GovTravels 2019 Government-wide Category Management Updates and a Glimpse Into ETSNext Tim Burke

1. GovTravels 2019 Government-wide Category Management Updates and a Glimpse Into ETSNext Tim Burke

2. The Evolving Government Marketplace • Recap of the last 2 years with a focus on Category Management • Maturation of Category Management government-wide continues, driven by the President’s Management Agenda • NOTE WORTHY: Defense Human Resources Activity Defense (DHRA) and the Defense Travel Management Office (DTMO) “leadership decisions in action”; they are enriching and optimizing Government-wide Category Management for Travel • ETSNext • Digital disruption and emerging technology enablers Enterprise-wide; Easy and Efficient

3. Category Management Principles are Driving how the Government Procures • Increased spend under management • Reduced contract duplication • Administrative savings • Volume savings • Enhanced transparency • Shared best practices • Better contract vehicles and purchases • Efficient contract management process for suppliers Enterprise-wide; Easy and Efficient

4. Summary of Progress in the Last Quarter • Government-wide Successes: • Increasing the use of proven, enterprise solutions for over $300 billion in common goods and services allows the government to leverage its buying power and reduce unnecessary – and expensive – duplication. As a result of the Administration’s focus, in the last two years, the government has: • Avoided $17 billion in costs • Applied category management principles nearly 45% of common spend • Exceeded its goal to use top tier government-wide solutions by $9 billion • Reduced the number of contracts by over 7% • Exceeded small business goals • Category Management supports CAP goal #2 to increase the use of data in decision-making through the use of new tools, such as detailed IT acquisition dashboards, small business solutions search functions, and other resources have been developed to further institutionalize category management as a core acquisition function.

5. Overview Goal Statement The Federal government will buy common goods and services as an enterprise to eliminate redundancies, increase efficiency, and deliver more value and savings from the government’s acquisition programs. By the end of FY 2020, the government will achieve $18 billion in savings for taxpayers. Government will reduce duplicative contracts by 50,000, reducing administrative costs by hundreds of millions of dollars. Challenge The Federal Government spends over $300 billion on common goods and services each year. Agencies buy in a fragmented manner, taxpayers often do not get the benefit of the Government’s position as the largest buyer in the world. Hundreds - and in some cases thousands – of duplicative contracts are awarded to the same vendors for similar requirements. This fragmentation leads agencies to pay significantly different prices – sometimes varying by over 300% – for the same items. Opportunity The Government will not only save taxpayer dollars, but this effort will improve mission outcomes. For example, this will allow our law enforcement personnel to have easier access to equipment, such as ammunition and body armor, to ensure their safety; medical professionals can order medical supplies through electronic catalogues to save time and focus more on patients; and agencies can buy standardized computers to reduce cyber risk by having great control over infrastructure and access points.

6. Governance Lesley Field, OMB, Deputy Administrator of Office of Federal Procurement Policy (OFPP) – Category Management CAP Goal Co-Lead. Lisa Hershman, Acting Chief Management Officer, Department of Defense – Category Management CAP Goal Co-Lead Administrator of OFPP CategoryManager Category X Sub-Category Team Category Manager Category Lead Chair Category Team Commodity Team Category Manager Category Y Agency A Rep Agency A Rep Category Lead A Agency E Rep Category Lead E Agency E Rep Category Manager Category Z Category Team Sub-Category Team Category Managers Category Management Leadership Council Traditional strategic sourcing working group formed when the category management process identifies the need for a new acquisition solution. Government experts in the 10 categories - develop the government-wide strategy to drive improved performance and act as change agents for the category. Responsible for the development and execution of category strategies for a specific category (e.g., IT) Responsible for the development and execution of category-specific sub-strategies (e.g., IT software within the IT category). Category Lead D Agency D Rep Agency D Rep Category Lead B Agency B Rep Agency B Rep Category Lead C Agency C Rep Agency C Rep Teams are supported by close to 400 representatives across all agencies Category Management PMO (GSA) Acquisition Gateway A single portal to support smarter buying for federal employees, including best practices, prices paid, contract terms and conditions, transactional information (such as prices paid data), white papers, market research, and information on procurement alternatives. Provides overall program management support to category managers, including development of guidance, data analytics, build out of dashboards and tools.

7. Leadership Category Managers: Government-wide experts for each of the 10 common categories of spend responsible for developing category strategies, with support of interagency team members. Information Technology Professional Services William Zielinski GSA Tiffany Hixson GSA Security & Protection Facilities & Construction Jaclyn Smyth DHS Mary Ruwwe GSA Industrial Products & Services Office Management George Prochaska GSA Dena McLaughlin GSA Timothy Burke GSA Transportation & Logistics Services Travel Adam Yearwood DOD Thomas McCaffrey (DoD) & Richard Stone, M.D. (VA) Human Capital Medical Indu GargOPM

8. Goal Structure • Strategies are being developed at the government-wide and agency-wide level to accomplish the Goal. • Government-wide Strategies, Category Managers have developed strategies to: • Designate Best In Class (BIC) solutions* • Develop best practiceson how to best bid to industry • Removing barriers and burdens through the identification of customary commercial practices • Maintain small business utilization goals • Agency-Specific Strategies: Agencies are required to implement four key management actions: • Establish annual goals to increase the use of BICs and align spend to socio-economic responsibilities • Develop effective supplier management strategies • Eliminate inefficient purchasing and consumption behaviors, and adopt standardized business practices • Share buying data • *Best in Class solutions are those evaluated as providing the best value, including competitive pricing, standardized requirements, to meet most agency’s needs, and terms and conditions that have produced good results.

9. Key Indicators Notes: Goals relative to FY16 baseline. FY18 data will be available in January 2019 due to lag in reporting for DoD. Additional Definitions: Cost avoidance - includes costs avoidance using strategic sourcing solutions from FY2010-2015 and Best In Class solution with validated cost avoidance methods from FY16-Present. Best In Class Addressable Spend – When baseline was established, there were 18 BICs with $58 billion in addressable spend. Training - Individuals trained counted by Federal Acquisition Institute receiving a rating of 4.2 or higher.

10. TDY Passenger Air $3.0B Air $3.0B TRAVEL DOMAIN 2017 LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4 Passenger Travel $3.6B TDY Rental Car $465M Ground $579.3M Shuttle/Limo $35M Rental Supplemental Vehicle Services $48M Transient (TDY) Lodging $2.8B Ridesharing $2.9M Long Term Lodging $148M Lodging $3.0B Travel $8.5B Rail $14.4M Emergency Lodging $8.2M Groups and Meetings $? End-to-end Travel Services $171.4M TMC Services $5.2M Taxi $14M Travel Agent & Misc. Services $395.7M Travel Consulting Services $9.4M Misc. Services $209.7M Employee Relocation $1.5B *Spend based on FY16 actual prices paid and FPDS 10

11. TDY Passenger Air $3.1B Air $3.1B TRAVEL DOMAIN 2019 LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4 Passenger Travel $4.0B TDY Rental Car $606M Ground $857M Shuttle/Limo $25.5M Rental Supplemental Vehicle Services $48M Transient (TDY) Lodging $3.6B Ridesharing $1.4M Long Term Lodging $668.5M Lodging $4.9B Travel $11.7B Emergency Lodging $624.7M Taxi $162.5M Groups and Meetings $0 End-to-end Travel Services $172.3M Rail $13.3M TMC Services $50M Travel Agent & Misc. Services $543.7M Travel Consulting Services $12.1M Misc. Services $309.2M Employee Relocation $2.3B 11

12. The State of the Travel Category Object Class 21 Obligations $2B Travel Category Domain $5.3B Identified by subcategory, through FPDS and supplier data Spend addressed by BICs $11.7B CPP, FedRooms, Rental Car, Homesale FY19-20 Initiatives $16B Rideshare, TMCs, Long Term Lodging, FedRooms

13. Travel Achieving Category Goals with Enterprise-wide BIC Solutions • US Government Rental Car Program - $606M domain spend, 85% utilization • Civilian Employee Relocation Homesale Solution - $91.3M domain spend, 85%utilization • City Pair Program - $3.1B domain spend, 80.7% utilization • FedRooms - $1.8B domain spend, 19.3% utilization – BIG Opportunity Contributing to Cost Avoidance of over $2B Annually Enterprise-wide; Easy and Efficient

14. Approved OMB FY 19-20 Strategic Plan Focusing On $2B in Addressable Spend • 2020 Government-wide TDY Lodging Contract • DTMO-DoD World-wide TMC contracts • Reducing duplicative contracting and open market spend on Long Term Lodging • Drive emerging solutions for Rideshare / Ride Hail • Develop OMB approved management tools for Travel Spend ie Dashboards and KPIs Enterprise-wide; Easy and Efficient

15. Strategic Supplier Relationships are Critical to Category Management Optimization Striving to Create TODAY TOMORROW Strategic Relationship/ Partnership Supplier Relationship • Each BIC owner will be working through Category Management to prioritize approach with suppliers • Next stage in the maturation of Category Management Enterprise-wide; Easy and Efficient

16. Defining the Path Forward for End to End Travel and Expense • 2019 • ETS Next: Future Vision: A modernized, standard/shared and consumer friendly travel solution • Federal Integrated Business Framework (FIBF) governance to drive common standards • Governance: Unified Shared Services Management (USSM), Office of Shared Solutions and Performance Improvement (OSSPI), • Shared Services 2027 Enterprise-wide; Easy and Efficient

17. Benefits of the Federal Integrated Business Framework Federal Integrated Business Framework (FIBF) Projected Benefits: Improved performance of administrative end-to-end processes Enhanced internal controls and auditability of business processes Reduced customization and system duplication resulting in cost avoidance Increased ability to define service needs as a part of modernization efforts Enhanced ability to communicate and deliver desired performance-based outcomes Enterprise-wide; Easy and Efficient

18. Progress and Accomplishments to Date Leveraging the FIBF • Future Travel & Expense (T&E) Baseline developed through 8-month collaborative process with 18 civilian agencies, ETS2 vendors and shared service providers, 4 focus areas: • Categorized and Defined Common and Specialized Business Scenarios • Defined Government-wide and Agency Specific Capabilities & Use Cases • Standardized Data Elements • Recommendations for T&E Policy Reform (FTR, Financial Management) • ~46 standardization opportunities recommended • ETS2 vendors have had opportunity to participate, review and comment • NOTE: ~12 agencies testing or implementing configurable recommendations achievable in ETS2; others in various review phases • FEEDBACK: Increasing support for T&E policy reform to reinforce streamlining standards Enterprise-wide; Easy and Efficient

19. Examples of FIBF Four Focus Areas • Categorized and Defined Common and Specialized Business Scenarios • Temporary duty travel CONUS and OCONUS, Conferences, multi-stop / segment • Defined Government-wide and Agency Specific Capabilities & Use Cases • Sponsored / invitational travel, approvals process (government-wide) • FEMA surge, IRS Long-term taxable (agency specific) • Standardized Data Elements • Employee ID, Non-Federally sponsored ID, Expense type labels • Recommendations for T&E Policy Reform (FTR, Financial Management) • Obligation of funds • When travel crosses over fiscal years • Estimating miscellaneous trip cost Enterprise-wide; Easy and Efficient

20. What’s on the Horizon? Evolution of the Technology Convergence in the Travel Marketplace • Smartphone combines functionality: telephone, camera, music player and digital assistant – each technology converges on a single device • Emerging Technologies – Artificial Intelligence and machine learning; Siri and Alexa; NDC; EDI and XML; Virtual payments; Blockchain;Robotic Process Automationetc…etc • When will this convergence be a single service solution? • Aggregating, consolidating, and merchandising while leveraging these advances in technology in order to deliver an enterprise-wide, easy and efficient travel management service • The Government looks forward to working with industry to navigate and discover what’s next for end-to-end travel management services Enterprise-wide; Easy and Efficient

21. To Recap • Government ‘s Category Management strategy will be focused on the top 10 Categories spend, where common goods and services can be optimized and leveraged across the enterprise at the Government-wide level, and the Department level • Opportunities targeted for improved efficiencies will be driven by strong data analysis, benchmarking and inter-agency collaboration • Maintain, improve and enhance industry / supplier engagement • Key Travel initiatives for the next 1-2 years, heavy focus on lodging and TMCs • DoD has 2 major initiatives emerging that can shape future opportunities government-wide • Privatization of Household Goods • DTS modernization Enterprise-wide; Easy and Efficient

22. timothy.burke@gsa.gov Thank you and welcome feedback