The Acquisition Gateway
What is Category Management?
Category Management Defined
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.
2
Why Focus on Category Management?
• 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.
Case-in-Point: One Federal Government Contractor
$2.7 billion
Total FY 2014
Spend
Very Limited
Government-Wide
Spend Visibility
3
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
Category
Manager
Administrator
of OFPP
Category
Manager
Chair
Chair
Category
Team
Commodity
Team
Agency C
Rep
Agency C
Rep
Category
X
Category
Y
SSLC
Category Managers
Category Leads
Commodity Teams
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.
Category Leads are responsible
for the development and
execution of category strategies
for a specific category (e.g., IT
software within the IT category).
Commodity Teams are
traditional strategic sourcing
working group formed when the
category management process
identifies the need for a new
acquisition solution.
PMO
Provides overall program management support to the groups and
individuals in the governance structure; facilitates the development and
implementation of business rules and processes.
Common Acquisition Platform
Develops and executes the IT strategy to support category
management business strategy via the Acquisition Gateway.
6
The Ten Government-Wide Categories
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
2. Professional
Services
$61.9B
3. Security and
Protection
$5.5B
4. Facilities &
Construction
$75.7B
5. Industrial Products
and Services
$10.5B
2.1 Business Administration Services
2.2 Legal Services
Management Advisory Services (excl.
2.3 R&D)
2.4 Marketing and Distribution
Public Relations and Professional
2.5 Communications Services
2.6 Real Estate Services
2.7 Trade Policy and Services
2.8 Technical & Engineering Services (non-IT)
2.9 Financial Services
2.10 Social Services
3.1 Security Animals & Related Services
3.2 Security Systems
3.3 Security Services
4.1
4.2
4.3
4.4
4.5
5.1 Machinery & Components
Fire/Rescue/Safety/Environmental
5.2 Protection Equipment
5.3 Hardware & Tools
5.4 Test & Measurement Supplies
Industrial Products
5.5 Install/Maintenance/Repair/Rebuild
5.6 Basic Materials
5.7 Oils, Lubricants, and Waxes
6. Office
Management
$1.9B
7. Transportation &
Logistics Services
$26.8B
8. Travel &
Lodging
$2.7B
9. Human
Capital
$4.1B
10. Medical
6.1 Office Management Products
6.2 Office Management Services
6.3 Furniture
7.1
7.2
7.3
7.4
7.5
7.6
8.1 Passenger Travel
8.2 Lodging
8.3 Travel Agent & Misc. Services
9.1 Specialized Educational Services
9.2 Vocational Training
9.3 Human Resources Services
10.1
$49.9B
1.1
1.2
1.3
1.4
1.5
1.6
IT Software
IT Hardware
IT Consulting
IT Security
IT Outsourcing
Telecommunications
Package Delivery & Packaging
Logistics Support Services
Transportation of Things
Motor Vehicles (non-combat)
Transportation Equipment
Fuels
Construction Related Materials
Construction Related Services
Facility Related Materials
Facility Related Services
Facilities Purchase & Lease
$36.0B
10.2
10.3
Drugs and Pharmaceutical Products
Medical Equipment & Accessories &
Supplies
Healthcare Services
7
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