Federal Buying

$350B procured annually

Tens of thousands of transactions

Tens of thousands of companies,

products and services

Lots of rules, regulations & policies

Very few government buyers

Wide variety in procurement

practices, prices paid, terms &

conditions

Too busy too share

Decentralized

Transactional

IT Buying

$80B procured annually

Targeted opportunity to save $ and redirect to

mission

Hot: Mobile, Security, Cloud, Apps

Priorities & Drivers Open &Transparent Buying

Citizen Participation & Engagement

Communication Between Gov & Private Sector

IT Reform Plan

Digital Government Strategy

Sharing Solutions & Services

Common Platforms

Consolidated/Leveraged Buying

Cost Reduction

“Little to Big

Big to Little”

Agile Alex Howard @digiphile

“.@StevenVDC: Americans' expectations of #digitalgov are changing: they expect more, & on mobile http://WH.gov/digitalgov pic.twitter.com/eCKPAZMO”

What Do We Do About IT?

Build/Expand Communities

Collect

Share

Leverage Knowledge

Aggregate

Act as One

Report

Smarter and Better Acquisition

What Have We Done?

www.betterbuyproject.org

POINT #25

ACQUISITION COLLABORATION

EARLY ENGAGEMENT PLATFORMS

HOW-TO TOOLKIT

February 2012

https://max.omb.gov/community/display/Acquisition/Vendor+Engagement+Collaboration

25 POINT IMPLEMENTATION PLAN TO REFORM

FEDERAL INFORMATION TECHNOLOGY

MANAGEMENT

Customer Service Today (One customer view, Interactions, Opportunities, intelligence)

…

…

… …

I am meeting with DHS tomorrow

DHS is not happy with us right now

We just made DHS really happy!

DHS is opening a new center in Dallas. Here’s a link to the project

I’ll reach out to them. They will probably need IT too

We can offer innovative schedules and solutions for IT. Here’s a slide deck to help with DHS

Just met with DHS yesterday. Got some great data. Her’s our meeting minutes

Customer Service Tomorrow

(One customer view, Interactions, Opportunities, Intelligence)

FSSI Wireless - $1.5B estimated spend; savings opp 10%-20%

SMARTBUY – $1.3B in total cost avoidance; Supplier Relationship Mgt

Strategy

Networx – pricing transparency, aggregation and leverage

Communities & Savings Stories

Federal Acquisition Service

9 9

$70 ACPU across agency

The current average cost per unit across the agency subscriber base averages

$70 per month. There are varying states of program management across the

agency in the wireless commodity.

The Devices & Services FSSI is looking to achieve targeted discounts for devices

and services based on aggregated volume across all Federal Agencies.

TEMS providers have historically provided additional per line savings that range

from 10-30%. Sources include zero usage account identification, improved

account selection, overage reduction or elimination.

The FSSI Wireless Program has targeted savings goals and management metrics

to help the federal government improve its management of wireless technology.

Y % savings from improved

management, improved plan

selection

X % savings from acquisition

Lower ACPU

Starting Point

Impact from Leveraging Competition, Volume

Impact from Improved Management

Targeted Price Points

Wireless

SMARTBUY STRATEGIC SOURCING PROCESS SMARTBUY COMMODITY TEAM

The SmartBUY Commodity

Team represents 80% of

overall Federal software

spend

• IRS

• DOE

• STATE

• NASA

• DOI

• TREASURY

• EPA

• OPM

• DoD

• VA

• DHS

• HHS

• DOJ

• DOC

• USDA

• GSA

Develop GSA

business case &

strategy to lower

Federal TCO

Analyze supply

market trends &

commercial best

practices

Analyze agency spend &

customer requirements

Develop government-

wide BPA(s) & change

management plans

SMARTBuy

Bandwidth 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

< T1 17,467 17,649 13,583 15,964 15,666 15,082 13,909 13,496 11,595 10,754 8,753 10,126 10,011

T1 9,145 12,117 12,545 15,516 20,550 23,893 26,285 29,428 28,163 29,665 31,015 37,753 35,322

FT3/T3 21 183 643 950 1,484 1,625 1,825 2,285 2,847 3,858 3,733 7,317 10,771

OC-3 - - 3 15 43 53 84 125 152 220 270 400 439

OC-12 - - - - - - 1 6 15 48 64 137 214

OC-48 - - - - - - - - - - - 2 2

OC-192 - - - - - - - - - - - 21 28

1 Gb - - - - - - - - - - - 17 27

Thank You