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U.S. Department of the Interior

U.S. Department of the Interior. Strategic Sourcing Leveraging Interior’s Purchase Power DOI Annual Business Conference Thursday, May 25, 2006. What is Strategic Sourcing?. An analytical approach to increase savings, socio-economic participation and standardization.

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U.S. Department of the Interior

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  1. U.S. Department of the Interior Strategic Sourcing Leveraging Interior’s Purchase Power DOI Annual Business Conference Thursday, May 25, 2006 Office of Acquisition and Property Management

  2. What is Strategic Sourcing? An analytical approach to increase savings, socio-economic participation and standardization. Why are we doing it? • Reduce Administrative and Commodity Costs • Increase Small Business and Environmental Procurement Goal Achievement • Increase Efficiency and Value

  3. Small Business Goals Why? • Small Businesses are the Heart the American Economy • Small Businesses ensure competition and multiple resources for commodities and service. • To Be a Good Neighbor • It’s the Law • FAR Parts 8.7 and 19 How? • Provide small businesses opportunity to meet the needs of the Federal Government. • Achieve our goals by providing opportunities for the following small business concerns: JWOD 8a HUBZone Woman-Owned Service Disabled Veteran-Owned

  4. Environmental Mandates As the National Steward of America’s resources, we must make sound environmental decisions. • Resource Conservation and Recovery Act (RCRA), Section 6002 • 2002 Farm Bill, Section 9002 • EO 13101, Greening the Government through Waste Prevention, Recycling, and Federal Acquisition • Federal Acquisition Regulations, Parts 7, 11, 12, 13, 23, 36, 37 and 52 • Office of Federal Procurement Policy (OFPP) Letter 92-4, Procurement of Environmentally Sound and Energy Efficient Products and Services

  5. OMB’s Snapshot Federal best practice Cross-Department CMTs Current state SPE best practices • Standards based requirements • Demand management • High customer satisfaction • Driven vendor management • Strategic achievement of small business goals integral to plan • Build leverage across Govt Value Value • Departments going it alone standing up Commodity Management Teams • (CMTs) • Share best practices • Leverage current vehicles We need to do more with less

  6. Federal Supply Schedule Interior’s Usage

  7. TOP TEN GOODS\SERVICES PURCHASED BASED ON NUMER OF ACTIONS OTHER ADP & TELECOMMUNICATIONS SVCS 16.3% A/E SVCS. (INCL LANDSCAPING INTERIO 15.4% PASSENGER AIR CHARTER SERVICE 14.3% OTHER PROFESSIONAL SERVICES 11.8% RELOCATION SERVICES 9.4% OTHER ARCHITECTS & ENGIN GEN 8.9% ADPE SYSTEM CONFIGURATION 7.7% CONTRUCT/ALL OTHER NON-BLDG FACS 6.0% MISCELLANEOUS ITEMS 5.2% ADP SOFTWARE 5.1% Total: 100.0% Interior’s Top 10 CommoditiesFY 2002

  8. TOP TEN GOODS\SERVICES PURCHASED BASED ON NUMER OF ACTIONS OTHER ADP & TELECOMMUNICATIONS SVCS 17.0% OTHER PROFESSIONAL SERVICES 15.2% A/E SVCS. (INCL LANDSCAPING INTERIO 13.9% PASSENGER AIR CHARTER SERVICE 11.3% OFFICE FURNITURE 10.5% OTHER ARCHITECTS & ENGIN GEN 8.6% RELOCATION SERVICES 7.7% ADPE SYSTEM CONFIGURATION 5.4% MAINT, REP-ALT/RESTORATION 5.2% ADP SOFTWARE 5.1% Total: 100.0% Interior’s Top 10 CommoditiesFY 2003

  9. Interior’s Strategic Sourcing Initiative Commodities • IT Equipment* • Office Supplies • Telecommunication (Wireless Plans)* • Office Equipment (Duplication)** • Domestic Delivery • Relocations*** ____________ * Joint Initiative with OCIO ** Joint Initiative with Printing Council *** Joint Initiative with PFM

  10. Strategic Sourcing CouncilApproved and Authorized by MIT and Assistant Secretary, PMB

  11. Strategic Sourcing Council CompositionApproved by CAO & MIT

  12. Strategic Sourcing CouncilRoles and Responsibilities • Provide executive-level leadership • Develop Charter • Establish FY strategic sourcing goals • Develop performance measures • Develop agency communication plan • Develop training plan

  13. For More Information Please Contact Pia N. Scott, DOI/OS/PAM pia_scott@ios.doi.gov (202) 208-6321

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