Strategic Sourcing Overview

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• Strategic Sourcing Overview
• November 13, 2008

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Strategic Sourcing Division

• Responsible for HHS-wide initiatives to leverage
  spend and foster smarter buying
• Strategic Sourcing Contract Portfolio developed
  in FY 2004
• Leverage buying power
• Reduce total cost of ownership
• Reduce duplication
• Increase purchasing efficiencies
• Strategic Sourcing Support team consists of
  acquisition and program staff from each OPDIV in
  addition to OSDBU representatives
• Support Team provides OPDIV-specific input to
  sourcing process

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Strategic Sourcing Methodology


Shape
Screen
Profile

Conduct
Negotiate
Implement
Develop
Assess
Suppliers
Internally
Procurement
Agreements
Strategy
Value
Opportunities
Selection
Externally

Propositions
Factors
Wave 1
Prepare Fact
-
High
-
Level
Fast Track to Value
Complete
Wave x
Based
Data
Negotiation
RFP/RFQs
Collection
Build
Packages
Analysis
Build Total
Validate
Supplier
Measure
Cost of
Profile
Selection
Results
Ownership
Segment
Category
Decision
Conduct
Negotiate
Trends
Purchases
Model
Matrix
Auctions
Value
Propositions
Form
Conduct
Develop
Conduct
Cross
-
Develop
Industry
Category
Supplier
Functional
Suppliers
Analysis
Strategy
Analysis
Sourcing Teams
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HHS Strategic Sourcing Contract Portfolio
Wave I
Wave II
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Required Sources
Order of Priority for Purchases (FAR Part 8)
Products (Supplies)
Services

• HHS and OPDIV inventories
• 2. Excess from other agencies
• 3. Federal Prison Industries (UNICOR)
• 4. Products on the procurement list maintained
  by Committee for Purchase from People Who are
  Blind or Severely Disabled - Ability One
  (formerly JWOD), NIB, NISH (HHS Strategic
  Sourcing BPAs should be used in lieu of other
  sources if they offer the Ability One product)
• 5. Wholesale supply sources
• 6. HHS Strategic Sourcing BPAs
• GSA Federal Supply Schedules
• Commercial sources

• Services on the procurement list maintained by
  Committee for Purchase from People Who are Blind
  or Severely Disabled - Ability One (formerly
  JWOD), NIB, NISH (HHS Strategic Sourcing BPAs
  should be used in lieu of other sources if they
  offer the Ability One product)
• 2. HHS Strategic Sourcing BPAs
• 3. GSA Federal Supply Schedules
• 4. Federal Prison Industries (UNICOR)
• 5. Commercial sources

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Strategic Sourcing Spend
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General Strategic Sourcing BPA Details

• BPAs were awarded using full and open competition
  (except Events Management, Office Furniture and
  Temporary Administrative and Professional
  Staffing small business set asides)
• BPAs available for use by all HHS OPDIVs and
  STAFFDIVs
• Most BPAs have a two year period of performance
  with multiple option years
• Sub-contracting opportunities are available

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Federal Strategic Sourcing Initiative (FSSI)

• Office of Federal Procurement Policy spearheaded
  development of FSSI in FY 2006
• Governance from CAO Council and OFPP and managed
  by GSA
• Leverage spend across Federal Government and
  share best practices
• Federal Agencies must strategically source at
  least three commodities and report annually on
  strategic sourcing programs
• FSSI has sourced the following categories
• Domestic Delivery Services
• Office Supplies
• Wireless Telecommunications Expense Management
  Services
• Plans to source additional categories are
  underway

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Federal Strategic Sourcing Initiative (FSSI)
Awards
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Federal Strategic Sourcing Initiative (FSSI)
Awards
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Strategic Sourcing Contact Information
Kesa Russell Strategic Sourcing Project
Manager [phone] Kesa.Russell_at_hhs.gov