Shareholder Question: Los Angeles County Vendor Registration

QUESTION

  • I was wondering if you could clarify more on the Los Angeles County blog.  Are they buying product from us now or is it like the GSA were we can just bid on contracts?

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ANSWER

Some time ago,  CLEAN1 had been supplied as a sample for trial use in a power plant in Los Angeles County.  The product worked well. The Assistant Chief Engineer at the plant determined that the product and supplier (Winning Brands) needed to be registered as a vendor to the County of Los Angeles in order for the plant to be able to acquire and use the product officially.  Following the recent approval of Winning Brands by the U.S. General Services Administration, “GSA”,  for this and other products, it became feasible to complete the task of registration with Los Angeles County as a vendor of CLEAN1 for official use. 

As a point of clarification of the “bid” portion of your question – the GSA Advantage website also enables any federally authorized procurement personnel to obtain approved products through online ordering, without bid, for amounts less than a maximum level, such as $5,000 or other figure (depending upon department).  A live link to a sample GSA Advantage page (showing CLEAN1)  is here:  https://www.gsaadvantage.gov/advantage/catalog/product_detail.do?contractNumber=GS-07F-0052Y&itemNumber=C1604A     Additional CLEAN1 sizes are available, such as a 135 oz, and even 25 oz trigger spray.

It will take time for awareness  of our products to spread throughout the group of U.S. federal government agencies, however, we have been given an initial 5 year contract period to accomplish this, with 3 renewal periods of 5 years each thereafter if we prove ourselves.   An alphabetical list of such federal agencies served by the GSA can be found  here:   http://www.usa.gov/Agencies/Federal/All-Agencies/index.shtml    In certain cases, State authorities can order goods from GSA sources directly.  Winning Brands has agreed to honour the same terms and conditions for its products purchased by States, as it would for the federal government, in those circumstances. 

A key feature of the Winning Brands business plan for 2012 is to begin to attain such awareness within the agencies served by the GSA.  The U.S. Navy is the first of the agencies to have started preparing formal vendor arrangments with us, as per the CEO Weblog entry of Dec 17, 2011.  In the case of the Navy, it will be deployment of 1000+ Stain Remover into some elements of the Navy Exchange Service Command (NEXCOM), for starters.  Such arrangements can be considered the “thin edge of the wedge” because experience with our products amongst service personnel or their families will eventually reveal where our products are best used.   Authentic growth of this nature, based on successful use, is a more solid foundation for the company’s future than merely selling as much of the product as soon as possible for the moment.  

A picture of the sample GSA Advantage website page (featuring the 20L size CLEAN1 SKU) is shown below.  It can be double clicked for higher resolution.

ANSWER

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