2017 Category Management Conference - ACT-IAC Services Category... · supplier base poised to ......

2017 Category Management Conference

Category Management: Acting as One for Better Mission Delivery

WEDNESDAY, MARCH 1, 2017

RENAISSANCE WASHINGTON

7:30 AM —4:00 PM

Professional Services Track

Meeting Room 3

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Professional Services Category Management 101

SPEAKERS: • Lesley Field, Acting Administrator, OFPP, OMB • Tiffany Hixson, Assistant Commissioner, Office of Professional

Services and Human Capital Categories, FAS, GSA • Dan Nista, Global Procurement Manager, IBM

MODERATOR: • David Shields, Managing Director, Procurement

Transformation and Category Management, ASI Government

The Professional Services category consists of 8 Level II subcategories and their associated Level III groupings

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Professional Services Category ~$66.9B Gov’t-wide FY16 Spend

Business Admin. ~$3.3B

Admin. Support & Clerical

$2.1B

Other $0.9B

Language Services

$0.4B

Social Services ~$2.6B

Rehab. Services $0.7B

Gov’t Insurance Programs

$1.4B

Other $0.5B

Marketing & PR

~$1.9B

Media Services $0.2B

Advertising $0.6B

Market Research

$0.1B

Other $0.1B

Public Outreach $0.9B

Legal Services

~$1.1B

Court Services $0.3B

Intel & Background Investigation

$0.5B

Other $0.3B

Taxonomy of Professional Services

Financial Services ~$3.4B

Accounting Services

$0.3B

Debt Collection $0.6B

Ident. Protect. & Credit Monitoring

$0.3B

Other <$0.1B

Audit Services $0.5B

Card Services <$0.1B

Financial Support

$1.7B

Tech. & Eng. Services ~$19.7B

Other $0.2B

Systems Eng. $0.7B

Notes: * Management & Advisory “other” sub-category anticipated to decrease in size in out-years based on PSC recommendations Level II category summations may not match due to rounding

Mgmt. & Adv. Services ~$30.3B

Policy Services $0.2B

Program Evaluation

$1.3B

Program Mgmt. $11.1B

Acquisition Support

$0.9B

Other* $16.8B

Research & Development

~$4.3B

Medical R&D <$0.1B

Defense R&D $1.1B

Sci. & Tech R&D $0.2B

Studies & Analysis

$2.4B

Other $0.5B

General Eng. $18.8B

Government obligations for Professional Services have seen

increases year over year since FY14

FY12 – FY16 Professional Services Spend ($B)

Source: FPDS data prepared by GSA

FY16 FY13

$64B $65B $63B

$68B $67B

FY12 FY15 FY14

Professional Services are acquired by 50 different Federal

agencies…

Top 10 Funding Agencies by FY16 Professional Services Spend ($B)

Army Air Force

HHS DOJ

$7.7B

$5.7B

$2.5B

$12.6B

OSD (DoD)

$9.6B

Navy Other

Agencies (40)

$7.5B

DOS

$3.7B

DOT

$2.6B

$10.7B

$2.0B

DHS

$2.2B

USAID


….through a variety of Government-wide and agency-level contracts

Top 10 Professional Services Contracts by FY16 Spend ($B)

$0.6B

ALLIANT

$0.8B

OASIS - SB

$0.8B

RR3G

$0.9B $1.5B

IT-70

$1.6B

OASIS

$0.9B

AF - Aircraft Manuf.

Stand Alone

$20.7B

Other IDVs

$28.4B

NITAAC

$0.4B

Eng. Tech. Naval

Warfare

SEAPORT

$2.5B

PSS

$8.0B


Professional Services represents ~22k contracts across ~27k suppliers and ~50k orders

Professional Services has seen an increase in small business usage

FY16 FY14 FY15

33%

75%

25%

31%

74%

29%

67% 71%

SB 26%

69%

FY12

$64B $65B

FY13

Other than SB

$67B $68B

$63B

Professional Services Spend by Business Size for FY12 – FY16


Top Large Suppliers FY16

Dollars ($B)

% of FY16 Large Supplier Total

Boeing $2.3B 5%

SAIC $2.0B 4%

Booz Allen Hamilton $1.9B 4%

Northrup Grumman $1.6B 4%

Lockheed Martin $1.6B 4%

General Dynamics $1.5B 3%

Raytheon $1.3B 3%

CACI $1.0B 2%

Chemonics Int’l $1.0B 2%

Deloitte $0.8B 2%

Other Large Suppliers (9,183) $30.0B 67%

Total $45.0B 100%

Top 10 Large and Small Suppliers by FY16 Spend ($B)

Top Small Suppliers FY16 Dollars

($M) % of FY16 Small Supplier Total

Torch Technologies $292M 1%

Intuitive Research $272M 1%

Aaski Technology $188M 1%

Adams Comm. & Eng. $178M 1%

ASRC Mgmt. Services $146M 1%

Odyssey Systems $134M 1%

Linquest Corp. $116M <1%

Armed Forces Services Corp. $115M <1%

Colsa Corp. $112M <1%

American Canyon Solutions $107M <1%

Other Small Suppliers (18,716) $20B 91%

Total $21.9B 100%

Top Professional Services Large and Small Suppliers


Challenges

• The landscape is broad & vast. Lack of transparency leads to redundancies and overlap:

– $66.9B in spend – 30,400 distinct contracts – 26,289 distinct contractors – 756 contractors represent 80% of total FY16 spend, with 7,121

distinct contracts

• Up to 40% of sub-category spend is reported as “other” making it

difficult to clearly understand what’s being bought and how

• Defining good requirements for integrated solutions is hard

• Recently graduated mid-tier companies struggle to win government

business. No longer have SB designation as advantage

• Organizational Conflicts of Interest are a challenge for this category

Focus for FY17

1. Continue Acquisition Gateway (AG) digital tool and ‘good practices’ content development.

2. Implement a Supplier Relationship Management (SRM) program.

3. Complete ‘Best in Class’ (BIC) contract designations.

4. Complete, in collaboration with industry, a holistic category management strategy and market analysis for the Technical and Engineering subcategory.

5. Complete on-ramp to GSA OASIS Pool 2 (Financial Solutions).

6. Award GSA SmartPay 3.

7. Streamline GSA Professional Services Schedule (PSS) solicitation.

8. Complete civilian agency contract audit services acquisition strategy.

Category Management Technical Services Procurement

Technical Services Procurement was transformed by leveraging the skill of our Category Managers

• Deep understanding of the market and supply chain principles

• Own the sourcing strategy with the supplier • Understand supplier’s organization, technology,

and capabilities • Build and manage the primary relationship with

supplier on behalf of Procurement. - Understand supplier executive chain of command - Have a clear understanding of the contractual

relationship with the supplier - Acts as the “champion” or “advocate” for their

assigned supplier on a global basis

• Build and manage relationship with key internal stakeholders

- Establish relationships at executive levels - Gather comprehensive requirements

• Responsible for supplier impact to all Procurement targets & measurements

Evolution from open market to supplier partnerships to strategic partnerships


Procurement Management System built around the Compliance Initiative. Monthly reporting

Summary and Detail (at the transaction level) information on suppliers, skills, and rates utilized by Stakeholder Monthly reporting on progress toward compliance targets

Supply Base Details Provide Stakeholder with information on Core Supplier Skills and Rates

Increase Core Supplier participation in the Compliance Process Supplier “Hot-Line” to assist Stakeholder identifying resource real-time

Stakeholder Tops down endorsement of Compliance Initiative and Targets

Announce Compliance Initiative to Stakeholder Organization Drive Compliance earlier in the staffing process

Sales Cycle and Demand Planning/Forecasting Utilize information from Procurement Monthly reporting to manage organizations progress to targets

Supplier

Supplier

Supplier

Supplier

Supplier

Supplier

Requirements

Supplier

Supplier

Supplier

Supplier

Supplier

Supplier

Requirements

X

X


•Fragmented,

domestic, reactive

supply base.

•Use of niche , low

spend suppliers

driven by

stakeholder related

reqs creating a long

tail of suppliers.

Develop

integrated

supplier base

poised to

proactively

respond to

requirements with

adaptive sourcing

models.

TACTICAL

1.Create team of Global Supplier

Relationship Managers, including

suppliers’ development roadmap,

tactical expansion plays and

updated best practices for

suppliers’ management, including

innovation.

2. Improved stakeholder

management of requirements.

STRATEGIC

1.Utilization of RFPs and suppliers

to drive implementation of

sourcing strategies with focus on

consolidation to create leverage.

2.Pilot segmentation of supplier by

skill, geography or supplier

expertise.

Span of Influence on Supplier Development

Procurement Interaction Supplier Relationship Manager Executive

Stak

eho

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In

tera

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Liaison

Executive

Stakeholder Compliance

Procurement Metrics

Supplier Management

Strategic Joint Initiatives

Drive Supply Base Transformation

Stakeholder Engagement

• The sourcing process for the Human Resources commodity requires a strong partnership between HR and Procurement.

• There are a number of ways to achieve this, but the key is to develop a sourcing roadmap and identify each stakeholder’s role in supporting the activities within all phases of this process.

• This will enable all parties to add value to their corporation’s overall financial goals.


There are 5 Key Strategies for effective stakeholder management:

• Develop a comprehensive list of people and/or organizations that have the ability

to impact or be affected by your project both positively and negatively.

• Segment stakeholders based on your understanding of the degree of their ability to impact your

desired outcomes (high, medium and low).

• Assign “owners” from your organization/project to manage each high value Stakeholder based on

their level of potential impact.

• Determine a timeline for regular communications with your key stakeholders to make sure they are

always up to date and what they need to know to support your project’s goals.

• Tailor key messages to align your interest with theirs.

There are 5 Key Strategies for effective stakeholder management:

• Develop a comprehensive list of people and/or organizations that have the ability

to impact or be affected by your project both positively and negatively.

• Segment stakeholders based on your understanding of the degree of their ability to impact your

desired outcomes (high, medium and low).

• Assign “owners” from your organization/project to manage each high value Stakeholder based on

their level of potential impact.

• Determine a timeline for regular communications with your key stakeholders to make sure they are

always up to date and what they need to know to support your project’s goals.

• Tailor key messages to align your interest with theirs.

Identify/Map Stakeholders

Identify Stakeholder Barriers/ Influencers

Act to Influence Stakeholders

Review Changes in Stakeholder Position

Repeat throughout Project Lifecycle

Stakeholder Map

Stakeholder Log

Action Log

Stakeholder Management is a Continuous Process

RACI Matrix

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A RACI matrix is often used for a quick visual analysis of responsibility assignment by simply navigating the matrix horizontally and vertically. Navigating the rows of activities one can ensure that there is at least one accountable and one responsible party for each activity. Navigating the column of stakeholders, one can identify the responsibility of each party with respect to the identified activities. Once the RACI matrix is completed, a good practice is to distribute it to all stakeholders.

RACI Matrix Responsibility charting in a RACI matrix is straightforward: • Identify all of the activities involved and list them at the left hand side of the matrix • Identify all of the roles involved and list them along the top of the matrix • Complete the cells of the matrix: identify who has the R, A, C, I responsibility for each activities


HR Services – Recruitment Contingency Search / Executive Search – Leverage global strategic

spend

The Challenge: Changing hiring needs with IBMs Transformation to CAMSS Supplier Base fragmented, Numerous registered suppliers globally – data base

of approx 200 suppliers, o/w approx more than 50 % suppliers with only 1, 2 or 3 P/Os per year.

Suppliers require to be flexible to support changing business needs with speed and agility – Eg. CAMSS

Traditional Sourcing methods may not support the changing business needs and speed

.The Solution:

IBM used sourcing process discipline to run a global bid program, inviting leading global agencies. IBM challenged suppliers to bring to the table innovative models with the changing recruitment methods in the market. IBM contracted with 10 global agencies covering all the countries for fulfillment of recruitment services for both Contingency and Executive hiring.

The Benefits: Leverage of spend - Supply Base optimization through selective global, flexible

supplier base

Supplier Innovation implementation like:

Contingency pricing model for Executive hiring (against retainer ship), use of

Integrators for one time buys

RPO model in EMEA

Constant rates for 2 years

Solution Components:

Spend Analysis

Category Expertise

Stakeholder Management

Market Intelligence

Contract Negotiation

Sourcing Process Discipline

Project Management

New Best Practices

Categories in action: HR Services – Global Recruitment Case Study

19

© 2014 IBM Corporation 20

Addressing Complexity in Category Transformation Corporate/Professional Services & CWF

Approach(s):

• Analyze current agreements

and identify cost savings

opportunities

• Run sourcing program to

optimize cost and contracts

with preferred suppliers

Outcome(s):

• Best in class and market

competitive rate cards

• Improved contract terms and

conditions

Approach(s):

• Negotiate rate cards

with top preferred

suppliers

• Implement industry

best practices

Outcome(s):

• Improved SOW’s /

SLA’s

• Standardized job role

based rate cards

across suppliers

Approach(s):

• Consolidate staffing

vendors and standardize

to a “wage + markup”

model

Outcome(s):

• Standardized markups

• Improved Process

Efficiency

• Standardized job roles

across suppliers

Financial Services

Other Professional

Services

IT Consulting

Approach(s):

• Negotiate skills based

rate card pricing with

preferred suppliers

Outcome(s):

• Improved SOW costing

• Market competitive rate

cards across supply

base

HR and Legal

Services

Complementary

Workforce (CWF)

Approach(s):

• Negotiate rate cards

with top preferred

suppliers

• Implement industry best

practices

Outcome(s):

• Improved SOW’s /

SLA’s

• Standardized job roles

based rate cards across

suppliers

• Market competitive rate

cards

Value

Complexity

Categorization and Benchmarking

Standardization and Consolidation

Market Competitive Rate Cards

Process and Policy Improvement

Program Optimization

Maturity Roadmap

The Past, Present & Future of Professional

Services Category Management

SPEAKERS: • Ken Brennan, Deputy Director, Services Acquisition, Defense

Procurement and Acquisition Policy • Tiffany Hixson, Assistant Commissioner, Office of Professional

Services and Human Capital Categories, FAS, GSA • Jaclyn Smyth, Director, Strategic Sourcing Program Office, Office

of the Chief Procurement Officer, DHS and Government-wide Category Manager for Security and Protection

MODERATOR: • Eric Heffernan, Principal, Grant Thornton

Session Objectives

This session will focus on lessons learned from the past and how category management impacts our vision for the future. What does success look like? How was success achieved in the past? What can we learn from case studies at GSA, DOD, and DHS? What challenges and risks should we prepare for?

By the end of this session, attendees will be able to:

• Understand the value of Professional Services Category Management for government

• Learn about best category management best practices as shown by presenting agencies

• Consider and discuss the future of Federal category management

Agenda

Time Topic Speaker

10:45 – 11:00 Introduction and Opening Remarks Eric Heffernan, Grant Thornton

Tiffany Hixson, GSA

11:00 – 11:15 Live Case Study #1: General Services Administration (GSA)

Tiffany Hixson, GSA

11:15 – 11:30 Live Case Study #2: Department of Defense (DoD)

Ken Brennan, DoD

11:30 – 11:45 Live Case Study #3: Department of Homeland Security (DHS)

Jaclyn Smyth, DHS

11:45 – 12:00 Panel Discussion and Q&A

Eric Heffernan, Grant Thornton

Tiffany Hixson, GSA

Ken Brennan, DoD

Jaclyn Smyth, DHS

Tiffany Hixson Submit questions with the conference

app using #PSCatMan

Tiffany Hixson General Services Administration (GSA) Assistant Commissioner, Office of Professional Services and Human Capital Categories (PSHC) Ms. Hixson is the Assistant Commissioner for the Office of Professional Services and Human Capital Categories, an office within the U.S. General Services Administration’s Federal Acquisition Service (FAS). She also serves as FAS’ Northwest-Arctic Region Regional Commissioner and is the governmentwide Professional Services Category Executive, appointed by the Office of Management and Budget in February 2016. In these roles, Ms. Hixson is responsible for strategic leadership and oversight of FAS’s professional services and human capital contract programs, governmentwide professional services category management, and supports FAS’ federal agency customers in Alaska, Idaho, Oregon, and Washington with assisted acquisition services, telecommunications, vehicles, and thousands of other goods and services. Ms. Hixson has more than 25 years of professional experience in the field of acquisition management and was appointed to the Senior Executive Service in 2007. She has served as both President and Vice President of the American Society of Public Administration’s National Capital Area Chapter, and as Chair and Vice Chair of the American Council for Technology’s Industry Advisory Council’s Partners leadership development program. She has received awards including the 2016 Fed 100, 2015 Coalition for Government Procurement’s Government Savings Award, 2008 DHS CFO’s Budget, Planning and Execution Award, Commerce’s Bronze and Silver Medal awards, and National Performance Review’s Hammer Award.

The Professional Services category consists of 8 Level II subcategories and their associated Level III groupings

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Admin. Support & Clerical

$2.1B

Other $0.9B

Language Services

$0.4B




$1.4B

Other $0.5B

Marketing & PR

~$1.9B


Advertising $0.6B

Market Research

$0.1B

Other $0.1B


Legal Services

~$1.1B



$0.5B

Other $0.3B

Taxonomy of Professional Services


Accounting Services

$0.3B



$0.3B

Other <$0.1B


Card Services <$0.1B

Financial Support

$1.7B


Other $0.2B

Systems Eng. $0.7B

Notes: * Management & Advisory “other” sub-category anticipated to decrease in size in out-years based on PSC recommendations Level II category summations may not match due to rounding



Program Evaluation

$1.3B


Acquisition Support

$0.9B

Other* $16.8B


~$4.3B

Medical R&D <$0.1B

Defense R&D $1.1B


Studies & Analysis

$2.4B

Other $0.5B

General Eng. $18.8B

Case Study #1: GW Language Services

Future Category Management Vision

• Leverage ordering guides across government

• Leverage existing best in class contract across government

Critical Success Factors

• Consistent pricing models used

• Best buying practices used

• EO and regs incorporated into federal requirements

Current State of Category Management

• PSS for Language Services

• Commercial Services Only

• Regs and buying practices not well understood

• Multiple Languages • Security Consideration • Industrial Base Issues / Management

Submit questions with the conference app using #PSCatMan

Ken Brennan Submit questions with the conference

app using #PSCatMan

Kenneth M. Brennan U.S. Department of Defense (DoD) Deputy Director, Services Acquisition, Defense Procurement and Acquisition Policy Mr. Ken Brennan is the Deputy Director for Services Acquisition in the Office of Defense Procurement and Acquisition Policy, where he provides technical and programmatic evaluations and functional oversight of all aspects of DoD services acquisition. Additionally, he oversees the review and analysis of services programs including cost, schedule, and risk management practices as well as services industrial base issues ensuring compliance with policies that govern defense acquisition of services. He also manages the governance structures and procedures used by Military Departments and Defense Agencies authorities who are responsible for services acquisition execution. Prior to April 2013, Mr. Brennan supported the Office of the Assistant Secretary of the Navy (Research, Development and Acquisition) where he provided oversight and technical expertise to implement, manage, and operate the Department of Navy (DON) services acquisition. Mr. Brennan is a member of the Acquisition Professional Community, certified at DAWIA career level III in both Program Management and Business, Cost Estimating and Financial Management. He was awarded the Navy Meritorious Civilian Service Award in 2003 and the Navy Superior Civilian Service Award in 2012.

Case Study #2: DoD – Linguistics Services


• Under consideration for Federal-wide application

• Potential issues

• Authorities

• Ordering processes

• Ownership

• Resources


• Good requirements make for good services

• Executive Agent translates to central expertise

• Captures and provides “lessons learned”

• Go-to experts

• Strong leadership


• Single Program Management Capability

• MAC IDIQ

• Designation as Executive Agent

• Evolved over time

• Not just contracting

• Multiple Languages • Security Consideration • Industrial Base Issues / Management

• Linguistics / Translation iso Military Missions • High Demand Signal • Splintered Customer Base within DoD • Variety of Mission Requirements


Jaclyn Smyth Submit questions with the conference

app using #PSCatMan

Jaclyn Smyth U.S. Department of Homeland Security (DHS) Director, Strategic Sourcing Program Office Ms. Jaclyn Smyth is the director of the DHS Strategic Sourcing Program Office within the Office of the Chief Procurement Officer, where she oversees a more than $57 billion portfolio of over 75 DHS-wide contract vehicles. She has several years of experience in federal procurement and acquisition-related fields, where she has worked on a wide variety of large-scale DHS and federal procurements. She provides her strategic sourcing and category management expertise to the federal-wide Category Management Leadership Council, and was recently named the federal-wide security and protection category manager where she leads a cross-agency category team. She is responsible for developing and implementing government-wide strategies that align with established category management principles and methodologies. Prior to her federal career, she served as a principal with E3 Federal Solutions for several years during which time she consulted on DHS procurements.

Case Study #3: DHS

Language Service BPA Background In response to Executive Order 13166 and a general need for language services across DHS, the Strategic Sourcing Program Office established a set of Language Services BPAs to provide Limited English Proficiency persons with meaningful access to DHS programs, services, and activities.


• DHS consolidated common requirements into one vehicle, eliminating contract duplication

• Increased ability for small businesses to participate

• Other agencies emulating this approach to fulfill their language services requirements and provides a mechanism to improve GSA schedule offerings


• Leadership support • IPT of dedicated technical

representatives • Segmenting the required

services into two functional categories to more accurately align with the market place and promote competition

• Lesson Learned: Need for early engagement with the Components’ security offices


• DHS-wide IPT established two functional categories: (1) foreign languages and (2) hearing and visually impaired

• Allows for timely access to language services

• Increases small business participation and maintain consistent standards


Panel Discussion

Tiffany Hixson

General Services Administration Assistant Commissioner, Office of Professional Services and Human Capital Categories (PSHC)

Ken Brennan

Department of Defense Deputy Director, Services Acquisition, Defense Procurement and Acquisition Policy

Jaclyn Smyth

Department of Homeland Security Director, Strategic Sourcing Program Office


Thank you!

Thank you for joining us for the Professional Services Category Management: Past, Present & Future Session





7:30 AM —4:00 PM

Professional Services Track

Meeting Room 3

Impacts on YOU – Professional Services

Category Management 201

SPEAKERS: • Ken Brennan, Deputy Director, Services Acquisition, Defense

Procurement and Acquisition Policy • Indu Garg, Acting Human Capital Category Manager, OPM • Geri Haworth, Professional Service Category Manager, FAS, GSA • Tiffany Hixson, Assistant Commissioner, Office of Professional

Services and Human Capital Categories, FAS, GSA • Steve Krauss, GSA • Gordon Wade, SVP Best Practices, Category Management

Association


• Overview – Category Management has the potential to impact many

different stakeholders in government and industry alike. This session is an opportunity to learn more about how Category Management will impact you in the near and distant future, and to express any concerns that you might have.

Goals

– This session will focus on what Category Management in Professional Services means for you - the contracting professional and industry partner.

– The discussion will address how changes will affect your role, whether that is as a Program Manager, Contracting Professional, small or large business.

$16 Billion and Counting: Making Sense of the Technical

& Engineering Services Subcategory of Spend

SPEAKERS: • Jimmy Church, M Powered Strategies • Geri Haworth, Professional Service Category Manager, FAS,

GSA • Gordon Wade, SVP Best Practices, Category Management

Association • Mark Youman, Vice President, ICF

$16 Billion and Counting:

Making Sense of the

Technical & Engineering Services

Sub-Category of Spend

Category Management Benchmarking

Session March 1, 2017

Professional Services - Level I, II and III C

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Admin. Support & Clerical $2.1B

Other $0.9B

Language Services

$0.4B




$1.4B

Other $0.5B

Marketing & PR

~$1.9B


Advertising $0.6B

Market Research $0.1B

Other $0.1B


Legal Services ~$1.1B



$0.5B

Other $0.3B


Accounting Services

$0.3B



$0.3B

Other <0.1B


Card Services TBD

Financial Support $1.7B


Other $0.2B

Systems Eng. $0.7B

*Note: Management & Advisory “other” sub-category anticipated to decrease in size in out-years based on policy & PSC recommendations Level II category summations may not match due to rounding done on level III categories



Program Evaluation

$1.3B


Acquisition Support

$0.9B

Other* $16.8B


~$4.3B

Medical R&D <$0.1B

Defense R&D $1.1B


Studies & Analysis

$2.4B

Other $0.5B

General Eng. $18.8B

Professional Services - Tech & Engineering

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Admin. Support & Clerical $2.1B

Other $0.9B

Language Services

$0.4B




$1.4B

Other $0.5B

Marketing & PR

~$1.9B


Advertising $0.6B

Market Research $0.1B

Other $0.1B


Legal Services ~$1.1B



$0.5B

Other $0.3B


Accounting Services

$0.3B



$0.3B

Other <0.1B


Card Services TBD

Financial Support $1.7B


Other $0.2B

Systems Eng. $0.7B

*Note: Management & Advisory “other” sub-category anticipated to decrease in size in out-years based on policy & PSC recommendations Level II category summations may not match due to rounding done on level III categories



Program Evaluation

$1.3B


Acquisition Support

$0.9B

Other* $16.8B


~$4.3B

Medical R&D <$0.1B

Defense R&D $1.1B


Studies & Analysis

$2.4B

Other $0.5B

General Eng. $18.8B

Technical & Engineering Historical Spend

Top Ten Buying Agencies: FY12-FY16

FY12- FY16 Spend by Contract Type

Focus for FY17

• Implement a Supplier Relationship Management (SRM) program

• Complete, in collaboration with industry, a holistic category

management strategy and market analysis for the Technical and

Engineering subcategory • Analyze spend (conducting now). Who is buying? What are they buying? How

are they buying (cost, fixed, T&M)? What contracts are being used? How much is

being bought on Open Market?

• Bring hypothesis and recommendations to a sub-working team to discuss. Adjust

as needed. Present recommendations to Gov Wide Team then CMLC if

applicable.

• Continue Acquisition Gateway (AG) digital tool and ‘good practices’

content development

Challenges

• The landscape is broad & vast. Lack of transparency leads to

redundancies and overlap:

• $19.48B in spend

• 3,774 distinct contracts

• 3,048 distinct contractors

• The way in which government buys does not align with the way in

which industry is organized

• Defining good requirements for integrated solutions is hard

• Recently graduated mid-tier companies struggle to win government

business. No longer have SB designation as advantage





7:30 AM —4:00 PM

2017 Category Management Conference - ACT-IAC Services Category... · supplier base poised to ......

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Transcript of 2017 Category Management Conference - ACT-IAC Services Category... · supplier base poised to ......