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Federal Buying
$350B procured annually
Tens of thousands of transactions
Tens of thousands of companies,
products and services
Lots of rules, regulations & policies
Very few government buyers
Wide variety in procurement
practices, prices paid, terms &
conditions
Too busy too share
Decentralized
Transactional
IT Buying
$80B procured annually
Targeted opportunity to save $ and redirect to
mission
Hot: Mobile, Security, Cloud, Apps
Priorities & Drivers Open &Transparent Buying
Citizen Participation & Engagement
Communication Between Gov & Private Sector
IT Reform Plan
Digital Government Strategy
Sharing Solutions & Services
Common Platforms
Consolidated/Leveraged Buying
Cost Reduction
“Little to Big
Big to Little”
Agile Alex Howard @digiphile
“.@StevenVDC: Americans' expectations of #digitalgov are changing: they expect more, & on mobile http://WH.gov/digitalgov pic.twitter.com/eCKPAZMO”
What Do We Do About IT?
Build/Expand Communities
Collect
Share
Leverage Knowledge
Aggregate
Act as One
Report
Smarter and Better Acquisition
What Have We Done?
www.betterbuyproject.org
POINT #25
ACQUISITION COLLABORATION
EARLY ENGAGEMENT PLATFORMS
HOW-TO TOOLKIT
February 2012
https://max.omb.gov/community/display/Acquisition/Vendor+Engagement+Collaboration
25 POINT IMPLEMENTATION PLAN TO REFORM
FEDERAL INFORMATION TECHNOLOGY
MANAGEMENT
Customer Service Today (One customer view, Interactions, Opportunities, intelligence)
…
…
… …
I am meeting with DHS tomorrow
DHS is not happy with us right now
We just made DHS really happy!
DHS is opening a new center in Dallas. Here’s a link to the project
I’ll reach out to them. They will probably need IT too
We can offer innovative schedules and solutions for IT. Here’s a slide deck to help with DHS
Just met with DHS yesterday. Got some great data. Her’s our meeting minutes
Customer Service Tomorrow
(One customer view, Interactions, Opportunities, Intelligence)
FSSI Wireless - $1.5B estimated spend; savings opp 10%-20%
SMARTBUY – $1.3B in total cost avoidance; Supplier Relationship Mgt
Strategy
Networx – pricing transparency, aggregation and leverage
Communities & Savings Stories
Federal Acquisition Service
9 9
$70 ACPU across agency
The current average cost per unit across the agency subscriber base averages
$70 per month. There are varying states of program management across the
agency in the wireless commodity.
The Devices & Services FSSI is looking to achieve targeted discounts for devices
and services based on aggregated volume across all Federal Agencies.
TEMS providers have historically provided additional per line savings that range
from 10-30%. Sources include zero usage account identification, improved
account selection, overage reduction or elimination.
The FSSI Wireless Program has targeted savings goals and management metrics
to help the federal government improve its management of wireless technology.
Y % savings from improved
management, improved plan
selection
X % savings from acquisition
Lower ACPU
Starting Point
Impact from Leveraging Competition, Volume
Impact from Improved Management
Targeted Price Points
Wireless
SMARTBUY STRATEGIC SOURCING PROCESS SMARTBUY COMMODITY TEAM
The SmartBUY Commodity
Team represents 80% of
overall Federal software
spend
• IRS
• DOE
• STATE
• NASA
• DOI
• TREASURY
• EPA
• OPM
• DoD
• VA
• DHS
• HHS
• DOJ
• DOC
• USDA
• GSA
Develop GSA
business case &
strategy to lower
Federal TCO
Analyze supply
market trends &
commercial best
practices
Analyze agency spend &
customer requirements
Develop government-
wide BPA(s) & change
management plans
SMARTBuy
Bandwidth 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
< T1 17,467 17,649 13,583 15,964 15,666 15,082 13,909 13,496 11,595 10,754 8,753 10,126 10,011
T1 9,145 12,117 12,545 15,516 20,550 23,893 26,285 29,428 28,163 29,665 31,015 37,753 35,322
FT3/T3 21 183 643 950 1,484 1,625 1,825 2,285 2,847 3,858 3,733 7,317 10,771
OC-3 - - 3 15 43 53 84 125 152 220 270 400 439
OC-12 - - - - - - 1 6 15 48 64 137 214
OC-48 - - - - - - - - - - - 2 2
OC-192 - - - - - - - - - - - 21 28
1 Gb - - - - - - - - - - - 17 27
Thank You
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