2017 Category Management Conference
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1 2017 Category Management Conference Category Management: Acting as One for Better Mission Delivery WEDNESDAY, MARCH 1, 2017 RENAISSANCE WASHINGTON 7:30 AM 4:00 PM
2 Professional Track Meeting Room 3
3 DOWNLOAD THE ACT-IAC APP Access the 2017 Category Management Conference on your Smartphone or Tablet! Visit the App Store or Google Play, search for ACT-IAC and download the FREE app The app is also accessible via the web: Simply enter in URL: ddut.ch/actiac to your internet browser Get access to the agenda, speaker bios, surveys and polls, hotel maps, and more!
4 Professional Category Management 101 SPEAKERS: Lesley Field, Acting Administrator, OFPP, OMB Tiffany Hixson, Assistant Commissioner, Office of Professional and Human Capital Categories, FAS, GSA Dan Nista, Global Procurement Manager, IBM MODERATOR: David Shields, Managing Director, Procurement Transformation and Category Management, ASI Government
5 Functional Groupings Sub- Category Category The Professional category consists of 8 Level II subcategories and their associated Level III groupings Taxonomy of Professional Professional Category ~$66.9B Gov t-wide FY16 Spend Mgmt. & Adv. ~$30.3B Tech. & Eng. ~$19.7B Research & Development ~$4.3B Financial ~$3.4B Business Admin. ~$3.3B Social ~$2.6B Marketing & PR ~$1.9B Legal ~$1.1B Program Mgmt. $11.1B Systems Eng. $0.7B Defense R&D $1.1B Financial Support $1.7B Admin. Support & Clerical $2.1B Rehab. $0.7B Advertising $0.6B Intel & Background Investigation $0.5B Program Evaluation $1.3B General Eng. $18.8B Sci. & Tech R&D $0.2B Debt Collection $0.6B Language $0.4B Gov t Insurance Programs $1.4B Public Outreach $0.9B Court $0.3B Acquisition Support $0.9B $0.2B Medical R&D <$0.1B Audit $0.5B $0.9B $0.5B Market Research $0.1B $0.3B Policy $0.2B Studies & Analysis $2.4B Accounting $0.3B Media $0.2B * $16.8B $0.5B Card <$0.1B $0.1B Ident. Protect. & Credit Monitoring $0.3B <$0.1B Notes: * Management & Advisory other sub-category anticipated to decrease in size in out-years based on PSC recommendations Level II category summations may not match due to rounding
6 Government obligations for Professional have seen increases year over year since FY14 FY12 FY16 Professional Spend ($B) $68B $65B $63B $64B $67B FY12 FY13 FY14 FY15 FY16 Source: FPDS data prepared by GSA
7 Professional are acquired by 50 different Federal agencies Top 10 Funding Agencies by FY16 Professional Spend ($B) $12.6B $10.7B $9.6B $7.7B $7.5B $5.7B $3.7B $2.6B $2.5B $2.2B $2.0B Air Force Army HHS Navy OSD (DoD) USAID DHS DOJ DOS DOT Agencies (40) Source: FPDS data prepared by GSA
8 .through a variety of Government-wide and agency-level contracts Top 10 Professional Contracts by FY16 Spend ($B) Professional represents ~22k contracts across ~27k suppliers and ~50k orders $28.4B $8.0B $20.7B $2.5B $1.6B $1.5B $0.9B $0.9B $0.8B $0.8B $0.6B $0.4B PSS SEAPORT IT-70 AF - Aircraft Manuf. OASIS RR3G OASIS - SB ALLIANT Eng. Tech. Naval Warfare NITAAC IDVs Stand Alone Source: FPDS data prepared by GSA
9 Professional has seen an increase in small business usage Professional Spend by Business Size for FY12 FY16 $68B $65B $63B $64B $67B SB 25% 26% 29% 31% 33% than SB 75% 74% 71% 69% 67% FY12 FY13 FY14 FY15 FY16 Source: FPDS data prepared by GSA
10 Top Professional Large and Small Suppliers Top 10 Large and Small Suppliers by FY16 Spend ($B) Top Large Suppliers FY16 Dollars ($B) % of FY16 Large Supplier Total Top Small Suppliers FY16 Dollars ($M) % of FY16 Small Supplier Total Boeing $2.3B 5% SAIC $2.0B 4% Booz Allen Hamilton $1.9B 4% Northrup Grumman $1.6B 4% Lockheed Martin $1.6B 4% General Dynamics $1.5B 3% Raytheon $1.3B 3% CACI $1.0B 2% Chemonics Int l $1.0B 2% Deloitte $0.8B 2% Large Suppliers (9,183) $30.0B 67% Total $45.0B 100% Torch Technologies $292M 1% Intuitive Research $272M 1% Aaski Technology $188M 1% Adams Comm. & Eng. $178M 1% ASRC Mgmt. $146M 1% Odyssey Systems $134M 1% Linquest Corp. $116M <1% Armed Forces Corp. $115M <1% Colsa Corp. $112M <1% American Canyon Solutions $107M <1% Small Suppliers (18,716) $20B 91% Total $21.9B 100% Source: FPDS data prepared by GSA
11 Challenges The landscape is broad & vast. Lack of transparency leads to redundancies and overlap: $66.9B in spend 30,400 distinct contracts 26,289 distinct contractors 756 contractors represent 80% of total FY16 spend, with 7,121 distinct contracts Up to 40% of sub-category spend is reported as other making it difficult to clearly understand what s being bought and how Defining good requirements for integrated solutions is hard Recently graduated mid-tier companies struggle to win government business. No longer have SB designation as advantage Organizational Conflicts of Interest are a challenge for this category
12 Focus for FY17 1. Continue Acquisition Gateway (AG) digital tool and good practices content development. 2. Implement a Supplier Relationship Management (SRM) program. 3. Complete Best in Class (BIC) contract designations. 4. Complete, in collaboration with industry, a holistic category management strategy and market analysis for the Technical and Engineering subcategory. 5. Complete on-ramp to GSA OASIS Pool 2 (Financial Solutions). 6. Award GSA SmartPay Streamline GSA Professional Schedule (PSS) solicitation. 8. Complete civilian agency contract audit services acquisition strategy.
13 Category Management Technical Procurement Technical Procurement was transformed by leveraging the skill of our Category Managers Deep understanding of the market and supply chain principles Own the sourcing strategy with the supplier Understand supplier s organization, technology, and capabilities Build and manage the primary relationship with supplier on behalf of Procurement. - Understand supplier executive chain of command - Have a clear understanding of the contractual relationship with the supplier - Acts as the champion or advocate for their assigned supplier on a global basis Build and manage relationship with key internal stakeholders - Establish relationships at executive levels - Gather comprehensive requirements Responsible for supplier impact to all Procurement targets & measurements Evolution from open market to supplier partnerships to strategic partnerships
14 Category Management Technical Procurement Procurement Management System built around the Compliance Initiative. Monthly reporting Summary and Detail (at the transaction level) information on suppliers, skills, and rates utilized by Stakeholder Monthly reporting on progress toward compliance targets Supply Base Details Provide Stakeholder with information on Core Supplier Skills and Rates Increase Core Supplier participation in the Compliance Process Supplier Hot-Line to assist Stakeholder identifying resource real-time Stakeholder Tops down endorsement of Compliance Initiative and Targets Announce Compliance Initiative to Stakeholder Organization Drive Compliance earlier in the staffing process Sales Cycle and Demand Planning/Forecasting Utilize information from Procurement Monthly reporting to manage organizations progress to targets Requirements Supplier Supplier Supplier X Supplier Supplier X Supplier
15 Stakeholder Interaction Category Management Technical Procurement Drive Supply Base Transformation Span of Influence on Supplier Development Fragmented, domestic, reactive supply base. Use of niche, low spend suppliers driven by stakeholder related reqs creating a long tail of suppliers. Executive Liaison Supplier Management Procurement Metrics Strategic Joint Initiatives Stakeholder Compliance Supplier Relationship Manager Procurement Interaction Executive Develop integrated supplier base poised to proactively respond to requirements with adaptive sourcing models. TACTICAL 1. Create team of Global Supplier Relationship Managers, including suppliers development roadmap, tactical expansion plays and updated best practices for suppliers management, including innovation. 2. Improved stakeholder management of requirements. STRATEGIC 1. Utilization of RFPs and suppliers to drive implementation of sourcing strategies with focus on consolidation to create leverage. 2. Pilot segmentation of supplier by skill, geography or supplier expertise.
16 Stakeholder Engagement The sourcing process for the Human Resources commodity requires a strong partnership between HR and Procurement. There are a number of ways to achieve this, but the key is to develop a sourcing roadmap and identify each stakeholder s role in supporting the activities within all phases of this process. This will enable all parties to add value to their corporation s overall financial goals.
17 Stakeholder Engagement There are 5 Key Strategies for effective stakeholder management: Develop a comprehensive list of people and/or organizations that have the ability to impact or be affected by your project both positively and negatively. Segment stakeholders based on your understanding of the degree of their ability to impact your desired outcomes (high, medium and low). Assign owners from your organization/project to manage each high value Stakeholder based on their level of potential impact. Determine a timeline for regular communications with your key stakeholders to make sure they are always up to date and what they need to know to support your project s goals. Tailor key messages to align your interest with theirs. Identify/Map Stakeholders Stakeholder Map Identify Stakeholder Barriers/ Influencers Stakeholder Log Act to Influence Stakeholders Action Log Review Changes in Stakeholder Position Repeat throughout Project Lifecycle Stakeholder Management is a Continuous Process
18 Stakeholder Engagement RACI Matrix A RACI matrix is often used for a quick visual analysis of responsibility assignment by simply navigating the matrix horizontally and vertically. Navigating the rows of activities one can ensure that there is at least one accountable and one responsible party for each activity. Navigating the column of stakeholders, one can identify the responsibility of each party with respect to the identified activities. Once the RACI matrix is completed, a good practice is to distribute it to all stakeholders. RACI Matrix Responsibility charting in a RACI matrix is straightforward: Identify all of the activities involved and list them at the left hand side of the matrix Identify all of the roles involved and list them along the top of the matrix Complete the cells of the matrix: identify who has the R, A, C, I responsibility for each activities 18
19 Categories in action: HR Global Recruitment Case Study HR Recruitment Contingency Search / Executive Search Leverage global strategic spend The Challenge: Changing hiring needs with IBMs Transformation to CAMSS Supplier Base fragmented, Numerous registered suppliers globally data base of approx 200 suppliers, o/w approx more than 50 % suppliers with only 1, 2 or 3 P/Os per year. Suppliers require to be flexible to support changing business needs with speed and agility Eg. CAMSS Traditional Sourcing methods may not support the changing business needs and speed.the Solution: IBM used sourcing process discipline to run a global bid program, inviting leading global agencies. IBM challenged suppliers to bring to the table innovative models with the changing recruitment methods in the market. IBM contracted with 10 global agencies covering all the countries for fulfillment of recruitment services for both Contingency and Executive hiring. The Benefits: Leverage of spend - Supply Base optimization through selective global, flexible supplier base Supplier Innovation implementation like: Contingency pricing model for Executive hiring (against retainer ship), use of Integrators for one time buys RPO model in EMEA Constant rates for 2 years Solution Components: Spend Analysis Category Expertise Stakeholder Management Market Intelligence Contract Negotiation Sourcing Process Discipline Project Management New Best Practices 19
20 Addressing Complexity in Category Transformation Corporate/Professional & CWF Value IT Consulting Approach(s): Negotiate skills based rate card pricing with preferred suppliers Outcome(s): Improved SOW costing Market competitive rate cards across supply base Categorization and Benchmarking Complementary Workforce (CWF) Approach(s): Consolidate staffing vendors and standardize to a wage + markup model Outcome(s): Standardized markups Improved Process Efficiency Standardized job roles across suppliers Standardization and Consolidation Financial Approach(s): Negotiate rate cards with top preferred suppliers Implement industry best practices Outcome(s): Improved SOW s / SLA s Standardized job role based rate cards across suppliers Maturity Roadmap Market Competitive Rate Cards HR and Legal Approach(s): Analyze current agreements and identify cost savings opportunities Run sourcing program to optimize cost and contracts with preferred suppliers Outcome(s): Best in class and market competitive rate cards Improved contract terms and conditions Process and Policy Improvement Professional Approach(s): Negotiate rate cards with top preferred suppliers Implement industry best practices Outcome(s): Improved SOW s / SLA s Standardized job roles based rate cards across suppliers Market competitive rate cards Complexity Program Optimization 2014 IBM Corporation 20
21 DOWNLOAD THE ACT-IAC APP Access the 2017 Category Management Conference on your Smartphone or Tablet! Visit the App Store or Google Play, search for ACT-IAC and download the FREE app The app is also accessible via the web: Simply enter in URL: ddut.ch/actiac to your internet browser Get access to the agenda, speaker bios, surveys and polls, hotel maps, and more!
22 The Past, Present & Future of Professional Category Management SPEAKERS: Ken Brennan, Deputy Director, Acquisition, Defense Procurement and Acquisition Policy Tiffany Hixson, Assistant Commissioner, Office of Professional and Human Capital Categories, FAS, GSA Jaclyn Smyth, Director, Strategic Sourcing Program Office, Office of the Chief Procurement Officer, DHS and Government-wide Category Manager for Security and Protection MODERATOR: Eric Heffernan, Principal, Grant Thornton
23 Session Objectives This session will focus on lessons learned from the past and how category management impacts our vision for the future. What does success look like? How was success achieved in the past? What can we learn from case studies at GSA, DOD, and DHS? What challenges and risks should we prepare for? By the end of this session, attendees will be able to: Understand the value of Professional Category Management for government Learn about best category management best practices as shown by presenting agencies Consider and discuss the future of Federal category management
24 Agenda Time Topic Speaker 10:45 11:00 Introduction and Opening Remarks Eric Heffernan, Grant Thornton Tiffany Hixson, GSA 11:00 11:15 11:15 11:30 11:30 11:45 Live Case Study #1: General Administration (GSA) Live Case Study #2: Department of Defense (DoD) Live Case Study #3: Department of Homeland Security (DHS) Tiffany Hixson, GSA Ken Brennan, DoD Jaclyn Smyth, DHS 11:45 12:00 Panel Discussion and Q&A Eric Heffernan, Grant Thornton Tiffany Hixson, GSA Ken Brennan, DoD Jaclyn Smyth, DHS
25 DOWNLOAD THE ACT-IAC APP Access the 2017 Category Management Conference on your Smartphone or Tablet! Visit the App Store or Google Play, search for ACT-IAC and download the FREE app The app is also accessible via the web: Simply enter in URL: ddut.ch/actiac to your internet browser Get access to the agenda, speaker bios, surveys and polls, hotel maps, and more!
26 Tiffany Hixson Submit questions with the conference app using #PSCatMan Tiffany Hixson General Administration (GSA) Assistant Commissioner, Office of Professional and Human Capital Categories (PSHC) Ms. Hixson is the Assistant Commissioner for the Office of Professional and Human Capital Categories, an office within the U.S. General Administration s Federal Acquisition Service (FAS). She also serves as FAS Northwest-Arctic Region Regional Commissioner and is the governmentwide Professional Category Executive, appointed by the Office of Management and Budget in February In these roles, Ms. Hixson is responsible for strategic leadership and oversight of FAS s professional services and human capital contract programs, governmentwide professional services category management, and supports FAS federal agency customers in Alaska, Idaho, Oregon, and Washington with assisted acquisition services, telecommunications, vehicles, and thousands of other goods and services. Ms. Hixson has more than 25 years of professional experience in the field of acquisition management and was appointed to the Senior Executive Service in She has served as both President and Vice President of the American Society of Public Administration s National Capital Area Chapter, and as Chair and Vice Chair of the American Council for Technology s Industry Advisory Council s Partners leadership development program. She has received awards including the 2016 Fed 100, 2015 Coalition for Government Procurement s Government Savings Award, 2008 DHS CFO s Budget, Planning and Execution Award, Commerce s Bronze and Silver Medal awards, and National Performance Review s Hammer Award.
27 Functional Groupings Sub- Category Category The Professional category consists of 8 Level II subcategories and their associated Level III groupings Taxonomy of Professional Professional Category ~$66.9B Gov t-wide FY16 Spend Mgmt. & Adv. ~$30.3B Tech. & Eng. ~$19.7B Research & Development ~$4.3B Financial ~$3.4B Business Admin. ~$3.3B Social ~$2.6B Marketing & PR ~$1.9B Legal ~$1.1B Program Mgmt. $11.1B Systems Eng. $0.7B Defense R&D $1.1B Financial Support $1.7B Admin. Support & Clerical $2.1B Rehab. $0.7B Advertising $0.6B Intel & Background Investigation $0.5B Program Evaluation $1.3B General Eng. $18.8B Sci. & Tech R&D $0.2B Debt Collection $0.6B Language $0.4B Gov t Insurance Programs $1.4B Public Outreach $0.9B Court $0.3B Acquisition Support $0.9B $0.2B Medical R&D <$0.1B Audit $0.5B $0.9B $0.5B Market Research $0.1B $0.3B Policy $0.2B Studies & Analysis $2.4B Accounting $0.3B Media $0.2B * $16.8B $0.5B Card <$0.1B $0.1B Ident. Protect. & Credit Monitoring $0.3B <$0.1B Notes: * Management & Advisory other sub-category anticipated to decrease in size in out-years based on PSC recommendations Level II category summations may not match due to rounding
28 Case Study #1: GW Language Submit questions with the conference app using #PSCatMan Multiple Languages Security Consideration Industrial Base Issues / Management Current State of Category Management PSS for Language Commercial Only Regs and buying practices not well understood Critical Success Factors Consistent pricing models used Best buying practices used EO and regs incorporated into federal requirements Future Category Management Vision Leverage ordering guides across government Leverage existing best in class contract across government
29 Ken Brennan Submit questions with the conference app using #PSCatMan Kenneth M. Brennan U.S. Department of Defense (DoD) Deputy Director, Acquisition, Defense Procurement and Acquisition Policy Mr. Ken Brennan is the Deputy Director for Acquisition in the Office of Defense Procurement and Acquisition Policy, where he provides technical and programmatic evaluations and functional oversight of all aspects of DoD services acquisition. Additionally, he oversees the review and analysis of services programs including cost, schedule, and risk management practices as well as services industrial base issues ensuring compliance with policies that govern defense acquisition of services. He also manages the governance structures and procedures used by Military Departments and Defense Agencies authorities who are responsible for services acquisition execution. Prior to April 2013, Mr. Brennan supported the Office of the Assistant Secretary of the Navy (Research, Development and Acquisition) where he provided oversight and technical expertise to implement, manage, and operate the Department of Navy (DON) services acquisition. Mr. Brennan is a member of the Acquisition Professional Community, certified at DAWIA career level III in both Program Management and Business, Cost Estimating and Financial Management. He was awarded the Navy Meritorious Civilian Service Award in 2003 and the Navy Superior Civilian Service Award in 2012.
30 Case Study #2: DoD Linguistics Submit questions with the conference app using #PSCatMan Linguistics / Translation iso Military Missions High Demand Signal Splintered Customer Base within DoD Variety of Mission Requirements Multiple Languages Security Consideration Industrial Base Issues / Management Current State of Category Management Single Program Management Capability MAC IDIQ Designation as Executive Agent Evolved over time Not just contracting Critical Success Factors Good requirements make for good services Executive Agent translates to central expertise Captures and provides lessons learned Go-to experts Strong leadership Future Category Management Vision Under consideration for Federalwide application Potential issues Authorities Ordering processes Ownership Resources
31 Jaclyn Smyth Submit questions with the conference app using #PSCatMan Jaclyn Smyth U.S. Department of Homeland Security (DHS) Director, Strategic Sourcing Program Office Ms. Jaclyn Smyth is the director of the DHS Strategic Sourcing Program Office within the Office of the Chief Procurement Officer, where she oversees a more than $57 billion portfolio of over 75 DHS-wide contract vehicles. She has several years of experience in federal procurement and acquisition-related fields, where she has worked on a wide variety of large-scale DHS and federal procurements. She provides her strategic sourcing and category management expertise to the federal-wide Category Management Leadership Council, and was recently named the federal-wide security and protection category manager where she leads a cross-agency category team. She is responsible for developing and implementing government-wide strategies that align with established category management principles and methodologies. Prior to her federal career, she served as a principal with E3 Federal Solutions for several years during which time she consulted on DHS procurements.
32 Case Study #3: DHS Submit questions with the conference app using #PSCatMan Language Service BPA Background In response to Executive Order and a general need for language services across DHS, the Strategic Sourcing Program Office established a set of Language BPAs to provide Limited English Proficiency persons with meaningful access to DHS programs, services, and activities. Current State of Category Management DHS-wide IPT established two functional categories: (1) foreign languages and (2) hearing and visually impaired Allows for timely access to language services Increases small business participation and maintain consistent standards Critical Success Factors Leadership support IPT of dedicated technical representatives Segmenting the required services into two functional categories to more accurately align with the market place and promote competition Lesson Learned: Need for early engagement with the Components security offices Future Category Management Vision DHS consolidated common requirements into one vehicle, eliminating contract duplication Increased ability for small businesses to participate agencies emulating this approach to fulfill their language services requirements and provides a mechanism to improve GSA schedule offerings
33 Panel Discussion Submit questions with the conference app using #PSCatMan Tiffany Hixson General Administration Assistant Commissioner, Office of Professional and Human Capital Categories (PSHC) Ken Brennan Department of Defense Deputy Director, Acquisition, Defense Procurement and Acquisition Policy Jaclyn Smyth Department of Homeland Security Director, Strategic Sourcing Program Office
34 Thank you! Thank you for joining us for the Professional Category Management: Past, Present & Future Session
35 2017 Category Management Conference Category Management: Acting as One for Better Mission Delivery WEDNESDAY, MARCH 1, 2017 RENAISSANCE WASHINGTON 7:30 AM 4:00 PM
36 Professional Track Meeting Room 3
37 DOWNLOAD THE ACT-IAC APP Access the 2017 Category Management Conference on your Smartphone or Tablet! Visit the App Store or Google Play, search for ACT-IAC and download the FREE app The app is also accessible via the web: Simply enter in URL: ddut.ch/actiac to your internet browser Get access to the agenda, speaker bios, surveys and polls, hotel maps, and more!
38 Impacts on YOU Professional Category Management 201 SPEAKERS: Ken Brennan, Deputy Director, Acquisition, Defense Procurement and Acquisition Policy Indu Garg, Acting Human Capital Category Manager, OPM Geri Haworth, Professional Service Category Manager, FAS, GSA Tiffany Hixson, Assistant Commissioner, Office of Professional and Human Capital Categories, FAS, GSA Steve Krauss, GSA Gordon Wade, SVP Best Practices, Category Management Association
39 Category Management: Acting as One for Better Mission Delivery Overview Category Management has the potential to impact many different stakeholders in government and industry alike. This session is an opportunity to learn more about how Category Management will impact you in the near and distant future, and to express any concerns that you might have. Goals This session will focus on what Category Management in Professional means for you - the contracting professional and industry partner. The discussion will address how changes will affect your role, whether that is as a Program Manager, Contracting Professional, small or large business.
40 DOWNLOAD THE ACT-IAC APP Access the 2017 Category Management Conference on your Smartphone or Tablet! Visit the App Store or Google Play, search for ACT-IAC and download the FREE app The app is also accessible via the web: Simply enter in URL: ddut.ch/actiac to your internet browser Get access to the agenda, speaker bios, surveys and polls, hotel maps, and more!
41 $16 Billion and Counting: Making Sense of the Technical & Engineering Subcategory of Spend SPEAKERS: Jimmy Church, M Powered Strategies Geri Haworth, Professional Service Category Manager, FAS, GSA Gordon Wade, SVP Best Practices, Category Management Association Mark Youman, Vice President, ICF
42 $16 Billion and Counting: Making Sense of the Technical & Engineering Sub-Category of Spend Category Management Benchmarking Session March 1, 2017
43 Functional Groupings Sub- Category Category Professional - Level I, II and III Professional Category ~$66.9B Gov t-wide FY16 Spend Mgmt. & Adv. ~$30.3B Tech. & Eng. ~$19.7B Research & Development ~$4.3B Financial ~$3.4B Business Admin. ~$3.3B Social ~$2.6B Marketing & PR ~$1.9B Legal ~$1.1B Program Mgmt. $11.1B Systems Eng. $0.7B Defense R&D $1.1B Financial Support $1.7B Admin. Support & Clerical $2.1B Rehab. $0.7B Advertising $0.6B Intel & Background Investigation $0.5B Program Evaluation $1.3B General Eng. $18.8B Sci. & Tech R&D $0.2B Debt Collection $0.6B Language $0.4B Gov t Insurance Programs $1.4B Public Outreach $0.9B Court $0.3B Acquisition Support $0.9B $0.2B Medical R&D <$0.1B Audit $0.5B $0.9B $0.5B Market Research $0.1B $0.3B Policy $0.2B Studies & Analysis $2.4B Accounting $0.3B Media $0.2B * $16.8B $0.5B Card TBD $0.1B Ident. Protect. & Credit Monitoring $0.3B <0.1B *Note: Management & Advisory other sub-category anticipated to decrease in size in out-years based on policy & PSC recommendations Level II category summations may not match due to rounding done on level III categories
44 Sub- Category Category Functional Groupings Professional - Tech & Engineering Professional Category ~$66.9B Gov t-wide FY16 Spend Mgmt. & Adv. ~$30.3B Tech. & Eng. ~$19.7B Research & Development ~$4.3B Financial ~$3.4B Business Admin. ~$3.3B Social ~$2.6B Marketing & PR ~$1.9B Legal ~$1.1B Program Mgmt. $11.1B Systems Eng. $0.7B Defense R&D $1.1B Financial Support $1.7B Admin. Support & Clerical $2.1B Rehab. $0.7B Advertising $0.6B Intel & Background Investigation $0.5B Program Evaluation $1.3B General Eng. $18.8B Sci. & Tech R&D $0.2B Debt Collection $0.6B Language $0.4B Gov t Insurance Programs $1.4B Public Outreach $0.9B Court $0.3B Acquisition Support $0.9B $0.2B Medical R&D <$0.1B Audit $0.5B $0.9B $0.5B Market Research $0.1B $0.3B Policy $0.2B Studies & Analysis $2.4B Accounting $0.3B Media $0.2B * $16.8B $0.5B Card TBD $0.1B Ident. Protect. & Credit Monitoring $0.3B <0.1B *Note: Management & Advisory other sub-category anticipated to decrease in size in out-years based on policy & PSC recommendations Level II category summations may not match due to rounding done on level III categories
45 Technical & Engineering Historical Spend
46 Top Ten Buying Agencies: FY12-FY16
47 FY12- FY16 Spend by Contract Type
48 Focus for FY17 Implement a Supplier Relationship Management (SRM) program Complete, in collaboration with industry, a holistic category management strategy and market analysis for the Technical and Engineering subcategory Analyze spend (conducting now). Who is buying? What are they buying? How are they buying (cost, fixed, T&M)? What contracts are being used? How much is being bought on Open Market? Bring hypothesis and recommendations to a sub-working team to discuss. Adjust as needed. Present recommendations to Gov Wide Team then CMLC if applicable. Continue Acquisition Gateway (AG) digital tool and good practices content development
49 Challenges The landscape is broad & vast. Lack of transparency leads to redundancies and overlap: $19.48B in spend 3,774 distinct contracts 3,048 distinct contractors The way in which government buys does not align with the way in which industry is organized Defining good requirements for integrated solutions is hard Recently graduated mid-tier companies struggle to win government business. No longer have SB designation as advantage
50 2017 Category Management Conference Category Management: Acting as One for Better Mission Delivery WEDNESDAY, MARCH 1, 2017 RENAISSANCE WASHINGTON 7:30 AM 4:00 PM
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