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Office of Acquisition and Property Management
U.S. Department of the Interior
Strategic Sourcing
Leveraging Interior’s Purchase Power
DOI Annual Business ConferenceThursday, May 25, 2006
What is Strategic Sourcing?An analytical approach to increase savings,
socio-economic participation and standardization.
Why are we doing it?
Reduce Administrative and Commodity Costs
Increase Small Business and Environmental Procurement Goal Achievement
Increase Efficiency and Value
Small Business Goals Why?
Small Businesses are the Heart the American Economy
Small Businesses ensure competition and multiple resources for commodities and service.
To Be a Good Neighbor
It’s the Law FAR Parts 8.7 and 19
How? Provide small businesses opportunity to meet the needs of the
Federal Government. Achieve our goals by providing opportunities for the following
small business concerns:JWOD 8aHUBZone Woman-OwnedService Disabled Veteran-Owned
Environmental MandatesAs the National Steward of America’s resources, we
must make sound environmental decisions. Resource Conservation and Recovery Act (RCRA), Section
6002
2002 Farm Bill, Section 9002
EO 13101, Greening the Government through Waste Prevention, Recycling, and Federal Acquisition
Federal Acquisition Regulations, Parts 7, 11, 12, 13, 23, 36, 37 and 52
Office of Federal Procurement Policy (OFPP) Letter 92-4,
Procurement of Environmentally Sound and Energy Efficient Products and Services
OMB’s Snapshot
Current state SPE best practices
Federal best practice
• Standards based requirements
• Demand management
• High customer satisfaction
• Driven vendor management
• Strategic achievement of small business goals integral to plan
• Build leverage across Govt
• Share best practices• Leverage current vehicles
• Departments going it alone standing up Commodity Management Teams
(CMTs)
We need to do more with less
Cross-DepartmentCMTs
•Harmonize requirements•Carefully consider small business implications•Shared CMTs•Build leverage cross Departments
Federal Supply Schedule Interior’s Usage
DOI Federal Schedule Awards as % of Total Actions and Dollars, FY90 - 03
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
% of Total Actions % of Total Dollars
Interior’s Top 10 CommoditiesFY 2002
OTHER ADP & TELECOMMUNICATIONS SVCS 16.3%A/E SVCS. (INCL LANDSCAPING INTERIO 15.4%PASSENGER AIR CHARTER SERVICE 14.3%OTHER PROFESSIONAL SERVICES 11.8%RELOCATION SERVICES 9.4%OTHER ARCHITECTS & ENGIN GEN 8.9%ADPE SYSTEM CONFIGURATION 7.7%CONTRUCT/ALL OTHER NON-BLDG FACS 6.0%MISCELLANEOUS ITEMS 5.2%ADP SOFTWARE 5.1%
Total: 100.0%
TOP TEN GOODS\SERVICES PURCHASED
BASED ON NUMER OFACTIONS
Interior’s Top 10 CommoditiesFY 2003
OTHER ADP & TELECOMMUNICATIONS SVCS 17.0%
OTHER PROFESSIONAL SERVICES 15.2%
A/E SVCS. (INCL LANDSCAPING INTERIO 13.9%
PASSENGER AIR CHARTER SERVICE 11.3%
OFFICE FURNITURE 10.5%
OTHER ARCHITECTS & ENGIN GEN 8.6%
RELOCATION SERVICES 7.7%
ADPE SYSTEM CONFIGURATION 5.4%
MAINT, REP-ALT/RESTORATION 5.2%
ADP SOFTWARE 5.1%
Total: 100.0%
TOP TEN GOODS\SERVICES PURCHASED
BASED ON NUMER OFACTIONS
Interior’s Strategic Sourcing Initiative
Commodities IT Equipment* Office Supplies Telecommunication (Wireless Plans)* Office Equipment (Duplication)** Domestic Delivery Relocations***____________
* Joint Initiative with OCIO ** Joint Initiative with Printing Council*** Joint Initiative with PFM
Strategic Sourcing Council Approved and Authorized by MIT and Assistant Secretary, PMB
CIO
PAM
SPE
MIT MIT
AMP
OSDBU
DAS
CAO
Strategic Sourcing
Strategic Sourcing Council CompositionApproved by CAO & MIT
CAO Tom Weimer DAS Nina Rose Hatfield
CIO Hord Tipton MIT Jim Poole, NPS
MIT Larry Todd, BOR SPE Debra Sonderman
PAM Melodee Stith OSDBU Robert Faithful
PAM Pia Scott AMP David Sutfin
Strategic Sourcing Council Roles and Responsibilities
Provide executive-level leadership
Develop Charter
Establish FY strategic sourcing goals
Develop performance measures
Develop agency communication plan
Develop training plan
