1. DOE Strategic Business Initiatives
Briefing to Joint Procurement Meeting
February 7-8, 2012

2. Agenda 1st Session 2nd Session Process Flow Promote Efficiency
Office of Management and Budget (OMB) Requirements
DOE Implementation
Government Accountability Office (GAO) Oversight
2nd Session
Policy and Guidance
Reporting
FY 12 Goals and Objectives
Expectations

3. GAO Conclusion
“Growing federal deficits and increasingly uncertain future federal budgets have necessitated that M&O contractors evaluate areas that could be streamlined or provide cost savings in support costs at these sites, thereby maximizing funds available for the sites’ national security, research, and energy development missions”

4. Process Flow Strategic Tactical Policy/Guidance/Direction
Reduce Spend
White House
Efficiency Goals
OMB
Cost Savings
DOE
Policy/Guidance/Direction
Strategic Sourcing Policy
OPAM
Strategic Sourcing Guidance
Prog.
eSourcing Activity
Sites
Implementation/Execution
USA Spend Website
MAX Database
Mgmt & Opn Goals
AcqStat & MOP Charts
Report Template
Capture Cost Savings
GAO Oversight and Audit of Entire Process

5. Promote Efficiency Executive Order - Promote Efficient Spending
Agency Reduction Target 20% below FY10 Spending
Federal Employee Travel
Employee Mobile IT Devices
Printing Costs
Executive Fleet Efficiencies
Extraneous Promotional Items
Campaign to Cut Waste also includes:
Fleet Reductions
Advisory contracts
Disposition of Excess Real Property
Subscriptions
Strategic Sourcing includes additional 10% in “Supplies”!

6. OMB Requirements OMB Initiatives – Federal and Support
Acquisition Status (AcqStat) - Annual report on DOE progress
GSA SmartPay – Annual report on program Internal Controls
Strategic Sourcing – Expanding government-wide activities including FSSI and EWA
Service Contracts – Goal of reducing certain PSCs
Multi-Sector Workforce (MSWF) – Understanding how contracted services support mission and operations
Service Contract Inventory – Priority established for Special Interest Functions and Inherently Governmental designation
FAIR Act Inventory – Improve Human Capital distribution
These OMB Initiatives must have M&Os participation to be successful!

7. DOE Implementation Acquisition Status Report (AcqStat)
Reducing the cost of management support services
Buying smarter (government and agency-wide strategic sourcing)
Managing high risk contracts
Strengthening the acquisition workforce
Total - $967 million, about 4 percent relative to our $25 billion FY 2011 appropriations
Huge savings opportunities exist at DOE
The need to implement strategic sourcing throughout DOE is paramount
Possible solutions require cross-departmental cooperation and executive involvement
Strategic sourcing initiatives will require additional resources
Agency Spend Analysis is key

8. DOE Implementation continued
GSA Purchase Card Program (SmartPay)
Primary method used to acquire goods/services below the micro-purchase threshold
Also used to place orders under existing contracts and make payments.
Seen a significantly increased use of P-Cards to streamline purchasing/improve cash management
Huge savings opportunities exist at DOE
The need to implement strategic sourcing throughout DOE is paramount
Possible solutions require cross-departmental cooperation and executive involvement
Strategic sourcing initiatives will require additional resources
Agency Spend Analysis is key

9. DOE Implementation continued
Strategic Sourcing Implementation
Federal
Federal Strategic Sourcing Initiative (FSSI)
General Services Administration Schedules (GSA)
Enterprise Wide Agreements (EWA)
Contractor
Contractor Supply Chain Council (CSCC)
Integrated Contractor Purchasing Team (ICPT)
Supply Chain Management Center (SCMC)
Procurement Evaluation & Re-Engineering Team (PERT)

10. DOE Implementation continued
FSSI – Federal Strategic Sourcing Initiative
Allows government to aggregate requirements, streamline processes and leverage its buying power
Primary goals:
Strategically source across federal agencies
Establish mechanisms to increase total cost savings, value, socioeconomic participation and sustainability goals
Collaborate with industry to develop optimal solutions
Share best practices
Create strategic sourcing communities of practice
Current FSSI Solutions
Wireless Telecommunications Expense Management Services
Print Management Services
Office Supplies
Express and Ground Domestic Delivery Services
Multifunction Devices (MFDs)
Website:
Huge savings opportunities exist at DOE
The need to implement strategic sourcing throughout DOE is paramount
Possible solutions require cross-departmental cooperation and executive involvement
Strategic sourcing initiatives will require additional resources
Agency Spend Analysis is key

11. GSA Office Supplies Huge savings opportunities exist at DOE
The need to implement strategic sourcing throughout DOE is paramount
Possible solutions require cross-departmental cooperation and executive involvement
Strategic sourcing initiatives will require additional resources
Agency Spend Analysis is key

12. DOE Implementation continued
EWA – Enterprise Wide Agreements
Collection of optional-use, strategic sourcing contracts for common-use software, hardware, and services used within IT organizations across the DOE
Open to the entire DOE complex, including National Labs and Power Administrations, and all DOE contractors, including M&O contractors
Applies a centralized, cross-functional, strategic enterprise software solutions approach that leverages opportunities to create efficiencies and enhances the value of IT acquisition 
Benefits of the program include:
Reducing duplicative enterprise-wide IT components
Promoting technical standardization
Increasing  IT contract administration efficiencies
Improving  knowledge-sharing of IT acquisition best practices
Website:
Huge savings opportunities exist at DOE
The need to implement strategic sourcing throughout DOE is paramount
Possible solutions require cross-departmental cooperation and executive involvement
Strategic sourcing initiatives will require additional resources
Agency Spend Analysis is key

13. DOE Implementation continued
CSCC – Contractor Supply Chain Council (Formerly CPC)
Provides focused communication between DOE SPE and the Department's major contractors' Purchasing Managers
Represents complex-wide views, concerns and interests of the contractor community
ICPT – Integrated Contractor Purchasing Team
Aggressively pursue strategic sourcing opportunities that represent procurement leveraged spend that results in a lower total cost of ownership for DOE Complex Wide Site and Facility Contractors
Huge savings opportunities exist at DOE
The need to implement strategic sourcing throughout DOE is paramount
Possible solutions require cross-departmental cooperation and executive involvement
Strategic sourcing initiatives will require additional resources
Agency Spend Analysis is key

14. DOE Implementation continued
SCMC – NNSA/EM Supply Chain Management Center
Implement an enterprise-wide, integrated procurement software/hardware platform utilizing : Spend Analysis, eSourcing (electronic sealed-bidding and Reverse Auctions); eStore (electronic Catalogs); and strategic sourcing (site-wide commodity pricing agreements)
PERT – Procurement Evaluation Re-engineering Team
The contractor purchasing system reviews (CPSR) are accomplished by experienced professionals from outside of the organization being reviewed
The program provides for the use of established criteria, and provides for the qualifications and primary responsibilities of team members
Huge savings opportunities exist at DOE
The need to implement strategic sourcing throughout DOE is paramount
Possible solutions require cross-departmental cooperation and executive involvement
Strategic sourcing initiatives will require additional resources
Agency Spend Analysis is key

15. GAO Oversight 3 Recent Audits:
GAO # – OMB’s Acquisition Savings had Some Results, but Improvements Needed
Audit Complete – Findings focused on OMB/OFPP Guidance
GAO # – DOE Contractor Support Costs at NNSA and Office of Science Sites
- Audit Complete – Findings focused on DOE Guidance
One recommendation was to “clarify guidance on estimating cost savings from streamlining efforts.”
GAO # – Strategic Sourcing in the Federal Government, DOE, DOD, DHS, VA and GSA Audit Underway – Findings will build on strengthening guidance,
Just received a new data call
Huge savings opportunities exist at DOE
The need to implement strategic sourcing throughout DOE is paramount
Possible solutions require cross-departmental cooperation and executive involvement
Strategic sourcing initiatives will require additional resources
Agency Spend Analysis is key

16. Session # 2

17. DOE Policy and Guidance

18. Reporting Template

19. 1st Qtr Savings
Not sure how to handle ICPT savings??

20. 1st Qtr FY 12 Strategic Sourcing MOP

21. FY 12 Goals and Objectives
DOE FY 2012 Budget by Program
Option #1:
DOE Goal of $286M Allocated by Budget Share
Option #2:
DOE Goal of $286M Allocated by Program

22. FY 12 Goals and Objective Expanding Beyond Strategic Sourcing

23. Expectations All of our success depends greatly upon:
Getting in front of the curve on Goal Development
Identifying Department-wide Opportunities
Communication Among and Between Programs
Communication Both Up and Down the Chain
Organizing Collecting and Reporting Mechanisms
More opportunities exist for collaboration between M&O contractors, we must find them through Spend Analysis!
Opportunities may exist with collaboration between agencies (e.g. EPA, Corps of Engineers, AFCEE, etc.)
Contractors are doing many things well but we’re not capturing all of it – Tell the Story!
Huge savings opportunities exist at DOE
The need to implement strategic sourcing throughout DOE is paramount
Possible solutions require cross-departmental cooperation and executive involvement
Strategic sourcing initiatives will require additional resources
Agency Spend Analysis is key

24. DOE Goals Summary Strategic Sourcing Savings $286 M
NNSA $
EM $
SC $
Other $
Other Cost Savings/Avoidance $XXX M
Spend Analytics Plan
NNSA: In place
EM: Pilot in place by Sep 2012, rest of sites in 2013
SC:
Other: