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U.S. General Services Administration Federal Strategic Sourcing Initiative (FSSI) Presentation for: Small Agency Council Nitasha Singh, FSSI PMO February.

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Presentation on theme: "U.S. General Services Administration Federal Strategic Sourcing Initiative (FSSI) Presentation for: Small Agency Council Nitasha Singh, FSSI PMO February."— Presentation transcript:

1 U.S. General Services Administration Federal Strategic Sourcing Initiative (FSSI) Presentation for: Small Agency Council Nitasha Singh, FSSI PMO February 26, 2014

2 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 2

3 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 3

4 For Internal Use Only ➢ Office of Management & Budget M Improving Acquisition through Strategic Sourcing – December /m-13-02_0.pdf 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 4

5 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 Teams Industry Interaction during Phase 1 SSLC PHASE 2: STRATEGY IMPLEMENTATION Conduct Acquisition and/or Develop Impl Plan Implement Strategy Commodity Teams Industry Interaction during Phase 2 SSLC PHASE 3: COMMODITY MANAGEMENT Manage Commodity Commodity Teams Vendor 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 5

6 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 goals Strategy developed to maximize socio-economic participation ▪Stakeholder engagement 60 agencies have participated in FY12 on current solutions FSSI Benefits 6

7 For Internal Use Only FSSI Solutions CurrentUpcomingUnder 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) WirelessCyber SecurityRental Cars IT SoftwareIT Equipment FSSI solutions employ a variety of strategies, including acquisitions, best practices, and/or policy plays. 7

8 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. 9 Strategic Sourcing Cycle

9 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 10 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

10 For Internal Use Only ➢ provides information on solutions, workforce tools, templates, and more to come. Hosts direct contact information for teams. ➢ Training – continuous learning modules:www.dau.mil CLC 108 – strategic sourcing CLC 110 – spend analysis ➢ OMB strategic sourcing guidance ➢ OMB Myth Busters Memos addressing-misconceptions-and-further-improving-communication-during-the- acquisition-process.pdf ➢ has direct links to OS, DDS, Print, and Wireless Solutions ➢ FSSI PMO Resources and Contact Info 11

11 For Internal Use Only APPENDIX Solution Specific Information 12

12 For Internal Use Only Wireless The 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 13

13 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 14

14 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 15

15 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 16

16 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 17

17 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 18


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