Al Muñoz, CFCM, PMP, Dept. of Agriculture Date May 15, 2014 Time11:15 – 12:15 Strategic Sourcing: Strategy & Tactics for Shaping Better Collaborations

Agenda Strategic Sourcing Specific Techniques The Case for a Strategic Approach

Introduction Who’s in the room?

Question Is “your” agency still buying in the dark?

Strategic Sourcing Three Main Themes (OMB Memo M ) –Saving Money –Reduced Workforce Burden –Increase achievement of socio-economic goals

Some Techniques Co-sourcing –Pooling of multiple requirements into fewer contract actions so there’s less work Consolidation –Pooling of multiple requirements for the specific purpose of achieving bulk or volume discounts

Some Techniques Standardization –Using consistent requirements to meet similar needs so there’s less work Localization –Custom, scaled-back standards to meet lesser, and less costly needs

Case Study – Agency Help Desk Multiple agencies with disparate help desk contracts and budgets banded together to find a common solution. In addition to savings, banding together allowed them to purchase features that separately they were not able to reach for because of budget constraints.

Case Study – Agency Help Desk By leveraging the contracted services, smaller partners now get Help Desk Services 24/7, 365 days a year and a standard help desk software package that produces comprehensive call volume statistics. Smaller partners weren’t including enhanced features in their prior contracts because they could not afford them.

Case Study – Agency Help Desk Successful vendor partnered with software company to provide a comprehensive package. Lowered their cost, enhanced their capabilities, made them a more valuable choice.

Need for Strategic Choices Contracting has changed from a administrative, transactional process Strategic sourcing – forward looking, information based and involves both technical and acquisition staff as well as industry partners

Strategic Sourcing for Everyone Communication – first and throughout the process New approaches –Not just strategy –New techniques –New ways of looking at business problems –New technologies

Communication Communication throughout the process is the key. –Start to finish and continuing through close-out Prior to solicitation, anyone, including program managers and users may meet with potential offerors to exchange general information and conduct market research related to an acquisition.

Communication Communication is more restricted during solicitation, during which time the CO is the focal point, and ends with receipt of proposals. Any information directly affecting proposal preparation must be shared with all potential offerors.

In a nutshell Government contracting of the future will be about interacting with industry more meaningfully, and about designing effective solutions together… …not about buying or selling in the dark.

Thank you! Contact Information: Al