Strategic Sourcing

Acquisition Improvement Initiative

Office of Acquisition and Property Management

Strategic Acquisition ForumFebruary 17, 2010

Overview

Overview

• Our Lessons Learned

• Maximizing Our Leverage and Meeting the Demands

• Questions and Answers

OMB Directives

Enhance Agency Efficiency

Reduce Agency Spending

DOI

FY 2010 3.5% savings ≈ $80m

FY 2011 7% savings ≈ $190m

New Economy: New Demands

• New Economy

• National Deficit

• Unemployment

• Resilience

• OMB Directives

Meeting the Demands

• Acquisition Improvement Initiative

Strategic Sourcing Strategies:

• Federal Strategic Sourcing Initiative

• DOI Strategic Sourcing Initiative

• Bureau-Lead Strategic Sourcing Initiatives

Strategic Sourcing

An analytical acquisition approach to achieve best value through standardization and leverage that results in significant savings and fulfillment of socio-economic and environmental requirements.

Program Objectives

• Implement Departmental Cross-Functional Acquisition Strategies

• Reduce the Total Cost of Ownership

• Improve Fulfillment of Socio-Economic Acquisition Goals

Program Objectives

• Standardize Acquisition Business Processes

• Enhance Skills of the Acquisition Community

Program Benefits

• Revive Nation’s Economy

• Revitalize the Hope of Americans

• Reduce the Negative Impact of Budget Cuts

• Business Process Transformation

Page 11

Conduct Opportunity Assessment

Market AnalysisDevelop Commodity Strategy

Execute Acquisition Strategy

Implement & Manage Performance

2 3 4 5

ProfileCommodity

COMMODITY STRATEGIC SOURCING PROCESSCOMMODITY STRATEGIC SOURCING PROCESSCOMMODITY STRATEGIC SOURCING PROCESSCOMMODITY STRATEGIC SOURCING PROCESS1

Commodity Identification

Identify and Prioritize Develop plan and strategy Implement, Measure and Adjust

Our Successes• IT Equipment 23% ≈ $12.1m 

• Office Supplies 18% ≈ $2.1m

• Relocation Services* 9% ≈ $3.5m

• Domestic Delivery 25% ≈ $4m

• Commercial Wireless Plan 12% ≈ $450k

• CADR – HR 6% ≈ $12k

• DAR 60% ≈ $500k

Lessons Learned

• Optional Use Minimize Effectiveness

• Optional Use Reduces Savings Potential

• Engagement of all Stakeholders Required

• Multiple Communications Strategies Required

• Standardized Requirements meet 90% of DOI needs

Maximizing Leverage

• Engagement of Stakeholders

• Consider Mandatory Use

• Bureau Support – dedicated resources

• SSI Portal

• Fulfillment of Regulations and Policies

• Bureau-Lead Initiatives

• Bureau Procurement and Program Support

• Recommendations

Future Initiatives

• SAVE Ideas

• Heavy Equipment

• IT Hardware

• Recycled Paper

• Shuttle Service

• DOIU Training

• Furniture

• IT Software Licenses

• Full Deployment of Wireless

Strategic Sourcing Program

• Questions–Are there additional program objectives

that should be considered?

–Are there other implementation recommendations?

–Are there other strategic sourcing recommendations?

• CommentsThank You