Office of Acquisition and Property Management U.S. Department of the Interior Strategic Sourcing Leveraging Interior’s Purchase Power DOI Annual Business Conference Thursday, May 25, 2006

What is Strategic Sourcing? An analytical approach to increase savings, socio-economic participation and standardization. Why are we doing it? Reduce Administrative and Commodity Costs Increase Small Business and Environmental Procurement Goal Achievement Increase Efficiency and Value

Small Business Goals Why? SSmall Businesses are the Heart the American Economy SSmall Businesses ensure competition and multiple resources for commodities and service. TTo Be a Good Neighbor IIt’s the Law FFAR Parts 8.7 and 19 How? PProvide small businesses opportunity to meet the needs of the Federal Government. AAchieve our goals by providing opportunities for the following small business concerns: JWOD8a HUBZoneWoman-Owned Service Disabled Veteran-Owned

Environmental Mandates As the National Steward of America’s resources, we must make sound environmental decisions.  Resource Conservation and Recovery Act (RCRA), Section 6002  2002 Farm Bill, Section 9002  EO 13101, Greening the Government through Waste Prevention, Recycling, and Federal Acquisition  Federal Acquisition Regulations, Parts 7, 11, 12, 13, 23, 36, 37 and 52  Office of Federal Procurement Policy (OFPP) Letter 92-4, Procurement of Environmentally Sound and Energy Efficient Products and Services

OMB’s Snapshot Current state SPE best practices Federal best practice Standards based requirements Demand management High customer satisfaction Driven vendor management Strategic achievement of small business goals integral to plan Build leverage across Govt Share best practices Leverage current vehicles Departments going it alone standing up Commodity Management Teams (CMTs) We need to do more with less Cross-Department CMTs Harmonize requirements Carefully consider small business implications Shared CMTs Build leverage cross Departments

Federal Supply Schedule Interior’s Usage

Interior’s Top 10 Commodities FY 2002 OTHER ADP & TELECOMMUNICATIONS SVCS16.3% A/E SVCS. (INCL LANDSCAPING INTERIO15.4% PASSENGER AIR CHARTER SERVICE14.3% OTHER PROFESSIONAL SERVICES11.8% RELOCATION SERVICES9.4% OTHER ARCHITECTS & ENGIN GEN8.9% ADPE SYSTEM CONFIGURATION7.7% CONTRUCT/ALL OTHER NON-BLDG FACS6.0% MISCELLANEOUS ITEMS5.2% ADP SOFTWARE5.1% Total:100.0% TOP TEN GOODS\SERVICES PURCHASED BASED ON NUMER OF ACTIONS

Interior’s Top 10 Commodities FY 2003 OTHER ADP & TELECOMMUNICATIONS SVCS17.0% OTHER PROFESSIONAL SERVICES15.2% A/E SVCS. (INCL LANDSCAPING INTERIO13.9% PASSENGER AIR CHARTER SERVICE11.3% OFFICE FURNITURE10.5% OTHER ARCHITECTS & ENGIN GEN8.6% RELOCATION SERVICES7.7% ADPE SYSTEM CONFIGURATION5.4% MAINT, REP-ALT/RESTORATION5.2% ADP SOFTWARE5.1% Total:100.0% TOP TEN GOODS\SERVICES PURCHASED BASED ON NUMER OF ACTIONS

Interior’s Strategic Sourcing Initiative Commodities IT Equipment* Office Supplies Telecommunication (Wireless Plans)* Office Equipment (Duplication)** Domestic Delivery Relocations*** ____________ * Joint Initiative with OCIO ** Joint Initiative with Printing Council *** Joint Initiative with PFM

Strategic Sourcing Council Approved and Authorized by MIT and Assistant Secretary, PMB Strategic Sourcing CAODAS OSDBU AMPMIT SPEPAMCIO

Strategic Sourcing Council Composition Approved by CAO & MIT CAO Tom Weimer DAS Nina Rose Hatfield CIO Hord Tipton MIT Jim Poole, NPS MIT Larry Todd, BOR SPE Debra Sonderman PAM Melodee Stith OSDBU Robert Faithful PAM Pia Scott AMP David Sutfin

Strategic Sourcing Council Roles and Responsibilities  Provide executive-level leadership  Develop Charter  Establish FY strategic sourcing goals  Develop performance measures  Develop agency communication plan  Develop training plan

For More Information Please Contact Pia N. Scott, DOI/OS/PAM (202)