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Strategic Sourcing Overview

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Title: Strategic Sourcing Overview


1
  • Strategic Sourcing Overview
  • June 8, 2010

2
Agenda
  • Strategic Sourcing at HHS
  • Federal Strategic Sourcing Initiative
  • Questions and Answers

3
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
  • Increase purchasing efficiencies
  • Strategic Sourcing Support team consists of
    acquisition and program staff from each OPDIV in
    addition to OSDBU representatives

4
Strategic Sourcing Methodology


Shape
Screen
Profile

Conduct
Negotiate
Implement
Develop
Assess
Suppliers
Internally
Procurement
Agreements
Strategy
Value
Opportunities
Selection
Externally

Propositions
Factors
Wave 1
Prepare Fact
-
High
-
Level
Fast Track to Value
Complete
Wave x
Based
Data
Negotiation
RFP/RFQs
Collection
Build
Packages
Analysis
Build Total
Validate
Supplier
Measure
Cost of
Profile
Selection
Results
Ownership
Segment
Category
Decision
Conduct
Negotiate
Trends
Purchases
Model
Matrix
Auctions
Value
Propositions
Form
Conduct
Develop
Conduct
Cross
-
Develop
Industry
Category
Supplier
Functional
Suppliers
Analysis
Strategy
Analysis
Sourcing Teams
5
HHS Strategic Sourcing Contract Portfolio
Strategic Sourcing Categories Small Business BPA Expiration Date Contract Vendors
Information Technology 34 November 2012 NITAAC ECS III
Office Equipment 0 August 2011 Canon, Konica Minolta, Ricoh
Office Furniture 100 September 2010 Bialek, Lewis Allen, SPACE
Office Supplies 0 September 2010 Staples

Events Management Services 100 September 2010 BL Seamon, Planning Professionals, Professional and Scientific Associates
Lab Supplies 0 October 2010 Fisher Scientific
Temp. Admin Staffing Services 100 July 2010 NAI Personnel
Temp. Medical Staffing Services 0 September 2010 JC Nationwide, Medical Staffing Network
Small Business Total 37  
Wave I
Wave II
6
Strategic Sourcing Spend
Small Business Spend 63 of Total FY 09 Spend
7
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

8
Required Sources
Order of Priority for Purchases (FAR Part 8)
Products (Supplies)
Services
  • HHS and OPDIV inventories
  • 2. Excess from other agencies
  • 3. Federal Prison Industries (UNICOR)
  • 4. Products on the procurement list maintained
    by Committee for Purchase from People Who are
    Blind or Severely Disabled - Ability One
    (formerly JWOD), NIB, NISH (HHS Strategic
    Sourcing BPAs should be used in lieu of other
    sources if they offer the Ability One product)
  • 5. Wholesale supply sources
  • 6. HHS Strategic Sourcing BPAs
  • GSA Federal Supply Schedules
  • Commercial sources
  • Services on the procurement list maintained by
    Committee for Purchase from People Who are Blind
    or Severely Disabled - Ability One (formerly
    JWOD), NIB, NISH (HHS Strategic Sourcing BPAs
    should be used in lieu of other sources if they
    offer the Ability One product)
  • 2. HHS Strategic Sourcing BPAs
  • 3. GSA Federal Supply Schedules
  • 4. Federal Prison Industries (UNICOR)
  • 5. Commercial sources

9
BPA Ordering Procedures
  • Category with Single BPA
  • Place an order directly with the BPA holder
  • Lab Supplies
  • Office Supplies
  • Temporary Administrative and Professional
    Staffing
  • Office Furniture
  • Category with Multiple BPAs
  • Compete order amongst an appropriate number of
    BPA holders
  • Events Management
  • Office Equipment
  • Temporary Medical Staffing

10
How to Become a Strategic Sourcing Vendor
  • Market your products/services to HHS buyers
  • Demonstrate ability to service large Federal
    Government agency
  • Keep in touch with Strategic Sourcing Division
  • Participate in OSDBU outreach activities
  • Respond to Strategic Sourcing Requests for
    Quotation (RFQs)

11
Federal Strategic Sourcing Initiative (FSSI)
  • OMB mandate in May 2005 that all Federal Agencies
    must source three categories
  • FSSI established to improve the federal
    government acquisition value chain, increase
    socio-economic participation and ultimately lower
    total cost of operations and/or ownership for
    strategic sourcing vehicles
  • Governance from Chief Acquisition Officers
    Council and OFPP and managed by GSA
  • Leverage spend across Federal Government and
    share best practices
  • FSSI has sourced the following categories
  • Domestic Delivery Services
  • Office Supplies
  • Wireless Telecommunications Expense Management
    Services

12
Federal Strategic Sourcing Initiative (FSSI)
Awards
Vendor Business Size Category
FedEx Large Domestic Mail Delivery
Avalon Technology Small Disadvantaged, 8a Telecommunications Expense Management
Booz Allen Hamilton Large Telecommunications Expense Management
iSys Small Telecommunications Expense Management
13
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
Metro Office Products Small, Woman Owned, Disadvantaged, Minority Owned, 8a General Office Supplies, Paper, Toner
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
SITA Business Systems, Inc. Small, Minority Owned, Woman Owned, 8a 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
14
FY 2010 Strategic Sourcing Activities
  • HHS
  • Administrative Staffing
  • Office Furniture
  • Office Supplies
  • FSSI
  • Environmental
  • Printers/Copiers/Multi-Functional Devices
  • Office Supplies
  • Wireless Devices and Rate Plans

15
Strategic Sourcing Contact Information
Kesa Russell Strategic Sourcing Project
Manager (202) 690-7326 Kesa.Russell_at_hhs.gov Lydin
a Battle Strategic Sourcing Analyst (202)
205-4512 Lydina.Battle_at_hhs.gov
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