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Office of Management Office of Procurement and Assistance Management Department of Energy DOE Strategic Business Initiatives Briefing to Joint Procurement.

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Presentation on theme: "Office of Management Office of Procurement and Assistance Management Department of Energy DOE Strategic Business Initiatives Briefing to Joint Procurement."— Presentation transcript:

1 Office of Management Office of Procurement and Assistance Management Department of Energy DOE Strategic Business Initiatives Briefing to Joint Procurement Meeting February 7-8, 2012

2 Office of Management Office of Procurement and Assistance Management Agenda 1 st Session –Process Flow –Promote Efficiency –Office of Management and Budget (OMB) Requirements –DOE Implementation –Government Accountability Office (GAO) Oversight 2 nd Session –Policy and Guidance –Reporting –FY 12 Goals and Objectives –Expectations 2

3 Office of Management Office of Procurement and Assistance Management 3 Growing federal deficits and increasingly uncertain future federal budgets have necessitated that M&O contractors evaluate areas that could be streamlined or provide cost savings in support costs at these sites, thereby maximizing funds available for the sites national security, research, and energy development missions GAO Conclusion

4 Office of Management Office of Procurement and Assistance Management Process Flow StrategicTactical AcqStat & MOP Charts Report Template Capture Cost Savings USA Spend Website MAX Database Mgmt & Opn Goals Policy/Guidance/Direction Implementation/Execution GAO Oversight and Audit of Entire Process 4

5 Office of Management Office of Procurement and Assistance Management Promote Efficiency Executive Order - Promote Efficient Spending –Agency Reduction Target 20% below FY10 Spending Federal Employee Travel Employee Mobile IT Devices Printing Costs Executive Fleet Efficiencies Extraneous Promotional Items –Campaign to Cut Waste also includes: Fleet Reductions Advisory contracts Disposition of Excess Real Property Subscriptions Strategic Sourcing includes additional 10% in Supplies! 5

6 Office of Management Office of Procurement and Assistance Management OMB Requirements OMB Initiatives – Federal and Support Acquisition Status (AcqStat) - Annual report on DOE progress GSA SmartPay – Annual report on program Internal Controls Strategic Sourcing – Expanding government-wide activities including FSSI and EWA Service Contracts – Goal of reducing certain PSCs –Multi-Sector Workforce (MSWF) – Understanding how contracted services support mission and operations –Service Contract Inventory – Priority established for Special Interest Functions and Inherently Governmental designation –FAIR Act Inventory – Improve Human Capital distribution These OMB Initiatives must have M&Os participation to be successful! 6

7 Office of Management Office of Procurement and Assistance Management DOE Implementation Acquisition Status Report (AcqStat) –Reducing the cost of management support services –Buying smarter (government and agency-wide strategic sourcing) –Managing high risk contracts –Strengthening the acquisition workforce –Total - $967 million, about 4 percent relative to our $25 billion FY 2011 appropriations 7

8 Office of Management Office of Procurement and Assistance Management DOE Implementation continued GSA Purchase Card Program (SmartPay) –Primary method used to acquire goods/services below the micro- purchase threshold –Also used to place orders under existing contracts and make payments. –Seen a significantly increased use of P-Cards to streamline purchasing/improve cash management 8

9 Office of Management Office of Procurement and Assistance Management DOE Implementation continued Strategic Sourcing Implementation –Federal Federal Strategic Sourcing Initiative (FSSI) General Services Administration Schedules (GSA) Enterprise Wide Agreements (EWA) –Contractor Contractor Supply Chain Council (CSCC) Integrated Contractor Purchasing Team (ICPT) Supply Chain Management Center (SCMC) Procurement Evaluation & Re-Engineering Team (PERT) 9

10 Office of Management Office of Procurement and Assistance Management DOE Implementation continued FSSI – Federal Strategic Sourcing Initiative –Allows government to aggregate requirements, streamline processes and leverage its buying power –Primary goals: Strategically source across federal agencies Establish mechanisms to increase total cost savings, value, socioeconomic participation and sustainability goals Collaborate with industry to develop optimal solutions Share best practices Create strategic sourcing communities of practice –Current FSSI Solutions Wireless Telecommunications Expense Management Services Print Management Services Office Supplies Express and Ground Domestic Delivery Services Multifunction Devices (MFDs) Website: 10

11 Office of Management Office of Procurement and Assistance Management GSA Office Supplies

12 Office of Management Office of Procurement and Assistance Management DOE Implementation continued EWA – Enterprise Wide Agreements –Collection of optional-use, strategic sourcing contracts for common-use software, hardware, and services used within IT organizations across the DOE –Open to the entire DOE complex, including National Labs and Power Administrations, and all DOE contractors, including M&O contractors –Applies a centralized, cross-functional, strategic enterprise software solutions approach that leverages opportunities to create efficiencies and enhances the value of IT acquisition –Benefits of the program include: Reducing duplicative enterprise-wide IT components Promoting technical standardization Increasing IT contract administration efficiencies Improving knowledge-sharing of IT acquisition best practices Website: 12

13 Office of Management Office of Procurement and Assistance Management CSCC – Contractor Supply Chain Council (Formerly CPC) –Provides focused communication between DOE SPE and the Department's major contractors' Purchasing Managers –Represents complex-wide views, concerns and interests of the contractor community ICPT – Integrated Contractor Purchasing Team –Aggressively pursue strategic sourcing opportunities that represent procurement leveraged spend that results in a lower total cost of ownership for DOE Complex Wide Site and Facility Contractors 13 DOE Implementation continued

14 Office of Management Office of Procurement and Assistance Management SCMC – NNSA/EM Supply Chain Management Center –Implement an enterprise-wide, integrated procurement software/hardware platform utilizing : Spend Analysis, eSourcing (electronic sealed-bidding and Reverse Auctions); eStore (electronic Catalogs); and strategic sourcing (site-wide commodity pricing agreements) PERT – Procurement Evaluation Re- engineering Team –The contractor purchasing system reviews (CPSR) are accomplished by experienced professionals from outside of the organization being reviewed –The program provides for the use of established criteria, and provides for the qualifications and primary responsibilities of team members 14 DOE Implementation continued

15 Office of Management Office of Procurement and Assistance Management GAO Oversight 3 Recent Audits: GAO # – OMBs Acquisition Savings had Some Results, but Improvements Needed -Audit Complete – Findings focused on OMB/OFPP Guidance GAO # – DOE Contractor Support Costs at NNSA and Office of Science Sites - Audit Complete – Findings focused on DOE Guidance One recommendation was to clarify guidance on estimating cost savings from streamlining efforts. GAO # – Strategic Sourcing in the Federal Government, DOE, DOD, DHS, VA and GSA - Audit Underway – Findings will build on strengthening guidance, Just received a new data call 15

16 Office of Management Office of Procurement and Assistance Management Department of Energy Session # 2

17 Office of Management Office of Procurement and Assistance Management DOE Policy and Guidance 17

18 Office of Management Office of Procurement and Assistance Management Reporting Template 18

19 Office of Management Office of Procurement and Assistance Management 1 st Qtr Savings 19 Not sure how to handle ICPT savings??

20 Office of Management Office of Procurement and Assistance Management 1 st Qtr FY 12 Strategic Sourcing MOP 20

21 Office of Management Office of Procurement and Assistance Management 21 FY 12 Goals and Objectives DOE FY 2012 Budget by Program Option #2: DOE Goal of $286M Allocated by Program Option #1: DOE Goal of $286M Allocated by Budget Share

22 Office of Management Office of Procurement and Assistance Management FY 12 Goals and Objective Expanding Beyond Strategic Sourcing 22

23 Office of Management Office of Procurement and Assistance Management Expectations All of our success depends greatly upon: –Getting in front of the curve on Goal Development –Identifying Department-wide Opportunities –Communication Among and Between Programs –Communication Both Up and Down the Chain –Organizing Collecting and Reporting Mechanisms More opportunities exist for collaboration between M&O contractors, we must find them through Spend Analysis! Opportunities may exist with collaboration between agencies (e.g. EPA, Corps of Engineers, AFCEE, etc.) Contractors are doing many things well but were not capturing all of it – Tell the Story! 23

24 Office of Management Office of Procurement and Assistance Management DOE Goals Summary Strategic Sourcing Savings$286 M –NNSA$ –EM$ –SC$ –Other$ Other Cost Savings/Avoidance$XXX M –NNSA$ –EM$ –SC$ –Other$ Spend Analytics Plan –NNSA: In place –EM: Pilot in place by Sep 2012, rest of sites in 2013 –SC: –Other: 24


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