Category Management and the Acquisition Gateway. Laura Stanton FAS, Office of Strategy Management
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1 Category Management and the Acquisition Gateway Laura Stanton FAS, Office of Strategy Management
2 Agenda Category Management What it is How it is structured Motor Vehicles Implementation Acquisition Gateway Questions 2
3 Category Management & the Acquisition Gateway
4 Category Management Overview Category Management Operating Model Influence Category Outcomes Manage Suppliers Incentivize Demand Control Costs Lower Operational Expenditure Develop Category Strategy Build Category Teams Analyze Agency Needs Review Current Spending Analyze Market for Goods Continuous Improvement Benchmarking Performance Tracking Adjustments to Category Strategy
5 Category Management Overview Category Management Goals Category management seeks to achieve the following goals around cost savings, knowledge sharing, relationship-building, and efficiency: Increase Cost Savings Increase spend under management Achieve volume savings Achieve administrative savings Foster Knowledge Sharing Share best practices Grow and share expertise Promote Efficiency Reduce contract duplication Enhance transparency Create better contract vehicles Manage data collection and analysis Enable better decisions Improve Relationships Maximize purchasing agency relationships Leverage supplier relationships Optimize buying channels Manage the solution landscape 5
6 Category Total Spend IT Category $50.7B Professional Services Category $63.4B Security and Protection Category $5.3B Facilities and Construction Category $72.5B Category Executive Mary Davie, FAS Assistant Commissioner for Integrated Technology Services Tiffany Hixson, FAS Regional Commissioner Jaclyn Smith, Strategic Sourcing Program Office Mary Ruwwe, FAS Regional Commissioner George Prochaska, FAS Regional Commissioner Industrial Products and Services Category $11.0B Office Management Category $1.7B Transportation and Logistics Category $25.6B Travel and Lodging Category $2.2B Greg Hammond, FAS Regional Commissioner Lisa Roberts, Office of the Assistant Secretary of Defense for Logistics and Materiel Readiness Timothy Burke FAS Director of Travel and Transportation Services Human Capital Products and Services Category $4.7B Indu Garg, Human Capital Category Manager $35.2B TBD, Department of Defense (Health Affairs), 6 TBD, Department of Veterans Affairs Medical Products and Services Category
7 Category Management Motor Vehicles Implementation and Success GSA Office of Fleet Management is the first organization to implement Category Management - before the implementation of Category Management! Serve as a strategic source and increase spend under management through interagency collaboration and understanding of user requirements, market dynamics, and purchasing patterns. Vehicle purchasing services include government-wide federal vehicle standards, technical assistance and vehicle design services Vehicle leasing services include an end-to-end fleet management service with hands-on Fleet Service Representative support Results in volume savings and administrative savings from leveraged buying power average savings of 19% off dealer s invoice price in fiscal year 2015 Reduce contract duplication through adoption of shared solutions for common products/services - GSA is a mandatory source for buying non-tactical motor vehicles 7
8 Category Management Motor Vehicles Implementation and Success Enhance data transparency - various data sources: GSA Fleet Drive-thru, AutoChoice, Federal Standards, Federal Motor Vehicle Registration System, Federal Fleet Management System, Motor Vehicles hallway Boost innovation through improved interagency and supplier partnership partnership with federal government, fleet managers and automobile manufacturers Increase efficiency and effectiveness through improved supplier performance, better buying decisions, and supply chain cost savings - vehicles are auctioned to the public 8
9 Category Management Overview From a Fleet Management POV How does Category Management help me? It helps make your job easier. One-source buying power provides an average savings of over 19.78%, resulting in over $364 Million in savings Identification of best in class solutions both related to the ownership of your vehicle and ancillary fleet solutions Access to the motor vehicle hallway in the Acquisition Gateway 9
10 The Acquisition Gateway provides acquisition professionals with the tools and digital services to make acquisition great. The Gateway envisions driving smarter acquisition by simplifying, accelerating, and improving how the federal government selects and buys products and services. The Gateway enables good category management that supports the federal acquisition community through every step of the acquisition lifecycle. 10
11 We want to be the government acquisition workspace.
12 Acquisition Gateway Overview Acquisition Gateway Features What s in it for me (WIIFM)? A focused place just for acquisitions A hallway of articles, solutions, links, and tools just for that category A place for market research, pricing information, and requirements development A growing searchable archive of examples A place to connect with other acquisition professionals A place to organize and save your acquisition Hallways - Contain information and tools specific to each category management category or sub-category Project Center - A personal location in the Gateway where users can save statements of work, community posts, and other information relevant to their acquisitions Solutions Finder - Search tool to allow federal buyers to locate best-fit contract vehicles across federal agencies My Community - A series of forums on specific acquisition topics, allowing users to ask questions of experts and participate in discussions with cross-agency peers Document Library Share and search acquisition documents ranging from the planning stages of an acquisition all the way to closeout.
13 1 Go to 2 Click the Federal Employees Sign-in button 3 Enter your PIN when prompted
14 Homepage 14
15 Explore by Category
16 Motor Vehicles Sub-Category Hallway
17 ebuy Open 17
18 Prices Paid Portal 18
19 Connect through Community
20 Key Takeaways Category management is a purchasing approach that the Federal Government is applying to buy smarter and more like a single enterprise. Motor Vehicles / Fleet Management has been using Category Management principles to achieve significant volume and administrative savings. The Acquisition Gateway is the government project management and acquisition hub. The Gateway envisions driving smarter acquisition by simplifying, accelerating, and improving how the federal government selects and buys products and services. 20
21 Questions? 21
22 The Government-Wide Category Structure Common Government Spend Categories 1-10 (total FY 2015 spend $272B) 1. IT $50.7B Security Animals & 2.1 Business Administration Related Services Services 2.2 Legal Services 3.2 Security Systems 2.3 Management Advisory 3.3 Security Services Svcs (excl. R&D) 2.4 Marketing and Distribution 2.5 Public Relations and Professional Communications Services 2.6 Real Estate Services 2.7 Trade Policy and Services 2.8 Technical & Engineering Svcs (non-it) 2.9 Financial Services 2.10 Social Services IT Software IT Hardware IT Consulting IT Security IT Outsourcing Telecommunications Professional Services 3. Security and - $63.4B Protection - $5.3B 4. Facilities & Construction -$72.5B 5. Industrial Products & Services - $11.0B 4.1 Construction Related Materials 4.2 Construction Related Services 4.3 Facility Related Materials 4.4 Facility Related Services 4.5 Facilities Purchase & Lease 5.1 Machinery & Components 5.2 Fire/Rescue/Safety/Enviro nmental Protection Equipment 5.3 Hardware & Tools 5.4 Test & Measurement Supplies 5.5 Industrial Products Install/Maintenance/Repair /Rebuild 5.6 Basic Materials 5.7 Oils, Lubricants, and Waxes 6. Office Management - 7. $1.7B Transportation and Logistics 8. Travel & Lodging Services - $25.6B $2.2B 9. Human Capital $4.7B 10.Medical $35.2B 6.1 Office Management Products 6.2 Office Management Services 6.3 Furniture Package Delivery & Packaging Logistics Support Services Transportation of Things Motor Vehicles (non-combat) Transportation Equipment Fuels 9.1 Specialized Educational Services 9.2 Vocational Training 9.3 Human Resources Services 10. Drugs and Pharmaceutical 1 Products 10. Medical Equipment & 2 Accessories & Supplies Healthcare Services Passenger Travel 8.2 Lodging 8.3 Travel Agent & Misc. Services Note: Spend figures are based on FY14 FPDS data. Defense-centric categories not shown 22
23 Transportation and Logistics Services FedFleet 2017 February 2,
24 Transportation & Logistics Services Overview Transportation & Logistics FY15 Spend Total Category FY15 Spend: $25.64B Fuels Logistics Support Services Transportation of Things Motor Vehicles Package Delivery & Packaging Transportation Equipment Observations The 4 highest spend subcategories represent 96% of the total category spend in FY15: These sub-categories are not currently driving KPIs, except for Fuels included in the FY16 SUM Goal Strategic Plan and initiatives should focus on these top 4 subcategories *Source: Federal Procurement Data System, FY15 baseline 24
25 Transportation & Logistics Category Trends Fuels (liquid propellants and fuel oils) dominate this category with a FY15 spend in excess of $9B Across the Category, the top spenders are DoD and GSA Government-wide spend on Transportation and Logistics Services decreased by nearly $12.9B between FY10 and FY14, and number of transactions decreased by over 3,000 Federal spending on Transportation and Logistics Services is forecasted to remain static (approximately $26B) for the next 3-5 year period Small Business utilization within this category for FY15 was 17%, which has increased since FY10 (10%) 25
26 FY17-19 Strategic Plan Initiatives (1 of 2) Small Package Delivery Services Solution Combine current DoD and GSA contracts into one Government-wide small package delivery services contract to meet the entire Government s small package shipping requirements DLA Fuels Solution Explore existing DLA Fuels solution as an opportunity to apply Category Management principles and pursue Best in Class designation 26
27 FY17-19 Strategic Plan Initiatives (2 of 2) Freight Opportunities Identify Government-Wide Freight Spend Investigate opportunities to leverage freight contracts and tenders across the Federal Enterprise Motor Vehicle Fleet Solution Develop and implement a Total Cost of Ownership model for calculating vehicle expenses Investigate opportunities to increase use of GSA lease program Achieve BIC designation for GSA Fleet Program 27
28 Motor Vehicle Key Actions Analyze Federal fleet data to identify agency opportunities Develop a Total Cost of Ownership model for vehicle expenses and share with agencies Conduct outreach with agencies for leasing and maintenance opportunities Create on-line comparison tool for buy versus lease decisions Initiate Best-in-Class assessment Source: The Federal Fleet Inventory Tool
29 Transportation & Logistics Services Dashboard Metric 10.4 SUM data call is pending validation SUM ($B) Savings ($B) Contract Reduction (Civilian) Category-Level Status Transportation Performance FY FY17 CAP Target SUM data call is pending savings validation Historic al FY1 6 Jan FY16 1% 0% FY Category Plan 0.3 FSSI 0% FY17 CAP Target 0% -1% 0% FY17 Category Plan Dec. FY17 0% -2% 0% -15% -13% -22% 18% goal FY17 Through December 0.13 FY16 Designate Defense Logistics Agency Fuels program as a BIC solution Conduct analyses of current federal motor vehicle fleet costs and increase government-wide use of the GSA vehicle lease program Bring GSA Vehicle Fleet program spend under management Implement governmentwide contract solution for small package next generation delivery services (NGDS) -10% goal 23% FY Mileston es SUM 0 Small Business (Civilian) Gateway Purposefu l Visits (K) Initiative FY17 Target Initiative Status based on progress against planned activities, as reported by the Category Team Assess GW freight spend and identify opportunities to improve spend & demand management 29
30 Acquisition Gateway Transportation & Logistics Services Hallway 30
31 Takeaways Your input is important! Category Manager s Level 1 Interagency Team Category Lead s Interagency Teams (includes Motor Vehicle team TBD) Get access to and become familiar with the Transportation & Logistics Services Hallway under Acquisition Gateway Questions please contact Category Manager, Lisa Roberts, lisa.a.roberts40.civ@mail.mil
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