Presented by: Ms. Rachel Gillerlain, GSA Moderator: Ms. Kathy Spainhower, DAU. Category Management for Federal Acquisition Professionals

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1 Presented by: Ms. Rachel Gillerlain, GSA Moderator: Ms. Kathy Spainhower, DAU Category Management for Federal Acquisition Professionals

2 Welcome to the Category Management for Federal Acquisition Professionals Lunch and Learn Category Management Presented by: Ms. Rachel Gillerlain, GSA

3 Agenda Welcome & Introductions Segment 1 Category Management Foundations Segment 2 Best-in-Class Solutions Segment 3 Benefits & Tools for Acquisition Professionals Segment 4 Q&A Wrap-up 3

4 Segment 1 Category Management Foundations

5 Segment 1 Objectives At the end of this segment, participants will be able to: Define category management Explain why the government is adopting category management 5

6 What do you see here? 6

7 Category Management Basics Strategic approach to maximize value, benefit, and profit to the organization through structured procurement intervention and business-wide involvement and participation (O Brien 2015) Retailing and purchasing concept in which the range of products purchased by an organization is broken down into product categories discrete groups of similar or related products 7

8 CM Strategic Approach Identify core categories of products and services to analyze spend Cultivate shared expertise to build buying tools that help save time and money Develop purchasing strategies and promote best practices that lead to better informed spending Increase efficiency to improve purchasing outcomes and achieve savings across government 8

9 Key CM Principles 1. Develop common requirements 2. Reduce duplicate contracts 3. Improve mission value and total cost of ownership 4. Apply demand management practices 5. Advance policy objectives 6. Improve supplier relationship management Question Which of these principles is the highest priority for your agency or bureau right now? 9

10 Business Case for CM Need to Reduce Contract Duplication One contractor many contracts $2.7B Limited FY 2014 Spend Gov-wide Visibility 10

11 Business Case for CM Need to Close Price Variance Gap Same purchase different prices 500% 400% 286% Limited $5-25 $23-91 $ Gov-wide Visibility 11

12 CM Regulatory Guidance FAR Part 8 Lists procurement sources that government agencies must use OMB Memo M Instructs agencies to use government-wide vehicles to the maximum extent practicable (Schedules, GWACs, MACs, BIC) 9/29/2011 OMB Memo Directs maximum appropriate use of interagency vehicles IT Category Memos M-16-02, Required Sources for Laptops and Desktops Establishes mandatory sources for laptop and desktop purchases M-16-12, Software Licensing Instructs agencies to maximize the use of BIC software purchasing and management solutions M-16-20, Required Sources for Mobile & Wireless Establishes mandatory sources for mobile and wireless devices FAR Case , Strategic Sourcing Documentation Provides guidance on documenting exceptions 12

13 Business Case for CM Need to Implement Best Practices Consistently Consolidated requirements volume discounts On the FY16 Federal Desktop/Laptop Buying Event: The new pricing allowed us to buy an extra 25 laptops and 30 desktop computers a savings against the old pricing of $74,345. Now that is what I call progress! ~Director of Procurement, U.S. Holocaust Memorial Museum 12

14 Business Case for CM Need to Streamline Buying Processes Vetted solutions faster, easier procurements Using a designated Best-in-Class solution, FHFA: Saved time Reduced Procurement Administrative Lead Time (PALT) by 50% Saved money Achieved a 20% cost savings compared to their Independent Government Cost Estimate 13

15 Polling Question: CM Scope Approximately how much did Federal agencies spend on COMMON goods and services in FY16? a) $527M b) $284B c) $450B Question Correct answer: B In FY16, Federal agencies spent $283.7B on common goods and services. Every year, the government spends about $450B* procuring goods and services generally. (The spending not counted as common is defense-centric.) *Source: White House Archives-February

16 Facilities & Construction $77.9B Construction Related Materials Construction Related Services Facilities Purchase & Lease Facility Related Materials Facility Related Services Industrial Products & Services $11.4B Basic Materials Fire/Rescue/Safety/ Environmental Protection Equipment Hardware & Tools Industrial Products Install/ Maintenance/Repair Machinery & Components Oils, Lubricants, & Waxes Test & Measurement Supplies Government-wide Categories Total FY16 spend $459.8B FY16 common spend $283.7B* Professional Services $66.9B Business Admin Services Financial Services Legal Services Management & Advisory Services Marketing & Public Relations Research & Development Social Services Technical & Engineering Services Security & Protection $4.9B Ammunition Protective Apparel & Equipment Security Animals & Related Services Security Services Security Systems Weapons IT $55.4B IT Software IT Hardware IT Consulting IT Security IT Outsourcing Telecomms Human Capital $4.2B Compensation & Benefits Employee Relations Human Capital Evaluation Strategy, Policies, & Ops Planning Talent Acquisition Talent Development Medical $36.9B Drugs & Pharmaceutical Products Healthcare Services Medical Equipment, Accessories, & Supplies Office Management $2.0B Furniture Office Management Products Office Management Services Transportation & Logistics $23.1B Fuels Logistics Support Services Motor Vehicles (non-combat) Package Delivery & Packaging Transportation Equipment Transportation of Things Travel $1.0B Employee Relocation Lodging Passenger Travel Travel Agent & Misc. Services *Based on data extracted from FPDS-NG

17 CM Success Measures Increase Spend Under Management (SUM) Spend on contracts that meet defined criteria for management maturity and data sharing. Increase Savings Demonstrated by either the government paying less for goods and services or receiving more goods and services for the same expenditure. Reduce Contracts Reduction in the total number of unique contracts against the baseline of FY15, calculated by comparing year-to-date numbers against prior year using FPDS-NG entries. Increase Small Business Utilization Small businesses share of Federal spend. It measures utilization, in terms of spend, of small businesses across the government. Increase Usage of the Acquisition Gateway The sum of visits to the CM online platform, Acquisition Gateway, in addition to purposeful visits. Purposeful visits are calculated based on actions of the user within the session. 16

18 Current State: Spend Managed by Individual Agencies and Departments $283.7B Common Spend Unmanaged Spend & Duplicative Contracts Schedule s GWACs MACs Best-in-Class Solutions Justified exception s Lake Stand Alone 17

19 Future State: Spend Managed Government-wide CM Tools & Strategies Spend Managed Using Best Practices Schedules GWACs MACs Best-in-Class Justified Solutions Exception s 18

20 Spend Under Management (SUM) FY16 common spend under management = 42% Our SUM goal: Increase that percentage! FY16 Spend Maturity Assessment Tier 3/BIC - Adherence to Government-wide Strategies Tier 2 - Multi-Agency Collaboration Tier 1 - Agency-Wide Strategies Tier 0 - "Lake Stand- Alone" 19

21 CM Implementation Drivers 20

22 Driving CM Implementation: Government-wide Category Executives Mary Davie GSA Information Technology Professional Services Tiffany Hixson GSA Jaclyn Smyth DHS Security & Protection Facilities & Construction Mary Ruwwe GSA George Prochaska GSA Industrial Products & Services Office Management Dena McLaughlin GSA Lisa Roberts DOD Transportation & Logistics Services Travel Timothy Burke GSA Indu Garg OPM Human Capital Medical Poonam Alaigh, M.D. & David Smith, M.D. DOD & VA

23 CM Benefits At a Glance Question How could category management specifically benefit your agency or bureau? 22

24 CM Regulatory Guidance FAR Part 8 Lists procurement sources that government agencies must use OMB Memo M Instructs agencies to use government-wide vehicles to the maximum extent practicable (Schedules, GWACs, MACs, BIC) 9/29/2011 OMB Memo Directs maximum appropriate use of interagency vehicles IT Category Memos M-16-02, Required Sources for Laptops and Desktops Establishes mandatory sources for laptop and desktop purchases M-16-12, Software Licensing Instructs agencies to maximize the use of BIC software purchasing and management solutions M-16-20, Required Sources for Mobile & Wireless Establishes mandatory sources for mobile and wireless devices FAR Case , Strategic Sourcing Documentation Provides guidance on documenting exceptions 23

25 Segment 2 Best-in-Class Solutions

26 Segment 2 Objectives At the end of this segment, participants will be able to: Explain what a Best-in-Class (BIC) designation means Find BIC solutions on Acquisition Gateway 26

27 BIC Introduction Contracts designated Best-in- Class (BIC) can be used by multiple agencies and meet 5 OMB criteria: 1. Rigorous requirements definitions and planning processes 2. Appropriate pricing strategies 3. Data-driven demand management strategies 4. Category and performance management practices 5. Independently validated reviews Question How do you know if a contract is designated BIC? 27

28 Why Choose BIC Solutions? Use them to Leverage detailed data via the Prices Paid Portal Increase transparency of your agency s spending Ensure compliance with OMB guidance Compared to starting from scratch Finding and using them is cheaper and faster Conducting market research is easier 28

29 BIC Vetting Process BIC solutions are evaluated according to OMB criteria. Process for evaluating and assessing BIC vehicles Interagency SME review Category leadership review OMB announcement to CMLC Review vehicle in detail at criteria/sub-criteria level Does vehicle meet criteria? Cross-government SME team for impartiality Outcome: Recommendation for BIC designation Review of vehicle in detail at criteria/sub-criteria level by category team Noting SME recommendations throughout Outcome: Determination of BIC status OMB updates the CMLC as solutions are designated BIC Outcome: Official Designation of BIC vehicle* *Each solution must undergo annual review to maintain the BIC designation. 29

30 BIC Solutions by Category 18 designated as of 8/14/2017 Facilities & Construction 1. BMO 2. USACE FRP Industrial Products & Services 3. JanSan FSSI 4. MRO FSSI Transportation & Logistics 5. Next Generation Delivery Service Professional Services 6. SmartPay 7. Identity Protection Services 8. OASIS 9. OASIS SB Travel 10. City Pair 11. FedRooms Human Capital 12. HCaTS 13. USA Learning Office Management 14. OS3 IT Category 15. ARMY CHESS ADMC2 16. NASA SEWP (GSS only) 17. NITAAC CIO-CS (GSS only) 18. Schedule 70 (GSS solutions and software SINs only) 30

31 Scheduled for 2017 Evaluation Medical VA Hearing Aids VA/DoD Joint National Pharmaceutical Contracts VA/DoD Medical Supplies & Equipment Security & Protection DHS Ammunition MACs DHS Body Armor III MAC HHS Physical Security BPA Facilities & Construction GSA Schedule 03FAC Industrial Products & Services DLA FESE DLA MRO DLA Special Operations Equipment GSA Schedule 51V GSA Schedule 73 Transportation & Logistics DLA Fuels GSA Vehicle Fleet Lease Program GSA Vehicle Fleet Purchase Program Professional Services GSA Identity Protection Services BPA within the PS schedule Travel DOD Rental Car GSA Civilian Employee Relocation Services IT Category GSA Alliant GSA IT Schedule 70 (IT products, services, and solutions contracts) NIH NITAAC CIO-SP3 (IT services) NASA SEWP (IT services and solutions) GSA 8(a) STARS II 31

32 Finding Current BIC Solutions Float to the top of your Solutions Finder search results Flagged and marked BIC in name 32

33 BIC Solution Benefits At a Glance Fully vetted Reviewed annually by crossgovernment SMEs Easy to access Simple to find on Acquisition Gateway Readyto-use contracts Transactional data available in the Prices Paid Portal Question Which BICdesignated contracts is your agency already using? Compliant with requirements OMB Memo M FAR Part 8 33

34 Segment 3 Benefits & Tools for Acquisition Professionals

35 Segment 3 Objectives At the end of this segment, participants will be able to: Recognize the origin of category management spend data Explain the purpose of the Prices Paid Portal Begin finding other procurement tools and resources 35

36 Category Management Benefits Centralized governmentwide procurement resources Improved visibility of spend data Easier market research Government-wide knowledge sharing Tools for Acquisition Professionals Acquisition Gateway D2D Government-wide Category Management Dashboards, Prices Paid Portal Prices Paid Portal, Solutions Finder, CALC Tool Category Hallways, Community Discussions, Connections Finder, Document Library, Project Center 36

37 Centralized governmentwide procurement resources 37

38 Acquisition Gateway

39 Improved visibility of spend data Visible Spend Invisible Spend Before CM, visibility into government-wide spending uncovered: Limitations in understanding of spend and quantities/prices negotiated Gaps in knowledge of supply network costs Insufficient granularity of transaction details With insight into previously invisible government-wide spending, we are now extending data visibility to identify: Opportunities to reduce/eliminate -stand-alone procurements -duplicative contracts Opportunities to increase/improve -volume purchasing discounts -our negotiating position -supply network efficiency -oversight on spending 39

40 Q: Where does category spend data come from? A: The Federal Procurement Data System Next Generation (FPDS-NG) 40

41 Prices Paid Portal Function: Allows Federal users to research prices agencies have paid for goods and services Benefits for Acquisition Professionals: Helpful with market research High-quality data for commodities Fed-only Access: Requires OMB MAX account Easily accessed via the Gateway Transaction History Today there are 142,194,036 prices paid records from 14 data sets in the Prices Paid Portal How might accessing prices paid data help you? 41

42 Prices Paid Portal Data Sets Available Today Search and filter records by department, award vehicle, vendor name, manufacturer, and date range Research transactional data details such as: price per unit, manufacturer parts number, UPC, DUNS Export data as a *.CSV, *.XML, or *.JSON file 1. FSSI DDS3 2. GSAdvantage! 3. TRANSCOM 4. OS2 5. FSSI OS3 6. FSSI MRO 7. Government Wide Acquisition Contracts 8. FSSI JanSan 9. Print Management 10. Army CHESS 11. DoD ESI 12. GSA National Information Technology Commodity Program (NITCP) [also includes ITS Reverse Auction data] 13. OASIS 14. Government Wide Strategic Solutions (Laptop Configuration) 42

43 Government-wide Category Management Dashboards View government-wide and agency-level contract and spend data for all ten categories. 43

44 Easier Market Research You don t have to reinvent the wheel; just attach it to a new wagon. ~Mark McCormack 44

45 Solutions Finder Find, filter, and compare multiple contracts and shared services solutions. BIC results float to the top. 45

46 Contract Awarded Labor Category (CALC) Research awarded prices for 48,000 professional labor categories from more than 5,000 recent GSA contracts. 46

47 Join GSA and DAU on 30 August 2017 for a Lunch and Learn presentation on The Acquisition Gateway

48 If you enjoyed the Category Management for Acquisition Professionals Lunch and Learn, let DAU know by completing the Metrics that Matter feedback

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