Strategic Sourcing

Situation

The OCFO in conjunction with the procurement policy organization required strategic sourcing support to ensure compliance with OFPP and OMB initiatives. Specific support required included:

  • Conducting Spend Analysis
  • Developing Reports and Recommendations
  • Advising the Department on factors to consider in determining whether to participate in Federal-wide contracts or to opt-out

Approach & Results

Approach:

  • Developed a process that entailed facilitating meetings with the procurement council to advise of findings and to secure input
  • Analyzed contract and charge card data and outlined data quality issues and developed assumptions to justify data set selection for in-depth analysis
  • Performed spend analysis and identified areas where consolidation of purchases or use of existing vehicles could provide operational efficiencies
  • Conduced industry analysis and outlined top vendors and spend across the entire federal government
  • Leveraged knowledge of Department procurement systems, and operations to identify potential business process changes
  • Discussed changes with Senior Leaders for their consideration
  • Developed recommendations that accounted for small business goals, usefulness of participating in Government-wide contracts, etc.

Results:

  • The Department was prepared to respond to OMB concerning its strategic sourcing opportunities as identified by the Spend Analysis
  • The Department was provided with a number of recommendations on how to reduce vendor spend and consolidate services in order to reduce administrative costs