# Presentation: 323606

## OMB Update 

- Lesley Field
- Office of Federal Procurement Policy
- _[lfield@omb.eop.gov](mailto:lfield@omb.eop.gov)_
- (202) 395-4761

## OFPP Priorities

- Strategic Sourcing/Interagency Contracting
- Competitive Sourcing
- Electronic Government
- Human Capital
- Performance-Based Acquisition
- Emergency Contracting
- Others

## Scope	

- Total Federal spending - $380B in 05, 7.7 million actions
- 2005 p-card data
- $17.4 billion
- 26 million transactions
- 2005 E-Buy
- $4 billion
- 41K RFQs

## Definition

**    **Strategic sourcing is the **collaborative** and **structured** process of critically analyzing an organization’s spending and making business decisions about how to acquire commodities and services more effectively and efficiently.
- 	The spending analysis drives decisions about how to optimize performance, minimize price, increase small business participation, evaluate total life cycle management costs, improve vendor access to business opportunities, and otherwise increase the value of taxpayer dollars.

## Strategic Sourcing

- OMB Memorandum issued May 20, 2005
- Required CAOs to lead collaborative effort with CIOs, CFOs, small business reps, others
- Required CAOs to identify three commodities that could be strategically sourced by October 1, 2005 to get started.
- Required agencies to develop plans by January 1, 2006, to support the sourcing of these commodities – all plans available to gov’t personnel on acc.dau.mil/strategicsourcing – annual requirement.

## Goals

- Overarching goal is to institutionalize the strategic sourcing process and secure top management commitment
- Results we want:
- Reduction in prices
- Reduction in administrative costs
- Improved performance
- Increased small business participation
- Improved business intelligence

## Small Business

- Understand the perceived conflict with contract bundling prohibitions.
- Require that the small business issue is a top consideration in the acquisition strategy.
- Ensure your agency’s small business offices are involved in the management of the process – buy-in is key.
- Frame this effort as a means to increasing small business participation at the first and second tier levels – baseline current spend and set goal to increase, if possible.
- Keep good data.
- Communicate with your vendor base - use the RFI process!

## Potential price savings

**Computer/ Hardware**
**10%-25%**

**Office Supplies**
**8%-34%**

**Benefits**
**8%-14%**

**Office **
**Equipment**
**10%-25%**

**Computer/ Software**
**8%-15%**

**Telecom**
**10%-21%**

**Business Support**
**8%-15%**

**Facilities/ Equipment**
**Maintenance**
**6%-15%**

**Freight**
**8%-30%**

**T&E**
**8%-30%**

**Professional Services**
**5%-15%**

**Temporary Services**
**10%-25%**

**Utilities**
**6%-16%**

**Fleet**
**3%-6%**

**Paper**
**6%-14%**

**Recruiting**
**10%-15%**

**Subscriptions**
**3%-5%**

**Printed Material**
**5%-30%**

**Other Marketing**
**8%-12%**

**Creative Agencies**
**5%-15%**

**Advertising/**
**Media**
**10%-18%**

## Federal Strategic Sourcing Initiative (FSSI)	

- Starting with 5 commodity/commoditized services:
- IT Products (printers)
- Office Supplies
- Domestic Delivery Service
- Cell Phone Service
- Copiers
- Solutions can be multi-agency, but must focus on STRATEGY, not contract vehicles
- These may come from different sources (GSA, other agencies)
- acc.dau.mil/strategicsourcing

## FSSI - Update

- Wireless Handheld Devices and Services
- Team met with three major carrier and all agreed to achieve savings by disconnecting unused serve, refreshing rate plans, and correcting billing errors.
- All providers said we could achieve more than 20% savings just by cleaning up the inventories (3-6 month effort)
- RFI issued, comments addressed, and RFP to be issued in November –TSA saved 40% using similar approach

## FSSI - Update

- Domestic Delivery Service – awarded to FedEx October 6th -  agencies can still join – significant savings
- Printers – Looking at life-cycle value
- Copiers – all manufacturers large – looking at tech requirements and identifying strategy
- Office Supplies – RFP to be issued in November

## Interagency Contracting

- OFPP has new working group to examine interagency contracting
- Issued a data call to the agencies to determine scope of this issue – reviewing data
- Will inform future governance questions about the business case for and management imperatives of awarding new contract vehicles
- See interagency contracting as a subset of strategic sourcing

## Competitive Sourcing

- President’s Management Agenda process – OFPP leads this
- New statutory reporting requirements have added transparency to the process
- OFPP issued a new report available on the _[www.omb.gov/procurement](http://www.omb.gov/procurement)__ site_
- Between 2003 and 2005, agencies have completed over 1000 competitions involving over 40K FTEs.
- Federal employees have been selected to perform over 80% of the work in the last 3 yrs
- OFPP released a report on best value in competitive sourcing to build support for best value

## Electronic Government

- Integrated Acquisition Environment
- CAOC has Acquisition Committee for E-gov (ACE) – manages and priorities IAE efforts
- $37M annual budget
- FPDS – eliminated 300 systems
- Wage Determinations Online – saved $200M
- Initiative to share IAE data across applications
- FedBizOpps recompete – in protest
- _[www.acquisition.gov](http://www.acquisition.gov/)_ _[CCR](http://www.ccr.gov/)_ _[EPLS](http://www.epls.gov/)_ _[eSRS](http://www.esrs.gov/)_ FBO FedReg FedTeDs FPDS-NG ORCA WDOL
- Coburn-Obama Bill – Transparency in government spending – searchable database

## Human Capital (Acquisition Workforce)

- Policy Letter 05-01, Developing and Managing the Acquisition Workforce
- Effective April 2005
- Purpose is two-fold:
- Broadly define the acquisition workforce
- Closely align civilian and defense workforce requirements

## Broadly Defining the Workforce

- The Services Acquisition Reform Act (SARA) defines acquisition broadly to include functions other than traditional contracting (management and measurement of performance, tech and mgmt direction, etc.)
- Policy Letter gives Chief Acquisition Officers (CAOs) responsibility for identifying their workforce to include, at a minimum:
- All GS-1102s
- All warranted Contracting Officers (COs) regardless of series
- All GS-1105s
- Program and project managers, as identified by the CAO
- All CORs and COTRs
- Any acquisition-related position identified by the CAO

## Aligning the Civilian and Defense Workforce Requirements

- Core competencies aligned
- Core training aligned
- No change to the qualification standard for civilian 1102s (no change to the education standard)

## Federal Acquisition Certification – Program and Project Managers and Others

- Generally reflect the DAU requirements, though may be limited to basic training
- CAOs responsible for developing basic and refresher training for agency CORs and COTRs
- FAI will develop recommendations for other disciplines
- Career enhancing credential

## Other Human Capital Initiatives

- FAI developing Acquisition Intern Community – central coordination of intern services, workforce management, recruitment, etc.
- FAI Board of Directors
- Provides general guidance and direction to FAI
- Assists FAI in prioritizing needs for Acquisition Workforce Training Fund – 75% savings possible
- Collocation of FAI and DAU will help civilian agencies leverage DAU’s training development and delivery efforts

## HHS Information

- HHS issued version 1.0 of its Acquisition Workforce Career Management Handbook (available on the HHS KnowNet Acquisition Supersite at:  http://www.knownet.hhs.gov/acquisition/careerhandbookver.1.0.doc), which reflects the new FAC-C requirements.
- HHS will begin certifying people under the FAC-C beginning January 1, 2007.
- ACM for HHS is Linda Stivaletti-Petty on 202-720-1906.  Email Linda.Stivaletti@hhs.gov.

## Certification Program – FAC-C

- Mirrors DOD’s program for government-wide consistency, portability
- Consistent with OPM GS-1102 Qualification Standard
- Key core requirements – Level I, II, and III
- Training
- Education
- Experience
- Agencies will be able to supplement the core requirements
- Program is not mandatory for individuals, but is required for new warrant holders after 1/1/2007

## Performance-Based Acquisition

- _FY__	__	__Target__	__	__	__Actual_
- 2001		10%			26%
- 2002		20%			34%
- 2003		30%			35%
- 2004		40%			41%
- 2005		40%			45%
- acc.dau.mil/pba
- Working on SARA Panel Recommendations
- Issued memorandum with 2006 goals – 40% or more
- DoD – 55% for 05 (as of 7/20/2006)

## Emergency Contracting

- In 2003, OFPP published an Emergency Flexibilities document (on the OFPP Web site – currently updating this).
- FEMA issued Emergency Acquisition Field Guide – excellent resource.
- CAOC has working group to identify contracts and personnel for disaster and contingency operations.
- Acc.dau.mil/emergencyresponse

## Service-Disabled Veterans

- OFPP drafted Executive Order (EO) 13360 to increase contracting and subcontracting opportunities for service-disabled veterans.
- SBA has been monitoring performance
- GSA has upcoming GWAC set-aside for small businesses owned by SDV.
- Need clarity on preference.
- FY 05 - $1.9B; FY 04 - $1.1B

## Other

- Management of Major Contracts
- Small Business – awarded record-breaking $79.6B in FY05 (over $10B increase from 04)
- Delinquent Tax Debts of Federal Contractors
- Flag on CCR for prohibition on payment with purchase card for certain vendors
- Other reps and certs changes
- Proper Use of Award and Incentive Fee Contracts

## Questions?