U.S. General Services Administration

Federal Strategic Sourcing Initiative (FSSI)

Presentation for: Small Agency Council

Nitasha Singh, FSSI PMO

February 26, 2014

For Internal Use Only

Agenda Topics

Latest on the Federal Strategic Sourcing Initiatives - a. FSSI overview, b. the efforts underway, c. how we can participate, and d. where we can find information

Sharing of information across agencies

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For Internal Use Only

Strategic Sourcing – What is it?

➢ Is an analytical and collaborative process that leverages an organization's historical business intelligence and resources to achieve best value solutions.

➢ Is more than savings; it focuses on the total cost of ownership (TCO) and yields enhanced business intelligence, management efficiencies, and regulatory compliance.

➢ Can be agency-wide, government-wide, multi-agency, or other combination.

➢ Considers market dynamics and Federal socioeconomic objectives.

Strategic Sourcing

Stakeholder Engagement

Capture benefits of all Government purchasing

Pricing strategies

Vendor Reporting

Commodity Management

Small Business

Participation

Core Characteristics

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For Internal Use Only

➢ Office of Management & Budget M-13-02 Improving Acquisition through Strategic Sourcing – December 2012 http://www.whitehouse.gov/sites/default/files/omb/memoranda/2013/m-13-02_0.pdf

• Required designation of a Strategic Sourcing Accountable Official• Established the Interagency Strategic Sourcing Leadership Council• Identified core characteristics of Strategic Sourcing acquisition vehicles• Focused on increasing small business opportunities

Federal-wide Policy

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For Internal Use Only

FSSI is headed by OMB in conjunction with the Strategic Sourcing Leadership Council (SSLC)

SSLC

OPPORTUNITY SELECTION

Select Commodity

SSLC

PHASE 1: STRATEGY

DEVELOPMENT

Profile Commodity

Conduct Supply Market Analysis

Develop Commodity Sourcing Strategy

Commodity TeamsIndustry Interaction during

Phase 1 SSLC

PHASE 2: STRATEGY

IMPLEMENTATIONConduct Acquisition and/or Develop Impl Plan

Implement Strategy

Commodity TeamsIndustry Interaction

during Phase 2 SSLC

PHASE 3: COMMODITY

MANAGEMENT

Manage Commodity

Commodity TeamsVendor Interaction

during Phase 3

➢ SSLC is comprised of the seven top spending agencies as well as other key agencies, e.g. SBA

➢ Commodity teams include representatives from the SSLC agencies and other top spending agencies

➢ Commodity teams address government-wide issue relating to duplication of contracts, lack of standardized terms and conditions, lack of standardization of part numbers, etc.

FSSI Process

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For Internal Use Only

FSSI solutions are developed collaboratively across government agencies and offer customers a number of potential benefits

▪ Realize significant savings with competitive pricing (i.e. total cost of ownership, re-negotiation of contracts and a reduction in market price)

Average Savings of 9%-30%Savings of more than $100M in FY12 on current solutions

▪ Decrease administrative redundancy Minimizes administrative overhead and duplication of effort

▪ Improve business intelligence All FSSI programs collect detailed “level 3” business intelligence data

▪ Achieve socio-economic and sustainability goalsStrategy developed to maximize socio-economic participation

▪ Stakeholder engagement60 agencies have participated in FY12 on current solutions

FSSI Benefits

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For Internal Use Only

FSSI Solutions

Current Upcoming Under Consideration

Office Supplies (OS) Maintenance, Repair and Operations (MRO)

Building, Maintenance, and Operations (BMO)

Domestic Delivery Services (DDS)

Janitorial and Sanitation Supplies (JanSan)

Furniture

Print Management (PM) Information/Subscription Services (Legal and STEM)

HR Services and Training (HRST)

Wireless Cyber Security Rental Cars

IT Software IT Equipment

FSSI solutions employ a variety of strategies, including acquisitions, best practices, and/or policy plays.

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For Internal Use Only

What are we doing now?

What are improvement alternatives?

What’s the strategy? How

do we move forward?

Procurement or Policy or Behavior

How do we achieve buy-

in?

How do we ensure

success?

What can we do?

Profile the category - What are we doing now?➢ Understand everything about current spending. Define the services, commodities,

quantity, types and sizes. Who are the users, where are they located, what are the processes used and who else is involved in the supply chain?

Market analysis - What are the improvement alternatives?➢ Identify potential new initiatives. Study the cost components of the product or service,

and analyze the suppliers’ marketplace for risks and opportunities 

Develop the strategy - How to move forward?➢ Decide what/how to buy while minimizing risk. Cross functional team a must. Strategy

depends on real alternatives are to current suppliers, marketplace competition, and how open users are to new suppliers.

➢ Develop an acquisition or policy recommendation and implementation plan including requirements, procurement strategy, communication and implementation plan.

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Strategic Sourcing Cycle

For Internal Use Only

What can we do (continued)?

Procurement or Policy ➢ Execute procurement strategy. Evaluate, negotiate and select suppliers.➢ If policy changes are needed, evaluate existing policies and recommend changes.

Implement and integrate – How do we achieve buy-in?➢ Ensure successful offerors or those affected by changes in policy are involved in the

implementation process. Implementation plans vary depending on the degree of changes. The communication plan should include any improvement to specifications or process, changes in delivery or service requirements or pricing.

Benchmark and track results – How do we ensure success?➢ This is a key element of strategic sourcing. It is the start of a continuous cycle, starting

with benchmarking the current status of the commodity or category, monitoring the results and ensuring that full value is being achieved. Review the supply market again and restart the process in a constantly evolving marketplace

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What are we doing now?

What are improvement alternatives?

What’s the strategy? How

do we move forward?

Procurement or Policy or Behavior

How do we achieve buy-

in?

How do we ensure

success?

Strategic Sourcing Cycle

For Internal Use Only

➢ www.strategicsourcing.gov provides information on solutions, workforce tools, templates, and more to come. Hosts direct contact information for teams.

➢ Training – www.dau.mil continuous learning modules:• CLC 108 – strategic sourcing• CLC 110 – spend analysis

➢ www.whitehouse.gov/omb/procurement_strategic/ OMB strategic sourcing guidance

➢ OMB Myth Busters Memos www.whitehouse.gov/sites/default/files/omb/procurement/memo/Myth-Busting.pdf

www.whitehouse.gov/sites/default/files/omb/procurement/memo/myth-busting-2-addressing-misconceptions-and-further-improving-communication-during-the-acquisition-process.pdf

➢ www.gsa.gov/fssi has direct links to OS, DDS, Print, and Wireless Solutions

➢ FSSI PMO email: fssi@gsa.gov

Resources and Contact Info

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For Internal Use Only

APPENDIX

Solution Specific Information

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For Internal Use Only

WirelessThe FSSI Wireless solution offers wireless services through Verizon, AT&T, Sprint, and T-Mobile➢ FSSI Wireless BPAs enable agencies to save 15% - 20% through volume pricing and price

maintenance controls

➢ Wireless services can be ordered through the BPA with online and GSA support

➢ All devices purchased through the BPA comply with federal legislation and security regulations‒ Devices purchased outside of the FSSI Wireless BPA can use the BPA’s plans and services

➢ A business portal interface allows better access to vendor data for ordering, inventory, billing and reporting

To get more information, visit http://www.gsa.gov/fssiwireless

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For Internal Use Only

Office Supplies (OS)FSSI Office Supplies program awarded 15 blanket purchase agreements (BPA) for office supplies➢ FSSI OS BPAs provide opportunities to meet socioeconomic goals and ensures compliance with all

federal acts and mandates‒ 13 of 15 BPAs were awarded to small businesses‒ BPAs are broken down into three distinct pools of vendors to provide business to both large and

small businesses‒ Ensures compliance with applicable regulations to include AbilityOne, sustainable purchasing

requirements, and the Trade Agreement Act➢ Point-of-sale (POS) is enabled where SMARTpay customers can automatically obtain BPA pricing from

any method of purchase including GSA Advantage, DoD eMall, retail locations and directly from the vendor

➢ GSA Advantage allows customers to survey multiple vendors at one time ensuring best price available➢ FSSI OS2 BPAs have provided $200M in direct and indirect savings for the Federal Government➢ The next generation, OS3, is targeted to launch this summer (FY14)

To get more information, visit http://www.gsa.gov/fssiofficesupplies

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For Internal Use Only

Print Management (Print)The FSSI Print solution offers a range of multifunction and single-function network printers from leading industry brands

➢ FSSI Print Management is a holistic commodity management approach that allows federal agencies to achieve cost and environmental savings through the implementation of a behavior change management program, and improvements to the acquisition of print and copy devices and services.

➢ New Managed Print Services BPA Awards Issued• These new awards can streamline the lifecycle management of all office-level imaging

equipment. This program can also enable agencies to strategically design and deploy imaging fleets. GSA’s MPS program improves fleet management, performance visibility and spending control in order to lower lifecycle costs.

➢ All devices meet a variety of sustainability requirements such ENERGY STAR standards, and EPEAT guidelines (forthcoming); factory-set default duplex printing; ability to accept 100% recycled content paper, and remanufactured/package-free toner; and device disposal through a certified e-Recycler.

To get more information, visit http://www.gsa.gov/fssiprint

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For Internal Use Only

Domestic Delivery Services (DDS)The FSSI Domestic Delivery Services (DDS) solution offers domestic express and ground routine delivery services

➢ DDS is currently in its second generation (DDS2) which was awarded to UPS in FY10‒ The third generation, DDS3, is targeted to launch in FY15

➢ This FSSI initiative achieves savings of 27.9% from independent MAS contract rates

➢ Through UPS’ online platform called CampusShip, DDS2 users are able to create air bills online, track their packages, and are given access to a dedicated customer support team

‒ From CampusShip, users can also arrange to have payment automatically debited from a payment card

➢ DDS2 users have transparency into shipping data through the GSA DDS2 Dashboard which allows customer agencies to run reports and monitor spend under DDS2

For more information, visit http://www.gsa.gov/dds

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For Internal Use Only

Janitorial and Sanitation (JanSan)The FSSI JanSan solution will offer cleaning supplies such as bleach, trash bags, paper towels, toilet paper, mops, floor buffers, etc.➢ The FSSI JanSan solution is planned to generate savings up to 14%

➢ Savings for customers will be generated from 1. Leveraging government-wide volume to negotiate lower prices with suppliers and 2. Establishing point-of-sale discounts to ensure access to the lower prices (Government

customers will be able to walk into a brick & mortar store and get BPA pricing)

➢ Pricing will be monitored on an ongoing basis to ensure competitiveness in the Federal Market

For more information, visit https://interact.gsa.gov/group/federal-strategic-sourcing-initiative-fssi-janitorial-sanitation

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For Internal Use Only

Maintenance, Repair and Operations (MRO)

The FSSI MRO solution will offer supplies such as hardware, power tools, pipes, valves, electrical equipment, lighting, paint, etc.

➢ The FSSI MRO solution is estimated to generate savings of 11%

➢ Savings for customers will be generated from:1. Leveraging government-wide volume to negotiate lower prices with suppliers 2. Establishing point-of-sale discounts to ensure access to the lower prices (Government

customers will be able to walk into a brick & mortar store and get BPA pricing)

➢ Pricing will be monitored on an ongoing basis to ensure competitiveness in the Federal Market

For more information, visit https://interact.gsa.gov/node/2528/information

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