II 

113TH CONGRESS 

1ST SESSION S. 1304 

To promote strategic sourcing principles within the Federal Government. 

IN THE SENATE OF THE UNITED STATES 

JULY 16 (legislative day, JULY 15), 2013 

Mr. BEGICH introduced the following bill; which was read twice and referred 

to the Committee on Homeland Security and Governmental Affairs 

A BILL 

To promote strategic sourcing principles within the Federal 

Government. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Buy Smarter and Save 

5 Act of 2013’’. 

6 SEC. 2. GOALS FOR STRATEGIC SOURCING OF FEDERALLY 

7 PROCURED GOODS AND SERVICES. 

8 (a) REQUIREMENT TO ESTABLISH GOALS FOR PUR9 CHASES AND SAVINGS USING STRATEGIC SOURCING.— 

10 The President shall establish— 

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1 (1) an annual Government-wide goal to procure 

2 goods and services using strategic sourcing, in ac3 cordance with this section; and 

4 (2) an annual Government-wide goal for savings 

5 resulting from the use of strategic sourcing, in ac6 cordance with this section. 

7 (b) AMOUNT OF PROCUREMENT GOAL.— 

8 (1) IN GENERAL.—The goal for procurement of 

9 goods and services established under subsection (a) 

10 shall be— 

11 (A) in each of fiscal years 2014 and 2015, 

12 at least $100,000,000,000; and 

13 (B) in each of fiscal years 2016, 2017, and 

14 2018, at least $75,000,000,000. 

15 (c) AMOUNT OF SAVINGS GOAL.—The goal for sav16 ings resulting from the use of strategic sourcing estab17 lished under subsection (a) shall be— 

18 (1) in each of fiscal years 2014 and 2015, at 

19 least $10,000,000,000; and 

20 (2) in each of fiscal years 2016, 2017, and 

21 2018, at least $7,500,000,000. 

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1 SEC. 3. IMPLEMENTATION OF STRATEGIC SOURCING 

2 GOALS BY OFFICE OF MANAGEMENT AND 

3 BUDGET. 

4 (a) GUIDANCE BY OFFICE OF MANAGEMENT AND

5 BUDGET.—The Director of the Office of Management and 

6 Budget shall issue guidance to executive agencies for im7 plementing the goals established under section 2. The Di8 rector, in consultation with the heads of executive agen9 cies, may set specific goals for procurement and savings 

10 that are customized to individual executive agencies. 

11 (b) MATTERS COVERED.—In the guidance issued 

12 under subsection (a), the Director shall include, at a min13 imum, the following: 

14 (1) Criteria for the goods and services to be 

15 procured using strategic sourcing, consistent with 

16 the considerations described in subsection (c). 

17 (2) A description of the specific data required 

18 to be submitted by executive agencies to the Director 

19 regarding implementation of the goals. 

20 (3) Guidance on calculating and verifying sav21 ings generated from strategic sourcing. 

22 (4) Standards to measure progress towards 

23 meeting savings goals. 

24 (5) Procedures to hold agencies accountable 

25 and ensure that agencies are achieving their stra26 tegic sourcing goals. 

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1 (6) Procedures to ensure that an agency is not 

2 making purchases that significantly exceed the re3 quirements of the agency. 

4 (7) A list of existing Government-wide strategic 

5 sourcing vehicles. 

6 (c) CONSIDERATIONS.—In developing the guidance 

7 issued under this section, the Director shall take into con8 sideration the application of strategic sourcing in a man9 ner that— 

10 (1) maintains a strong industrial and manufac11 turing base in the United States; 

12 (2) is consistent with international trade agree13 ments; 

14 (3) accounts for the benefits as well as the costs 

15 of procuring goods and services; 

16 (4) emphasizes the procurement of goods and 

17 services that are procured repetitively, procured Gov18 ernment-wide and in large amounts, and are non19 technical and commercial in nature; 

20 (5) allows for easy conduct of a spend analysis 

21 under section 4(b); and 

22 (6) reflects the requirements of the Small Busi23 ness Act, including the provisions addressing con24 tract bundling, contract consolidation, and the need 

25 to achieve the statutory small business prime conmstockstill on DSK4VPTVN1PROD with BILLS

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1 tracting and subcontracting goals in section 15 of 

2 that Act (15 U.S.C. 644). 

3 (d) RELATIONSHIP TO FEDERAL STRATEGIC

4 SOURCING INITIATIVE.—In issuing guidance under this 

5 section, the Director shall take into account and be con6 sistent with the Federal Strategic Sourcing Initiative man7 aged by the Office of Federal Procurement Policy. 

8 (e) REPORT.—Not later than 180 days after the end 

9 of a fiscal year for which a goal is established under sec10 tion 2, the Director shall submit to Congress a report on 

11 the implementation of this Act. The report shall include, 

12 at a minimum— 

13 (1) the dollar amount of spending for goods and 

14 for services that was strategically sourced during the 

15 year covered by the report; 

16 (2) the extent of savings on purchases of goods 

17 and services realized by executive agencies during 

18 that year; and 

19 (3) such findings and recommendations as the 

20 Director considers appropriate. 

21 SEC. 4. STRATEGIC SOURCING DUTIES OF COVERED DE22 PARTMENTS. 

23 (a) IN GENERAL.—The Secretary of a covered de24 partment shall take the following actions to support stra25 tegic sourcing efforts in the department: 

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1 (1) Establishment of department-wide goals and 

2 savings targets for strategic sourcing efforts in sup3 port of the goals established under section 2. 

4 (2) Establishment of a strategic sourcing ac5 countability official within the department. 

6 (3) Issuance of a policy that outlines the role, 

7 authority, and responsibilities of the strategic 

8 sourcing accountability official and department prac9 tices for strategic sourcing. 

10 (4) Identification of department-specific stra11 tegic sourcing contracts already in use and establish12 ment of utilization goals for current and future stra13 tegic sourcing efforts. 

14 (5) Development of standards to track and as15 sess compliance with the goals established under sec16 tion 2, consistent with the guidance and consider17 ations under section 3. 

18 (b) SPEND ANALYSIS REQUIREMENT.—Not later 

19 than six months after the date of the enactment of this 

20 Act, and in accordance with the guidance and consider21 ations under section 3, the Secretary of a covered depart22 ment shall conduct a spend analysis of procurements by 

23 the department during fiscal year 2012 to identify, assess, 

24 and quantify goods and services suitable for strategic 

25 sourcing. Based on the analysis, the Secretary shall select, 

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1 for implementation in fiscal year 2014, at least one good 

2 or service to strategically source from among the top 20 

3 procurement spending categories for commercial goods 

4 and services that are identified in the analysis as suitable 

5 for strategic sourcing. 

6 SEC. 5. STUDY AND REPORT BY COMPTROLLER GENERAL. 

7 (a) STUDY ON CONTRACT UTILIZATION FEES.—The 

8 Comptroller General of the United States shall conduct 

9 a study to assess the effect of contract utilization fees on 

10 the use of multiple agency contracts, including strategic 

11 sourcing vehicles using multiple award schedules, and 

12 shall submit a report on the results of the study to Con13 gress not later than one year after the date of the enact14 ment of this Act. 

15 (b) STUDY ON ESTABLISHING CONTRACT VEHI16 CLES.—The Comptroller General shall conduct a study to 

17 examine the cost of establishing each of the current Fed18 eral strategic sourcing initiative contract vehicles, and 

19 shall submit a report on the results of the study to Con20 gress not later than one year after the date of the enact21 ment of this Act. 

22 (c) ANNUAL REPORT ON IMPLEMENTATION OF

23 ACT.— 

24 (1) ASSESSMENTS.—Each year, the Comptroller 

25 General shall assess— 

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1 (A) the performance of executive agencies 

2 in implementing the strategic sourcing goals re3 quired by this Act; and 

4 (B) the amounts saved through the use of 

5 strategic sourcing, including a comparison of 

6 the costs of establishing and maintaining stra7 tegic sourcing contract vehicles. 

8 (2) REPORT.—The Comptroller General shall 

9 submit a report on the results of the assessment to 

10 Congress not later than one year after the date of 

11 the enactment of this Act and annually thereafter 

12 while the goals are in effect. 

13 SEC. 6. DEFINITIONS. 

14 In this Act: 

15 (1) EXECUTIVE AGENCY.—The term ‘‘executive 

16 agency’’ has the meaning given the term ‘‘Executive 

17 agency’’ in section 105 of title 5, United States 

18 Code. 

19 (2) COVERED DEPARTMENT.—The term ‘‘cov20 ered department’’ means the Department of De21 fense, the Department of Homeland Security, the 

22 Department of Energy, the Department of Veterans 

23 Affairs, the National Aeronautics and Space Admin24 istration, the Department of Health and Human 

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1 Services, the General Services Administration, and 

2 the Small Business Administration. 

3 (3) STRATEGIC SOURCING.—The term ‘‘stra4 tegic sourcing’’ means a structured and collaborative 

5 process of critically analyzing an organization’s 

6 spending patterns to better leverage its purchasing 

7 power, reduce costs, and improve overall value and 

8 performance. 

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