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Strategic Sourcing

Strategic Sourcing. Acquisition Improvement Initiative. Office of Acquisition and Property Management Strategic Acquisition Forum February 17, 2010. Overview . New Demands What is Strategic Sourcing? Our Successes. Overview. Our Lessons Learned

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Strategic Sourcing

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  1. Strategic Sourcing Acquisition Improvement Initiative Office of Acquisition and Property Management Strategic Acquisition Forum February 17, 2010

  2. Overview • New Demands • What is Strategic Sourcing? • Our Successes

  3. Overview • Our Lessons Learned • Maximizing Our Leverage and Meeting the Demands • Questions and Answers

  4. OMB Directives • Enhance Agency Efficiency • Reduce Agency Spending • DOI • FY 2010 3.5% savings ≈ $80m • FY 2011 7% savings ≈ $190m

  5. New Economy: New Demands • New Economy • National Deficit • Unemployment • Resilience • OMB Directives

  6. Meeting the Demands • Acquisition Improvement Initiative Strategic Sourcing Strategies: • Federal Strategic Sourcing Initiative • DOI Strategic Sourcing Initiative • Bureau-Lead Strategic Sourcing Initiatives

  7. Strategic Sourcing An analytical acquisition approach to achieve best value through standardization and leverage that results in significant savings and fulfillment of socio-economic and environmental requirements.

  8. Program Objectives • Implement Departmental Cross-Functional Acquisition Strategies • Reduce the Total Cost of Ownership • Improve Fulfillment of Socio-Economic Acquisition Goals

  9. Program Objectives • Standardize Acquisition Business Processes • Enhance Skills of the Acquisition Community

  10. Program Benefits • Revive Nation’s Economy • Revitalize the Hope of Americans • Reduce the Negative Impact of Budget Cuts • Business Process Transformation

  11. High Level Overview of the Strategic Sourcing Process COMMODITY STRATEGIC SOURCING PROCESS 1 2 3 4 5 Conduct Opportunity Assessment Develop Commodity Strategy Execute Acquisition Strategy Implement & Manage Performance Commodity Identification Profile Commodity Market Analysis    Identify and Prioritize Develop plan and strategy Implement, Measure and Adjust

  12. Our Successes • IT Equipment 23% ≈ $12.1m • Office Supplies 18% ≈ $2.1m • Relocation Services* 9% ≈ $3.5m • Domestic Delivery 25% ≈ $4m • Commercial Wireless Plan 12% ≈ $450k • CADR – HR 6% ≈ $12k • DAR 60% ≈ $500k

  13. Lessons Learned • Optional Use Minimize Effectiveness • Optional Use Reduces Savings Potential • Engagement of all Stakeholders Required • Multiple Communications Strategies Required • Standardized Requirements meet 90% of DOI needs

  14. Maximizing Leverage • Engagement of Stakeholders • Consider Mandatory Use • Bureau Support – dedicated resources • SSI Portal • Fulfillment of Regulations and Policies • Bureau-Lead Initiatives • Bureau Procurement and Program Support • Recommendations

  15. Future Initiatives • SAVE Ideas • Heavy Equipment • IT Hardware • Recycled Paper • Shuttle Service • DOIU Training • Furniture • IT Software Licenses • Full Deployment of Wireless

  16. Strategic Sourcing Program • Questions • Are there additional program objectives that should be considered? • Are there other implementation recommendations? • Are there other strategic sourcing recommendations? • Comments Thank You

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