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Objectives

Department of the Navy Strategic Sourcing Program Leveraging Strategic Sourcing S olutions June 2014. Objectives. Strategic Sourcing Overview Benefits / Opportunities

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Objectives

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  1. Department of the Navy Strategic Sourcing ProgramLeveraging Strategic Sourcing Solutions June 2014

  2. Objectives • Strategic Sourcing Overview • Benefits / Opportunities • Improving responsiveness by reducing lead times • FY14 Mid-year savings • DON/DOD/ Federal-wide commodity initiatives • Tools • Common concerns

  3. Strategic Sourcing is a Process Involving Requirements Owners / Acquisition Community Primary Benefits of Strategic Sourcing Change in Consumption/ Volume Drives Cultural Transformation Better Buying Power Acquisition Optimization Improved Supplier Management • Requirement Aggregation • Promote Real Competition • Reduced Lifecycle Costs • Enterprise based Procurement strategy • Demand Management • Requirements Redefinition and Standardization • Process Improvements • Pre-populated Solutions • Reduced Operating Expense • Reduced PALT • Socio-economic Goals • Optimized Supplier Relationships • Strategic Sourcing is... the collaborative and structured process of critically analyzing an organization’s spending and using this information to make business decisions about acquiring commodities and services more effectively and efficiently.* *OMB letter 20 May 05

  4. Acquisition Opportunities • Leverage (maximize use of) existing contract vehicles, such as SEAPORT, GSA OASIS, NAVSUP Global Business Solutions IDIQs, to reduce duplication of contracting effort and achieve decreased PALT • Award/issue new contract vehicles such as IDIQs and BPAs for use by all DOD to reduce duplication of contracting efforts and achieve improved vendor relationships • Work with requirements generators to increase aggregation of requirements

  5. Strategic Sourcing: Opportunities and Benefits Opportunities Benefits • Increase usage of existing contracts (SEAPORT, Alliant, etc.) • Reduce redundant IDIQ contracts – many with the same contractor(s) • Eliminate IDIQs awarded supporting only a single requirements generator • Eliminate customer s’ concerns about running out of contract ceiling or experiencing a lapse in contract coverage • Work with requirements generators to improve PWS • Eliminate the need for bridge contracts and modifications • Standardization of process, tools and outcomes (SEAPORT, OASIS, GBS contracts, etc. ) across Navy and DoD • Decreased Procurement Administrative Lead Time (PALT) • Increased transparent pricing • Real competition achieved through using PWSs promoting real competition • Reduced performance risk • Improved small business utilization at lower overall cost • Reduced burdensome contract administration by decreasing the number of contracts managed Increasing use of existing contract vehicles improves pricing and decreases lead times

  6. Major Opportunity for Significant Efficiency Gain Manage Identical Regionalized Requirements through a Single Contract Managed Requirement • Identical requirements entered into single Contracting Office by different Offices, Navy Regions, or AORs • Consolidated buying on an established contract vehicle Unmanaged Requirements • Identical requirements entered into multiple Contracting Offices often concurrently by different Offices, Navy Regions, or AORs Decentralized customers / Multiple points of entry Consolidated Requirements = Managed Solution All successful solutions begin with customers managing requirements differently. Opportunity exists to Explore Centers of Excellence, Lead Contracting offices, etc.

  7. DON Strategic Sourcing / Active Requirements Management Mandate OMB, OSD, or DON policy Successful common supplies & services sourcing solutions was policy driven Fed DoD Need Commands / DON to consolidate requirements at Enterprise or DON level and report on savings metric DON Local Requirements Review Boards identify opportunities Top Down: Policy Driven Bottoms-up: Requirements Driven

  8. Managed Enterprise Solutions: Example “DON Wireless” • Significant fragmentation creates administrative (overhead) burden for both vendors and Navy commands • NAVSUP & USMC contracting offices support 360 different funding offices which comprise 11 Budget Submitting Offices • Aggregate requirements (funding, vendor, activity, etc.) to leverage buying power • Each higher level of aggregation reduces number of orders and costs • Aggregating requirements allows for use of “Shared” plans that are more cost effective

  9. Navy Wireless FY13 Spend / Fragmentation by Command • Decentralized ordering leads to inefficient buying behavior • Aggregation could decrease delivery orders by 88% • Aggregation proven cost effective-vendor discounts range 10%-30% Potential Savings of $4M-$12M could be realized ifaggregation is implemented.

  10. Lead times: Competitively Awarded FFP Service Orders versus Contracts Time to award FFP contracts versus task orders ranges from 3 to 4 times longer Leveraging (using) existing contract vehicles can significantly reduce lead times! Hours estimated to award task orders or new contracts based on GLS LCE 2010 analysis

  11. Lead times: Competitively Awarded Non-FFP Service Orders versus Contracts Time to award Non-FFP contracts versus task orders ranges from 2 to 3 times longer Hours estimated to award task orders or new contracts based on GLS LCE 2010 analysis

  12. Significant level of contracting activity / redundancy Navy Services FY13 Spend by Portfolio Dollars in (M’s) Contract Redundancy within Knowledge Based Services (top 10 vendors)

  13. FY14 Mid-year Strategic Sourcing savings *ILS Savings based on average 9% reduction from IGE, calculated from FLC Jacksonville orders

  14. DON/DOD and Federal Strategic Sourcing • Department of Navy’s experience • DON’s wireless contracts began with a single customer requirement (CNIC) • NAVFAC developed an aggregation tool for managing the aggregation of wireless requirements to improve the management process. This tool will soon be available to all Navy Commands. • The Global Business Solutions contract originated with ISSOP program requirements and grew to partnering with NAVSEA to improve ordering through the SEAPORT-o portal • All future Navy initiatives will provide for ordering by all DoD Agencies

  15. DON/DOD and Federal Strategic Sourcing • Recent coordination within DoD • DON is using AF MRO Supplies blanket purchase agreements (BPAs) • DON has developed a suite of BPAs for DoD Conference – to assist with arrangements as well as data collection/reporting • DON is developing contract vehicles that will be available for DoD use to include: Education and Training and also renewal of Global Business Solutions (GBS) services • DON awarded BPA for Reverse Auctions and Furniture BPAs which are open to all DoD Agencies • Federal Strategic Sourcing Initiative / GSA/OMB coordination • Includes all agencies • New OASIS Services Contracts aimed at a wide array of professional services and will allow FFP as well as Cost Type orders. • Office Supplies • Janitorial and Sanitation (JAN/SAN) Supplies • Maintenance, Repair and Operations (MRO) Supplies

  16. Current DON Strategic Sourcing Solutions/ Initiatives 2009/2010initiatives 2013-2014 initiatives FSSI Candidate FSSI

  17. Contract Vehicles Services • Supplies IDIQs: Jan/San BPAs: Conferences, Education and Training • BPAs: • Office Supplies, MRO Supplies • Furniture IDIQs: GBS, Wireless, Alliant, Army Chess, Seaport-e

  18. Office Supplies BPA’s Office Supplies Generally consumable type items – not including furniture or IT equipment TYPE OF SUPPLY MANDATORY for all DON-exceptions include MILSTRIP, SERVMARTs POLICY/REGULATION • BPAs FedBid Corridor • BPAs on DOD EMALL: https://dod-emall.dla.mil/acct/ • Contract Information and Ordering Guide available on the Strategic Sourcing website SOLUTION INFORMATION If NEITHER the Office Supplies BPAs or the Reverse Auction Tool fit your requirement then prepare your waiver. GO TO: DOD EMALL EXECUTION GOTO: REVERSE AUCTION Websites

  19. Navy Furniture BPA’s Furniture Office, Dorm /Quarters, Child Development, &Industrial and Institutional Furnishings TYPE OF SUPPLY MANDATORY for all DON requirements for Office, dorm/ quarters and special or industrial furniture. POLICY/REGULATION Contract Information and Ordering Guide available on the Strategic Sourcing website: SOLUTION INFORMATION GO TO: GSA eBuy If a WAIVER is needed for the Navy Furniture BPA’s then prepare your waiver. EXECUTION Request a Quote DIRECTLY from BPA Holders

  20. Janitorial / Sanitation Supplies Contracts Janitorial &Sanitation Supplies Cleaning supplies, and other sanitation type items TYPE OF SUPPLY NAVSUP MANDATORY Policy has been issued -exceptions include HAZMAT Center, ServMart or similar on-base facility POLICY/REGULATION • BPAs FedBid Corridor • BPAs on DOD EMALL: https://dod-emall.dla.mil/acct/ • Contract Information and Ordering Guide available on the Strategic Sourcing website SOLUTION INFORMATION If NEITHER the JAN/SAN IDIQs or the Reverse Auction Tool fit your requirement then prepare your waiver. GO TO: DOD EMALL EXECUTION GO TO: REVERSE AUCTION Websites

  21. Maintenance and Repair Operation (MRO) Supplies BPAs TYPE OF SUPPLY Wide range of repair items from consumable supplies to fasteners, etc. NO MANDATING POLICY has been issued. Cardholders, or other buyers, should consult the established BPAs first prior to open market buys or before creating new contracts. POLICY/REGULATION • BPA’s FedBid Corridor • BPA’s on DOD EMALL: https://dod-emall.dla.mil/acct/ • Contract Information and Ordering Guide available on the Strategic Sourcing website SOLUTION INFORMATION If NEITHER the MRO BPA’s or the Reverse Auction Tool fit your requirement then prepare your waiver. GO TO: DOD EMALL EXECUTION GOTO: REVERSE AUCTION Websites

  22. All Other COT Supplies (Reverse Auction Tool) • Various Commercial Supplies (and if you want, Services!) • Reverse eAuction (or Auction) means a web-based auction process that allows Buyers to solicit and collect Quotes from Sellers for Commercial Items in real-time by posting requirements and receiving decreasing incremental Quotes from Sellers. TYPE OF SUPPLY MANDATORY for ALL DoN requirements for Commercial Item Supply Buys UNDER $150,000 POLICY/REGULATION Contract Information and Ordering Guide available on the Strategic Sourcing website SOLUTION INFORMATION GO TO: NAVSUP CKS for Ordering Guide Information If a WAIVER is needed for the Reverse Auction Tool then prepare your waiver. EXECUTION REGISTER OR LOG IN TO: REVERSE AUCTION Websites

  23. DoN Wireless Service Contracts Wireless Services Navy & Marine Corp-Wide MAC’s TYPE OF SUPPLY MANDATORY for all DoN wireless requirements within US (OCONUS exempted) POLICY/REGULATION Contract Information and Ordering Guide available on the Strategic Sourcing website SOLUTION INFORMATION There is NO WAIVER for the DoN Wireless Services Contracts. GO TO: Ordering Guide Information EXECUTION GO TO: DoN Wireless Policy

  24. Global Business Solutions Contracts (GBS) Primarily SCA Type Services Services available in 15 functional areas for Service Contract Act type labor. TYPE OF SUPPLY NAVSUP MANDATORY Policy has been issued for all Service Contract Act requirements. POLICY/REGULATION Contract Information and Ordering Guide available on the Strategic Sourcing website SOLUTION INFORMATION GO TO: Ordering Guide Information If a WAIVER is needed for the Global Business Solutions Contracts then prepare your waiver. EXECUTION GO TO: NAVSUP GBS Policy

  25. IT Services Suite IT Services GSA Alliant * NIH NITAAC * SEAPORT * DISA ENCORE II * Army ITES 2S * Air Force NETCENTS and other vehicles approved by SPAWAR TYPE OF SUPPLY Policy directs activities to the SPAWAR ITAAP website for a full list. DASN policy directs all IT Services requirements to consider using these existing vehicles first. POLICY/REGULATION Vehicles are hosted at various locations. Vehicles provide large groups of IDIQ contracts for both large business and small businesses who specialize in IT services. https://assist.sscno.nmci.navy.mil/navyitaap.nsf/ITAAP SOLUTION INFORMATION There is NO WAIVER for the DoN IT Services Suite. GO TO: ITAAPOrdering Information EXECUTION GO TO: DoN IT Policy

  26. SEAPORT-e Professional Services 22 Functional Areas Providing Various Professional Knowledge Based and Logistics Services TYPE OF SUPPLY NAVSUP POLICY REQUIRES a review of SEAPORT for all professional services requirements. A waiver must be prepared when SEAPORT will not be used. POLICY/REGULATION Contracts and User Guide available on SEAPORT-e website: http://www.seaport.navy.mil/default.aspx SOLUTION INFORMATION GO TO: Ordering Guide Information If a WAIVER is needed for SeaPort-e then prepare your waiver. EXECUTION GO TO: NAVSUP SEAPORT Policy

  27. Tools: Accessing the Contract Solutions and Related Information

  28. Tools: Web site address and subscription email DON Strategic Sourcing Web Page: • https://www.navsup.navy.mil/portal/page/portal/nss • Users will need a registered PKI to access/view the site and content. If you cannot access any user not registered they can do so via this link: • https://registration.pki.navy.mil Strategic Sourcing Subscription Email: • https://www.navsup.navy.mil/navsup/news/neds

  29. Maximizing use of Acquisition Tools • DAU’s ARRT tool (Automated Requirements Roadmap Training Tool) • Improve requirements definition • Reverse Auctions: • Reverse auctions promote transparency / competition • Multiple sources: Navy Order with FedBid, GSA Reverse Auction tool • Useful for supplies as well as services • NAVSEA’s SEAPORT Milestone Tool: • Available under SEAPORT is the functionality to manage Acquisition Milestones for major purchases • Tool creates visibility of key milestone events • Can be used to manage performance, set expectations, and limit use of bridge contracts and modifications • DON’s Inventory Management Tool for Wireless devices/ service • Will allow aggregation of requirements / executing enterprise solutions • The Strategic Sourcing Office, working with the DON CIO, is developing a database to manage the DON wireless inventory and utilization

  30. Current FSSI Strategic Sourcing Initiatives

  31. Current FSSI Strategic Sourcing Initiatives

  32. Current FSSI Strategic Sourcing Initiatives

  33. Current FSSI Strategic Sourcing Initiatives

  34. Common Concerns/ Questions • Many questions aim to find an exception to using a strategically sourced contract solutions • “What about FAR Part 8 – Mandatory Sources – why can’t we use GSA or DLA instead?” • “What about AbilityOne / UNICOR?” • “What about using non-DOD contracts? We aren’t allowed . . .” • FAR Part 8 is always considered – but GSA Global Supply and DLA are supply / requisitioning solutions • AbilityOne products are available under the FSSI Office Supply BPAs • UNICOR is a source under the furniture BPAs • And yes, you may place orders against non-DOD contracts (DFARS 217.78)

  35. DON Strategic Sourcing Contacts For more information on Naval Strategic Sourcing please contact: Mr. Jamey Halke Program Manager Navy Strategic Sourcing Program Office NAVSUP 717-605-7488 Jamey.Halke@navy.mil Mr. Mark AscioneDeputy Program ManagerNavy Strategic Sourcing Program Office NAVSUP717-605-1409Mark.Ascione@navy.mil

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