Strategic Sourcing Acquisition Improvement Initiative Office of Acquisition and Property Management Strategic Acquisition Forum February 17, 2010

Overview New Demands What is Strategic Sourcing? Our Successes

Overview Our Lessons Learned Maximizing Our Leverage and Meeting the Demands Questions and Answers

OMB Directives  Enhance Agency Efficiency  Reduce Agency Spending  DOI  FY % savings ≈ $80m  FY % savings ≈ $190m

New Economy: New Demands New Economy National Deficit Unemployment Resilience OMB Directives

Meeting the Demands Acquisition Improvement Initiative Strategic Sourcing Strategies: Federal Strategic Sourcing Initiative DOI Strategic Sourcing Initiative Bureau-Lead Strategic Sourcing Initiatives

Strategic Sourcing An analytical acquisition approach to achieve best value through standardization and leverage that results in significant savings and fulfillment of socio-economic and environmental requirements.

Program Objectives Implement Departmental Cross-Functional Acquisition Strategies Reduce the Total Cost of Ownership Improve Fulfillment of Socio-Economic Acquisition Goals

Program Objectives Standardize Acquisition Business Processes Enhance Skills of the Acquisition Community

Program Benefits Revive Nation’s Economy Revitalize the Hope of Americans Reduce the Negative Impact of Budget Cuts Business Process Transformation

Page 11 Conduct Opportunity Assessment Market Analysis Develop Commodity Strategy Execute Acquisition Strategy Implement & Manage Performance 2345 Profile Commodity COMMODITY STRATEGIC SOURCING PROCESS 1 Commodity Identification Identify and PrioritizeDevelop plan and strategyImplement, Measure and Adjust 

Our Successes IT Equipment 23% ≈ $12.1m Office Supplies 18% ≈ $2.1m Relocation Services* 9% ≈ $3.5m Domestic Delivery25% ≈ $4m Commercial Wireless Plan12% ≈ $450k CADR – HR 6% ≈ $12k DAR60% ≈ $500k

Lessons Learned Optional Use Minimize Effectiveness Optional Use Reduces Savings Potential Engagement of all Stakeholders Required Multiple Communications Strategies Required Standardized Requirements meet 90% of DOI needs

Maximizing Leverage Engagement of Stakeholders Consider Mandatory Use Bureau Support – dedicated resources SSI Portal Fulfillment of Regulations and Policies Bureau-Lead Initiatives Bureau Procurement and Program Support Recommendations

Future Initiatives SAVE Ideas Heavy Equipment IT Hardware Recycled Paper Shuttle Service DOIU Training Furniture IT Software Licenses Full Deployment of Wireless

Strategic Sourcing Program Questions – Are there additional program objectives that should be considered? – Are there other implementation recommendations? – Are there other strategic sourcing recommendations? Comments Thank You