the acquisition gateway. what is category management? 2 category management is a business model the...
TRANSCRIPT
The Acquisition Gateway
What is Category Management?
2
Category management is a business model the federal government is applying to buy smarter and more like a single enterprise.
It involves:
• Identifying core areas of spend
• Collectively developing heightened levels of expertise
• Leveraging shared best practices, and
• Providing acquisition, supply and demand management solutions.
Category management enables us to eliminate redundancies, increase efficiency and effectiveness, and boost satisfaction with the products and services we deliver.
Category Management Defined
Why Focus on Category Management?
3
• In FY 2014, the federal government spent over $428 billion in purchases, which accounted for about 20 percent of the entire Federal budget.
• This was done through 500+ separate federal departments and agencies.
$2.7 billion Very Limited
Total FY 2014Spend
Government-WideSpend Visibility
Case-in-Point: One Federal Government Contractor
Federal Government Goals for Category Management
Federal Government has the following goals for category management:
• Increase spend under management through better interagency collaboration and understanding of user requirements, market dynamics, and purchasing patterns.
• Reduce contract duplication through adoption of shared solutions for common products/services.
• Generate volume savings and administrative savings from leveraged buying power better use of procurement resources.
• Enhance data transparency to improve contracts and performance against priorities such as small business goals and sustainability.
• Boost innovation through improved interagency and supplier partnership.
• Increase efficiency and effectiveness through improved supplier performance, better buying decisions, and supply chain cost savings.
Government-Wide Collaboration
GSA will work with the Office of Management and Budget (OMB) and the SSLC agencies to encourage government-wide adoption of category management by:
• Determining the priority categories.
• Defining spend under management and best in-class criteria.
• Creating performance metrics.
• Collecting data on best practices, contract terms and conditions, and contract prices paid.
5
Category Management Governance Structure
6
Category Leads are responsible for the development and execution of category strategies for a specific category (e.g., IT software within the IT category).
PMO
The SSLC is the governing board for Category Management initiatives. Provides government-wide direction on CM strategy and initiatives.
Category Managers are experts in the category (e.g., Information Technology). They develop the government-wide strategy to drive improved performance and act as change agents for the category.
Commodity Teams are traditional strategic sourcing working group formed when the category management process identifies the need for a new acquisition solution.
Common Acquisition PlatformProvides overall program management support to the groups and
individuals in the governance structure; facilitates the development and implementation of business rules and processes.
Develops and executes the IT strategy to support category management business strategy via the Acquisition Gateway.
Category ManagersSSLC
Administrator of OFPP
Category Leads
Chair
Agency A
Rep
Age
ncy
B
Rep
Agency CRep
Age
ncy
ER
ep
Agency D
Rep
Commodity Teams
Chair
Agency A
Rep
Age
ncy
B
Rep
Agency CRep
Age
ncy
ER
ep
Agency D
Rep
Commodity Team
Category Team
Category Manager
CategoryX
Category Manager
Category Y
The Ten Government-Wide Categories
7
The government-wide category structure approved by the SSLC consists of 10 categories of commonly purchased goods and services valued at $275B in FY14
1. IT
$49.9B1.1 IT Software1.2 IT Hardware1.3 IT Consulting1.4 IT Security1.5 IT Outsourcing1.6 Telecommunications
2. Professional Services$61.9B
2.1 Business Administration Services2.2 Legal Services
2.3Management Advisory Services (excl. R&D)
2.4 Marketing and Distribution
2.5Public Relations and Professional Communications Services
2.6 Real Estate Services2.7 Trade Policy and Services2.8 Technical & Engineering Services (non-IT)2.9 Financial Services2.10 Social Services
3. Security and Protection$5.5B
3.1 Security Animals & Related Services3.2 Security Systems3.3 Security Services
4. Facilities & Construction$75.7B
4.1 Construction Related Materials4.2 Construction Related Services4.3 Facility Related Materials4.4 Facility Related Services4.5 Facilities Purchase & Lease
5. Industrial Products and Services$10.5B
5.1 Machinery & Components
5.2Fire/Rescue/Safety/Environmental Protection Equipment
5.3 Hardware & Tools5.4 Test & Measurement Supplies
5.5Industrial Products Install/Maintenance/Repair/Rebuild
5.6 Basic Materials5.7 Oils, Lubricants, and Waxes
6. Office Management$1.9B
6.1 Office Management Products6.2 Office Management Services6.3 Furniture
7. Transportation & Logistics Services$26.8B
7.1 Package Delivery & Packaging7.2 Logistics Support Services7.3 Transportation of Things7.4 Motor Vehicles (non-combat)7.5 Transportation Equipment 7.6 Fuels
8. Travel & Lodging$2.7B
8.1 Passenger Travel8.2 Lodging8.3 Travel Agent & Misc. Services
9. Human Capital$4.1B
9.1 Specialized Educational Services9.2 Vocational Training9.3 Human Resources Services
10. Medical
$36.0B10.1 Drugs and Pharmaceutical Products
10.2Medical Equipment & Accessories & Supplies
10.3 Healthcare Services
Demo:Acquisition Gateway
Landing Page
Terms & Conditions Page
Home Page
Inside a Hallway: Solution Matrix
Inside a Hallway: Expert Articles
Inside a Resource: View Historical Pricing Data
Inside a Resource: Navigator
Inside a Resource: Statement of Work Library
Inside a Resource: View Transactional Platforms
Inside a Resource: Connect & Contribute
Explore at:hallways.cap.gsa.gov
We want your feedback!We have started to build it, and we need your help. It’s time to act as one. Join the conversation by clicking on “Connect and Contribute”
Click “Connect,” to leave your first impressions, talk with your peers, and see where you can find us at upcoming events, or
Do you have an hour to spare? Email us at [email protected]. to sign up for user testing.