively on the public sector. Lisa and her team manage the bid response process, ensure contract compliance, and manage implementation programs for awarded contract s, including Lawson’s existing Region 4 ESC MRO contract. In 2016, she received her Six Sigma Black Belt Certification which reflects in the way she manages projects and solves problems. The combination of this experience and credentials highly qualifies L isa to be the project leader for the 90 -day plan outlined here.

[email protected]; 773-304-5438

Bernice “BJ” Najfus
Business Information Manager
BJ has spent 5 years in the MRO space , all of which have been with Lawson as a business information manager. BJ’s 20+ year career before Lawson included roles in finance, accounting, and business analytics. She holds an undergraduate degree in Finance and a Master degree in Information Systems. BJ will assist Lisa in managing the data and reporting necessary to ensure successful execution of the go-to- market strategy. [email protected]; 773-304-5071 John Swierc, Cainan Benoit, and Ryan Mullally
Government Sales Managers
John, Cainan and Ryan bring with them a combined 20 years of experience in the MRO industry and with Lawson. They are responsible for securing contractual agreements with public sector entities and agencies across the United States in cooperation with our 1,000 field sales representatives and leaders.

John, Cainan and Ryan have all had previous positions at Lawson in the field sales organizations, either as field sales representatives or district sales man agers. This credibility and experience will serve them greatly as they work across the country to implement the 90 -day go-to-market strategy in partnership with our field sales organization. [email protected]; 615-490-2911; [email protected]; 337-581-8487; [email protected]; 469-400-7400

e. Describe Offeror’s experience working with the government sector.

Lawson Products’ Response:

Lawson has hundreds of state, local and education contracts directly with entities and seven cooperative purchasing contracts. Six out of seven cooperative purchasing contracts cover the contiguous and Lawson Products, Inc. Page 23

noncontiguous United States; the remaining contract covers Canada. The list that follows illustrates the sales on a handful of these contracts for the past three years:

Contract Name 2017 Sales 2018 Sales 2019 Sales
National
Intergovernmental
Purchasing Alliance
(IPA)
$4,690,969 $6,943,103 $7,978,889
(projected)
California Multiple
Award Schedule
(CMAS)
$428,029 $519,171 $624,978
Purchasing Sourcing
Alliance (PSA)
$301,958 $345,691 $414,193
Louisiana Multiple
Award Schedule
(LaMAS)
$101,696 $110,056 $383,174
State of New Jersey $1,688,325 $1,770,416 $2,010,146
State of Mississippi No data available $65,279 $89,721

Lawson holds General Services Administration (GSA) contract #GS-06F-0027L – Hardware Superstore 51V which began with GSA on April 9, 2001 and expires on April 8, 2021. The annual sales volume for the past three years is as follows:

Contract Name FY2017 FY2018 FY2019
GS-06F-0027L
Hardware Superstore
51V
$4,433,703 $5,159,792 $5,472,906
Please note that the data above reflect actual fiscal year for the Federal Government begins October 1 and ends September 30.

Segment Average
Percent of
SLED
2017 Sales 2018 Sales 2019 Sales
(projected)
City Government 37.7% $8,308,234 $8,356,659 $8,929,907
Primary Education (K-
12)

18.7% $4,121,061 $4,145,080 $4,429,423
County Government 15.1% $3,327,701 $3,347,097 $3,576,700 State Government 12.1% $2,666,569 $2,682,111 $2,866,097 Non-Profit
Organizations

9.5% $2,093,587 $2,105,789 $2,250,242
Lawson Products, Inc. Page 24

Colleges &
Universities

6.3% $1,388,379 $1,396,471 $1,492,266
Public Health .6% $132,227 $132,997 $142,121
Canadian
Government
$691,716 $696,751 $788,976
Federal Military and
Civilian Government
$6,480,876 $6,508,567 $6,888,037
All Government Sales
as % of Total Sales

10.56% 10.60% 10.65%

f. Describe past litigation, bankruptcy, reorganization, state investigations of entity or current officers and directors.

Lawson Products’ Response:

On August 11, 2008, Lawson entered into a Deferred Prosecution Agreement (“DPA”) with the United States Attorney General for the Northern District of Illinois. Lawson filed a copy of the Deferred Prosecution Agreement with the Securities and Exchange Commission upholding and fully complying with its obligations set forth under the Agreement. On August 19, 2011 the United States District Court for the Northern District of Illinois issued an order dismissing the information against Lawson with prejudice in Case No. 08-CR-633.

g. Provide a minimum of 5 customer references relating to the products and services within this RFP. Include entity name, contact name and title, contact phone and email, city, state, and years serviced.

Lawson Products’ Response:

Lawson has included 10 customer ref erences that will verify our excellence in providing Vendor Managed Inventory and services exemplifying our “just the right product at just the right time” philosophy. Please see the list below:

Reference #1 Reference #2 Reference #3
Entity
Name: Los Angeles World Airports Town of LaGrange Gwinnett County Public Schools Contact
Name: Robert Haines James Fetzer Kim Murphy
Contact
Title: Fleet Maintenance Director Deputy Superintendent Senior Buyer Contact
Phone: 424-646-7900 845-590-2892 678-301-6292
Contact
Email: [email protected] [email protected] [email protected] City: Los Angeles LaGrangeville Lawrenceville
State: California New York Georgia
Lawson Products, Inc. Page 25

Years
Serviced: 15 Years 8 Years 20 Years
Scope of
Work:

We supply 11 departments
with the Lawson Vendor
Managed Inventory and
provide training to end users.

We provide Lawson Vendor
Managed Inventory to the
Town for all their MRO
supply needs.

We provide Lawson Managed
Inventory to the County's Public
Schools on a weekly basis.

Reference #4 Reference #5 Reference #6
Entity Name: Johnston County Schools City of Lakewood City of Kingsport Contact
Name: Josh Loseke Ramon Montoya Steve Hightower
Contact Title: Shop Foreman Fleet Supervisor Fleet Maintenance Manager Contact
Phone: 919-934-8340 303-987-7796 423-229-9446
Contact
Email: [email protected] [email protected] [email protected] City: Smithfield Lakewood Kingsport
State: North Carolina Colorado Tennessee
Years
Serviced: 7 Years 3 Years 20 Years
Scope of
Work:

We provide Lawson Managed
Inventory to the County's
Schools in all MRO categories.

We provide Lawson
Managed Inventory to the
City’s departments in all
MRO categories.

We provide Lawson Managed
Inventory to the City's
departments on a weekly basis.

Reference #7 Reference #8 Reference #9
Entity Name: Trolley Tours of Nashville
General Services
Administration
State of California – Department
of Transportation
Contact
Name: Nathan Kingsbury Marlyn Ziegler Jason D. Cook
Contact Title: Fleet Manager Contracting Officer Chief, Office of Material Services Contact
Phone: 615.947.5661 816 926-8364 916-227-9704
Contact
Email:

Nathaniel.kingsbury@trolleyto
urs.com
[email protected]
[email protected]
City: Nashville
Heartland Acquisition
Center Sacramento
State: Tennessee Kansas California
Years
Serviced: 3 Years 18 Years 8 Years
Scope of
Work:

We provide Vendor Managed
Inventory for all maintenance
and repair supplies to maintain
their fleet and facility.

We provide Vendor
Managed Inventory for all
maintenance and repair
supplies.

We provide Vendor Managed
Inventory for all maintenance and
repair supplies.

Lawson Products, Inc. Page 26

Reference #10

Entity Name: Elko County School District
Contact
Name: Seth Canning
Contact Title: Transportation Director
Contact
Phone: 775-738-0808
Contact
Email: [email protected]
City: Elko
State: Nevada
Years
Serviced: 4 Years
Scope of
Work:

We provide Vendor Managed
Inventory for all maintenance
and repair supplies.

h. Provide any additional information relevant to this section.

Lawson Products’ Response:

Lawson offers several unique attributes that would make us a valued MRO products alternative to OMNIA Partners’ participants and three stand out in particular:

1. Lawson’s focus on the small, consumable parts segment of the broader MRO industry and the unique service demands customers have for these products

2. Our approximately 1,000 local Lawson field sales representatives provide data- driven inventory management services to ensure OMNIA Partners’ participants are operating in a cost -effective way while ensuring their operations never stop or slow due to an out-of-stock part or product

3. Lawson’s long- standing and varied contractual and non -contractual relationships with government entities can help proliferate the OMNIA Partners’ brand and value

Other attributes that make us stand out in a crowd are:
• Highly-trained and empowered Customer Service Team providing done -in-one first call resolution with little to no hold times and handoffs. This team includes specialists in web customer care and government customer care.
• A good/better/best product mix including commod ity-grade products, nationally branded products and private-label maintenance-engineered products • Technical and Engineering Team to provide product application and safety training free of charge
• The ability to provide, through our SAP enterprise resource p lanning tool, virtually endless product and customer usage data and analytics to help inform customer’s MRO inventory management practices and reduce costs
Lawson Products, Inc. Page 27

• Extensive experience implementing and managing direct contracts and cooperative contracts in a compliant and value-driven way

Lawson Products, Inc. Page 28

a. Provide a minimum of 5 customer references relating to the products and services within this RFP. Include entity name, contact name and title, contact phone and email, city, state, and years serviced.

Lawson Product’s Response:

Lawson has included 10 customer references that will verify our excellence in providing Vendor Managed Inventory and services exemplifying our “just the right product at just the right time” philosophy. Please see the list below:

Reference #1 Reference #2 Reference #3
Entity
Name: Los Angeles World Airports Town of LaGrange Gwinnett County Public Schools Contact
Name: Robert Haines James Fetzer Kim Murphy
Contact
Title: Fleet Maintenance Director Deputy Superintendent Senior Buyer Contact
Phone: 424-646-7900 845-590-2892 678-301-6292
Contact
Email: [email protected] [email protected] [email protected] City: Los Angeles LaGrangeville Lawrenceville
State: California New York Georgia
Years
Serviced: 15 Years 8 Years 20 Years
Scope of
Work:

We supply 11 departments
with the Lawson Vendor
Managed Inventory and
provide training to end users.

We provide Lawson Vendor
Managed Inventory to the
Town for all their MRO
supply needs.

We provide Lawson Managed
Inventory to the County's Public
Schools on a weekly basis.

Reference #4 Reference #5 Reference #6
Entity Name: Johnston County Schools City of Lakewood City of Kingsport Contact
Name: Josh Loseke Ramon Montoya Steve Hightower
Contact Title: Shop Foreman Fleet Supervisor Fleet Maintenance Manager Contact
Phone: 919-934-8340 303-987-7796 423-229-9446
Contact
Email: [email protected] [email protected] [email protected] City: Smithfield Lakewood Kingsport
State: North Carolina Colorado Tennessee
Years
Serviced: 7 Years 3 Years 20 Years
Scope of
Work:

We provide Lawson Managed
Inventory to the County's
Schools in all MRO categories.

We provide Lawson
Managed Inventory to the
City’s departments in all
We provide Lawson Managed
Inventory to the City's
departments on a weekly basis.

Lawson Products, Inc. Page 29

MRO categories.

Reference #7 Reference #8 Reference #9
Entity Name: Trolley Tours of Nashville
General Services
Administration
State of California – Department
of Transportation
Contact
Name: Nathan Kingsbury Marlyn Ziegler Jason D. Cook
Contact Title: Fleet Manager Contracting Officer Chief, Office of Material Services Contact
Phone: 615.947.5661 816 926-8364 916-227-9704
Contact
Email:

Nathaniel.kingsbury@trolleyto
urs.com
[email protected]
[email protected]
City: Nashville
Heartland Acquisition
Center Sacramento
State: Tennessee Kansas California
Years
Serviced: 3 Years 18 Years 8 Years
Scope of
Work:

We provide Vendor Managed
Inventory for all maintenance
and repair supplies to maintain
their fleet and facility.

We provide Vendor
Managed Inventory for all
maintenance and repair
supplies.

We provide Vendor Managed
Inventory for all maintenance and
repair supplies.

Reference #10

Entity Name: Elko County School District
Contact
Name: Seth Canning
Contact Title: Transportation Director
Contact
Phone: 775-738-0808
Contact
Email: [email protected]
City: Elko
State: Nevada
Years
Serviced: 4 Years
Scope of
Work:

We provide Vendor Managed
Inventory for all maintenance
and repair supplies.

Lawson Products, Inc. Page 19

TAB 5 – Value Add

d) Value Add
a. Provide any additional information related to products and services Offeror proposes to enhance and add value to the Contract.

3. Competitive Range: It may be necessary to establish a competitive range. Factors from the predetermined criteria will be used to make this determination. Responses not in the competitive range will not receive further award consideration. Region 4 ESC may determine establishing a competitive range is not necessary.

4. Past Performance: An Offeror’s past performance and acti ons are relevant in determining whether or not the Offeror is likely to provide quality goods and services; the administrative aspects of performance; the Offeror’s history of reasonable and cooperative behavior and commitment to customer satisfaction; and generally, the Offeror’s businesslike concern for the interests of the customer may be taken into consideration when evaluating proposals, although not specifically mentioned in the RFP.

5. Additional Investigations: Region 4 ESC reserves the right to make such additional investigations as it deems necessary to establish the capability of any Offeror.

6. Oral Presentations/Interviews: Region 4 ESC reserves the right to conduct interviews with some or all of the offerors at any point during the evaluation process. However, Region 4 ESC may determine that interviews are not necessary. In the event interviews are conducted, information provided during the interview process shall be taken into consideration when evaluating the stated criteria. Region 4 ESC shall not reimburse the offeror(s) for the costs associated with the interview process.

7. Negotiations: Exclusive or concurrent negotiations may be conducted with responsible offeror(s) for the purpose of altering or otherwise changing the conditions, terms and price of the proposed contract unless prohibited. Offeror(s) shall be accorded fair and equal treatment in conducting negotiations and there shall be no disclosure of any information derived from proposals submitted by competing offeror(s).

Lawson Products’ Response:

The goal of Vendor Managed Inventory (VMI) is to provide a mutually beneficial relationship where both sides will be able to more smoothly and accurately control the availability and flow of goods for OMNIA Partners’ participants. In VM I, Lawson assumes the role of inventory planning for the customer.

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Extensive information sharing between Lawson and OMNIA Partners’ participants is required so that the Lawson can maintain a high degree of visibility of goods/requirements at each location. Instead of the customer reordering when its supply has been exhausted, Lawson is responsible for replenishing and stocking the customer location at appropriate levels. Lawson has mastered VMI and Lawson takes the lead against many other organizations and how they benchmark themselves.

Our VMI programs goal is to minimize any capital investment in inventory while providing “package friendly” quantities that assure maximum productivity to OMNIA Partners’ participants. To do this Lawson first establishes acceptable min/max service levels at each OMNIA Partners’ participants locations. Lawson then reviews the condition and status of all bin equipment and the disposition of current inventory levels. A site-specific plan will be developed between Lawson and each OMNIA Partners’ participants individually. During these site-specific planning’s it will also be determined needs if any new equipment such as bins and cabinets are required. Lawson will use current best practices and ensure they are followed; this provides a minimum inventory investment and improved inventory turns and will provide a reduction in cost of ownership for the OMNIA Partners’ participant. Lawson’s current VMI program also provides opportunities for obsolete inventory reduction within your current OMNIA Partners’ participant locations where applicable. Current inventory consolidation, inventory standardization, and reduced risks results in an overall cost savings to the customers.

OMNIA Partners’ participants will have supplier benefits that Lawson carries out its task of maintaining predetermined inventory and avoiding stock -outs, we are then able to lock in a VMI -supported customer for the long term (with or without a contract). This will produce a steady and predictable flow.

A VMI partnership allows Lawson to schedule its operations more productively because it is now monitoring OMNIA Partners’ participants entire inventory on a regular basis. Furthermore, reductions in inventory will be achieved once Lawson develops a better understanding of how the end user customer truly uses its goods over the course of a year.
• How we effectively partner on VMI Work:
o Clarify expectations. There needs to be thorough discussion about how the system will benefit both organizations in the long term. The objective is clear and constant communication between the Lawson and OMNIA Partners’ participants. When the two parties work in conjunction we can be assured that the planning function, for both sides, will begin to smooth over time.
o Agree on how to share information. If Lawson and OMNIA Partners’ participants can agree to share information vital to restocking in a timely manner, then the odd s of a synchronized system will dramatically improve. Proprietary information would not have to be shared, but enough information to maintain a steady flow of goods is necessary.

You should be willing to share production schedules and/or forecasts to provi de some visibility for Lawson.

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o Keep communication channels open. When Lawson and OMNIA Partners’ participants set out to implement a VMI program, we need to meet and discuss their goals and how they need to proceed in order to realize those goals. Once a VMI program has been activated, each side needs to understand that there are going to be some miscues.

These miscues need to be studied as opportunities for learning and then used to avoid repetitive problems in the future.

As part of Lawson’s commitment to the OMNIA Partners on the MRO contract, Lawson will continually strive to exceed the OMNIA expectations saving time, money and obsolescence in inventory for OMNIA Partners’ participants.

Lawson believes through extensive experience building and managi ng large sales teams that sales people sell products and programs when they’re confident in their knowledge of them. For this reason, Lawson places very high priority in the value of a robust and comprehensive sales training program.

Lawson offers several levels of training, safety documentation and reference materials for customers free of charge. Our Technical and Engineering support teams assist our customers by providing on -site application analysis and problem solving assistance, oftentimes custom -tailored for that particular application. Our Technical and Engineering Teams also develop SDS sheets for all chemical products, provide product selection that are certified (GS -37, NEMA, RoHS, NSF, or EPA certifications), create “how-to” videos for new produ cts, and develop safe use brochures and wall charts. The customer benefits when products are appropriately selected and safely used based on their application and operating environment. The life of the product extended, but the safety and security of main tenance personnel is further ensured.

Lawson is proud to offer our ALERT ( A Lawson Emergency Response Team) Program featuring both products and services that can help OMNIA Partners’ participants be prepared for the unpredictable and respond to the inevitable.

Products that Lawson offers to help you prepare and respond to a disaster:

Batteries Hard Hats
First Aid Kit Safety Cans
Infrared Thermometers
Anchoring Systems Insect Repellent
Visaglo Instructional Signage
Adhesive Tape Jumper Cables
Alarms Lighting
Cable Ties Mops / Brooms
Chemical Cleaners Oils / Lubricants
Clamps Padlocks
Drill Bits Paints
Electrical Connectors Protective Clothing
Electrical Crimping Kit Pry Tools
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Electrical Wire Rain Suits
Extension Cords Respiratory Protection
Eye Protection Ropes / Straps / Chain
Fire Extinguishers Saw Blades
Flashlights
Gas Cans Storm Panel Install Kit
Hand Protection Tape
Hand Tools Wipers
Screws (Drywall, Lags, Particle Board, Self-Drilling, Wood) Health / Sanitation / Light Station / Hearing Protection

We also proudly feature the following services to help you get back on track quickly. In the event of an emergency, we are here to do more. Here are some services Lawson offers to help you address your immediate needs.

TOLL FREE NUMBER - Dedicated toll-free number providing a direct hotline to our ALERT team in the event of an emergency.

PURCHASE HISTORY SUMMARY - Quick and timely retrieval of a customer's purchase history providing an itemized listing of damaged or missing product for insurance claims. Additionally this information can be used to expedite the shop replacement process.

READY ALLOWANCE PROGRAM - Program where customers can receive credit in exchange for damaged product which can be applied toward future purchases.

EMERGENCY SUPPORT TEAMS - Following a substantial disaster our ALERT team is quickly assembled and mobilized to directly assist impacted communities.

LOCAL PRODUCT AVAILABILITY - Essential disaster relief items ready for immediate responsive mobilization to impacted communities.

Rebate to OMNIA Partners’ Participants
Lawson will offer a volume growth incentive (paid after each calendar year) as part of our proposal response to Region 4 ESC / OMNIA Partners.

Every April 1st of each contract year, Lawson will pay a 5% rebate to any single entity that purchased a minimum of $30,000 with Lawson the previous 12 months. For example, an account that purchased $100,000 with Lawson between April 1st 2020 – March 31st 2021 will receive 5% or $5,000 paid out in April 2021. This will apply to both current and new customers.

In addition to OMNIA Partners pricing, Lawson will offer additional competit ive discounted pricing in those cases where OMNIA Partners’ participants make high volume purchases. High volume purchases are reviewed for validity and customer specific pricing is applied to the purchase.

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On a frequency determined by OMNIA Partners, Laws on will report the results of all OMNIA Partners cooperative contract sales using the template provided by the OMNIA Partners, drilling down to the required level of detail specified by OMNIA Partners in order to assess if rebate fees are due to the participants. Fields typical of contract reporting include the participating agency name, address, participating agency membership number, date of transaction, contract sales for that agency, the percentage of the rebate and the total dollar of the rebate. The a ggregated total is then remitted by Lawson and all completed within the allowable timeframe as dictated by the contracting officer.

In addition, we offer our Find MRO group (Specials) to support any product needs outside of our current offering for OMNIA P artners’ participants if need be. This group is able to source any and all products for support of this contract.

Lawson currently has a Find MRO Department (also known as Specials) to source products which is not currently listed Lawson’s contract catalo g or on -line ordering system. This Department will be made available to all OMNIA Partners’ participants for any needs outside of our current offering. Sourced Products allow Lawson to help the customer meet their overall purchasing needs in a one-stop shopping method. The product category and brand offered varies based off of individual customer needs.

Charges for items sourced through our Specials department vary depending on items, category, quantity purchase, packaging requirements, and cost and weigh t, etc. These items are priced through a fair market quote.

Lawson believes in sourcing products using a simple philosophy – “like or better.” Our special products sourcing specialists work hand in hand with customers, procurement personnel and our own field sales representatives to understand all necessary specifications and performance requirements, then submit our recommendations for solutions that meet their needs.

While we compete in the same space as Fortune 100 companies and big box stores our 30 0,000 customers value this combination of specialized products and customer -specific inventory services. The Lawson method of facilitating sourced products is by providing the customer a quote for the items requested. Products purchased through our Special Products Sourcing Team deliver within 10 days.

Lawson determines pricing for requests like these as needed and determines the pricing based on the following criteria:
• Quantity/usage
• Item specifications (highly specialized or common specifications) • Brand requirements (specified brand or commodity item) • Delivery requirements (rush or standard)
• Competitive pricing for like items
• TAA country of origin requirements (if required to source in compliance with TAA standards) • Member’s intent to purchase regularly (or one-time buy) • Pricing is freight included (FOB destination) for standard shipments. Expedited shipping per the member locations request will be prepaid and added to the location’s invoice.

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To maintain the utmost quality to our cus tomers and to OMNIA Partners’ participants, Lawson currently provides OMNIA Partners’ participants our Proprietary Products to help service and maintain their projects. These Proprietary Products are currently being used by OMNIA Partners’ participants an d maintain the highest standards for you and our customers. A sample of our Proprietary Products currently used by OMNIA Partners’ participants include: Tru -Torq / Tuff- Torq, Third Power, Tuff- Grit, Regency. An overview of these products follows with ma ny additional proprietary products available to OMNIA Partners’ participants within this cooperative contract.

Lawon’s Proprietary Products are second to none within the industry and are environmentally friendly.

The environmental footprint of our produc ts can be favorably impacted by how we decided to make them and purchase them. So, we use green and sustainable design principles and other environmental design criteria in the development of our manufactured spec processes within our proprietary product, our distribution and our packaging right from the start.

Lawson currently uses these benchmarks to help build our companies social and environmental responsibilities: OSHA (Occupational Safety and Health Administration), EEOC (Equal Employment Opportunity Commission); CPSC (Consumer Product Safety Commission) and the EPA (Environmental Protection Agency).

Today, Lawson distributes goods as well as supplies products from our manufactured spec processes within our proprietary products all formulated from renewable resources and that are Green Seal certified helping to reduce and/or eliminate hazardous materials, increase efficiencies and reduce overall waste. Lawson currently carries approximately 100 Green Seal certified products that can all be sourced by our customers simply and easily in our Online Catalog (at www.lawsonproducts.com ) by searching “Green Seal”, or, in our Hard Copy Catalog by looking for the Trade Mark seal “Green Seal”. All Green Seal product s from Lawson ship to the customer with the appropriate Certified Seal Stamp and come with all MSDS/SDS required documentation.

Lawson participates in voluntary labeling of environmentally preferable products. Our Green Seal certified labels meet the criteria for Third -party certifiers of the US Environmental Protection Agency, the requirements for standard development organizations of the American National Standards Institute, and the principles for environmental labels of the International Organization for Standardization (ISO 14020 and 14024).

All required product from Lawson is labeled to meet all ECCO Standard requirements with Eco -labels, Green Stickers Design for the Environment, Energy Star, Certifications, etc. This labeling of product is overseen and audited following Lawson’s ISO 9001 requirements and Lawson is managing to ISO 14024 requirements in the future.

Today, Lawson supplies and manufactures products to our specification that are all formulated from renewable resources and that are all NEMA and RoHS certified helping to reduce and/or eliminate hazardous materials, increase efficiencies and reduce overall waste. Lawson currently carries 100’s of Lawson Products, Inc. Page 25

products within our Power Equipment offering and our Electrical offering that are all NEMA and RoHS certified. These products can all be sourced by our customers simply and easily in our Online Catalog (at www.lawsonproducts.com) by searching “NEMA” and “RoHS”, or, in our Hard Copy Catalog by looking for the NEMA/RoHS stamp.

All NEMA and RoHS certified products from Lawson ship to the customer with the appropriate Certified Seal Stamp and come with all MSDS/SDS required documentation.