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OFPP Priorities. Strategic Sourcing/Interagency ContractingCompetitive SourcingElectronic GovernmentHuman CapitalPerformance-Based AcquisitionEmergency ContractingOthers . Scope. Total Federal spending - $380B in 05, 7.7 million actions2005 p-card data$17.4 billion26 million transactions
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1. OMB Update Lesley Field
Office of Federal Procurement Policy
lfield@omb.eop.gov
(202) 395-4761
2. OFPP Priorities Strategic Sourcing/Interagency Contracting
Competitive Sourcing
Electronic Government
Human Capital
Performance-Based Acquisition
Emergency Contracting
Others
3. Scope Total Federal spending - $380B in 05, 7.7 million actions
2005 p-card data
$17.4 billion
26 million transactions
2005 E-Buy
$4 billion
41K RFQs
4. Definition Strategic sourcing is the collaborative and structured process of critically analyzing an organization’s spending and making business decisions about how to acquire commodities and services more effectively and efficiently.
The spending analysis drives decisions about how to optimize performance, minimize price, increase small business participation, evaluate total life cycle management costs, improve vendor access to business opportunities, and otherwise increase the value of taxpayer dollars.
5. Strategic Sourcing OMB Memorandum issued May 20, 2005
Required CAOs to lead collaborative effort with CIOs, CFOs, small business reps, others
Required CAOs to identify three commodities that could be strategically sourced by October 1, 2005 to get started.
Required agencies to develop plans by January 1, 2006, to support the sourcing of these commodities – all plans available to gov’t personnel on acc.dau.mil/strategicsourcing – annual requirement.
6. Goals Overarching goal is to institutionalize the strategic sourcing process and secure top management commitment
Results we want:
Reduction in prices
Reduction in administrative costs
Improved performance
Increased small business participation
Improved business intelligence
7. Small Business Understand the perceived conflict with contract bundling prohibitions.
Require that the small business issue is a top consideration in the acquisition strategy.
Ensure your agency’s small business offices are involved in the management of the process – buy-in is key.
Frame this effort as a means to increasing small business participation at the first and second tier levels – baseline current spend and set goal to increase, if possible.
Keep good data.
Communicate with your vendor base - use the RFI process!
9. Federal Strategic Sourcing Initiative (FSSI) Starting with 5 commodity/commoditized services:
IT Products (printers)
Office Supplies
Domestic Delivery Service
Cell Phone Service
Copiers
Solutions can be multi-agency, but must focus on STRATEGY, not contract vehicles
These may come from different sources (GSA, other agencies)
acc.dau.mil/strategicsourcing
10. FSSI - Update Wireless Handheld Devices and Services
Team met with three major carrier and all agreed to achieve savings by disconnecting unused serve, refreshing rate plans, and correcting billing errors.
All providers said we could achieve more than 20% savings just by cleaning up the inventories (3-6 month effort)
RFI issued, comments addressed, and RFP to be issued in November –TSA saved 40% using similar approach
11. FSSI - Update Domestic Delivery Service – awarded to FedEx October 6th - agencies can still join – significant savings
Printers – Looking at life-cycle value
Copiers – all manufacturers large – looking at tech requirements and identifying strategy
Office Supplies – RFP to be issued in November
12. Interagency Contracting OFPP has new working group to examine interagency contracting
Issued a data call to the agencies to determine scope of this issue – reviewing data
Will inform future governance questions about the business case for and management imperatives of awarding new contract vehicles
See interagency contracting as a subset of strategic sourcing
13. Competitive Sourcing President’s Management Agenda process – OFPP leads this
New statutory reporting requirements have added transparency to the process
OFPP issued a new report available on the www.omb.gov/procurement site
Between 2003 and 2005, agencies have completed over 1000 competitions involving over 40K FTEs.
Federal employees have been selected to perform over 80% of the work in the last 3 yrs
OFPP released a report on best value in competitive sourcing to build support for best value
14. Electronic Government Integrated Acquisition Environment
CAOC has Acquisition Committee for E-gov (ACE) – manages and priorities IAE efforts
$37M annual budget
FPDS – eliminated 300 systems
Wage Determinations Online – saved $200M
Initiative to share IAE data across applications
FedBizOpps recompete – in protest
www.acquisition.gov CCR EPLS eSRS FBO FedReg FedTeDs FPDS-NG ORCA WDOL
Coburn-Obama Bill – Transparency in government spending – searchable database
15. Human Capital (Acquisition Workforce) Policy Letter 05-01, Developing and Managing the Acquisition Workforce
Effective April 2005
Purpose is two-fold:
Broadly define the acquisition workforce
Closely align civilian and defense workforce requirements
16. Broadly Defining the Workforce The Services Acquisition Reform Act (SARA) defines acquisition broadly to include functions other than traditional contracting (management and measurement of performance, tech and mgmt direction, etc.)
Policy Letter gives Chief Acquisition Officers (CAOs) responsibility for identifying their workforce to include, at a minimum:
All GS-1102s
All warranted Contracting Officers (COs) regardless of series
All GS-1105s
Program and project managers, as identified by the CAO
All CORs and COTRs
Any acquisition-related position identified by the CAO
17. Aligning the Civilian and Defense Workforce Requirements Core competencies aligned
Core training aligned
No change to the qualification standard for civilian 1102s (no change to the education standard)
18. Federal Acquisition Certification – Program and Project Managers and Others Generally reflect the DAU requirements, though may be limited to basic training
CAOs responsible for developing basic and refresher training for agency CORs and COTRs
FAI will develop recommendations for other disciplines
Career enhancing credential
19. Other Human Capital Initiatives FAI developing Acquisition Intern Community – central coordination of intern services, workforce management, recruitment, etc.
FAI Board of Directors
Provides general guidance and direction to FAI
Assists FAI in prioritizing needs for Acquisition Workforce Training Fund – 75% savings possible
Collocation of FAI and DAU will help civilian agencies leverage DAU’s training development and delivery efforts
20. HHS Information HHS issued version 1.0 of its Acquisition Workforce Career Management Handbook (available on the HHS KnowNet Acquisition Supersite at: http://www.knownet.hhs.gov/acquisition/careerhandbookver.1.0.doc), which reflects the new FAC-C requirements.
HHS will begin certifying people under the FAC-C beginning January 1, 2007.
ACM for HHS is Linda Stivaletti-Petty on 202-720-1906. Email Linda.Stivaletti@hhs.gov.
21. Certification Program – FAC-C Mirrors DOD’s program for government-wide consistency, portability
Consistent with OPM GS-1102 Qualification Standard
Key core requirements – Level I, II, and III
Training
Education
Experience
Agencies will be able to supplement the core requirements
Program is not mandatory for individuals, but is required for new warrant holders after 1/1/2007
22. Performance-Based Acquisition FY Target Actual
2001 10% 26%
2002 20% 34%
2003 30% 35%
2004 40% 41%
2005 40% 45%
acc.dau.mil/pba
Working on SARA Panel Recommendations
Issued memorandum with 2006 goals – 40% or more
DoD – 55% for 05 (as of 7/20/2006)
23. Emergency Contracting In 2003, OFPP published an Emergency Flexibilities document (on the OFPP Web site – currently updating this).
FEMA issued Emergency Acquisition Field Guide – excellent resource.
CAOC has working group to identify contracts and personnel for disaster and contingency operations.
Acc.dau.mil/emergencyresponse
24. Service-Disabled Veterans OFPP drafted Executive Order (EO) 13360 to increase contracting and subcontracting opportunities for service-disabled veterans.
SBA has been monitoring performance
GSA has upcoming GWAC set-aside for small businesses owned by SDV.
Need clarity on preference.
FY 05 - $1.9B; FY 04 - $1.1B
25. Other Management of Major Contracts
Small Business – awarded record-breaking $79.6B in FY05 (over $10B increase from 04)
Delinquent Tax Debts of Federal Contractors
Flag on CCR for prohibition on payment with purchase card for certain vendors
Other reps and certs changes
Proper Use of Award and Incentive Fee Contracts
26. Questions?