Category Management 101 NOTE To get your 1

Category Management 101 NOTE: To get your 1 CLP from this class, write your email address in the survey box below Expect confirmation within 2 weeks FCL-GSA-2500

Government Acquisition can be complicated 2

Agenda • Real-life success stories • Go over CM Basics • Demo some tools to help • Question and answer session See Appendix Find supporting documents in the appendix

A story The Holocaust Memorial Museum needed more computers…

Category Management is “ the business practice of buying common goods and services as an enterprise to eliminate redundancies, increase efficiency, and deliver more value and savings from the Government's acquisition programs. ”

Category Management is everywhere 6

The Government’s Approach A holistic look at spending • Develop 10 categories for “common” spend • Inventory existing solutions • Identify well-managed spend (SUM & BIC) • Develop policy • Set agency targets

Spend Under Management (SUM) Solutions that follow acquisition best practices. Vendor management Industry engagement Coordinate with OSDBU offices Support existing policy Collect, analyze, share and improve from data See Appendix SUM & BIC Model 8

Best in Class (BIC) SUM vehicles that are identified as offering the best pricing and terms and conditions. See Appendix SUM & BIC Model 9

Important note! SUM and BIC designations are given to the solution, not the vendor. 10

Policy requirements PALT FAR Total Cost of Ownership Terms and Conditions Agency Goals Small Business Utilization Redundancy Elimination Data Supplier Relationships 11

Missed Opportunities Common Spend Schedule Contracts GWACs, MACs Best-in-Class Open Market Spend & Duplicative Contracts Mandatory Agencywide Solutions Justified Exceptions 12

Strategically Managed Spend CM Tools & Strategies Schedule Contracts GWACs Common Spend Best-in-Class Mandatory Agency. Justified Exceptions wide Solutions 13

Developing 10 categories Information Technology Security & Protection PSCs Facilities & Construction 7110 (OFFICE FURNITURE) 9110 (FUELS, SOLID) 7030 (Information Technology SOFTWARE) W 088 (LEASE OR RENTAL OF EQUIPMENT- LIVE ANIMALS) C 1 CA (ARCHITECT AND ENGINEERING - CONSTRUCTION: SCHOOLS) (Plus thousands more) Industrial Products & Services Office Management Transportation & Logistics Services Product Service Codes (PSCs) were analyzed and sorted into categories in consultation with major stakeholders Travel Human Capital Professional Services See Appendix Category Mapping Medical 14

Government-wide oversight and support Office of Federal Procurement Policy (OFPP) at OMB responsible for providing overall direction of government-wide procurement policy, including category management Category Management PMO - managed by GSA but built to represent government-wide interests. CMLC Category Management Leadership Council (CMLC) consisting of representatives from the largest buying agencies, it is the governing body for category management activities. 15

Policy Guidance OMB Memo M-19 -13 Establishes category management as a practice across the entire federal government. See Appendix PSC Mapping OMB Memo M-19 -13 16

Small Business Implications Small business goaling unchanged Success through balance (SB, SUM, BIC, etc): OSDBUs provide support: 17

Your Agency’s responsibility Develop agency category management plans Vendor relationship management plans Implement demand management strategies Share data across the Federal Government Train and develop their workforce on category management principles See Appendix Agency Plans 18

What does this mean for me? Your agency has targets Your agency has a senior accountable official You have a wealth of tools available to you See Appendix Cross agency CAP goals POC list on Training Page Agency Plans 19

Acquisition Gateway See Appendix Acquisition Gateway 20

Dashboards Visualize your agency’s spend Identify opportunities See Appendix Dashboards 21

Government acquisition can be complicated BUT These tools, processes, and people will help 22

Thank you! Q And A REMINDER: To get your 1 CLP from this class, write your email address in the survey box below Expect confirmation within 2 weeks 23

Appendix

Category Mapping Facilities & Construction Professional Services IT • Construction Related Materials • Construction Related Services • Facilities Purchase & Lease • Facility Related Materials • Facility Related Services • • • • Business Admin Services Financial Services Legal Services Management & Advisory Services Marketing & Public Relations Research & Development Social Services Technical & Engineering Services IT Software IT Hardware IT Consulting IT Security IT Outsourcing Telecomms Medical Transportation & Logistics • Drugs & Pharmaceutical Products • Healthcare Services • Medical Equipment, Accessories, & Supplies • • • Fuels Logistics Support Services Motor Vehicles (non-combat) Package Delivery & Packaging Transportation Equipment Transportation of Things Industrial Products & Services Security & Protection Human Capital Office Management Travel • Basic Materials • Fire/Rescue/Safety/ Environmental Protection Equipment • Hardware & Tools • Industrial Products Install/ Maintenance/Repair • Machinery & Components • Oils, Lubricants, & Waxes • Test & Measurement Supplies • Ammunition • Protective Apparel & Equipment • Security Animals & Related Services • Security Systems • Weapons • Compensation & Benefits • Employee Relations • Human Capital Evaluation • Strategy, Policies, & Ops Planning • Talent Acquisition • Talent Development • Furniture • Office Management Products • Office Management Services • • Employee Relocation Lodging Passenger Travel Agent & Misc. Services 25

Resources OMB Memo M-19 -13: (Link) This OMB memo instructs government agencies on how to approach category management. This is very helpful for people looking to understand the policy implications of category management. Acquisition Gateway: (Link) This website is the nexus of all category management related information. It’s full of tools and insights that can help you find an incredible variety of assistance. The Gateway’s Training Page (Link) Contains information about this class as well as others. OFPP In. Reach Hub (Link) Stay up-to-date and informed on category management and other government-wide policies. The In. Reach tool will help you quickly find government-wide acquisition policies issued by the Office of Federal Procurement Policy (OFPP). 26

Resources (continued) Dashboards: (Link) The dashboards visualize agency spend in a variety of incredible ways Agency Plans: Your agency has developed their own plan to approach category management. Please contact your internal agency acquisition department if you wish to learn more about your specific plans. Cross Agency Priority(CAP) goals: (Link) The President’s Management Agenda identifies CAP goals to target those areas where multiple agencies must collaborate to effect change and report progress in a manner the public can easily track. PSC Mapping (Link) A detailed breakdown of all of the thousands of PSCs and what category they are assigned to. 27

SUM & BIC Model View this as a Venn Diagram. Each box indicates a further subset of spend. Key takeaways: All BIC spend is part of SUM, but not all SUM spend is BIC Small business spend can be counted as tier 1 even if it otherwise would be tier 0 after OMB approval (see M-19 -13) Your agency has both a BIC goal and a SUM goal that are set out by the President’s management agenda.