08.23.2017Presented by: Ms. Rachel Gillerlain, GSAModerator: Ms. Kathy Spainhower, DAU

Category Management for Federal Acquisition Professionals

Welcome to the Category Management for Federal Acquisition Professionals Lunch and Learn

Ms. Rachel Gillerlain, GSAPresented by:

Category Management

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AgendaWelcome & Introductions

Segment 1 • Category Management Foundations

Segment 2 • Best-in-Class Solutions

Segment 3 • Benefits & Tools for Acquisition Professionals

Segment 4 • Q&A │Wrap-up

Segment 1Category Management Foundations

At the end of this segment, participants will be able to:• Define category management• Explain why the government is

adopting category management

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Segment 1 Objectives

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What do you see here?

• “Strategic approach to maximize value, benefit, and profit to the organization through structured procurement intervention and business-wide involvement and participation” (O’Brien 2015)

• Retailing and purchasing concept in which the range of products purchased by an organization is broken down into product categories–discrete groups of similar or related products

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Category Management Basics

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CM Strategic Approach

Identify core categories of products and services to analyze spend

Cultivate shared expertise to build buying tools that help save time and money

Develop purchasing strategies and promote best practices that lead to better informed spending

Increase efficiency to improve purchasing outcomes and achieve savings across government

Key CM Principles

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1. Develop common requirements

2. Reduce duplicate contracts3. Improve mission value and

total cost of ownership4. Apply demand management

practices5. Advance policy objectives6. Improve supplier

relationship management

Which of these

principles is the highest priority for

your agency or bureau right now?

Question

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Business Case for CM

Need to Reduce Contract DuplicationOne contractor – many contracts

$2.7B

FY 2014 Spend

Limited

Gov-wide Visibility

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Business Case for CM

Limited

Gov-wide Visibility

500% 400% 286%

$5-25 $23-91 $453-1298

Need to Close Price Variance GapSame purchase – different prices

CM Regulatory Guidance

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• FAR Part 8 – Lists procurement sources that government agencies must use

• OMB Memo M-17-22 – Instructs agencies to use government-wide vehicles “to the maximum extent practicable” (Schedules, GWACs, MACs, BIC)

• 9/29/2011 OMB Memo – Directs “maximum appropriate use of interagency vehicles”

• IT Category Memos▪ M-16-02, Required Sources for Laptops and

Desktops – Establishes mandatory sources for laptop and desktop purchases

▪ M-16-12, Software Licensing – Instructs agencies to maximize the use of BIC software purchasing and management solutions

▪ M-16-20, Required Sources for Mobile & Wireless –Establishes mandatory sources for mobile and wireless devices

• FAR Case 2015-015, Strategic Sourcing Documentation – Provides guidance on documenting exceptions

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Business Case for CM

Need to Implement Best Practices ConsistentlyConsolidated requirements volume discounts

On the FY16 Federal Desktop/Laptop Buying Event:

“The new pricing allowed us to buy an extra 25 laptops and 30 desktop computers — a savings against the old pricing of $74,345. Now that is what I call progress!”

~Director of Procurement, U.S. Holocaust Memorial Museum

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Business Case for CM

Need to Streamline Buying ProcessesVetted solutions faster, easier procurements

Using a designated Best-in-Class solution, FHFA:• Saved time • Reduced Procurement

Administrative Lead Time (PALT) by 50%• Saved money • Achieved a 20% cost

savings compared to their Independent Government Cost Estimate

Polling Question: CM Scope

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a)$527Mb)$284Bc) $450B

Approximately how much did

Federal agencies spend on

COMMON goods and services in

FY16?

Question

Correct answer: BIn FY16, Federal agencies spent $283.7B on common goods and services. Every year, the government spends about $450B* procuring goods and services generally. (The spending not counted as common is defense-centric.)

*Source: White House Archives-February 2016

Total FY16 spend ≈ $459.8B │FY16 common spend ≈ $283.7B*Government-wide Categories

Security & Protection≈$4.9B• Ammunition• Protective Apparel &

Equipment• Security Animals &

Related Services• Security Services• Security Systems• Weapons

Human Capital≈$4.2B• Compensation &

Benefits• Employee Relations• Human Capital

Evaluation• Strategy, Policies, &

Ops Planning• Talent Acquisition• Talent Development

Medical≈$36.9B• Drugs & Pharmaceutical

Products• Healthcare Services• Medical Equipment,

Accessories, & Supplies

Transportation & Logistics≈$23.1B• Fuels• Logistics Support Services• Motor Vehicles (non-combat)• Package Delivery & Packaging• Transportation Equipment• Transportation of Things

IT≈$55.4B• IT Software • IT Hardware • IT Consulting• IT Security• IT Outsourcing• Telecomms

Office Management≈$2.0B• Furniture• Office Management

Products• Office Management

Services

Professional Services≈$66.9B• Business Admin

Services• Financial Services• Legal Services• Management & Advisory

Services• Marketing & Public

Relations• Research &

Development• Social Services• Technical & Engineering

Services

Facilities & Construction≈$77.9B• Construction Related

Materials• Construction Related

Services• Facilities Purchase &

Lease• Facility Related Materials• Facility Related Services

Industrial Products & Services≈$11.4B• Basic Materials• Fire/Rescue/Safety/

Environmental Protection Equipment

• Hardware & Tools• Industrial Products Install/

Maintenance/Repair• Machinery & Components• Oils, Lubricants, & Waxes• Test & Measurement Supplies

Travel≈$1.0B• Employee Relocation• Lodging• Passenger Travel• Travel Agent & Misc.

Services

*Based on data extracted from FPDS-NG

Increase Spend Under Management (SUM) • Spend on contracts that meet defined criteria for management maturity and data sharing.

Increase Savings • Demonstrated by either the government paying less for goods and services or receiving more goods and services for the same expenditure.

Reduce Contracts • Reduction in the total number of unique contracts against the baseline of FY15, calculated by comparing year-to-date numbers against prior year using FPDS-NG entries.

Increase Small Business Utilization • Small businesses’ share of Federal spend. It measures utilization, in terms of spend, of small businesses across the government.

Increase Usage of the Acquisition Gateway • The sum of visits to the CM online platform, Acquisition Gateway, in addition to purposeful visits. Purposeful visits are calculated based on actions of the user within the session.

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CM Success Measures

Current State: Spend Managed by Individual Agencies and Departments

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Best-in-Class SolutionsMACs

Justified exception

sSchedule

sGWACs

$283.7B Common

Spend

UnmanagedSpend &

Duplicative Contracts

“Lake Stand Alone”

Future State: Spend Managed Government-wide

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Schedules GWACs MACs Justified Exception

s

Best-in-Class Solutions

CMTools &

Strategies

Spend Managed

Using Best Practices

Spend Under Management (SUM)

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• FY16 common spend under management = 42%• Our SUM goal: Increase that percentage!

FY16 Spend Maturity AssessmentTier 3/BIC - Adherenceto Government-wideStrategiesTier 2 - Multi-AgencyCollaboration

Tier 1 - Agency-WideStrategies

Tier 0 - "Lake Stand-Alone"

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CM Implementation Drivers

Driving CM Implementation:Government-wide Category Executives

Information Technology

Security & Protection

Industrial Products &

Services

Transportation & Logistics

Services

Human Capital

Professional Services

Facilities & Construction

Office Management

Travel

Medical

George Prochaska

GSA

Lisa RobertsDOD

Indu GargOPM

Jaclyn SmythDHS

Mary DavieGSA

Mary RuwweGSA

Dena McLaughlin

GSA

Timothy BurkeGSA

Poonam Alaigh, M.D. & David Smith,

M.D.DOD & VA

Tiffany HixsonGSA

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CM Benefits At a Glance

Question

How could category management

specifically benefit your agency or

bureau?

CM Regulatory Guidance

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• FAR Part 8 – Lists procurement sources that government agencies must use

• OMB Memo M-17-22 – Instructs agencies to use government-wide vehicles “to the maximum extent practicable” (Schedules, GWACs, MACs, BIC)

• 9/29/2011 OMB Memo – Directs “maximum appropriate use of interagency vehicles”

• IT Category Memos▪ M-16-02, Required Sources for Laptops and

Desktops – Establishes mandatory sources for laptop and desktop purchases

▪ M-16-12, Software Licensing – Instructs agencies to maximize the use of BIC software purchasing and management solutions

▪ M-16-20, Required Sources for Mobile & Wireless –Establishes mandatory sources for mobile and wireless devices

• FAR Case 2015-015, Strategic Sourcing Documentation – Provides guidance on documenting exceptions

Segment 2Best-in-Class Solutions

At the end of this segment, participants will be able to:

• Explain what a Best-in-Class (BIC) designation means

• Find BIC solutions on Acquisition Gateway

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Segment 2 Objectives

BIC Introduction

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Contracts designated Best-in-Class (BIC) can be used by multiple agencies and meet 5 OMB criteria:1. Rigorous requirements definitions and

planning processes2. Appropriate pricing strategies3. Data-driven demand management

strategies4. Category and performance

management practices5. Independently validated reviews

How do you know if a

contract is designated BIC?

Question

Use them to—• Leverage detailed data via the Prices

Paid Portal• Increase transparency of your agency’s

spending• Ensure compliance with OMB guidance

Compared to starting from scratch—• Finding and using them is cheaper and

faster• Conducting market research is easier

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Why Choose BIC Solutions?

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BIC Vetting Process

OMB announcement to CMLC

• OMB updates the CMLC as solutions are designated BIC

• Outcome: Official Designation of BIC vehicle*

• Review of vehicle in detail at criteria/sub-criteria level by category team

• Noting SME recommendations throughout

• Outcome: Determination of BIC status

• Review vehicle in detail at criteria/sub-criteria level

• Does vehicle meet criteria?

• Cross-government SME team for impartiality

• Outcome: Recommendation for BIC designation

Interagency SME review Category leadership review

Process for evaluating and assessing BIC vehicles

BIC solutions are evaluated according to OMB criteria.

*Each solution must undergo annual review to maintain the BIC designation.

Facilities & Construction1. BMO2. USACE FRPIndustrial Products & Services3. JanSan FSSI4. MRO FSSITransportation & Logistics5. Next Generation Delivery ServiceProfessional Services6. SmartPay7. Identity Protection Services8. OASIS9. OASIS SB

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BIC Solutions by CategoryTravel10. City Pair11. FedRooms

Human Capital12. HCaTS13. USA Learning

Office Management14. OS3

IT Category15. ARMY CHESS ADMC216. NASA SEWP (GSS only)17. NITAAC CIO-CS (GSS only)18. Schedule 70 (GSS solutions and software SINs only)

18 designated as of 8/14/2017

Scheduled for 2017 Evaluation

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Medical• VA Hearing Aids• VA/DoD Joint National Pharmaceutical Contracts• VA/DoD Medical Supplies & Equipment

Security & Protection• DHS Ammunition MACs• DHS Body Armor III MAC• HHS Physical Security BPA

Facilities & Construction• GSA Schedule 03FAC

Industrial Products & Services• DLA FESE• DLA MRO• DLA Special Operations Equipment• GSA Schedule 51V• GSA Schedule 73

Transportation & Logistics• DLA Fuels• GSA Vehicle Fleet Lease Program• GSA Vehicle Fleet Purchase Program

Professional Services• GSA Identity Protection Services BPA within

the PS schedule

Travel• DOD Rental Car• GSA Civilian Employee Relocation Services

IT Category• GSA Alliant• GSA IT Schedule 70 (IT products, services,

and solutions contracts)• NIH NITAAC CIO-SP3 (IT services)• NASA SEWP (IT services and solutions)• GSA 8(a) STARS II

• Float to the top of your Solutions Finder search results• Flagged and marked BIC in name

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Finding Current BIC Solutions

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BIC Solution BenefitsAt a Glance

Question

Which BIC-designated

contracts is your agency already

using?

Ready-to-use

contractsFully

vetted

Reviewed annually by

cross-government

SMEs

Simple to find on

Acquisition Gateway

Easy to access

Transactional data

available in the Prices Paid Portal

FAR Part 8

Compliant with requirements

OMB Memo

M-17-22

Segment 3Benefits & Tools for Acquisition

Professionals

At the end of this segment, participants will be able to:•Recognize the origin of category management spend data

•Explain the purpose of the Prices Paid Portal

•Begin finding other procurement tools and resources

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Segment 3 Objectives

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Category Management Benefits

Tools for Acquisition Professionals

Centralized government-wide procurement resources Acquisition Gateway

Improved visibility of spend data

D2D Government-wide Category Management Dashboards, Prices Paid Portal

Easier market research Prices Paid Portal, Solutions Finder, CALC Tool

Government-wide knowledge sharing

Category Hallways,Community Discussions,Connections Finder, Document Library, Project Center

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Centralized government-wide procurement resources

Acquisition Gateway

With insight into previously invisible government-wide spending, we are now extending data visibility to identify:• Opportunities to reduce/eliminate—

-stand-alone procurements-duplicative contracts

• Opportunities to increase/improve—-volume purchasing discounts-our negotiating position-supply network efficiency-oversight on spending

InvisibleSpend

VisibleSpend

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Improved visibility of spend dataBefore CM, visibility into government-wide spending uncovered:• Limitations in understanding of spend and

quantities/prices negotiated• Gaps in knowledge of supply network costs• Insufficient granularity of transaction details

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Q: Where does category spend data come from?

A: The Federal Procurement Data System – Next Generation (FPDS-NG)

Function: Allows Federal users to research prices agencies have paid for goods and services

Benefits for Acquisition Professionals:• Helpful with market research• High-quality data for commodities

Fed-only Access:• Requires OMB MAX account• Easily accessed via the Gateway

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Prices Paid Portal

Transaction HistoryToday there are 142,194,036

prices paid records from 14 data sets in

the Prices Paid Portal

How might accessing prices

paid data help you?

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Data Sets Available Today1. FSSI DDS32. GSAdvantage!3. TRANSCOM4. OS25. FSSI OS36. FSSI MRO7. Government Wide Acquisition Contracts8. FSSI JanSan9. Print Management10. Army CHESS11. DoD ESI12. GSA National Information Technology

Commodity Program (NITCP) [also includes ITS Reverse Auction data]

13. OASIS14. Government Wide Strategic Solutions (Laptop

Configuration)

Search and filter records by department, award vehicle, vendor name, manufacturer, and date range

Research transactional data details such as: price per unit, manufacturer parts number, UPC, DUNS

Export data as a *.CSV, *.XML, or *.JSON file

Prices Paid Portal

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Government-wide Category Management Dashboards

View government-wide and agency-level contract and spend data for all ten categories.

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Easier Market Research

“You don’t have to reinvent the wheel; just attach it to a new wagon.”

~Mark McCormack

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Solutions Finder

Find, filter, and compare multiple contracts and shared services solutions.

BIC results float to the top.

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Contract Awarded Labor Category (CALC)

Research awarded prices for 48,000 professional labor categories from more than 5,000 recent GSA contracts.

Join GSA and DAU on 30 August 2017 for a Lunch and Learn presentation on ‘The Acquisition Gateway’

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