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					       Department of the Treasury

          Strategic Sourcing Plan




                January 31, 2006




                  This report was prepared by
Kevin Youel Page, Procurement Analyst & Strategic Sourcing POC
              Office of the Procurement Executive
                   Department of the Treasury

                Kevin.youel-page@do.treas.gov
                        (202) 622-0651
                                                   Department of the Treasury Strategic Sourcing Plan



                           Department of the Treasury
                            Strategic Sourcing Plan
     Table of Contents
1.   Strategic sourcing overview ............................................................................................... 1
  1.1. Vision ......................................................................................................................... 1
  1.2. Governance and leadership ........................................................................................ 2
     1.2.1.     Treasury Acquisition Council (TAC) ................................................................ 2
  1.3. Initial commodity focus ............................................................................................. 2
  1.4. Next Teams Planned .................................................................................................. 3
2. Communications Strategy .................................................................................................. 4
  2.1. Communicating Executive Commitment ................................................................... 4
  2.2. Communicating Commodity Specific Changes ......................................................... 5
  2.3. Treasury Strategic Sourcing Portal ............................................................................ 5
  2.4. Annual OMB Reporting ............................................................................................. 7
3. Training Strategy ............................................................................................................... 8
  3.1. Formal Training ......................................................................................................... 8
  3.2. On-the-Job Learning .................................................................................................. 8
4. Strategic Sourcing Goals and Objectives ........................................................................... 9
  4.1. Performance Measures ............................................................................................... 9
     4.1.1.     Governance Measures ........................................................................................ 9
     4.1.2.     Sourcing Results Measures .............................................................................. 11
     4.1.3.     Communications Strategy Measures................................................................ 12
     4.1.4.     Training Strategy Measures ............................................................................. 12
5. Spend Analysis Status ...................................................................................................... 14
6. Relationship of Treasury Strategic Sourcing Plan to Government-wide activities ......... 16
  6.1. Federal Strategic Sourcing Initiative ....................................................................... 16
  6.2. e-Procurement/Acquisition Requirements Team ..................................................... 17
7. Team Status ...................................................................................................................... 18
  7.1. Office Supplies......................................................................................................... 18
  7.2. Overnight Delivery .................................................................................................. 19
  7.3. Copiers ..................................................................................................................... 19
  7.4. Software ................................................................................................................... 20
  7.5. Cell Phones .............................................................................................................. 20
Appendix A: Treasury Acquisition Council Charter .............................................................A-1
Appendix B: Office Supplies Commodity Management Team Charter ................................ B-1
Appendix C: Personal Wireless Commodity Management Team Charter ............................ C-1
Appendix D: Copier Commodity Management Team Charter ..............................................D-1
Appendix E: Overnight Delivery Commodity Management Team Charter .......................... E-1
Appendix F: Software Commodity Management Team Charter ........................................... F-1




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                                   Department of the Treasury Strategic Sourcing Plan



1. Strategic sourcing overview
The Department of the Treasury has embarked on the collaborative development of a
Department-wide strategic sourcing initiative, coordinated with representatives from the
procurement, small business, information technology, financial, and program management
communities. This plan has been developed based on actual work undertaken over the past
nine months, as well as in coordination with the Treasury Acquisition Council, comprised of
the Department’s most senior procurement leadership, the Office of Small and Disadvantaged
Business Utilization, the Chief Information Officer, and the Chief Acquisition Officer, who is
the Assistant Secretary for Management and Chief Financial Officer.

   1.1. Vision
The logical end game of strategic sourcing in the federal government is for one or more
centers of excellence to emerge for each federal commodity category (with some centers
handling more than one category.) These strategic sourcing centers of excellence will capture
large shares of federal spending on a commodity by consistently delivering the highest value.
They will develop deep insight into the market and life cycle cost drivers, capture and
consistently develop best practice federal requirements, promulgate and implement best
practices around demand management, strategically manage inclusion of targeted socio-
economic firms, and carefully manage commodity contract portfolios to consistently deliver
and improve upon negotiated best values throughout the contract administration phase. The
emergence of these centers of excellence and strategically sourced and managed vehicles will
make it nearly impossible for a single agency to match the value available government-wide
by “going it alone” and will create a competitive shared service delivery mechanism for
procurement across the federal government.

Our vision is to take maximum advantage of federal strategic sourcing cooperation to drive
value into the delivery of Treasury’s mission. Treasury will emerge as a center of excellence
for those commodity groups central to performing our mission.

         Current                      Treasury                        Federal
         practice                   best practice                   best practice




                                  Increasing Value
 $$$                     Prices, process, and small business              $
 Figure 1: Treasury views strategic sourcing maturity on a continuum.


Page 1                                                                      January 31, 2006
                                    Department of the Treasury Strategic Sourcing Plan


   1.2. Governance and leadership
The Department understands that sound governance is critical to overcoming the major
obstacles to a successful Strategic Sourcing Initiative. Strategic Sourcing is, among other
things, a series of change management issues. Without executive buy-in and sound
governance and leadership, any change will fail. Governance, in the Treasury model, deals
with the question of formally embedding Strategic Sourcing into the policies, directives, and
management structures of the organization as a critical step to full cultural acceptance. The
governance model is tightly integrated with the Commodity Management Teams’ (CMTs)
performance and measured results against goals, and our integrated communications strategy
and training strategies. Strategic Sourcing at the Department of the Treasury in January 2006
is a mostly-voluntary, consensus-based, cooperative endeavor, which will succeed or fail
based on the results it delivers, as well as the degree to which these results are broadly known
and understood.

Accordingly, a key to successful Strategic Sourcing is for customers to see enhanced value
from the acquisition process. Our best mechanism for showing this value is to involve these
leaders up-front in the development of enterprise-wide sourcing efforts. This outreach
extends to our major acquisition stakeholders, such as the Treasury CIO and CFO Councils,
as well as their leadership represented in the “Treasury Board of Directors,” a monthly
meeting of Treasury’s Bureau Heads. Each of these groups is targeted in our communications
strategy and our training strategy.

         1.2.1. Treasury Acquisition Council (TAC)
Treasury has established the Treasury Acquisition Council (TAC) to drive Strategic Sourcing.
The TAC is chaired by the Senior Procurement Executive and Deputy Chief Acquisition
Officer and comprises each of the Bureaus’ Chief Procurement Officers. It also includes key
stakeholders, such as the Treasury Chief Information Officer. The TAC charter is included in
Appendix A, and outlines the members, roles, responsibilities, and operations of this
Department-wide Strategic Sourcing Council. The TAC met for the first time in March 2004,
and generated a task force to examine the Department’s spending and recommended 3-5
Commodities for which Commodity Management Teams would be chartered.

   1.3.        Initial commodity focus
In one of its first actions as a newly chartered Council, the Treasury Acquisition Council
(TAC) commissioned a spend analysis study and Spend Analysis Working Group. This
working group studied the Department’s spending in FY04 and recommended five
commodity areas for initial focus. The recommendations focused on testing the Department’s
ability to successfully strategically source commodities across the spectrum of “ease of
implementation.” We wanted to understand how the Treasury culture would respond to
working together on both non-complex and complex commodities. The recommendations
were also based on the participants’ sense (unsupported by data) that reasonable opportunities
for savings existed within the Treasury context.




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                               Department of the Treasury Strategic Sourcing Plan
Five categories were discussed for initial category management efforts


                                                                         Selected
                             Prioritization of Opportunities based on
                             Savings % and Complexity

                             19%        Office Supplies
                                                                                        Example
      Potential Savings %




                             17%



                             15%
                                                   Copiers
                             13%   Express Delivery                                        Print
                             11%                       Temporary Labor       Travel
                                              Furniture
                              9%                                  Lab Services Promotional
                              7%                                 Telecom                     Advertising
                                       Fax/Printers                                    Software
                              5%               IT Contractors
                                                            Meetings                    IT Hardware
                              3%


                            Non-Complex                Ease of Implementation                 Complex
                            Note: Area of circle represents annual spend in category
                                                                                                                5
              Figure 2: Treasury selected five Commodity Management Teams to test our
              ability to achieve savings in complex and non-complex implementation.


   The Spend Analysis Working Group recommended the following five commodities:
      1. Overnight Delivery Services
      2. Office Supplies
      3. Copiers (multifunctional devises)
      4. Cell Phones
      5. Software (non-SmartBuy)

   These five commodity teams were launched in April 2005 and were reported to OMB in
   October 2005.

      1.4.                         Next Teams Planned
   The Treasury Acquisition Council met in December 2005 to review and agree on Treasury’s
   multi-year goals and objectives, and agreed to add two more Commodity Management Teams
   in fiscal year 2006. These are likely to include an Information Technology Services Team as
   well as an HSPD-12 Team. Additionally, the Copiers and Cell Phones Teams have expanded
   their scopes to achieve demand management savings. The Copier Team will include printers
   and scanners to make full use of current technological capabilities and reduce demand for one
   or both items. The Cell Phones team has broadened its scope to include all personal handheld
   wireless devices and services. Treasury expects the percentage of its overall spending under
   review by Commodity Teams undertaking a structured and collaborative process to increase
   each year.




   Page 3                                                                                          January 31, 2006
                                     Department of the Treasury Strategic Sourcing Plan



2. Communications Strategy
The communications strategy includes two main components:
    Communicating Executive Commitment, and
    Communicating Commodity-Specific Changes
    Treasury Strategic Sourcing Portal

   2.1.         Communicating Executive Commitment
The Executive Commitment Strategy is broadly broken into three parts:

        Demand results within the strategic sourcing governance structure. Condition senior
         leaders in the Treasury sourcing governance structure to set powerful goals and
         demand progress reports and accountability.
        Regularly spread the word to standing senior leadership groups (CFO Council, CIO
         Council, Bureau Heads meetings.) Brief important stakeholders and leaders regularly
         on progress and continuously seek cooperation, input and support.
        Ad hoc communications conveying Executive Commitment. Communications
         targeted to a specific opportunity or event where commitment can be reiterated. This
         might include an email congratulating a team after achieving a good result, or speech
         to a group of program staff defining executive commitment to cooperation and
         collaboration when developing acquisition requirements.

Demand results. The development of the Strategic Sourcing Initiative Goals and Objectives,
and their approval by the TAC, is an important step in demonstrating executive commitment
to “demanding results.” We are in the process of improving our team charters to more
explicitly include milestones and to incorporate the approved savings goals. Team progress,
membership, and results will be the main recurring theme used in regular briefings and ad
hoc communications.

Regularly spread the word. The Senior Procurement Executive has briefed the CIO Council
monthly since April 2005 on the progress of the effort. In addition, the SPE meets bi-weekly
on an informal basis with the CIO to discuss modes of mutual cooperation, including but not
limited to strategic sourcing issues.

Quarterly briefings are planned for the CFO Council, and these too have been conducted
since April 2005. The SPE reports directly to the Assistant Secretary & Chief Financial
Officer (who is also the Chief Acquisition Officer) and so the CFO community and
leadership are well informed to relevant aspects of the program.

Finally, the SPE will seek approval from the Treasury Bureau Heads to provide a monthly
progress report as relevant to them at their meeting, as well as to provide quarterly briefings.

Each of these briefings are envisioned to include a red/yellow/green status report of the teams,
include any successes, savings, or new required vehicles, as well as to request assistance to
overcome any organization resistance to change.

Ad hoc communications. It is important for our leadership to be prepared to delivery ad hoc
communications about the strategic sourcing program. An excellent recent example is a


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                                     Department of the Treasury Strategic Sourcing Plan


speech given by the Assistant Secretary for Management & CFO to the IRS Procurement
Leadership annual meeting, in which she articulated her strategic priorities for acquisition
improvement, including strategic sourcing and e-Procurement.

Part of our ad hoc communications strategy is a plan to build collaboration between the
strategic sourcing leadership and the Treasury Enterprise Architecture Council (TEAC) and
other IT organizations, which will result in frequent ad hoc exchanges and the inclusion of
enterprise acquisition thinking in the development of enterprise target architectures and
transition plans. Strategic sourcing staff is involved in IT efforts that may involve strategic
sourcing opportunities, including the enterprise rollout of Enterprise Architecture tools
(METIS), Internet Protocol version 6 transition planning, HSPD-12 policy, and Earned Value
Management policy.

   2.2.        Communicating Commodity Specific Changes
The communications strategy includes activities to make employees aware of awarded or
planned strategic sourcing contracts and policies related to their use. In many cases, this is
done through the work of the team membership, which includes decision makers for their
bureau, who are themselves generating the planned use and policies. Each Commodity
Management Plan outline includes a plan for communications, outreach and adoption
measurement.

Most bureaus have been unable to devote staff to full-time participation on all five of the
Commodity Management Teams, but are nonetheless becoming involved in donating specific
requirements as new acquisition strategies are deployed. These opportunities are
communicated through the TAC, formal Acquisition Bulletins and joint memoranda from the
CIO and Senior Procurement Executive, briefings to management councils (CIO, CFO, and
Bureau Heads) as well as through more one-on-one outreach.

Also, The Office of the Procurement Executive has been developing alternative strategies to
use other communications networks where appropriate. For example, the Purchase Card
management structure will be used to communicate strategic sourcing decisions for office
supplies.

   2.3.        Treasury Strategic Sourcing Portal

OPE has established a password-protected, enterprise-wide portal for Treasury Strategic
Sourcing Information at https://hqapps.treas.gov/sourcing/. It includes a home page to
communicate strategic sourcing news of general interest to all involved in strategic sourcing.
It also has team rooms established to support the work of the five active Commodity
management teams as well as five other bureau-level teams. There are over 125 users with
access to the portal.

The team rooms are used to post meeting minutes, data files related to the commodity, draft
commodity management plans, action items, team charters, and other documents related to
the strategic sourcing efforts. The team rooms also enable links to other sites and outside
documents of interest, for example to OMB’s May 20, 2005 memorandum on strategic
sourcing or GSA SmartBuy site.




Page 5                                                                         January 31, 2006
                                Department of the Treasury Strategic Sourcing Plan




  Figure 3: The Treasury Strategic Sourcing Portal provides a central knowledge base
  and workspace for the 125+ members of the strategic sourcing community at
  Treasury.




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                                 Department of the Treasury Strategic Sourcing Plan




   2.4.       Annual OMB Reporting
A key part of any communications strategy is appropriate communication with key
stakeholders, such as the Office of Management and Budget. The Treasury CAO shall report
annually to the Office of Federal Procurement Policy (OFPP) regarding the status of the
strategic sourcing program, and results achieved.




Page 7                                                                  January 31, 2006
                                      Department of the Treasury Strategic Sourcing Plan



3. Training Strategy
A key constraint to building strategic sourcing into the Treasury culture is building a cadre of
staff, both contracting officers and their program customers, who understand the strategic
sourcing process and value. Treasury’s training strategy is to approach the development of
this cadre through formal and on-the-job learning.

    3.1.        Formal Training
In FY05, the Treasury Acquisition Institute (TAI) commissioned a strategic sourcing training
program and curriculum and offered two classes to begin formally training staff. In FY05,
nine people were trained in TAI classes, and 26 have been trained so far in FY06. TAI will
review its class offerings and continue to improve materials and will consider offering more
advanced topics beyond the basic Strategic Sourcing class now offered.

Formal training is helpful to expose staff to an outside perspective on strategic sourcing. The
fact that a class is offered helps build confidence in staff that strategic sourcing is a discipline
with substance that is supported by the executive management. Finally, formal training helps
build a common vocabulary and shared awareness of common approaches and tools so that
teams will be able to form more quickly and reduce the amount of time spent by teams level-
setting and “norming” prior to achieving results.

    3.2.        On-the-Job Learning
Equally important to classroom learning is the opportunity to apply that learning to actual
situations. Participating in a Commodity Management Team, even prior to obtaining formal
training, supports involvement, understanding and buy in across the enterprise.

Over 50 people have been involved to date on Treasury’s five Commodity Management
Teams. This involvement exposed them to the Strategic Sourcing methodology, weekly or bi-
weekly meetings to share commodity good practices, and reduced the communications
burden by developing a cadre of staff who understand the benefits and obstacles involved in a
strategic sourcing effort.




Page 8                                                                            January 31, 2006
                                      Department of the Treasury Strategic Sourcing Plan



4. Strategic Sourcing Goals and Objectives
The Treasury Acquisition Council has established agency-wide Goals and Objectives
performance measures and reporting requirements in order to monitor and continuously
improve the strategic sourcing program. The goals and measures reflect some of the critical
success factors for a major change management effort, and also reflect the required plan
elements in the OMB memorandum, “Implementing Strategic Sourcing” dated May 20, 2005.
It is expected that routine communication of progress against these goals will form the basis
of communications and outreach to key stakeholder groups in 2006. The approved Treasury
performance measures and annual goals are captured in Figure 4, below, and explained and
defined in the following sections.

Goals, Objectives & Measures                                         FY06     FY07     FY08
•Governance
     Charter Treasury Acquisition Council
     Charter Commodity Management Teams                                7       7        7
     % of spend under Commodity Management Team                       26%     26%      26%
     Team progress v. milestones

•Sourcing Results
     Savings (process & price) ($ millions)                          $ 1.5    $ 5.6   $ 7.8
     Socio-economic goal deltas                                       +2%      +5%     +5%
     Commodity-specific measures
     Performance improvements (descriptive)

•Communications Strategy
     Communications Plan progress v. milestones
     Acquisition staff have sourcing or small business goals
     in their annual performance plans

•Training Strategy
     Build training curriculum
     # people formally trained                                         30      50       70
     # people on Commodity Management Teams                            49      49       49


 Figure 4: The Treasury Acquisition Council (TAC) approved these goals
 formally at its December 8, 2005 meeting.


   4.1.        Performance Measures
Performance measures are designed to track the annual accomplishments defined by the
Strategic Sourcing Goals and Objectives.

         4.1.1. Governance Measures
These measures are designed to ensure that the Strategic Sourcing Initiative and the Teams
are chartered and built into existing Treasury governance structures, and making progress
against the plan. This is critical to the process of embedding strategic sourcing in the culture,
managing and communicating progress of the Commodity Management Teams, and to

Page 9                                                                          January 31, 2006
                                   Department of the Treasury Strategic Sourcing Plan


interface and communicate with other governance bodies to build executive support for the
initiative.

           4.1.1.1. Charter Treasury Acquisition Council
The specific measure is a “yes/no” measure reflecting whether or not the governance
documents are in place and the body is fulfilling its role as chartered. The TAC was chartered
on April 28, 2005, and has met monthly since inception.


             4.1.1.2. Charter Commodity Management Teams
Like the previous measure, the test of chartered or not is “yes/no.” However, the measure
itself reflects the count of the formally chartered Commodity Management Teams (CMTs).
The Treasury Acquisition Council and five CMTs were all chartered in FY2005. These
charters are included in Appendixes B through F. Treasury plans to charter two additional
teams in FY06, for IT Services and HSPD-12.


           4.1.1.3. Percentage spend under Commodity Management Team
Under the hypothesis that strategic sourcing leads to savings, and given that teams with a
given scope are implementing this effort, it is important to measure how much of the
Department’s spending is being put under management scope of a team. This is captured in
the “% spend under Commodity Management Team,” which is calculated as:

                             [Dollars spending in teams’ scope]
                                [Total Treasury Spending]

No structured and collaborative process is likely to take place outside of a Commodity
Management Team structure.




Page 10                                                                     January 31, 2006
                                                Department of the Treasury Strategic Sourcing Plan



            4.1.1.4. Team Progress vs. Milestones
This is an in-process measure, which is important because unless teams are moving through
the structured sourcing process savings will not be generated. This is a leading indicator of
the likelihood of eventual savings. Beginning in 2006, this measure will be displayed as a
“red/yellow/green” based on team progress reports and timely achievement of milestones
with defined entry and exit criteria:


    Treasury Strategic Sourcing Approach
           [date]              [date]              [date]                  [date]           Per Plan              Per Plan
                                                                          Develop                                 Implement
                                Profile             Analyze                                    Issue RFx &
           Form Team                                                      Commodity                                 & Manage
                                Commodity           Market                                     Negotiate
                                                                          Strategy                                Performance


    Entry Criteria          Entry Criteria      Entry Criteria      Entry Criteria            Entry Criteria     Exit Criteria
    • Treasury              • Signed charter    • Approved          •Approved Commodity       • Approved         • Lessons learned
      Acquisition Council                         Commodity          Profile                    Commodity          documented (prior
      (TAC) approves     Exit Criteria            Profile           •Approved Market            Management         to commodity
      team launch        • Refined/ validated                        Analysis                   Plan               strategy refresh)
                           commodity            Exit Criteria       •(Lessons learned for                        • Contract closeout
    Exit Criteria          definition (in/out   • Completed          strategy refresh)          Exit Criteria
    • Team membership      items) & spend         analysis of                                   • Contract
      stable             • Current contracts      industry trends   Exit Criteria                 awarded (or
    • Team goals           inventory            • Supply and        •Commodity Management new source
      approved           • Current                demand levers,     Plan approved by TAC         otherwise
    • Meeting logistics    Commodity              potential new      including:                   available)
      agreed               inventory              suppliers/          detailed project plan for
    • Team ground rules • Understand              sources             acquisition with
      documented           requirements         • Negotiation         implementation milestones
    • Approach milestone • Current socio-         levers              commodity performance
      dates agreed         economic content                           baseline measures &
    • CMT charter signed                                              measurement
      by all members                                                  methodology
                                                                      communications &
                                                                      training plan



Figure 5: In-process progress will be measured using the Treasury Strategic
Sourcing Approach.

        4.1.2. Sourcing Results Measures
The measures in this section exceed the minimum measures required by OMB:
    Reductions in the prices of goods and services
    Reductions in the cost of doing business
    Improvements in performance
    Changes in achievement of socio-economic acquisition goals at the prime contract
      and, if possible, the subcontract level.

Treasury is in the process of developing methodologies for each CMT for establishing
baseline data and subsequent changes to this baseline. We will consistently apply these
methodologies throughout the strategic sourcing process.




Page 11                                                                                                         January 31, 2006
                                   Department of the Treasury Strategic Sourcing Plan


          4.1.2.1. Savings
   1. Reductions in the prices of goods and services. This is the measure of “hard dollar”
      direct savings, but must be applied to the total cost of ownership over a product or
      service life cycle. Developing accurate total cost of ownership models with which to
      baseline results is a non-trivial exercise, but is important to avoid declaring savings,
      for example, on the purchase price of a printer without considering the cost of toner
      over the life cycle. A more expensive printer at purchase may result in life cycle
      savings through less expensive toner. Treasury intends to build its commodity-by-
      commodity models and review them with outside auditors for validation.
   2. Reductions in the cost of doing business. These are the reductions in staff time or
      indirect dollars required. This might include, for example, space savings, reduced
      training requirements, or reduced cost of acquisition and contract administration.
   3. Improvements in performance. Strategic sourcing may not always focus on lower
      prices, but may also include strategic improvements in capability that more effectively
      support the mission.

           4.1.2.2. Socio-economic Goal Deltas
   4. Each commodity management plan must include a baseline of current spending with
      companies in targeted socio-economic categories. Any changes in the achievement of
      socio-economic acquisition goals will be reported at the prime contract and, if
      possible, the subcontract level. It is Treasury’s policy to use the structured and
      collaborative process strategic sourcing affords to improve our performance with
      respect to achieving socio-economic targets. The Office of Small Business
      Development in consultation with the Small Business Administration establishes
      annual socio-economic goals. The metric defined for the Strategic Sourcing initiative
      is to contribute a percentage of spend toward any shortfall in Treasury’s current goal
      achievement (for example - to close the gap by 2% on Service Disabled Veteran
      business).

       4.1.3. Communications Strategy Measures
Communications strategy execution will be measured using two indicators.

           4.1.3.1. Communications plan progress vs. milestones
This will measure whether or not we have carried out our communication plan to:
    Brief the TAC monthly
    Brief the CIO Council monthly
    Brief the Bureau Heads Meeting quarterly
    Brief the CFO Council quarterly
    Ongoing reporting to and support from CAO
    Reports to OMB, as required

            4.1.3.2. Acquisition Staff have sourcing or small business goals in
                   their annual performance plans
This will indicate the number of BCPOs with strategic sourcing or small business goals in
their annual performance plans.

       4.1.4. Training Strategy Measures
We will measure training with three indicators.


Page 12                                                                     January 31, 2006
                                  Department of the Treasury Strategic Sourcing Plan


           4.1.4.1. Build training curriculum
This was accomplished in FY05 and will be reviewed and improved each year.

           4.1.4.2. Number of people formally trained
In FY05, over 10 people were trained. We will monitor FY06 results against the approved
training goal of 30 staff.

          4.1.4.3. Number of people on Commodity Management Teams
In FY05, over 50 people were involved with sourcing teams part-time, and over 125 involved
in the community portal.




Page 13                                                                   January 31, 2006
                                         Department of the Treasury Strategic Sourcing Plan



5. Spend Analysis Status
In February 2005, the Treasury Acquisition Council formed a Spend Analysis Sub-team to
review sources of Treasury spending data with a view toward recommending commodities
for initial strategic sourcing. The limits to the ability of the federal government to obtain
detailed spending information are well known, so the team focused on a multi-analysis
approach that provided enough information to begin moving, without spending too long
perfecting spend analysis at the expense of working toward actual savings and socio-
economic results.


  Spend Analysis Approach
                        Directional Analysis

  FEB 05                                                        APR 05
                • Produced Treasury Spend Analysis
                  based on extrapolated IRS analysis
                • Supported initial CMT selection

                          Further Analysis from Database of Record

  FEB 05                                                                                             MAY 05


     • Established Codes               • Produced Spend Analysis     • Documented Methodology
     • Identified Data Sources           based on FPDS-NG              Noted Gaps: No codes and
     • Selected needed Data Elements                                   Miscodes- Analyze/code JUN 05
     • Mapped Data to Codes


      Supporting Bureau Spend Analyses                     Further Spending Category Analysis



    • IRS detailed analysis- Completed CY2004            • Underway: Cell Phones, Copiers, Overnight
    • U.S. Mint detailed analysis- Completed FY2003        Delivery, Office Supplies and Software teams
    • ARC, OCC - underway, target completion FY2005        pulling contracts and inventories


                                                                            For Official Use Only   11




  Figure 6: The Department of the Treasury has looked at its spending in a
  number of ways, each intended to provide the right level of detail for the
  decisions at hand and to learn lessons for the next year’s analysis.


The basic Treasury philosophy toward spend analysis is to use existing sources to provide a
directional analysis to choose commodity areas for deeper strategic sourcing analysis.
Commodity Management Teams will then develop the more detailed information needed
(spend and other information) to develop commodity profiles and a sourcing strategy to drive
improvement. Finally, newly sourced contracts should be designed to require management
information that will allow the teams in subsequent strategic sourcing phases quickly to
review spend and other data to develop further improvements without repeating the
exhaustive research.



Page 14                                                                                       January 31, 2006
                                                     Department of the Treasury Strategic Sourcing Plan


 The FY05 Spend Analysis resulted in the development of the spend categories defined in
 Figure 7. The directional spend analysis has served as a tool to help define follow-on
 Commodity Management Teams, which for now will be focused on IT Technical Services,
 with estimated annual spend $931 million.


The categories map into the draft spend analysis “families”

   Equipment – $110m                                                     Information Technology – $1,803m
   •Structures/construction – $5m                                        •Hardware – $136m
   •Business equipment – $32m                     Copiers –              •Software – $165m                            Software –
   •Furniture – $43m                               $19m                  •Network – $127m                              $165m
   •Capitol Equipment – $4m                                              •Telecom – $324m
   •Automotive – $19m                                                    •Technical services – $931m                Cell phones –
   •Enforcement equipment – $7m                                          •IT maintenance – $118m
                                                                         •IT operations – $2m                           $10m
   Legal & Compliance
   Services – $62m                                                       Utilities – $44m
   •Legal services – $18m                                                •Electricity – $17m
   •Court services – $4m                                                 •Natural gas – $2m
   •Witness services – $17m                                              •Fuels – $4m
   •Locator services – $14m                                              •Water/waste – $1m
   •Evaluation & appraisal – $6m                                         •General utilities – $20m
   •Compliance management – $4m                                          Professional Services – $348m
                                                                         •Engineering/technical services – $6m
   Logistics – $302m                                                     •Consulting/staff support – $42m
   •Records retention – $43m                                             •Advertising – $28m
   •Shipping/trucking/air – $7m                                          •Financial services – $38m         Inventory
                                                Express
   •Mail services – $245                                                 •Business services – $220m         of service
   •Logistics services – $7m
                                            delivery – $24m              •Technical grants – $14m
                                                                                                            contracts
                                                                                                            underway
   Operations & Supplies – $933m                                         Support services – $1,081m
   •Maintenance Services & Equip. – $71m                                 •Facilities administration – $910m  for small
   •MRO – $1m                                                            •HR & employee benefits – $168m    business
   •Supplies – $58m                    Office supplies                   •Travel – $3m                          and
   •Printing/Printing services – $88m      – $42m
   •Metals* – $715m
                                                                         Construction – $??                   savings
      NOTES: Estimates of spending based on IRS obligations (times 1.2) to estimate Treasury-wide spending. Metals added at         6
      recommendation of US Mint – value per U.S. Mint Spend Analysis, July 31, 2003, p.7. Construction added per request of BPD



     Figure 7: Treasury has mapped and grouped Commodity spending into
     Categories to enable eventual category management.




 Page 15                                                                                                             January 31, 2006
                                     Department of the Treasury Strategic Sourcing Plan



6. Relationship of Treasury Strategic Sourcing Plan to
   Government-wide activities
   6.1.        Federal Strategic Sourcing Initiative
Treasury created and is actively involved in the Federal Strategic Sourcing Initiative, which
was kicked off in November 2005, and which launched five Federal Strategic Sourcing
Initiative Teams in December 2005. This is fully consistent with our vision:

Our vision is to take maximum               Current              Treasury                      Federal
                                            practice           best practice                 best practice
advantage of federal strategic
sourcing cooperation to drive value
into the delivery of Treasury’s
mission. Treasury will emerge as a
center of excellence for those
commodity groups central to
performing our mission.
                                                                Increasing Value
                                         $$$           Prices, process, and small business       $

The five FSSI teams were selected because of the high degree of redundant effort on the same
commodities reported by multiple Departments to OMB in October 2005. Because these
commodities represent logical starting places for a strategic sourcing program, there is no
coincidence that other Departments’ decisions have a high degree of overlap with the five
Treasury Commodity Management Teams chartered in April 2005.

Treasury Teams                                    Federal Strategic Sourcing Teams
Overnight Delivery                                Domestic Overnight Delivery
Cell Phones                                       Personal Wireless Services and Devices
Copiers (multi-function—expanding to              Copiers (multi-function)
include printers)
Office Supplies                                   Office Supplies
Software (non-SmartBuy)
                                                  IT Products and Services (initially printers)

Treasury’s involvement in the teams requires little additional effort, but is hoped may result
in either the identification of better values for Treasury, or the identification of commodities
in which Treasury can provide a Federal best practice. This is the essence of our vision for
participating and benefiting from a strong federal strategic sourcing program.

Despite the fact that the FSSI Teams will have met only three times by the time this report is
submitted, it is clear that opportunities to work together are real. Even if the relatively large
obstacles to working together across Agency boundaries cannot be immediately overcome,
there has been value in the exercise of sharing good practices and information that will likely
benefit Treasury and other agencies.




Page 16                                                                                 January 31, 2006
                                                      Department of the Treasury Strategic Sourcing Plan


   6.2.        e-Procurement/Acquisition Requirements Team
Electronic procurement has been a critical enabler of strategic sourcing in the private sector
because it provides an efficient mechanism for driving availability of the newly sourced
products and services, as well as an important compliance and data collection mechanism for
the continuous improvement of commodity strategies.

Treasury does not yet have a shared, enterprise-wide vision for e-procurement, although it
has several e-procurement tools within the enterprise (and has recommended the use of the
DoD E-Mall e-procurement tool for office supplies.) Treasury is actively participating in the
Acquisition Requirements Team (ART) initiative, which is developing a government-wide
set of requirements for Contract Writing Systems (CWS) and, indirectly, e-procurement. This
effort will drive some common requirements and tools as was done for financial management
and accounting systems.

Developing a shared, enterprise-wide tool will provide important support for strategic
sourcing because a single tool naturally calls for simplified content, which strategic sourcing
provides. Treasury expects any tools it uses to enable access to products and services
strategically sourced by Treasury, or available through other government-wide efforts, such
as the Federal Strategic Sourcing Initiative.


            $                                                                   Best in Fed
                                                   e-Procurement (2)
                          Strategic Sourcing (1)




  Prices &
   Small
  Business



     $$$                                           We are here




                                                              Process
                                                             efficiencies


 Figure 8: e-Procurement is a critical enabler of a total strategic sourcing solution


Page 17                                                                                      January 31, 2006
                                        Department of the Treasury Strategic Sourcing Plan



7. Team Status
Each of the teams has developed one or more initial commodity strategies approved by the
Treasury Acquisition Council. Each strategy is in various stages of implementation or refresh,
as outlined below.
                                                   Current                   Treasury                  Federal
The teams have been very successful          practice           best practice              best practice
at opening channels of communication
among the bureaus, sharing good
practices, and influencing behavior.
Participation in the teams is voluntary,
as is adoption of their recommended
strategies. However, there have been
notable successes in each team that
                                                                Increasing Value
have reduced the tendency for each        $$$          Prices, process, and small business     $
bureau to “go it alone” as we engage
in the process on collapsing our bureaus’ sources toward a “Treasury best practice” on our
way to enabling more flexibility to adopt emerging “federal best practice.”

                                                                                   Develop                   Implement
                                                             Profile     Analyze               Issue RFx &
    7.1.         Office Supplies                 Form Team
                                                             Commodity   Market
                                                                                   Commodity
                                                                                   Strategy
                                                                                               Negotiate
                                                                                                               & Manage
                                                                                                             Performance

The office supplies team identified three general sets of requirements across the Department
for office supplies:
     Secured Delivery;
     JWOD Paperclips store; and
     Open market

In addition to identifying these requirements, it has conducted market basket surveys of
pricing, socio-economic content by source, and spend analysis, including the initial
identification of core spending items. The market basket spend approach not only allows
some comparison of best values among bureaus and sources, but will provide a savings
estimation baseline and reporting capability.

Secured Delivery. Two bureaus, IRS and OCC, engage large business vendors to deliver
office supplies to the desktop by drivers with the requisite security clearances and badges.
The use of large contracts has allowed for good price discounts and a high degree of customer
satisfaction with timely delivery of office supplies, bypassing mail room delays that have
gotten worse since 9/11 and the anthrax terror events. The team has successfully managed to
assure that the IRS re-compete of its existing secured delivery contracts will be scoped to
enable participation by the rest of Treasury’s bureaus, should it prove strategic to do so. To
date, OCC, FMS, TTB, and FinCEN have articulated interest and requirements to participate
in this IRS-executed acquisition. If nothing else, the use of the IRS vehicle by OCC may
result in somewhat better pricing, as well as a reduction in the number of Treasury contracts
for secured delivery.

JWOD Paperclips store. Treasury’s Departmental Offices use a JWOD vendor as a
mandatory source for office supplies. The strategy calls for efforts to improve that



Page 18                                                                                        January 31, 2006
                                    Department of the Treasury Strategic Sourcing Plan


relationship, perhaps by identifying other entities, Treasury or non-Treasury, who could use
the store, or its online ordering engine.

Open Market. For open market purchases using purchase cards, which represent most
bureaus’ approach, the Commodity Management Team recommended the use of the DoD E-
Mall. The E-Mall is a dynamic, electronic marketplace, which provides federal best value
pricing, excellent small business content, and e-procurement conveniences such as routable-
for-approval shopping carts, and item-level purchase data. The average savings compared
with retail can amount to over 40% per purchase. Moreover, over 60% of all purchases in our
study resulted in a small business buys, a much higher percentage than on typical open
market buys.

To date, one bureau, TTB, has mandated use of the DoD E-Mall. They have reported high
satisfaction with the results, and estimations of savings and socio-economic improvements
are pending.
                                                                                Develop                    Implement
   7.2.        Overnight Delivery             Form Team
                                                          Profile
                                                          Commodity
                                                                      Analyze
                                                                      Market
                                                                                Commodity
                                                                                Strategy
                                                                                             Issue RFx &
                                                                                             Negotiate
                                                                                                             & Manage
                                                                                                           Performance

The Overnight Delivery Team has successfully identified a Treasury-wide strategy for
improving pricing while maintaining service levels. The IRS has managed its transportation
program for years with very significant discounts below any available to other bureaus. The
team was able to present the value proposition to the Treasury Acquisition Council, and has
received virtually 100% support for participating in a Treasury-wide re-compete scheduled
for March 2006. Bureaus that were not previously involved in the team’s deliberations have
begun sending representatives, and volunteered to take part in requirements generation and
proposal evaluation.

Further, the newly-unified Treasury team is fully engaged in the Federal Strategic Sourcing
Team effort to re-compete the GSA contracts for domestic overnight delivery, along with
several other federal departments. Treasury plans to lend its spending volumes to that effort,
under GSA leadership, if the FSSI team moves quickly to implement its strategy such that
Treasury’s expected level of competition and result will be preserved. In this way, Treasury
will be helping to drive savings across the entire federal government (as well as potentially to
benefit from more intense competition for larger federal-wide business volumes.)
                                                                                Develop                    Implement
   7.3.        Copiers                        Form Team
                                                          Profile
                                                          Commodity
                                                                      Analyze
                                                                      Market
                                                                                Commodity
                                                                                Strategy
                                                                                             Issue RFx &
                                                                                             Negotiate
                                                                                                             & Manage
                                                                                                           Performance

Treasury is a major player in the federal copier market. FedSource has over 12,000 copiers
under contract, and the IRS has over 4,000 copiers in operation. The team has made
significant progress in defining best practice requirements for copiers by usage level, and
developed four “Treasury Best Value” vehicles available Treasury-wide (and, in one case,
across the federal government) that represent highly competitive pricing and value.

The IRS’ National Copier Contract has reduced the number of contracts managed from
hundreds to three. In FY05, over 1,800 legacy copiers were replaced by NCC copiers, with
significant estimated savings, both in terms of monthly lease and maintenance, but also in
terms of contract administration. This innovative copier strategy led to the ability of
FedSource to negotiate significant discounts with one of its major vendors, which is already
benefiting both Treasury and non-Treasury customers.




Page 19                                                                                     January 31, 2006
                                    Department of the Treasury Strategic Sourcing Plan


In addition to developing better priced contracting vehicles, the team is actively engaged in
pursuing further demand management strategy of using the multifunctional capability of
already installed machines to reduce the amount the Department needs to spend on network
printers and scanners. It is estimated that the Department has an inventory of over 75,000
printers, many of which could be eliminated with better cross-device planning.

Treasury is actively engaged in bringing these best practices to the Federal Strategic Sourcing
Initiative team, which includes departments with over 50,000 copiers in inventory.

                                                                                  Develop                   Implement
                                                            Profile     Analyze               Issue RFx &
                                         Form Team                                Commodity                   & Manage
   7.4.        Software                                     Commodity   Market
                                                                                  Strategy
                                                                                              Negotiate
                                                                                                            Performance


The software team has been working to refine its approach to “get ahead of the requirement.”
The software commodity is one of the most complex to strategically source because installed
base software often generates a sole source follow-on requirement, providing little flexibility
to negotiate better terms. The team has partnered with IT staff in many forums to understand
what is coming and to recommend acquisition approaches that preserve negotiation leverage,
as well as to help Treasury purchase its software with an enterprise spend.

The Chief Information Officer and Senior Procurement Executive have mandated that the
software team manage future purchases of Gartner licenses centrally. The team expects
savings of between $100-250K on advisory seats alone by using a treasury-wide vehicle
instead of individual bureau contracts, which should be available as soon as late spring 2006.

Also, the Software Team is actively engaged in facilitating the development of enterprise
requirements for METIS software, hardware, and services that are central to capturing and
reporting the Department’s Enterprise Architecture. The METIS IPT is one of the key
initiatives of the Treasury Enterprise Architecture Committee, and listed as an
accomplishment in Treasury’s e-government scorecard.
                                                Phase II                                               Phase I
                                                                                  Develop                   Implement
                                                           Profile      Analyze               Issue RFx &
   7.5.        Cell Phones              Form Team
                                                           Commodity    Market
                                                                                  Commodity
                                                                                  Strategy
                                                                                              Negotiate
                                                                                                              & Manage
                                                                                                            Performance

The Cell team has completed inventories of cell phone plans and usage, and promulgated
good practices for reducing the amount spent while maintaining end-user service levels. OCC
used a hybrid contracting strategy to effectively manage the number of minutes purchased to
better reflect the minutes demanded. This reduced the effective monthly cost of OCC cell
phone plans by $5 / month, about 15%, without requiring any negotiations with the providers.
The IRS has undertaken a similar demand management activity, as well as reducing the
number of phones on higher priced plans, generating significant savings. The baseline for the
savings is under review.

The team is undergoing an outreach activity to communicate the value of these demand
management approaches to non-participating bureaus as a means to expand the savings and
harmonize toward Treasury best practices.

Treasury is participating in the Federal Strategic Sourcing Initiative Wireless Personal
Services and Devises team, and expects to take full advantage of resulting awareness of
federal best practice, or any negotiated vehicles that result.




Page 20                                                                                       January 31, 2006
                                                        Treasury Acquisition Council Charter




Appendix A: Treasury Acquisition Council Charter

1. Purpose and Authority

The Treasury Acquisition Council (TAC) provides a forum for senior leaders to work
together to create a world-class acquisition system (people, process, organization, and
technology) across the Department of the Treasury.

The TAC is formed under the authority of Treasury Directive 12-11, dated March 26, 2002.
The TAC unanimously approved this charter on April 28, 2005.

2. Scope

The TAC will develop and implement a strategy and initiatives to continuously improve
acquisition performance. The TAC will provide a forum for the Bureau Chief Procurement
Officers and other interested stakeholders to coordinate cross-cutting policy and management
issues, develop and implement innovative acquisition approaches, share best practices and
lessons learned, oversee and track progress against improvement goals, and make other
decisions on issues that have a potential for Treasury-wide impact on acquisition and
financial management programs.

3. Composition

The composition of the TAC is as follows:
    Senior Procurement Executive and Deputy Chief Acquisition Officer – Chair
    Director, Acquisition Services Division, Office of the Comptroller of the Currency
    Chief, Office of Procurement, Bureau of Engraving & Printing
    Assistant Director for Administrative Services, Financial Crimes Enforcement
      Network
    Director, Acquisition Management Division, Financial Management Service
    Director, Procurement, Internal Revenue Service
    Manager, Procurement Management, Office of Thrift Supervision
    Director of Procurement, U.S. Mint
    Chief Procurement Officer, Bureau of the Public Debt
    Director, Procurement Services Division, Departmental Offices
    Director of Acquisition and Procurement, Alcohol and Tobacco Tax and Trade
      Bureau
    Director, Community Development Financial Institutions Fund

Each TAC member may designate one individual by name to serve as an alternate in case of
the principal’s absence. However, since TAC meetings are regularly scheduled, the need for
alternates should be minimal and avoided. If an alternate attends the TAC meeting, they will
act with the full authority of the principal member.

It is the intention of the TAC to identify additional members representing other important
stakeholders in the acquisition process, including but not limited to:


A-1                                                                          January 31, 2006
                                                          Treasury Acquisition Council Charter



      Customer representative(s)
      CIOs
      CFOs

Nominations for additional members of the TAC may be approved by a simple majority of
the sitting TAC.

The TAC will include ex officio members, for the moment limited to representative(s) of the
Office of the Inspector General and/or Treasury Inspector General for Tax Administration
(TIGTA). Ex officio members may be added or removed by the Chair.

4. Roles and Responsibilities

The TAC serves as an advisory body to the Senior Procurement Executive and will arrive at
decisions based on a method to be agreed by the TAC as the situation warrants. The Office of
the Procurement Executive (OPE) will coordinate the activities of the TAC and provide
administrative support. TAC members will liaise with senior officials and external agency
officials as appropriate.

The TAC shall be responsible for the following:

       A. Strategic Management of Treasury’s Acquisition Function

The TAC will adopt a strategic agenda, with goals, for its activities. It should address areas
of common interest or common needs of the Treasury acquisition community and identify
goals and performance measures for the acquisition system in support of Departmental and
Bureau business goals.

       B. Facilitate Reengineering and Continuous Improvement

The TAC shall facilitate reengineering and continuous improvement to drive process and
price savings and increased small business participation through the exchange of ideas and
shared experiences, assignment of staff to support special projects and strategic initiatives,
and representation of the TAC’s activities to the broader Departmental audience.

       C. Special Projects and Standing Teams

The TAC may charter task forces and standing teams to carry out special projects as well as
ongoing coordination and management activities.

5. Operations of the TAC

The TAC meets on the last Thursday of each Month, or as needed, at the discretion of the
Chair. The agenda for the meeting is provided to each TAC member one to two days prior to
the meeting. TAC members are encouraged to add items to the agenda. A meeting report of
TAC meetings will capture the major points discussed, decisions taken, and action items.




A-2                                                                            January 31, 2006
                              Office Supplies Category Management Team Charter



Appendix B: Office Supplies Commodity Management
Team Charter
1. Purpose and Authority

The Commodity Management Team (CMT) provides a working group for procurement and
commodity stakeholders to work across the Department of the Treasury Bureaus to develop
and implement commodity-based plans to improve the price, quality of service, ordering or
fulfillment processes, and overall value delivered by office supplies vendors. As part of these
plans, CMT members will understand the current state of the commodity, the desired future
state, and plans to achieve that future, including contracting actions, process changes,
communications, compliance, and measurement. The CMT will be responsible for drafting a
Commodity Management Plan as well as for providing annual reports to OPE on the status of
the commodity for use in the Treasury submission to OMB. The CMT will be a standing
working group that will periodically review and update these plans as part of continuous
improvement.

The CMT is formed under the authority of Treasury Acquisition Council, and pursuant to
OMB memorandum dated 5/20/2005.

2. Scope

The CMT will develop and implement a strategy and initiatives to continuously improve
acquisition performance with respect to Office Supplies.

3. Composition

The composition of the CMT is as follows:

Eischens      Deirdre J    deirdre.eischens@occ.treas.gov
Gordon        Steve        Steve.Gordon@do.treas.gov
Kates         Linda        Linda.Kates@irs.gov
Martin        Estelle      Estelle.Martin@ttb.gov
McDowell      Joann        Joann.M.McDowell@irs.gov
Rountree      Natasha      Natasha.Rountree@fms.treas.gov
Shirley       Sharon L     sharon.shirley@occ.treas.gov
Smith         John         John.T.Smith@irs.gov
Sutherland    Frank        Frank.Sutherland@occ.treas.gov
Taylor        Sherry       Sherry.Taylor@occ.treas.gov
Thomas        Ed           Edward.L.Thomas@irs.gov
Wilbur        Willie       Willie.Wilbur@fms.treas.gov
Youel-Page    Kevin        Kevin.Youel-Page@do.treas.gov
Young         Kathleen     Kathleen.Young@fms.treas.gov



B-1                                                                          January 31, 2006
                                Office Supplies Category Management Team Charter


Zeigler       Rose        Rose.M.Zeigler@irs.gov

Additional members of the CMT may be approved by the Sr. Procurement Executive or
his/her appointed representative in OPE.

4. Roles and Responsibilities

The CMT serves as a standing team of the TAC and will arrive at decisions based on a
method to be agreed by the CMT as the situation warrants. The Office of the Procurement
Executive (OPE) will coordinate the activities of the CMT and provide administrative
support. CMT members will actively brief their Chief Procurement Officers and other bureau
officials as appropriate.

5. Operations of the CMT

The CMT meets each Wednesday at 1pm, or as needed, at the discretion of the SPE. The
meeting may be attended in person or by telephone conference. OPE has established a portal
for use by the team, at https://hqapps.treas.gov/sourcing/ which will contain meeting notes
and other documents to be shared by the team.




B-2                                                                        January 31, 2006
                           Personal Wireless Category Management Team Charter



  Appendix C: Personal Wireless Commodity Management
                      Team Charter
                              Updated January 5, 2006
1. Purpose and Authority

The Commodity Management Team (CMT) provides a working group for procurement and
commodity stakeholders to work across the Department of the Treasury Bureaus to develop
and implement commodity-based plans to improve the price, quality of service, ordering or
fulfillment processes, and overall value delivered by vendors. As part of these plans, CMT
members will understand the current state of the commodity, the desired future state, and
plans to achieve that future, including contracting actions, process changes, communications,
compliance, and measurement. The CMT will be responsible for drafting a Commodity
Management Plan as well as for providing annual reports to OPE on the status of the
commodity for use in the Treasury submission to OMB. The CMT will be a standing working
group that will periodically review and update these plans as part of continuous improvement.

The CMT is formed under the authority of Treasury Acquisition Council (TAC), and
pursuant to OMB memorandum, “Implementing Strategic Sourcing,” dated 5/20/2005.

2. Scope

The CMT will develop and implement a strategy and initiatives to continuously improve
acquisition performance with respect to Personal Wireless services and devices. The scope
includes cell phones, Blackberries and other personal digital assistants, pagers, wireless
modem cards, and other devices that utilize similar vendor networks. This includes voice and
data, as well as other commercially available services. Wireless services that will not be
considered are Wi-Fi, Land Mobile Radio, Wi-Max, Satellite and classified services.

3. Composition

The composition of the CMT is as follows:

Last Name    First Name    E-mail Address
Ayers        Patrick       patrick.ayers@fincen.gov
Brown        Jarnice       Jarnice.v.brown@irs.gov
Brown        Marguerite    Marguerite.brown@occ.treas.gov
Caplinger    Shiela        Sheila.Caplinger@bpd.treas.gov
Darcy        Maureen       Maureen.Darcy@occ.treas.gov
King         Bonnie        Bonnie.King@do.treas.gov
Martin       Estelle       Estelle.martin@ttb.gov
McAllister   Tom           Thomas.m.mcallister@irs.gov
Rountree     Natasha       Natasha.Rountree@fms.treas.gov



C-1                                                                        January 31, 2006
                           Personal Wireless Category Management Team Charter


 Schultz Rory              Rory.SCHULTZ@do.treas.gov
 Vezeris Pete              Pete.Vezeris@irs.gov
Youel-Page Kevin           Kevin.Youel-Page@do.treas.gov


Additional members of the CMT may be approved by the Sr. Procurement Executive or
his/her appointed representative in OPE.

4. Roles and Responsibilities

The CMT serves as a standing team of the TAC and will arrive at decisions based on a
method to be agreed by the CMT as the situation warrants. The Office of the Procurement
Executive (OPE) will coordinate the activities of the CMT and provide administrative
support. CMT members will actively brief their Chief Procurement Officers and other bureau
officials as appropriate.

5. Operations of the CMT

The CMT meets alternate Wednesday at 10am, or as needed, at the discretion of the SPE.
The meeting may be attended in person or by telephone conference. For 2006, the dial in
number is 202 927 2255 code 821579. OPE has established a portal for use by the team, at
https://hqapps.treas.gov/sourcing/ which will contain meeting notes and other documents to
be shared by the team.




C-2                                                                        January 31, 2006
                                        Personal Wireless Category Management Team Charter


The team shall work through the following basic approach, with a planned milestone for the
exit criteria for each chevron:


Treasury Strategic Sourcing Approach: Personal Wireless
      1/6/06                2/6/06              3/6/06                4/06/06            Per Plan             Per Plan
                                                                       Develop                                Implement
                             Profile             Analyze                                    Issue RFx &
         Form Team                                                     Commodity                                & Manage
                             Commodity           Market                                     Negotiate
                                                                       Strategy                               Performance


 Entry Criteria          Entry Criteria      Entry Criteria      Entry Criteria            Entry Criteria    Exit Criteria
 • Treasury              • Signed charter    • Approved          •Approved Commodity       • Approved        • Lessons learned
   Acquisition Council                         Commodity          Profile                    Commodity         documented (prior
   (TAC) approves     Exit Criteria            Profile           •Approved Market            Management        to commodity
   team launch        • Refined/ validated                        Analysis                   Plan              strategy refresh)
                        commodity            Exit Criteria       •(Lessons learned for                       • Contract closeout
 Exit Criteria          definition (in/out   • Completed          strategy refresh)          Exit Criteria
 • Team membership      items) & spend         analysis of                                   • Contract
   stable             • Current contracts      industry trends   Exit Criteria                 awarded (or
 • Team goals           inventory            • Supply and        •Commodity Management new source
   approved           • Current                demand levers,     Plan approved by TAC         otherwise
 • Meeting logistics    Commodity              potential new      including:                   available)
   agreed               inventory              suppliers/          detailed project plan for
 • Team ground rules • Understand              sources             acquisition with
   documented           requirements         • Negotiation         implementation milestones
 • Approach milestone • Current socio-         levers              commodity performance
   dates agreed         economic content                           baseline measures &
 • CMT charter signed                                              measurement
   by all members                                                  methodology
                                                                   communications &
                                                                   training plan




The team shall prepare a monthly status report based on its project plan that shall include the
following elements:

         Progress v. Planned Milestones
         Successes
         Obstacles
         Recommendations




C-3                                                                                                             January 31, 2006
                                      Copier Category Management Team Charter



Appendix D: Copier Commodity Management Team Charter
                              Updated January 10, 2006
1. Purpose and Authority

The Commodity Management Team (CMT) provides a working group for procurement and
commodity stakeholders to work across the Department of the Treasury Bureaus to develop
and implement commodity-based plans to improve the price, quality of service, ordering or
fulfillment processes, and overall value delivered by vendors. As part of these plans, CMT
members will understand the current state of the commodity, the desired future state, and
plans to achieve that future, including contracting actions, process changes, communications,
compliance, and measurement. The CMT will be responsible for drafting a Commodity
Management Plan as well as for providing annual reports to OPE on the status of the
commodity for use in the Treasury submission to OMB. The CMT will be a standing working
group that will periodically review and update these plans as part of continuous improvement.

The CMT is formed under the authority of Treasury Acquisition Council (TAC), and
pursuant to OMB memorandum, “Implementing Strategic Sourcing,” dated 5/20/2005.

2. Scope

The CMT will develop and implement a strategy and initiatives to continuously improve
acquisition performance with respect to copier multifunction devises. The initial scope
included multifunction copiers. The team agreed to undertake the next part of the sourcing
effort, managing demand through usage analysis and optimization as well as managing the
convergence of multifunction devises. The team agreed to begin research into printers and
scanners inventory with the goal of rationalizing over time the mix of copiers, network
printers, and scanners that serve the image management needs of our bureaus. The goal is to
minimize the total cost of ownership for transferring images from electronic form to hard
copy and vice versa. This rationalization would include considerations such as end user
service levels, physical location planning guidelines, and other planning and usage good
practices.

3. Composition

The composition of the CMT is as follows:

 Name                       EMAIL
 Stokely, Bonnie            BONNIE.STOKELY@FMS.TREAS.GOV
 Cundiff, Mike              MIKE.CUNDIFF@BPD.TREAS.GOV
 Kravitz, Adam              AKRAVITZ@US.IBM.COM
 Martinez, Yolanda          YMARTINEZ@CHI.FEDSOURCE.GOV
 McAllister, Tom            THOMAS.M.MCALLISTER@IRS.GOV
 Kidd, Penny                PENNY.KIDD@BPD.TREAS.GOV
 Riccini, Kenneth           KENNETH.RICCINI@DO.TREAS.GOV
 Rountree, Natasha          NATASHA.ROUNTREE@FMS.TREAS.GOV
 Rudisill, Rudi             RUDI.RUDISILL@DO.TREAS.GOV




D-1                                                                        January 31, 2006
                                      Copier Category Management Team Charter


 Schultz, Rory              RORY.SCHULTZ@DO.TREAS.GOV
 Sutherland, Frank          FRANK.SUTHERLAND@OCC.TREAS.GOV
 Walters, Stephanie A       STEPHANIE.WALTERS@IRS.GOV
 Youel-Page, Kevin          KEVIN.YOUEL-PAGE@DO.TREAS.GOV



Additional members of the CMT may be approved by the Sr. Procurement Executive or
his/her appointed representative in OPE.

4. Roles and Responsibilities

The CMT serves as a standing team of the TAC and will arrive at decisions based on a
method to be agreed by the CMT as the situation warrants. The Office of the Procurement
Executive (OPE) will coordinate the activities of the CMT and provide administrative
support. CMT members will actively brief their Chief Procurement Officers and other bureau
officials as appropriate.

5. Operations of the CMT

The CMT meets alternate Wednesday at 10am, or as needed, at the discretion of the SPE.
The meeting may be attended in person or by telephone conference. For 2006, the dial in
number is 202 927 2255 code 821579. OPE has established a portal for use by the team, at
https://hqapps.treas.gov/sourcing/ which will contain meeting notes and other documents to
be shared by the team.




D-2                                                                        January 31, 2006
                                                       Copier Category Management Team Charter


The team shall work through the following basic approach, with a planned milestone for the
exit criteria for each chevron:


                                       Copiers
Treasury Strategic Sourcing Approach: Personal Wireless
      1/6/06                2/6/06              3/6/06                4/06/06            Per Plan             Per Plan
                                                                       Develop                                Implement
                             Profile             Analyze                                    Issue RFx &
         Form Team                                                     Commodity                                & Manage
                             Commodity           Market                                     Negotiate
                                                                       Strategy                               Performance


 Entry Criteria          Entry Criteria      Entry Criteria      Entry Criteria            Entry Criteria    Exit Criteria
 • Treasury              • Signed charter    • Approved          •Approved Commodity       • Approved        • Lessons learned
   Acquisition Council                         Commodity          Profile                    Commodity         documented (prior
   (TAC) approves     Exit Criteria            Profile           •Approved Market            Management        to commodity
   team launch        • Refined/ validated                        Analysis                   Plan              strategy refresh)
                        commodity            Exit Criteria       •(Lessons learned for                       • Contract closeout
 Exit Criteria          definition (in/out   • Completed          strategy refresh)          Exit Criteria
 • Team membership      items) & spend         analysis of                                   • Contract
   stable             • Current contracts      industry trends   Exit Criteria                 awarded (or
 • Team goals           inventory            • Supply and        •Commodity Management new source
   approved           • Current                demand levers,     Plan approved by TAC         otherwise
 • Meeting logistics    Commodity              potential new      including:                   available)
   agreed               inventory              suppliers/          detailed project plan for
 • Team ground rules • Understand              sources             acquisition with
   documented           requirements         • Negotiation         implementation milestones
 • Approach milestone • Current socio-         levers              commodity performance
   dates agreed         economic content                           baseline measures &
 • CMT charter signed                                              measurement
   by all members                                                  methodology
                                                                   communications &
                                                                   training plan




The team shall prepare a monthly status report based on its project plan that shall include the
following elements:

         Progress v. Planned Milestones
         Successes
         Obstacles
         Recommendations




D-3                                                                                                             January 31, 2006
                           Overnight Delivery Category Management Team Charter



 Appendix E: Overnight Delivery Commodity Management
                     Team Charter
                              Updated January 10, 2006
1. Purpose and Authority

The Commodity Management Team (CMT) provides a working group for procurement and
commodity stakeholders to work across the Department of the Treasury Bureaus to develop
and implement commodity-based plans to improve the price, quality of service, ordering or
fulfillment processes, and overall value delivered by vendors. As part of these plans, CMT
members will understand the current state of the commodity, the desired future state, and
plans to achieve that future, including contracting actions, process changes, communications,
compliance, and measurement. The CMT will be responsible for drafting a Commodity
Management Plan as well as for providing annual reports to OPE on the status of the
commodity for use in the Treasury submission to OMB. The CMT will be a standing working
group that will periodically review and update these plans as part of continuous improvement.

The CMT is formed under the authority of Treasury Acquisition Council (TAC), and
pursuant to OMB memorandum, “Implementing Strategic Sourcing,” dated 5/20/2005.

2. Scope

The CMT will develop and implement a strategy and initiatives to continuously improve
acquisition performance with respect to copier multifunction devises. The initial scope
included multifunction copiers. The team agreed to undertake the next part of the sourcing
effort, managing demand through usage analysis and optimization as well as managing the
convergence of multifunction devises. The team agreed to begin research into printers and
scanners inventory with the goal of rationalizing over time the mix of copiers, network
printers, and scanners that serve the image management needs of our bureaus. The goal is to
minimize the total cost of ownership for transferring images from electronic form to hard
copy and vice versa. This rationalization would include considerations such as end user
service levels, physical location planning guidelines, and other planning and usage good
practices.

3. Composition

The composition of the CMT is as follows:

 Name                         EMAIL
 Darcy, Maureen E             MAUREEN.DARCY@OCC.TREAS.GOV
 Dietz, Polly                 POLLY.DIETZ@DO.TREAS.GOV
 Daval, Evelyn                EVELYN.DAVAL@FMS.TREAS.GOV
 Jackson, Brenda S            BRENDA.S.JACKSON@IRS.GOV
 Little, James                JAMES.LITTLE@DO.TREAS.GOV
 Nuhfer, Lori                 LORI.NUHFER@BPD.TREAS.GOV
 Price, Fred                  FRED.PRICE@FINCEN.GOV
 Rodgers, Chris B             CHRIS.B.RODGERS@IRS.GOV




E-1                                                                        January 31, 2006
                         Overnight Delivery Category Management Team Charter


 Rountree, Natasha              NATASHA.ROUNTREE@FMS.TREAS.GOV
 Sutherland, Frank              FRANK.SUTHERLAND@OCC.TREAS.GOV
 Youel-Page, Kevin              KEVIN.YOUEL-PAGE@DO.TREAS.GOV



Additional members of the CMT may be approved by the Sr. Procurement Executive or
his/her appointed representative in OPE.

4. Roles and Responsibilities

The CMT serves as a standing team of the TAC and will arrive at decisions based on a
method to be agreed by the CMT as the situation warrants. The Office of the Procurement
Executive (OPE) will coordinate the activities of the CMT and provide administrative
support. CMT members will actively brief their Chief Procurement Officers and other bureau
officials as appropriate.

5. Operations of the CMT

The CMT meets alternate Wednesday at 10am, or as needed, at the discretion of the SPE.
The meeting may be attended in person or by telephone conference. For 2006, the dial in
number is 202 927 2255 code 821579. OPE has established a portal for use by the team, at
https://hqapps.treas.gov/sourcing/ which will contain meeting notes and other documents to
be shared by the team.




E-2                                                                        January 31, 2006
                                      Overnight Delivery Category Management Team Charter


The team shall work through the following basic approach, with a planned milestone for the
exit criteria for each chevron:


                                       Overnight Delivery
Treasury Strategic Sourcing Approach: Personal Wireless
      1/6/06                2/6/06
                           1/6/06               3/6/06
                                              1/15/06                4/06/06
                                                                    2/28/06              Per Plan
                                                                                          3/06                Per Plan
                                                                       Develop                                Implement
                             Profile             Analyze                                    Issue RFx &
          Form Team                                                    Commodity                                & Manage
                             Commodity           Market                                     Negotiate
                                                                       Strategy                               Performance


 Entry Criteria          Entry Criteria      Entry Criteria      Entry Criteria            Entry Criteria    Exit Criteria
 • Treasury              • Signed charter    • Approved          •Approved Commodity       • Approved        • Lessons learned
   Acquisition Council                         Commodity          Profile                    Commodity         documented (prior
   (TAC) approves     Exit Criteria            Profile           •Approved Market            Management        to commodity
   team launch        • Refined/ validated                        Analysis                   Plan              strategy refresh)
                        commodity            Exit Criteria       •(Lessons learned for                       • Contract closeout
 Exit Criteria          definition (in/out   • Completed          strategy refresh)          Exit Criteria
 • Team membership      items) & spend         analysis of                                   • Contract
   stable             • Current contracts      industry trends   Exit Criteria                 awarded (or
 • Team goals           inventory            • Supply and        •Commodity Management new source
   approved           • Current                demand levers,     Plan approved by TAC         otherwise
 • Meeting logistics    Commodity              potential new      including:                   available)
   agreed               inventory              suppliers/          detailed project plan for
 • Team ground rules • Understand              sources             acquisition with
   documented           requirements         • Negotiation         implementation milestones
 • Approach milestone • Current socio-         levers              commodity performance
   dates agreed         economic content                           baseline measures &
 • CMT charter signed                                              measurement
   by all members                                                  methodology
                                                                   communications &
                                                                   training plan




The team shall prepare a monthly status report based on its project plan that shall include the
following elements:

          Progress v. Planned Milestones
          Successes
          Obstacles
          Recommendations




E-3                                                                                                             January 31, 2006
                                    Software Category Management Team Charter



      Appendix F: Software Commodity Management Team
                           Charter
                              Updated January 10, 2006
1. Purpose and Authority

The Commodity Management Team (CMT) provides a working group for procurement and
commodity stakeholders to work across the Department of the Treasury Bureaus to develop
and implement commodity-based plans to improve the price, quality of service, ordering or
fulfillment processes, and overall value delivered by vendors. As part of these plans, CMT
members will understand the current state of the commodity, the desired future state, and
plans to achieve that future, including contracting actions, process changes, communications,
compliance, and measurement. The CMT will be responsible for drafting a Commodity
Management Plan as well as for providing annual reports to OPE on the status of the
commodity for use in the Treasury submission to OMB. The CMT will be a standing working
group that will periodically review and update these plans as part of continuous improvement.

The CMT is formed under the authority of Treasury Acquisition Council (TAC), and
pursuant to OMB memorandum, “Implementing Strategic Sourcing,” dated 5/20/2005.

2. Scope

The CMT will develop and implement a strategy and initiatives to continuously improve
acquisition performance with respect to copier multifunction devises. The initial scope
included multifunction copiers. The team agreed to undertake the next part of the sourcing
effort, managing demand through usage analysis and optimization as well as managing the
convergence of multifunction devises. The team agreed to begin research into printers and
scanners inventory with the goal of rationalizing over time the mix of copiers, network
printers, and scanners that serve the image management needs of our bureaus. The goal is to
minimize the total cost of ownership for transferring images from electronic form to hard
copy and vice versa. This rationalization would include considerations such as end user
service levels, physical location planning guidelines, and other planning and usage good
practices.

3. Composition

The composition of the CMT is as follows:

Name                       EMAIL
Armwood, Wanda             WANDA.ARMWOOD@IRS.GOV
Asihene, Claudia           CLAUDIA.ASIHENE@FMS.TREAS.GOV
Ayers, Patrick             PATRICK.AYERS@FINCEN.GOV
Blake, Brett L             BRETT.BLAKE@OCC.TREAS.GOV
Fallon, John               JOHN.FALLON@DO.TREAS.GOV
Gribble, Ruth              RUTH.A.GRIBBLE@IRS.GOV
Holmes, Sheila             SHEILA.HOLMES@FMS.TREAS.GOV




F-1                                                                        January 31, 2006
                                      Software Category Management Team Charter


Hunsley, Vivian             VIVIAN.HUNSLEY@TTB.GOV
Kibble, Karen               KAREN.KIBBLE@BPD.TREAS.GOV
Loiacona, Ginny             GINNY.LOIACONA@DO.TREAS.GOV
Martin, Estelle             ESTELLE.MARTIN@TTB.GOV
Pollack, Richard            RICHARD.POLLACK@FINCEN.GOV
Reeves, James               JAMES.REEVES@DO.TREAS.GOV
Riccini, Kenneth            KENNETH.RICCINI@DO.TREAS.GOV
Rountree, Natasha           NATASHA.ROUNTREE@FMS.TREAS.GOV
Schultz, Rory               RORY.SCHULTZ@DO.TREAS.GOV
Stephenson, Debra           DEBRA.STEPHENSON@BPD.TREAS.GOV
Suber, Herbert              HERBERT.SUBER@FMS.TREAS.GOV
Thomas, Ed                  EDWARD.L.THOMAS@IRS.GOV
Tom McAllister              THOMAS.M.MCALLISTER@IRS.GOV
Withers, Brenda S           BRENDA.WITHERS@OCC.TREAS.GOV
Youel-Page, Kevin           KEVIN.YOUEL-PAGE@DO.TREAS.GOV



Additional members of the CMT may be approved by the Sr. Procurement Executive or
his/her appointed representative in OPE.

4. Roles and Responsibilities

The CMT serves as a standing team of the TAC and will arrive at decisions based on a
method to be agreed by the CMT as the situation warrants. The Office of the Procurement
Executive (OPE) will coordinate the activities of the CMT and provide administrative
support. CMT members will actively brief their Chief Procurement Officers and other bureau
officials as appropriate.

5. Operations of the CMT

The CMT meets alternate Wednesday at 10am, or as needed, at the discretion of the SPE.
The meeting may be attended in person or by telephone conference. For 2006, the dial in
number is 202 927 2255 code 821579. OPE has established a portal for use by the team, at
https://hqapps.treas.gov/sourcing/ which will contain meeting notes and other documents to
be shared by the team.

The team shall work through the following basic approach, with a planned milestone for the
exit criteria for each chevron:

The team shall prepare a monthly status report based on its project plan that shall include the
following elements:

         Progress v. Planned Milestones
         Successes
         Obstacles
         Recommendations




F-2                                                                           January 31, 2006

				
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