I 

114TH CONGRESS 

1ST SESSION H. R. 1760 

To promote strategic sourcing principles within the Federal Government. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 13, 2015 

Mr. REED (for himself, Mr. MURPHY of Florida, Mr. BERA, Mr. COFFMAN, 

Mr. SCHRADER, Mr. RODNEY DAVIS of Illinois, Mr. PETERS, Mr. COOPER, Mrs. BUSTOS, Mr. RIBBLE, Ms. JENKINS of Kansas, and Mr. 

JOYCE) introduced the following bill; which was referred to the Committee on Oversight and Government Reform 

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 2015’’. 


rfrederick on DSK6VPTVN1PROD with BILLS
2 

•HR 1760 IH

1 SEC. 2. GOALS FOR STRATEGIC SOURCING OF FEDERALLY 

2 PROCURED GOODS AND SERVICES. 

3 (a) REQUIREMENT TO ESTABLISH GOALS FOR PUR4 CHASES AND SAVINGS USING STRATEGIC SOURCING.— 

5 The President shall establish— 

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

7 goods and services using strategic sourcing, in ac8 cordance with this section; and 

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

10 resulting from the use of strategic sourcing, in ac11 cordance with this section. 

12 (b) AMOUNT OF PROCUREMENT GOAL.— 

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

14 goods and services established under subsection (a) 

15 shall be— 

16 (A) in each of fiscal years 2016 and 2017, 

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

18 (B) in each of fiscal years 2018, 2019, and 

19 2020, at least $75,000,000,000. 

20 (c) AMOUNT OF SAVINGS GOAL.—The goal for sav21 ings resulting from the use of strategic sourcing estab22 lished under subsection (a) shall be— 

23 (1) in each of fiscal years 2016 and 2017, at 

24 least $10,000,000,000; and 

25 (2) in each of fiscal years 2018, 2019, and 

26 2020, at least $7,500,000,000. 


rfrederick on DSK6VPTVN1PROD with BILLS
3 

•HR 1760 IH

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. 


rfrederick on DSK6VPTVN1PROD with BILLS
4 

•HR 1760 IH

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

2 making purchases that significantly exceed the re3 quirements of the agency, including purchases of 

4 ammunition. 

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

6 sourcing vehicles. 

7 (c) CONSIDERATIONS.—In developing the guidance 

8 issued under this section, the Director shall take into con9 sideration the application of strategic sourcing in a man10 ner that— 

11 (1) maintains a strong industrial and manufac12 turing base in the United States; 

13 (2) is consistent with international trade agree14 ments; 

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

16 of procuring goods and services; 

17 (4) emphasizes the procurement of goods and 

18 services that are procured repetitively, procured Gov19 ernment-wide and in large amounts, and are non20 technical and commercial in nature; 

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

22 under section 4(b); and 

23 (6) reflects the requirements of the Small Busi24 ness Act, including the provisions addressing con25 tract bundling, contract consolidation, and the need 


rfrederick on DSK6VPTVN1PROD with BILLS
5 

•HR 1760 IH

1 to achieve the statutory small business prime con2 tracting and subcontracting goals in section 15 of 

3 that Act. 

4 (d) RELATIONSHIP TO FEDERAL STRATEGIC

5 SOURCING INITIATIVE.—In issuing guidance under this 

6 section, the Director shall take into account and be con7 sistent with the Federal Strategic Sourcing Initiative man8 aged by the Office of Federal Procurement Policy. 

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

10 of a fiscal year for which a goal is established under sec11 tion 2, the Director shall submit to Congress a report on 

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

13 at a minimum— 

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

15 for services that was strategically sourced during the 

16 year covered by the report; 

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

18 and services realized by executive agencies during 

19 that year; and 

20 (3) such findings and recommendations as the 

21 Director considers appropriate. 


rfrederick on DSK6VPTVN1PROD with BILLS
6 

•HR 1760 IH

1 SEC. 4. STRATEGIC SOURCING DUTIES OF COVERED DE2 PARTMENTS. 

3 (a) IN GENERAL.—The Secretary of a covered de4 partment shall take the following actions to support stra5 tegic sourcing efforts in the department: 

6 (1) Establishment of department-wide goals and 

7 savings targets for strategic sourcing efforts in sup8 port of the goals established under section 2. 

9 (2) Establishment of a strategic sourcing ac10 countability official within the department. 

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

12 authority, and responsibilities of the strategic 

13 sourcing accountability official and department prac14 tices for strategic sourcing. 

15 (4) Identification of department-specific stra16 tegic sourcing contracts already in use and establish17 ment of utilization goals for current and future stra18 tegic sourcing efforts. 

19 (5) Development of standards to track and as20 sess compliance with the goals established under sec21 tion 2, consistent with the guidance and consider22 ations under section 3. 

23 (b) SPEND ANALYSIS REQUIREMENT.—Not later 

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

25 Act, and in accordance with the guidance and consider26 ations under section 3, the Secretary of a covered departVerDate Sep 11 2014 03:02 Apr 16, 2015 Jkt 049200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1760.IH H1760

rfrederick on DSK6VPTVN1PROD with BILLS
7 

•HR 1760 IH

1 ment shall conduct a spend analysis of procurements by 

2 the department during fiscal year 2014 to identify, assess, 

3 and quantify goods and services suitable for strategic 

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

5 for implementation in fiscal year 2016, at least one good 

6 or service to strategically source from among the top 20 

7 procurement spending categories for commercial goods 

8 and services that are identified in the analysis as suitable 

9 for strategic sourcing. 

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

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

12 Comptroller General of the United States shall conduct 

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

14 the use of multiple agency contracts, including strategic 

15 sourcing vehicles using multiple award schedules, and 

16 shall submit a report on the results of the study to Con17 gress not later than one year after the date of the enact18 ment of this Act. 

19 (b) STUDY ON ESTABLISHING CONTRACT VEHI20 CLES.—The Comptroller General shall conduct a study to 

21 examine the cost of establishing each of the current Fed22 eral strategic sourcing initiative contract vehicles, and 

23 shall submit a report on the results of the study to Con24 gress not later than one year after the date of the enact25 ment of this Act. 


rfrederick on DSK6VPTVN1PROD with BILLS
8 

•HR 1760 IH

1 (c) ANNUAL REPORT ON IMPLEMENTATION OF

2 ACT.— 

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

4 General shall assess— 

5 (A) the performance of executive agencies 

6 in implementing the strategic sourcing goals re7 quired by this Act; and 

8 (B) the amounts saved through the use of 

9 strategic sourcing, including a comparison of 

10 the costs of establishing and maintaining stra11 tegic sourcing contract vehicles. 

12 (2) REPORT.—The Comptroller General shall 

13 submit a report on the results of the assessment to 

14 Congress not later than one year after the date of 

15 the enactment of this Act and annually thereafter 

16 while the goals are in effect. 

17 SEC. 6. DEFINITIONS. 

18 In this Act: 

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

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

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

22 Code. 

23 (2) COVERED DEPARTMENT.—The term ‘‘cov24 ered department’’ means the Department of De25 fense, the Department of Homeland Security, the 


rfrederick on DSK6VPTVN1PROD with BILLS
9 

•HR 1760 IH

1 Department of Energy, the Department of Veterans 

2 Affairs, the National Aeronautics and Space Admin3 istration, the Department of Health and Human 

4 Services, the General Services Administration, and 

5 the Small Business Administration. 

6 (3) STRATEGIC SOURCING.—The term ‘‘stra7 tegic sourcing’’ means a structured and collaborative 

8 process of critically analyzing an organization’s 

9 spending patterns to better leverage its purchasing 

10 power, reduce costs, and improve overall value and 

11 performance. 

Æ 


rfrederick on DSK6VPTVN1PROD with BILLS