Strategic Sourcing Overview

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					Strategic Sourcing Overview

      November 10, 2009
                Strategic Sourcing
• Strategic Sourcing is a process that enables
  organizations to leverage buying power and reduce the
  total cost of ownership of goods and services to foster
  smarter buying practices.
   – Strategic Sourcing Division responsible for HHS-wide initiatives
     to leverage spend and foster smarter buying
   – Strategic Sourcing Contract Portfolio developed in FY 2004
       •   Reduce price of goods and services
       •   Reduce duplication in contract portfolio
       •   Reduce administrative costs (BPAs already competed)
       •   Increase purchasing efficiencies through online ordering tools
   – Strategic Sourcing Support team consists of acquisition and
     program staff from each OPDIV in addition to OSDBU
Strategic Sourcing Methodology
   HHS Strategic Sourcing Contract
          Strategic Sourcing Categories     Small Business   BPA Expiration       Contract Vendors
                                                  %              Date

          Information Technology                 34%         November 2012    NITAAC ECS III

                                                                              Canon, Konica Minolta,
          Office Equipment                       0%           August 2010
Wave I
          Office Furniture                      100%          January 2010    Bialek, Lewis Allen, SPACE

          Office Supplies                        0%           January 2010    Staples

                                                                              BL Seamon, Planning
          Events Management Services            100%         September 2010   Professionals, Professional
                                                                              and Scientific Associates

          Lab Supplies                           0%           October 2010    Fisher Scientific
Wave II

          Temp. Admin Staffing Services         100%           July 2010      NAI Personnel

                                                                              JC Nationwide, Medical
          Temp. Medical Staffing Services        0%          September 2010
                                                                              Staffing Network

          Small Business Total                   37%
Strategic Sourcing Spend by Fiscal
     Strategic Sourcing Usage
 FY 2009 Strategic Sourcing Spend
Categories      EM           ITP          LS           OE           OF           OS          TAPS         TPMS           All

FY 08 BPA    51,634,613   4,000,392    12,642,952   7,380,202    12,756,171   10,266,215   21,624,425   18,978,501   139,283,470
Spend $

FY 09 BPA    52,652,513   10,942,346   15,653,383   10,528,961   13,375,771   8,345,935    27,706,531   26,079,121   165,284,562
Spend $

% Change        2%          174%          24%          43%          5%          -19%          28%          37%          19%
from FY 08
to FY 09

Estimated       27%         12%          15%          38%           7%          27%          10%          10%           19%
Savings %

FY 2009      14,453,115   1,313,082    2,348,007    4,001,005     976,431     2,290,959    2,770,653    2,607,912    30,761,165
Savings $

Note: Small Business Spend – 63% of Total Spend
 Strategic Sourcing BPA Details
• BPAs were awarded using full and open competition
  (except Events Management, Office Furniture and
  Temporary Administrative and Professional Staffing)
• BPAs were issued against GSA Schedule Contracts
• BPAs available to all HHS OPDIVs and STAFFDIVs
• Most BPAs have a two year period of performance with
  multiple option years
• Sub-contracting opportunities are available
• Focus on best value
              Required Sources
 Order of Priority for Purchases (FAR Part 8)
           Products (Supplies)                               Services

1.   HHS and OPDIV inventories               1. Services on the procurement list
2.   Excess from other agencies                 maintained by Committee for
3.   Federal Prison Industries (UNICOR):        Purchase from People Who are Blind
                                                or Severely Disabled - Ability One
4.   Products on the procurement list           (formerly JWOD), NIB, NISH (HHS
     maintained by Committee for                Strategic Sourcing BPAs should be
     Purchase from People Who are Blind         used in lieu of other sources if they
     or Severely Disabled - Ability One         offer the Ability One product)
     (formerly JWOD), NIB, NISH (HHS         2. HHS Strategic Sourcing BPAs
     Strategic Sourcing BPAs should be
     used in lieu of other sources if they   3. GSA Federal Supply Schedules
     offer the Ability One product)          4. Federal Prison Industries (UNICOR)
5.   Wholesale supply sources                5. Commercial sources
6.   HHS Strategic Sourcing BPAs
7.   GSA Federal Supply Schedules
8.   Commercial sources
     How to Become a Strategic
         Sourcing Vendor
• Market your products/services to HHS
• Demonstrate ability to service large
  Federal Government agency
• Keep in touch with Strategic Sourcing
• Participate in OSDBU outreach activities
• Respond to Strategic Sourcing Requests
  for Quotation (RFQs)
Federal Strategic Sourcing Initiative
• Office of Federal Procurement Policy (OFPP)
  spearheaded development of FSSI in FY 2006
• Governance from Chief Acquisition Officers Council and
  OFPP and managed by GSA
• Leverage spend across Federal Government and share
  best practices
• Federal Agencies must strategically source at least three
  commodities and report annually on strategic sourcing
• FSSI has sourced the following categories:
   – Domestic Delivery Services
   – Office Supplies
   – Wireless Telecommunications Expense Management Services
Federal Strategic Sourcing Initiative
          (FSSI) Awards
        Vendor            Business Size                    Category

FedEx                         Large             Domestic Mail Delivery

                                                Telecommunications Expense
Avalon Technology     Small Disadvantaged, 8a

                                                Telecommunications Expense
Booz Allen Hamilton           Large

                                                Telecommunications Expense
iSys                          Small
Federal Strategic Sourcing Initiative
          (FSSI) Awards
                         Vendor                          Business Size                             Category

Adams Marketing                              Small, Woman Owned                      General Office Supplies, Paper, Toner

Corporate Express                            Large                                   General Office Supplies, Paper, Toner

Future Solutions                             S/D/WO/8a                               General Office Supplies, Paper, Toner

George W. Allen Co., Inc.                    Small Consortium                        General Office Supplies, Paper, Toner

                                             Small, Woman Owned, Disadvantaged,
Metro Office Products                                                                General Office Supplies, Paper, Toner
                                             Minority Owned, 8a

Stephens Office Supply                       Small, Woman Owned                      General Office Supplies, Paper, Toner

Veterans Imaging Product s                   Small, Service Disabled Veteran Owned   General Office Supplies, Paper, Toner

Independent Stationers, Inc. dba IS Group    Small Consortium                        General Office Products, Paper

                                             Small, Minority Owned, Woman Owned,
SITA Business Systems, Inc.                                                          General Office Products, Paper
Impac Computer Supplies                      Small                                   Paper

Imaging Systems, dba Access Products, Inc.   Small, Woman Owned, Veteran Owned       Toner

Miller Office Products                       Small, Woman Owned                      Toner
Staples, Inc.                                Large                                   Toner
     FY 2010 Strategic Sourcing
  – Administrative Staffing
  – Office Furniture
  – Office Supplies
  – Environmental
  – Printers/Copiers/Multi-Functional Devices
  – Office Supplies
  – Wireless Devices and Rate Plans
      Strategic Sourcing Contact
Kesa Russell
Strategic Sourcing Project Manager
(202) 690-7326

Lydina Battle
Strategic Sourcing Analyst
(202) 205-4512