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Tom SharpeCommissionerFederal Acquisition Service
FY 14-15: Agency Priority Goal
Generate savings through Federal Strategic Sourcing Initiative
Priority Goal
Goal Overview
By September 30, 2015, GSA will save $255 million ($111 million during FY 2014 and $144 million during FY 2015) through the use of Federal Strategic Sourcing Initiative (FSSI). Federal agencies purchase over $500B of goods and services annually. A key vehicle used by GSA, and other top purchasing federal government agencies, to promote cost savings, improved management visibility and adoption of best practices, has been the Federal Strategic Sourcing Initiative. Established in 2005, FSSI is designed to improve government management of commonly purchased goods and services. FSSI provides customers with significant savings, decreases administrative redundancy, and improves business intelligence while meeting or exceeding small business and sustainability goals.
Strategies
GSA is focused on informing customers of the benefits of using FSSI solutions, including savings opportunities, the ability to help meet socioeconomic goals and improved operating efficiencies. GSA is actively engaged in coordinated efforts to educate agencies regarding the benefits of FSSI solutions. In addition to increasing adoption, GSA will focus on generating savings by:
- Leveraging information available through data sources to negotiate better prices;
- Critically analyzing spending patterns to enhance business intelligence while applying this intelligence to FSSI initiatives within GSA;
- Reengineering business processes to identify operational efficiencies that will reduce costs to agencies;
- Sharing information, such as prices paid under FSSI and other federal contracts to increase savings opportunities; and
- Increasing adoption of industry and government agency best practices.
Barriers and challenges related to usage of these solutions include:
- Agencies may have duplicative solutions in place or attempt to create duplicative solutions;
- Agencies may have trouble identifying usage or key users in order to spread information relating to the solutions; and
- Some agencies may not use the Federal Strategic Sourcing Initiative solutions due to unique requirements or ability to obtain better pricing.
Progress Update
In the first year of the APG, GSA achieved 90% of its costs savings goal by reaching $100M of the $111M target. The third generation of the Office Supplies solution (OS3) was awarded in August 2014. A coverage lapse between OS2 and OS3, due to protest, and the cancellation of a large desktop solicitation, which was expected to contribute $12.2M in savings in FY 2014, impacted the overall savings total.
The Maintenance, Repair and Operations (MRO), Domestic Delivery Services (DDS), Print Management, and the Telecommunications Expense Management Services (TEMS) FSSI solutions all exceeded their savings projections for the fiscal year. The TEMS solution contract expired in the third quarter of FY 2014 and as a result is no longer available. The Wireless solution nearly achieved its annual savings target in FY 2014 as well.
In the second year of the APG, GSA achieved approximately $129M of its $144M savings target. The difference between the FY 2015 target and actual is partially attributed to the residual effects of the OS3 protest, which grounded the solution until late in the first quarter. As a result, the OS3 solution finished short of its savings projection (~$8M) in FY 2015.
During FY 2015, the Domestic Delivery Services (DDS) solution experienced a lower savings rates due to a dual award environment of the solution and a period of performance that was reduced from 5 to 3 years. However, an influx in business volume helped to offset the reduced savings rates and DDS finished the year only slightly behind its target savings (~$8M) . Domestic Delivery Services Third Generation (DDS3) continued with its successful efforts to alter agency buying behavior to increase ground shipments whenever possible.
FY 2015 saw the introduction of the Janitorial and Sanitation Supplies FSSI solution and a full scale roll-out of the Maintenance, Repair & Operations Supplies solution, which initially debuted late in the fourth quarter of FY 2014. The addition of these two solutions contributed nearly $15M in savings throughout FY 2015. Other success stories from FY 2015 include the Print Management and Wireless solutions, both of which nearly tripled their savings projections.
FSSI solutions will continue to be an important tool in FY 2016 and beyond to strategically source goods and services generating savings for the Government. In addition to leveraging FSSI FAS’ implementation of Category Management will more broadly support agencies in buying the goods and services through the best solution possible. FSSI solutions are complementary to the Category Management effort and will potentially help frame sourcing strategies moving forward.
Next Steps
No Data Available
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Performance Indicators
Federal Strategic Sourcing Initiative savings in millions of dollars
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Strategic Goals
Strategic Goal:
Savings
Statement:
We will use our purchasing power and expertise to deliver cost-effective real estate, acquisition and technology solutions to federal departments and agencies.
Strategic Objectives
Statement:
GSA will effectively leverage the government’s buying power to reduce costs.
Description:
GSA will effectively leverage existing, and develop new, federal strategic sourcing initiatives to provide competitively priced solutions to drive savings in technology, real property and other acquisitions throughout the federal government. Through these solutions, GSA will be able to leverage governmentwide business volume for better pricing, and standardize contracting terms and conditions in order to reduce the cost of purchasing across government.
Strategies:
- Continue to assess government purchasing and supply markets to develop federal strategic sourcing initiatives that provide our customers with services and equipment, at an excellent value, from suitable suppliers using standard solution pricing menus.
- Use standard solutions and pricing with qualified suppliers to make it easier for agencies to meet their acquisition needs with minimal administrative demands, and, in turn, allow agencies to focus their time and resources towards their core mission-critical operations.
- Promote the use of strategic sourcing solutions by our customers and work with our federal partners and industry to develop solutions for a broader array of products and services.
- Reduce the operating costs for providing supplies to customers, which in turn will lead to customer savings.
- Continue to use solutions such as Smartbuy, Networx Services and Reverse Auctions to provide customers with significant savings for information technology and telecommunications services and equipment.
- Continue to develop and refine real estate market analysis tools and leasing processes to offer our customers leased workspace, when needed, at an excellent value.
Key Performance Goals:
- Generate savings through Federal Strategic Sourcing Initiatives
- Reduce the Global Supply blended markup
- Procure lease space at below industry market rates
- Realize savings through Integrated Technology Service solutions
Contributing Programs:
- Assisted Acquisition
- Electronic Government
- General Supplies and Services
- Integrated Acquisition Environment
- Integrated Technology Services
- Rental of Space
- Travel, Motor Vehicle and Card Services
Statement:
GSA will improve the federal utilization of space.
Description:
GSA is leading efforts to improve asset utilization, reduce agency space requirements, effectively manage real property, and pursue innovative proposals to leverage resources. We are a government-wide leader and expert in real estate solutions. We will assist and educate federal departments and agencies to develop plans that will assist agencies with consolidating their space to reduce their footprint.
GSA is encouraging agencies to reduce space to minimize costs. We use a variety of tools, strategies, and portfolio planning options to determine the optimal housing solutions for agencies. We are also targeting our large, more costly new construction, major repairs and alterations, and leasing prospectus projects. By working with customer agencies, GSA will identify opportunities to optimize federal real estate portfolios by reducing space, improving utilization, disposing of underutilized assets, and leveraging market opportunities to reduce the footprint and investment and operating costs.
GSA supports the Office of Management and Budget’s “Freeze the Footprint” policy – aimed at maintaining government-wide square footage for offices and warehouses – by collecting government-wide data and conducting analysis to assess the performance of each agency towards meeting the national goal.
Strategies:
- Use of the Customer Portfolio Plans process to develop and implement space saving opportunities with demonstrated value for both the client and GSA. These plans create value by proposing solutions which align Administration, Client Agency and GSA goals, and help optimize an agency’s existing portfolio while more effectively anticipating, capturing, and advising on future portfolio needs.
- Where it is advantageous to the federal government, work to house tenants in federally owned space, rather than leasing from the private sector.
- Minimize the amount of vacant space in the inventory and increase the utilization of existing space.
Key Performance Goals:
- Reduce the federal footprint
- Reduce vacant space in the government-owned and leased inventory
Contributing Programs:
- Building Operations
- Construction and Acquisition of Facilities
- Government-wide Policy
- Operating Expense
- Real Property Disposal
- Real Property Relocation
- Rental of Space
Statement:
GSA will reduce resource use and enviromental impact.
Description:
GSA will reduce resource usage by installing and implementing energy and water efficiency improvements in its portfolio; procuring more fuel efficient vehicles; reducing waste generation and diverting waste from landfills; offering more sustainable products and services on its schedules; reducing business travel and making remote meeting technologies more available and accessible; and increasing telework and designing workspaces that increase space utilization.
GSA also serves as a test-bed for innovative technologies and management practices that improve environmental performance while reducing costs. This will be accomplished by testing and, where proven effective, deploying Green Proving Ground building technologies and by making innovative products and services available and affordable to customer agencies.
Strategies:
- Employ new technologies and building management practices that are both cost-effective and environmentally responsible.
- Expand the use of alternative fuel vehicles governmentwide and ensure that low-cost, high-efficiency vehicle options are available to customer agencies.
- Building on its capability to deliver comprehensive products and services across Government at the best value possible, GSA will continue to expand its offerings of sustainable products. Assist federal agencies in meeting environmental sustainability purchasing requirements by identifying and increasing the availability of green products and services.
- Enhance the usefulness of energy efficiency research, strategies, practices, and tools provided to federal agencies by improving existing and deploying new resources that will enable better measurement of the use and impact of the resources provided; and obtaining user feedback, and disseminating research, strategies, practices and tools.
Key Performance Goals:
- Green the federal supply chain
- Reduce total water consumption
- Reduce total energy purchased
- Reduce use of petroleum-based fuel
- Purchase alternative fuel vehicles
- Provide useful energy efficiency information and tools to federal agencies
Contributing Programs:
- Assisted Acquisition
- Building Operations
- Construction and Acquisition of Facilities
- General Supplies and Services
- Government-wide Policy
- Integrated Technology Services
- Repairs and Alterations
- Travel, Motor Vehicle and Card Services
Agency Priority Goals
Statement:
By September 30, 2015, GSA will save $255M through the use of Federal Strategic Sourcing Initiative (FSSI).
Description:
By September 30, 2015, GSA will save $255 million ($111 million during FY 2014 and $144 million during FY 2015) through the use of Federal Strategic Sourcing Initiative (FSSI). Federal agencies purchase over $500B of goods and services annually. A key vehicle used by GSA, and other top purchasing federal government agencies, to promote cost savings, improved management visibility and adoption of best practices, has been the Federal Strategic Sourcing Initiative. Established in 2005, FSSI is designed to improve government management of commonly purchased goods and services. FSSI provides customers with significant savings, decreases administrative redundancy, and improves business intelligence while meeting or exceeding small business and sustainability goals.
Statement:
By September 30, 2015, GSA will reduce the amount of leased space by 5 percent for replacement leases. GSA will also work with agencies to complete a total of 15 Client Portfolio Plans (three new plans each year) to identify opportunities for agencies to optimize their real estate portfolios.
Description:No Data Available
Strategic Objectives
Strategic Objective:
Statement:
GSA will effectively leverage the government’s buying power to reduce costs.
Description:
GSA will effectively leverage existing, and develop new, federal strategic sourcing initiatives to provide competitively priced solutions to drive savings in technology, real property and other acquisitions throughout the federal government. Through these solutions, GSA will be able to leverage governmentwide business volume for better pricing, and standardize contracting terms and conditions in order to reduce the cost of purchasing across government.
Strategies:
- Continue to assess government purchasing and supply markets to develop federal strategic sourcing initiatives that provide our customers with services and equipment, at an excellent value, from suitable suppliers using standard solution pricing menus.
- Use standard solutions and pricing with qualified suppliers to make it easier for agencies to meet their acquisition needs with minimal administrative demands, and, in turn, allow agencies to focus their time and resources towards their core mission-critical operations.
- Promote the use of strategic sourcing solutions by our customers and work with our federal partners and industry to develop solutions for a broader array of products and services.
- Reduce the operating costs for providing supplies to customers, which in turn will lead to customer savings.
- Continue to use solutions such as Smartbuy, Networx Services and Reverse Auctions to provide customers with significant savings for information technology and telecommunications services and equipment.
- Continue to develop and refine real estate market analysis tools and leasing processes to offer our customers leased workspace, when needed, at an excellent value.
Key Performance Goals:
- Generate savings through Federal Strategic Sourcing Initiatives
- Reduce the Global Supply blended markup
- Procure lease space at below industry market rates
- Realize savings through Integrated Technology Service solutions
Contributing Programs:
- Assisted Acquisition
- Electronic Government
- General Supplies and Services
- Integrated Acquisition Environment
- Integrated Technology Services
- Rental of Space
- Travel, Motor Vehicle and Card Services
Agency Priority Goals
Statement: By September 30, 2015, GSA will save $255M through the use of Federal Strategic Sourcing Initiative (FSSI).
Description: By September 30, 2015, GSA will save $255 million ($111 million during FY 2014 and $144 million during FY 2015) through the use of Federal Strategic Sourcing Initiative (FSSI). Federal agencies purchase over $500B of goods and services annually. A key vehicle used by GSA, and other top purchasing federal government agencies, to promote cost savings, improved management visibility and adoption of best practices, has been the Federal Strategic Sourcing Initiative. Established in 2005, FSSI is designed to improve government management of commonly purchased goods and services. FSSI provides customers with significant savings, decreases administrative redundancy, and improves business intelligence while meeting or exceeding small business and sustainability goals.
