Government-wide Category Management Category Management and the Professional Services Category Adam...

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Government-wide Category Management and the Professional Services Category Adam Soderholm Government-wide PMO for Category Management Intelligence General Services Administration June 8, 2017 2017 NIH Small Business Industry Day Make every connection count
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  • Government-wide Category Management and the Professional Services Category

    Adam Soderholm

    Government-wide PMO for Category Management Intelligence General Services Administration

    June 8, 2017

    2017 NIH Small Business Industry Day

    Make every connection count

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    Session Overview

    Category Management Defined

    Government-Wide Category Management Playbook

    Professional Services Category

    Vision for Small Business

    Small Business in the Professional Services Category

    Strategic Plan

    Industry Engagement Aligning Strategies

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    What is Category Management

    a retailing and purchasing concept in which the

    range of products purchased by a business

    organization or sold by a retailer is broken down

    into discrete groups of similar or related products;

    these groups are known as product categories.

    It is a systematic, disciplined approach to

    managing a product category as a strategic

    business unit.

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    Government-wide Category Management

    Category Management (CM) is a purchasing approach that the

    Federal Government is applying to buy smarter and more like a single enterprise.

    Already a best practice in the commercial world - most

    Fortune 500 companies have adopted CM over the past 20-

    30 years CM involves:

    Identifying core categories of products and services, and managing them accordingly

    Cultivating and maximizing expertise to inform and enhance a customers buying experience

    Developing purchasing strategies so that customers find the best value for the items they need

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    Gov-Wide Category Mgmt. Playbook

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    10 Categories of Gov-wide Spend

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    Five Focus Areas Increase Spend Under Management (SUM) of government contracts - 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.

    Contract Reduction 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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    Acquisition Gateway hallways.cap.gsa.gov

    hallways.cap.gsa.gov

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    Best In Class Contracts CM is using BIC to highlight the best, high quality, contract vehicles available,

    to minimize an agencys effort needed to find or create their own solutions.

    All Best In Class solutions:

    Are designated as such by a cross-agency team of experts

    Have CM practices in place

    Are well managed and transparent

    Collect, analyze and share transactional data

    Have tools to share info and reduce duplication

    Define, track and publicize metrics

    If agencies shift their spend to designated BIC vehicles, they will achieve the

    most critical CM performance metricsbringing spend under management

    and providing data visibility.

    To date, there are 13 contracts designated as BIC

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    Scope

    Spend

    Strategic Initiatives

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    NIH Spend on Professional Services

    HHS is 2nd only

    to DoD in spend

    almost $9B in

    FY16

    NIH is 2nd only

    to Medicare and

    Medicaid, over

    $1.5B in FY16

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    Professional Services Initiative Goals for FY17

    Continue Acquisition Gateway (AG) digital tool and good

    practices content development

    Implement a Supplier Relationship Management (SRM) program

    Complete Best in Class (BIC) contract designations

    Complete, in collaboration with industry, a holistic category

    management strategy and market analysis for the Technical and

    Engineering subcategory

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

    Award GSA SmartPay 3

    Streamline GSA Professional Services Schedule (PSS) solicitation

    Complete civilian agency contract audit services acquisition

    strategy

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    Creating good opportunities to do business with the Federal government can be challenging for small businesses and their government customers

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    Federal Customers Say... Small Businesses Say...

    Goals:

    Reduce duplicative contracts

    Ensure participating SBs are

    well-qualified

    Increase SB participation /

    utilization to maximum

    practical extent

    Improve match-making

    mechanisms

    Vision: Compress the contract base w/o

    compressing the supplier base

    Source: Comments derived from OSDBUs and ACT-IAC Small Business Alliance

    Reducing the number of duplicative contracts

    makes more efficient use of taxpayer dollars

    Working with a small business can be risky

    unless I already know them or know that they

    are well-qualified to do the work.

    Many small businesses who come knocking

    are unprepared or have limited experience

    working with government, and that wastes my

    time

    In todays fragmented contract landscape, its

    hard for me to see where the real opportunities

    for my products/services lie and its impossible

    to chase them all.

    But fewer contracts means that there will be

    fewer suppliers and opportunities for business

    Its very hard to gain access to government

    decision-makers who have real business

    opportunities and need my services.

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    How can we achieve our small business goals?

    Improve available market analysis

    Based on market analysis build designated zones for SB

    Seek out opportunities to broaden SB

    participation through on-ramps

    Increase accountability, off-ramps for non-bidders & poor performers, or not

    meeting SB sub-contracting goals

    Develop tools and processes to

    increase category specific

    engagement with SBs

    Incorporate SB when formulating

    supplier relationship management

    strategy

    Small Business Metrics

    Current and Proposed

    Utilization by % of prime contract

    $

    Count of small businesses who

    receive awards

    Utilization by % of sub-contract $

    Count of new entrant small

    businesses who receive awards

    Count of vehicles that maintain

    ongoing on-ramps

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    Category Strategy Highlights Small Business

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    Getting Started with SRM

    Next Steps 1. Gather and post best practices across sub-categories

    2. Discuss recent awards to better understand cost drivers

    3. Webinar in early FY18 for information sharing from SRM efforts

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    Industry Engagement Strategy Alignment

    Do you see parallels between the professional

    services taxonomy and how your firm is structured

    Are the market segments properly aligned for services?

    Common cost drivers and requirement specs

    Common costs without common value ?

    Required elements of certifications and personnel?

    Tools that would provide visibility into the process

    If not a pipeline how about advancing the lead time?

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