slide1 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Objectives PowerPoint Presentation
Download Presentation
Objectives

Loading in 2 Seconds...

play fullscreen
1 / 35

Objectives - PowerPoint PPT Presentation


  • 354 Views
  • Uploaded on

Department of the Navy Strategic Sourcing Program Leveraging Strategic Sourcing S olutions June 2014. Objectives. Strategic Sourcing Overview Benefits / Opportunities

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Objectives' - vinson


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
objectives
Objectives
  • Strategic Sourcing Overview
  • Benefits / Opportunities
    • Improving responsiveness by reducing lead times
  • FY14 Mid-year savings
  • DON/DOD/ Federal-wide commodity initiatives
  • Tools
  • Common concerns
strategic sourcing is a process involving requirements owners acquisition community
Strategic Sourcing is a Process Involving Requirements Owners / Acquisition Community

Primary Benefits of Strategic Sourcing

Change in Consumption/ Volume

Drives Cultural Transformation

Better Buying Power

Acquisition Optimization

Improved Supplier Management

  • Requirement Aggregation
  • Promote Real Competition
  • Reduced Lifecycle Costs
  • Enterprise based Procurement strategy
  • Demand Management
  • Requirements Redefinition and Standardization
  • Process Improvements
  • Pre-populated Solutions
  • Reduced Operating Expense
  • Reduced PALT
  • Socio-economic Goals
  • Optimized Supplier Relationships
  • Strategic Sourcing is... the collaborative and structured process of critically analyzing an organization’s spending and using this information to make business decisions about acquiring commodities and services more effectively and efficiently.*

*OMB letter 20 May 05

acquisition opportunities
Acquisition Opportunities
  • Leverage (maximize use of) existing contract vehicles, such as SEAPORT, GSA OASIS, NAVSUP Global Business Solutions IDIQs, to reduce duplication of contracting effort and achieve decreased PALT
  • Award/issue new contract vehicles such as IDIQs and BPAs for use by all DOD to reduce duplication of contracting efforts and achieve improved vendor relationships
  • Work with requirements generators to increase aggregation of requirements
strategic sourcing opportunities and benefits
Strategic Sourcing: Opportunities and Benefits

Opportunities

Benefits

  • Increase usage of existing contracts (SEAPORT, Alliant, etc.)
  • Reduce redundant IDIQ contracts – many with the same contractor(s)
  • Eliminate IDIQs awarded supporting only a single requirements generator
  • Eliminate customer s’ concerns about running out of contract ceiling or experiencing a lapse in contract coverage
  • Work with requirements generators to improve PWS
  • Eliminate the need for bridge contracts and modifications
  • Standardization of process, tools and outcomes (SEAPORT, OASIS, GBS contracts, etc. ) across Navy and DoD
  • Decreased Procurement Administrative Lead Time (PALT)
  • Increased transparent pricing
  • Real competition achieved through using PWSs promoting real competition
  • Reduced performance risk
  • Improved small business utilization at lower overall cost
  • Reduced burdensome contract administration by decreasing the number of contracts managed

Increasing use of existing contract vehicles improves pricing and decreases lead times

major opportunity for significant efficiency gain
Major Opportunity for Significant Efficiency Gain

Manage Identical Regionalized Requirements through a Single Contract

Managed Requirement

  • Identical requirements entered into single Contracting Office by different Offices, Navy Regions, or AORs
  • Consolidated buying on an established contract vehicle

Unmanaged Requirements

  • Identical requirements entered into multiple Contracting Offices often concurrently by different Offices, Navy Regions, or AORs

Decentralized customers /

Multiple points of entry

Consolidated Requirements =

Managed Solution

All successful solutions begin with customers managing requirements differently.

Opportunity exists to Explore Centers of Excellence, Lead Contracting offices, etc.

don strategic sourcing active requirements management
DON Strategic Sourcing / Active Requirements Management

Mandate OMB, OSD, or DON policy

Successful common supplies & services sourcing solutions was policy driven

Fed

DoD

Need Commands / DON to consolidate requirements at Enterprise or DON level and report on savings metric

DON

Local Requirements Review Boards identify opportunities

Top Down: Policy Driven

Bottoms-up: Requirements Driven

slide8
Managed Enterprise Solutions: Example “DON Wireless”
  • Significant fragmentation creates administrative (overhead) burden for both vendors and Navy commands
  • NAVSUP & USMC contracting offices support 360 different funding offices which comprise 11 Budget Submitting Offices
  • Aggregate requirements (funding, vendor, activity, etc.) to leverage buying power
  • Each higher level of aggregation reduces number of orders and costs
  • Aggregating requirements allows for use of “Shared” plans that are more cost effective
slide9
Navy Wireless FY13 Spend / Fragmentation by Command
  • Decentralized ordering leads to inefficient buying behavior
  • Aggregation could decrease delivery orders by 88%
  • Aggregation proven cost effective-vendor discounts range 10%-30%

Potential Savings of $4M-$12M could be realized ifaggregation is implemented.

slide10

Lead times: Competitively Awarded FFP Service Orders versus Contracts

Time to award FFP contracts versus task orders ranges from 3 to 4 times longer

Leveraging (using) existing contract vehicles can significantly reduce lead times!

Hours estimated to award task orders or new contracts based on GLS LCE 2010 analysis

lead times competitively awarded non ffp service orders versus contracts
Lead times: Competitively Awarded Non-FFP Service Orders versus Contracts

Time to award Non-FFP contracts versus task orders ranges from 2 to 3 times longer

Hours estimated to award task orders or new contracts based on GLS LCE 2010 analysis

slide12

Significant level of contracting activity / redundancy

Navy Services FY13 Spend by Portfolio Dollars in (M’s)

Contract Redundancy within Knowledge Based Services (top 10 vendors)

fy14 mid year strategic sourcing savings
FY14 Mid-year Strategic Sourcing savings

*ILS Savings based on average 9% reduction from IGE, calculated from FLC Jacksonville orders

don dod and federal strategic sourcing
DON/DOD and Federal Strategic Sourcing
  • Department of Navy’s experience
    • DON’s wireless contracts began with a single customer requirement (CNIC)
    • NAVFAC developed an aggregation tool for managing the aggregation of wireless requirements to improve the management process. This tool will soon be available to all Navy Commands.
    • The Global Business Solutions contract originated with ISSOP program requirements and grew to partnering with NAVSEA to improve ordering through the SEAPORT-o portal
    • All future Navy initiatives will provide for ordering by all DoD Agencies
don dod and federal strategic sourcing1
DON/DOD and Federal Strategic Sourcing
  • Recent coordination within DoD
    • DON is using AF MRO Supplies blanket purchase agreements (BPAs)
    • DON has developed a suite of BPAs for DoD Conference – to assist with arrangements as well as data collection/reporting
    • DON is developing contract vehicles that will be available for DoD use to include: Education and Training and also renewal of Global Business Solutions (GBS) services
    • DON awarded BPA for Reverse Auctions and Furniture BPAs which are open to all DoD Agencies
  • Federal Strategic Sourcing Initiative / GSA/OMB coordination
    • Includes all agencies
    • New OASIS Services Contracts aimed at a wide array of professional services and will allow FFP as well as Cost Type orders.
    • Office Supplies
    • Janitorial and Sanitation (JAN/SAN) Supplies
    • Maintenance, Repair and Operations (MRO) Supplies
slide16

Current DON Strategic Sourcing Solutions/ Initiatives

2009/2010initiatives

2013-2014

initiatives

FSSI Candidate

FSSI

slide17

Contract Vehicles

Services

  • Supplies

IDIQs:

Jan/San

BPAs: Conferences, Education and Training

  • BPAs:
  • Office Supplies, MRO Supplies
  • Furniture

IDIQs:

GBS, Wireless, Alliant, Army Chess, Seaport-e

slide18

Office Supplies BPA’s

Office Supplies

Generally consumable type items – not including furniture or IT equipment

TYPE OF SUPPLY

MANDATORY for all DON-exceptions include MILSTRIP, SERVMARTs

POLICY/REGULATION

  • BPAs FedBid Corridor
  • BPAs on DOD EMALL: https://dod-emall.dla.mil/acct/
  • Contract Information and Ordering Guide available on the Strategic Sourcing website

SOLUTION INFORMATION

If NEITHER the Office Supplies BPAs or the Reverse Auction Tool fit your requirement then prepare your waiver.

GO TO: DOD EMALL

EXECUTION

GOTO: REVERSE AUCTION Websites

slide19

Navy Furniture BPA’s

Furniture

Office, Dorm /Quarters, Child Development, &Industrial and Institutional Furnishings

TYPE OF SUPPLY

MANDATORY for all DON requirements for Office, dorm/ quarters and special or industrial furniture.

POLICY/REGULATION

Contract Information and Ordering Guide available on the Strategic Sourcing website:

SOLUTION INFORMATION

GO TO: GSA eBuy

If a WAIVER is needed for the Navy Furniture BPA’s then prepare your waiver.

EXECUTION

Request a Quote DIRECTLY from BPA Holders

slide20

Janitorial / Sanitation Supplies Contracts

Janitorial &Sanitation Supplies

Cleaning supplies, and other sanitation type items

TYPE OF SUPPLY

NAVSUP MANDATORY Policy has been issued

-exceptions include HAZMAT Center, ServMart or similar on-base facility

POLICY/REGULATION

  • BPAs FedBid Corridor
  • BPAs on DOD EMALL: https://dod-emall.dla.mil/acct/
  • Contract Information and Ordering Guide available on the Strategic Sourcing website

SOLUTION INFORMATION

If NEITHER the JAN/SAN IDIQs or the Reverse Auction Tool fit your requirement then prepare your waiver.

GO TO: DOD EMALL

EXECUTION

GO TO: REVERSE AUCTION Websites

slide21

Maintenance and Repair Operation (MRO) Supplies BPAs

TYPE OF SUPPLY

Wide range of repair items from consumable supplies to fasteners, etc.

NO MANDATING POLICY has been issued.

Cardholders, or other buyers, should consult the established BPAs first prior to open market buys or before creating new contracts.

POLICY/REGULATION

  • BPA’s FedBid Corridor
  • BPA’s on DOD EMALL: https://dod-emall.dla.mil/acct/
  • Contract Information and Ordering Guide available on the Strategic Sourcing website

SOLUTION INFORMATION

If NEITHER the MRO BPA’s or the Reverse Auction Tool fit your requirement then prepare your waiver.

GO TO: DOD EMALL

EXECUTION

GOTO: REVERSE AUCTION Websites

slide22

All Other COT Supplies (Reverse Auction Tool)

  • Various Commercial Supplies (and if you want, Services!)
  • Reverse eAuction (or Auction) means a web-based auction process that allows Buyers to solicit and collect Quotes from Sellers for Commercial Items in real-time by posting requirements and receiving decreasing incremental Quotes from Sellers.

TYPE OF SUPPLY

MANDATORY for ALL DoN requirements for Commercial Item Supply Buys UNDER $150,000

POLICY/REGULATION

Contract Information and Ordering Guide available on the Strategic Sourcing website

SOLUTION INFORMATION

GO TO: NAVSUP CKS for Ordering Guide Information

If a WAIVER is needed for the Reverse Auction Tool then prepare your waiver.

EXECUTION

REGISTER OR LOG IN TO: REVERSE AUCTION Websites

slide23

DoN Wireless Service Contracts

Wireless Services

Navy & Marine Corp-Wide MAC’s

TYPE OF SUPPLY

MANDATORY for all DoN wireless requirements within US (OCONUS exempted)

POLICY/REGULATION

Contract Information and Ordering Guide available on the Strategic Sourcing website

SOLUTION INFORMATION

There is NO WAIVER for the DoN Wireless Services Contracts.

GO TO: Ordering Guide Information

EXECUTION

GO TO: DoN Wireless Policy

slide24

Global Business Solutions Contracts (GBS)

Primarily SCA Type Services

Services available in 15 functional areas for Service Contract Act type labor.

TYPE OF SUPPLY

NAVSUP MANDATORY Policy has been issued for all Service Contract Act requirements.

POLICY/REGULATION

Contract Information and Ordering Guide available on the Strategic Sourcing website

SOLUTION INFORMATION

GO TO: Ordering Guide Information

If a WAIVER is needed for the Global Business Solutions Contracts then prepare your waiver.

EXECUTION

GO TO: NAVSUP GBS Policy

slide25

IT Services Suite

IT Services

GSA Alliant * NIH NITAAC * SEAPORT * DISA ENCORE II * Army ITES 2S * Air Force NETCENTS and other vehicles approved by SPAWAR

TYPE OF SUPPLY

Policy directs activities to the SPAWAR ITAAP website for a full list. DASN policy directs all IT Services requirements to consider using these existing vehicles first.

POLICY/REGULATION

Vehicles are hosted at various locations. Vehicles provide large groups of IDIQ contracts for both large business and small businesses who specialize in IT services. https://assist.sscno.nmci.navy.mil/navyitaap.nsf/ITAAP

SOLUTION INFORMATION

There is NO WAIVER for the DoN IT Services Suite.

GO TO: ITAAPOrdering Information

EXECUTION

GO TO: DoN IT Policy

slide26

SEAPORT-e

Professional Services

22 Functional Areas Providing Various Professional Knowledge Based and Logistics Services

TYPE OF SUPPLY

NAVSUP POLICY REQUIRES a review of SEAPORT for all professional services requirements. A waiver must be prepared when SEAPORT will not be used.

POLICY/REGULATION

Contracts and User Guide available on SEAPORT-e website:

http://www.seaport.navy.mil/default.aspx

SOLUTION INFORMATION

GO TO: Ordering Guide Information

If a WAIVER is needed for SeaPort-e then prepare your waiver.

EXECUTION

GO TO: NAVSUP SEAPORT Policy

tools web site address and subscription email
Tools: Web site address and subscription email

DON Strategic Sourcing Web Page:

  • https://www.navsup.navy.mil/portal/page/portal/nss
    • Users will need a registered PKI to access/view the site and content. If you cannot access any user not registered they can do so via this link:
    • https://registration.pki.navy.mil

Strategic Sourcing Subscription Email:

    • https://www.navsup.navy.mil/navsup/news/neds
maximizing use of acquisition tools
Maximizing use of Acquisition Tools
    • DAU’s ARRT tool (Automated Requirements Roadmap Training Tool)
    • Improve requirements definition
  • Reverse Auctions:
  • Reverse auctions promote transparency / competition
  • Multiple sources: Navy Order with FedBid, GSA Reverse Auction tool
  • Useful for supplies as well as services
  • NAVSEA’s SEAPORT Milestone Tool:
  • Available under SEAPORT is the functionality to manage Acquisition Milestones for major purchases
  • Tool creates visibility of key milestone events
  • Can be used to manage performance, set expectations, and limit use of bridge contracts and modifications
  • DON’s Inventory Management Tool for Wireless devices/ service
  • Will allow aggregation of requirements / executing enterprise solutions
  • The Strategic Sourcing Office, working with the DON CIO, is developing a database to manage the DON wireless inventory and utilization
common concerns questions
Common Concerns/ Questions
  • Many questions aim to find an exception to using a strategically sourced contract solutions
  • “What about FAR Part 8 – Mandatory Sources – why can’t we use GSA or DLA instead?”
  • “What about AbilityOne / UNICOR?”
  • “What about using non-DOD contracts? We aren’t allowed . . .”
  • FAR Part 8 is always considered – but GSA Global Supply and DLA are supply / requisitioning solutions
  • AbilityOne products are available under the FSSI Office Supply BPAs
  • UNICOR is a source under the furniture BPAs
  • And yes, you may place orders against non-DOD contracts (DFARS 217.78)
don strategic sourcing contacts
DON Strategic Sourcing Contacts

For more information on Naval Strategic Sourcing please contact:

Mr. Jamey Halke

Program Manager

Navy Strategic Sourcing Program Office

NAVSUP

717-605-7488

Jamey.Halke@navy.mil

Mr. Mark AscioneDeputy Program ManagerNavy Strategic Sourcing Program Office NAVSUP717-605-1409Mark.Ascione@navy.mil