Acquisition Improvement Initiative Strategic Sourcing Office of Acquisition

Acquisition Improvement Initiative Strategic Sourcing Office of Acquisition and Property Management Strategic Acquisition Forum February 17, 2010

Overview • New Demands • What is Strategic Sourcing? • Our Successes

Overview • Our Lessons Learned • Maximizing Our Leverage and Meeting the Demands • Questions and Answers

OMB Directives § Enhance Agency Efficiency § Reduce Agency Spending § DOI § FY 2010 3. 5% savings ≈ $80 m § FY 2011 7% savings ≈ $190 m

New Economy: New Demands • New Economy • National Deficit • Unemployment • Resilience • OMB Directives

Meeting the Demands • Acquisition Improvement Initiative Strategic Sourcing Strategies: • Federal Strategic Sourcing Initiative • DOI Strategic Sourcing Initiative • Bureau-Lead Strategic Sourcing Initiatives

Strategic Sourcing An analytical acquisition approach to achieve best value through standardization and leverage that results in significant savings and fulfillment of socio-economic and environmental requirements.

Program Objectives • Implement Departmental Cross-Functional Acquisition Strategies • Reduce the Total Cost of Ownership • Improve Fulfillment of Socio-Economic Acquisition Goals

Program Objectives • Standardize Acquisition Business Processes • Enhance Skills of the Acquisition Community

Program Benefits • Revive Nation’s Economy • Revitalize the Hope of Americans • Reduce the Negative Impact of Budget Cuts • Business Process Transformation

High Level Overview of the Strategic Sourcing Process COMMODITY STRATEGIC SOURCING PROCESS Conduct Opportunity Assessment Identify and Prioritize 1 2 Commodity Profile Identification Commodity 3 Market Analysis Develop Commodity Strategy Develop plan and strategy 4 5 Implement & Manage Performance Execute Acquisition Strategy Implement, Measure and Adjust Page 11

Our Successes • IT Equipment 23% ≈ $12. 1 m • Office Supplies • Relocation Services* 18% ≈ $2. 1 m 9% ≈ $3. 5 m • Domestic Delivery 25% ≈ $4 m • Commercial Wireless Plan 12% ≈ $450 k • CADR – HR • DAR 6% ≈ $12 k 60% ≈ $500 k

Lessons Learned • Optional Use Minimize Effectiveness • Optional Use Reduces Savings Potential • Engagement of all Stakeholders Required • Multiple Communications Strategies Required • Standardized Requirements meet 90% of DOI needs

Maximizing Leverage • Engagement of Stakeholders • Consider Mandatory Use • Bureau Support – dedicated resources • SSI Portal • Fulfillment of Regulations and Policies • Bureau-Lead Initiatives • Bureau Procurement and Program Support • Recommendations

Future Initiatives • SAVE Ideas • DOIU Training • Heavy Equipment • Furniture • IT Hardware • Recycled Paper • Shuttle Service • IT Software Licenses • Full Deployment of Wireless

Strategic Sourcing Program • Questions – Are there additional program objectives that should be considered? – Are there other implementation recommendations? – Are there other strategic sourcing recommendations? • Comments Thank You