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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 customer’s
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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Best In Class Contracts CM is using BIC to highlight the best, high quality, contract vehicles available,
to minimize an agency’s 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 metrics…bringing 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 today’s fragmented contract landscape, it’s
hard for me to see where the real opportunities
for my products/services lie and it’s impossible
to chase them all.”
“But fewer contracts means that there will be
fewer suppliers and opportunities for business”
“It’s 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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