08.23.2017 Moderator: Ms. Kathy Spainhower, DAU Category...Moderator: Ms. Kathy Spainhower, DAU ....
Transcript of 08.23.2017 Moderator: Ms. Kathy Spainhower, DAU Category...Moderator: Ms. Kathy Spainhower, DAU ....
08.23.2017Presented by: Ms. Rachel Gillerlain, GSAModerator: Ms. Kathy Spainhower, DAU
Category Management for Federal Acquisition Professionals
Welcome to the Category Management for Federal Acquisition Professionals Lunch and Learn
Ms. Rachel Gillerlain, GSAPresented by:
Category Management
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AgendaWelcome & 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
Segment 1Category Management Foundations
At the end of this segment, participants will be able to:• Define category management• Explain why the government is
adopting category management
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Segment 1 Objectives
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What do you see here?
• “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
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Category Management Basics
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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
Key CM Principles
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1. Develop common requirements
2. Reduce duplicate contracts3. Improve mission value and
total cost of ownership4. Apply demand management
practices5. Advance policy objectives6. Improve supplier
relationship management
Which of these
principles is the highest priority for
your agency or bureau right now?
Question
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Business Case for CM
Need to Reduce Contract DuplicationOne contractor – many contracts
$2.7B
FY 2014 Spend
Limited
Gov-wide Visibility
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Business Case for CM
Limited
Gov-wide Visibility
500% 400% 286%
$5-25 $23-91 $453-1298
Need to Close Price Variance GapSame purchase – different prices
CM Regulatory Guidance
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• FAR Part 8 – Lists procurement sources that government agencies must use
• OMB Memo M-17-22 – 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 2015-015, Strategic Sourcing Documentation – Provides guidance on documenting exceptions
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Business Case for CM
Need to Implement Best Practices ConsistentlyConsolidated 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
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Business Case for CM
Need to Streamline Buying ProcessesVetted 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
Polling Question: CM Scope
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a)$527Mb)$284Bc) $450B
Approximately how much did
Federal agencies spend on
COMMON goods and services in
FY16?
Question
Correct answer: BIn 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 2016
Total FY16 spend ≈ $459.8B │FY16 common spend ≈ $283.7B*Government-wide Categories
Security & Protection≈$4.9B• Ammunition• Protective Apparel &
Equipment• Security Animals &
Related Services• Security Services• Security Systems• Weapons
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
Transportation & Logistics≈$23.1B• Fuels• Logistics Support Services• Motor Vehicles (non-combat)• Package Delivery & Packaging• Transportation Equipment• Transportation of Things
IT≈$55.4B• IT Software • IT Hardware • IT Consulting• IT Security• IT Outsourcing• Telecomms
Office Management≈$2.0B• Furniture• Office Management
Products• Office Management
Services
Professional Services≈$66.9B• Business Admin
Services• Financial Services• Legal Services• Management & Advisory
Services• Marketing & Public
Relations• Research &
Development• Social Services• Technical & Engineering
Services
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
Travel≈$1.0B• Employee Relocation• Lodging• Passenger Travel• Travel Agent & Misc.
Services
*Based on data extracted from FPDS-NG
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.
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CM Success Measures
Current State: Spend Managed by Individual Agencies and Departments
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Best-in-Class SolutionsMACs
Justified exception
sSchedule
sGWACs
$283.7B Common
Spend
UnmanagedSpend &
Duplicative Contracts
“Lake Stand Alone”
Future State: Spend Managed Government-wide
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Schedules GWACs MACs Justified Exception
s
Best-in-Class Solutions
CMTools &
Strategies
Spend Managed
Using Best Practices
Spend Under Management (SUM)
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• FY16 common spend under management = 42%• Our SUM goal: Increase that percentage!
FY16 Spend Maturity AssessmentTier 3/BIC - Adherenceto Government-wideStrategiesTier 2 - Multi-AgencyCollaboration
Tier 1 - Agency-WideStrategies
Tier 0 - "Lake Stand-Alone"
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CM Implementation Drivers
Driving CM Implementation:Government-wide Category Executives
Information Technology
Security & Protection
Industrial Products &
Services
Transportation & Logistics
Services
Human Capital
Professional Services
Facilities & Construction
Office Management
Travel
Medical
George Prochaska
GSA
Lisa RobertsDOD
Indu GargOPM
Jaclyn SmythDHS
Mary DavieGSA
Mary RuwweGSA
Dena McLaughlin
GSA
Timothy BurkeGSA
Poonam Alaigh, M.D. & David Smith,
M.D.DOD & VA
Tiffany HixsonGSA
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CM Benefits At a Glance
Question
How could category management
specifically benefit your agency or
bureau?
CM Regulatory Guidance
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• FAR Part 8 – Lists procurement sources that government agencies must use
• OMB Memo M-17-22 – 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 2015-015, Strategic Sourcing Documentation – Provides guidance on documenting exceptions
Segment 2Best-in-Class Solutions
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
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Segment 2 Objectives
BIC Introduction
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Contracts designated Best-in-Class (BIC) can be used by multiple agencies and meet 5 OMB criteria:1. Rigorous requirements definitions and
planning processes2. Appropriate pricing strategies3. Data-driven demand management
strategies4. Category and performance
management practices5. Independently validated reviews
How do you know if a
contract is designated BIC?
Question
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
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Why Choose BIC Solutions?
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BIC Vetting Process
OMB announcement to CMLC
• OMB updates the CMLC as solutions are designated BIC
• Outcome: Official Designation of BIC vehicle*
• Review of vehicle in detail at criteria/sub-criteria level by category team
• Noting SME recommendations throughout
• Outcome: Determination of BIC status
• Review vehicle in detail at criteria/sub-criteria level
• Does vehicle meet criteria?
• Cross-government SME team for impartiality
• Outcome: Recommendation for BIC designation
Interagency SME review Category leadership review
Process for evaluating and assessing BIC vehicles
BIC solutions are evaluated according to OMB criteria.
*Each solution must undergo annual review to maintain the BIC designation.
Facilities & Construction1. BMO2. USACE FRPIndustrial Products & Services3. JanSan FSSI4. MRO FSSITransportation & Logistics5. Next Generation Delivery ServiceProfessional Services6. SmartPay7. Identity Protection Services8. OASIS9. OASIS SB
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BIC Solutions by CategoryTravel10. City Pair11. FedRooms
Human Capital12. HCaTS13. USA Learning
Office Management14. OS3
IT Category15. ARMY CHESS ADMC216. NASA SEWP (GSS only)17. NITAAC CIO-CS (GSS only)18. Schedule 70 (GSS solutions and software SINs only)
18 designated as of 8/14/2017
Scheduled for 2017 Evaluation
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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
• Float to the top of your Solutions Finder search results• Flagged and marked BIC in name
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Finding Current BIC Solutions
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BIC Solution BenefitsAt a Glance
Question
Which BIC-designated
contracts is your agency already
using?
Ready-to-use
contractsFully
vetted
Reviewed annually by
cross-government
SMEs
Simple to find on
Acquisition Gateway
Easy to access
Transactional data
available in the Prices Paid Portal
FAR Part 8
Compliant with requirements
OMB Memo
M-17-22
Segment 3Benefits & Tools for Acquisition
Professionals
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
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Segment 3 Objectives
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Category Management Benefits
Tools for Acquisition Professionals
Centralized government-wide procurement resources Acquisition Gateway
Improved visibility of spend data
D2D Government-wide Category Management Dashboards, Prices Paid Portal
Easier market research Prices Paid Portal, Solutions Finder, CALC Tool
Government-wide knowledge sharing
Category Hallways,Community Discussions,Connections Finder, Document Library, Project Center
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Centralized government-wide procurement resources
Acquisition Gateway
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
InvisibleSpend
VisibleSpend
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Improved visibility of spend dataBefore 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
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Q: Where does category spend data come from?
A: The Federal Procurement Data System – Next Generation (FPDS-NG)
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
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Prices Paid Portal
Transaction HistoryToday 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?
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Data Sets Available Today1. FSSI DDS32. GSAdvantage!3. TRANSCOM4. OS25. FSSI OS36. FSSI MRO7. Government Wide Acquisition Contracts8. FSSI JanSan9. Print Management10. Army CHESS11. DoD ESI12. GSA National Information Technology
Commodity Program (NITCP) [also includes ITS Reverse Auction data]
13. OASIS14. Government Wide Strategic Solutions (Laptop
Configuration)
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
Prices Paid Portal
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Government-wide Category Management Dashboards
View government-wide and agency-level contract and spend data for all ten categories.
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Easier Market Research
“You don’t have to reinvent the wheel; just attach it to a new wagon.”
~Mark McCormack
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Solutions Finder
Find, filter, and compare multiple contracts and shared services solutions.
BIC results float to the top.
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Contract Awarded Labor Category (CALC)
Research awarded prices for 48,000 professional labor categories from more than 5,000 recent GSA contracts.
Join GSA and DAU on 30 August 2017 for a Lunch and Learn presentation on ‘The Acquisition Gateway’
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