U S General Services Administration Federal Strategic Sourcing

U. S. General Services Administration Federal Strategic Sourcing Initiative (FSSI) Presentation for: Small Agency Council Nitasha Singh, FSSI PMO February 26, 2014

Agenda Topics Latest on the Federal Strategic Sourcing Initiatives - a. FSSI overview, b. the efforts underway, c. how we can participate, and d. where we can find information Sharing of information across agencies For Internal Use Only 2

Strategic Sourcing – What is it? Core Characteristics ➢ Is an analytical and collaborative process that leverages an organization's historical business intelligence and resources to achieve best value solutions. ➢ Is more than savings; it focuses on the total cost of ownership (TCO) and yields enhanced business intelligence, management efficiencies, and regulatory compliance. ➢ Can be agency-wide, governmentwide, multi-agency, or other combination. ➢ Considers market dynamics and Federal socioeconomic objectives. Stakeholder Engagement Capture benefits of all Government purchasing Small Business Participation Strategic Sourcing Commodity Management Pricing strategies Vendor Reporting For Internal Use Only 3

Federal-wide Policy ➢ Office of Management & Budget M-13 -02 Improving Acquisition through Strategic Sourcing – December 2012 http: //www. whitehouse. gov/sites/default/files/omb/memoranda/ 2013/m-13 -02_0. pdf • • Required designation of a Strategic Sourcing Accountable Official Established the Interagency Strategic Sourcing Leadership Council Identified core characteristics of Strategic Sourcing acquisition vehicles Focused on increasing small business opportunities For Internal Use Only 4

FSSI Process FSSI is headed by OMB in conjunction with the Strategic Sourcing Leadership Council (SSLC) OPPORTUNITY SELECTION Select Commodity SSLC PHASE 2: STRATEGY IMPLEMENTATION PHASE 1: STRATEGY DEVELOPMENT Profile Commodity Conduct Supply Market Analysis Develop Commodity Sourcing Strategy Commodity Teams Industry Interaction during Phase 1 SSLC Conduct Acquisition and/or Develop Impl Plan PHASE 3: COMMODITY MANAGEMENT Implement Strategy Commodity Teams Industry Interaction during Phase 2 Manage Commodity Teams Vendor Interaction SSLC during Phase 3 ➢ SSLC is comprised of the seven top spending agencies as well as other key agencies, e. g. SBA ➢ Commodity teams include representatives from the SSLC agencies and other top spending agencies ➢ Commodity teams address government-wide issue relating to duplication of contracts, lack of standardized terms and conditions, lack of standardization of part numbers, etc. For Internal Use Only 5

FSSI Benefits FSSI solutions are developed collaboratively across government agencies and offer customers a number of potential benefits ▪ Realize significant savings with competitive pricing (i. e. total cost of ownership, re-negotiation of contracts and a reduction in market price) ▪ Decrease administrative redundancy ▪ Improve business intelligence All FSSI programs collect detailed “level 3” business intelligence data ▪ Achieve socio-economic and sustainability goals Strategy developed to maximize socio-economic participation ▪ Stakeholder engagement 60 agencies have participated in FY 12 on current solutions Average Savings of 9%-30% Savings of more than $100 M in FY 12 on current solutions Minimizes administrative overhead and duplication of effort For Internal Use Only 6

FSSI Solutions FSSI solutions employ a variety of strategies, including acquisitions, best practices, and/or policy plays. Current Upcoming Under Consideration Office Supplies (OS) Maintenance, Repair and Operations (MRO) Building, Maintenance, and Operations (BMO) Domestic Delivery Services (DDS) Janitorial and Sanitation Supplies (Jan. San) Furniture Print Management (PM) Information/Subscription Services (Legal and STEM) HR Services and Training (HRST) Wireless Cyber Security Rental Cars IT Software IT Equipment For Internal Use Only 7

What are we doing now? How do we ensure success? What are improvement alternatives? Strategic Sourcing Cycle What can we do? What’s the strategy? How do we move forward? How do we achieve buyin? Procurement or Policy or Behavior Profile the category - What are we doing now? ➢ Understand everything about current spending. Define the services, commodities, quantity, types and sizes. Who are the users, where are they located, what are the processes used and who else is involved in the supply chain? Market analysis - What are the improvement alternatives? ➢ Identify potential new initiatives. Study the cost components of the product or service, and analyze the suppliers’ marketplace for risks and opportunities Develop the strategy - How to move forward? ➢ Decide what/how to buy while minimizing risk. Cross functional team a must. Strategy depends on real alternatives are to current suppliers, marketplace competition, and how open users are to new suppliers. ➢ Develop an acquisition or policy recommendation and implementation plan including requirements, procurement strategy, communication and implementation plan. For Internal Use Only 9

What are we doing now? How do we ensure success? What can we do (continued)? What are improvement alternatives? Strategic Sourcing Cycle How do we achieve buyin? What’s the strategy? How do we move forward? Procurement or Policy or Behavior ➢ Execute procurement strategy. Evaluate, negotiate and select suppliers. ➢ If policy changes are needed, evaluate existing policies and recommend changes. Implement and integrate – How do we achieve buy-in? ➢ Ensure successful offerors or those affected by changes in policy are involved in the implementation process. Implementation plans vary depending on the degree of changes. The communication plan should include any improvement to specifications or process, changes in delivery or service requirements or pricing. Benchmark and track results – How do we ensure success? ➢ This is a key element of strategic sourcing. It is the start of a continuous cycle, starting with benchmarking the current status of the commodity or category, monitoring the results and ensuring that full value is being achieved. Review the supply market again and restart the process in a constantly evolving marketplace For Internal Use Only 10

Resources and Contact Info ➢ www. strategicsourcing. gov provides information on solutions, workforce tools, templates, and more to come. Hosts direct contact information for teams. ➢ Training – www. dau. mil continuous learning modules: • CLC 108 – strategic sourcing • CLC 110 – spend analysis ➢ www. whitehouse. gov/omb/procurement_strategic/ OMB strategic sourcing guidance ➢ OMB Myth Busters Memos www. whitehouse. gov/sites/default/files/omb/procurement/memo/Myth-Busting. pdf www. whitehouse. gov/sites/default/files/omb/procurement/memo/myth-busting-2 addressing-misconceptions-and-further-improving-communication-during-theacquisition-process. pdf ➢ www. gsa. gov/fssi has direct links to OS, DDS, Print, and Wireless Solutions ➢ FSSI PMO email: fssi@gsa. gov For Internal Use Only 11

APPENDIX Solution Specific Information For Internal Use Only 12

Wireless The FSSI Wireless solution offers wireless services through Verizon, AT&T, Sprint, and T-Mobile ➢ FSSI Wireless BPAs enable agencies to save 15% - 20% through volume pricing and price maintenance controls ➢ Wireless services can be ordered through the BPA with online and GSA support ➢ All devices purchased through the BPA comply with federal legislation and security regulations ‒ Devices purchased outside of the FSSI Wireless BPA can use the BPA’s plans and services ➢ A business portal interface allows better access to vendor data for ordering, inventory, billing and reporting To get more information, visit http: //www. gsa. gov/fssiwireless For Internal Use Only 13

Office Supplies (OS) FSSI Office Supplies program awarded 15 blanket purchase agreements (BPA) for office supplies ➢ FSSI OS BPAs provide opportunities to meet socioeconomic goals and ensures compliance with all federal acts and mandates ‒ 13 of 15 BPAs were awarded to small businesses ‒ BPAs are broken down into three distinct pools of vendors to provide business to both large and small businesses ‒ Ensures compliance with applicable regulations to include Ability. One, sustainable purchasing requirements, and the Trade Agreement Act ➢ Point-of-sale (POS) is enabled where SMARTpay customers can automatically obtain BPA pricing from any method of purchase including GSA Advantage, Do. D e. Mall, retail locations and directly from the vendor ➢ GSA Advantage allows customers to survey multiple vendors at one time ensuring best price available ➢ FSSI OS 2 BPAs have provided $200 M in direct and indirect savings for the Federal Government ➢ The next generation, OS 3, is targeted to launch this summer (FY 14) To get more information, visit http: //www. gsa. gov/fssiofficesupplies For Internal Use Only 14

Print Management (Print) The FSSI Print solution offers a range of multifunction and single-function network printers from leading industry brands ➢ FSSI Print Management is a holistic commodity management approach that allows federal agencies to achieve cost and environmental savings through the implementation of a behavior change management program, and improvements to the acquisition of print and copy devices and services. ➢ New Managed Print Services BPA Awards Issued • These new awards can streamline the lifecycle management of all office-level imaging equipment. This program can also enable agencies to strategically design and deploy imaging fleets. GSA’s MPS program improves fleet management, performance visibility and spending control in order to lower lifecycle costs. ➢ All devices meet a variety of sustainability requirements such ENERGY STAR standards, and EPEAT guidelines (forthcoming); factory-set default duplex printing; ability to accept 100% recycled content paper, and remanufactured/package-free toner; and device disposal through a certified e-Recycler. To get more information, visit http: //www. gsa. gov/fssiprint For Internal Use Only 15

Domestic Delivery Services (DDS) The FSSI Domestic Delivery Services (DDS) solution offers domestic express and ground routine delivery services ➢ DDS is currently in its second generation (DDS 2) which was awarded to UPS in FY 10 ‒ The third generation, DDS 3, is targeted to launch in FY 15 ➢ This FSSI initiative achieves savings of 27. 9% from independent MAS contract rates ➢ Through UPS’ online platform called Campus. Ship, DDS 2 users are able to create air bills online, track their packages, and are given access to a dedicated customer support team ‒ From Campus. Ship, users can also arrange to have payment automatically debited from a payment card ➢ DDS 2 users have transparency into shipping data through the GSA DDS 2 Dashboard which allows customer agencies to run reports and monitor spend under DDS 2 For more information, visit http: //www. gsa. gov/dds For Internal Use Only 16

Janitorial and Sanitation (Jan. San) The FSSI Jan. San solution will offer cleaning supplies such as bleach, trash bags, paper towels, toilet paper, mops, floor buffers, etc. ➢ The FSSI Jan. San solution is planned to generate savings up to 14% ➢ Savings for customers will be generated from 1. Leveraging government-wide volume to negotiate lower prices with suppliers and 2. Establishing point-of-sale discounts to ensure access to the lower prices (Government customers will be able to walk into a brick & mortar store and get BPA pricing) ➢ Pricing will be monitored on an ongoing basis to ensure competitiveness in the Federal Market For more information, visit https: //interact. gsa. gov/group/federal-strategic-sourcing-initiative-fssijanitorial-sanitation For Internal Use Only 17

Maintenance, Repair and Operations (MRO) The FSSI MRO solution will offer supplies such as hardware, power tools, pipes, valves, electrical equipment, lighting, paint, etc. ➢ The FSSI MRO solution is estimated to generate savings of 11% ➢ Savings for customers will be generated from: 1. Leveraging government-wide volume to negotiate lower prices with suppliers 2. Establishing point-of-sale discounts to ensure access to the lower prices (Government customers will be able to walk into a brick & mortar store and get BPA pricing) ➢ Pricing will be monitored on an ongoing basis to ensure competitiveness in the Federal Market For more information, visit https: //interact. gsa. gov/node/2528/information For Internal Use Only 18