GSA , DHS cooperate on 'strategic sourcing'

The General Services Administration is working with the Homeland Security Department's desire to beef up its strategic sourcing program, which involves leveraging the agency's purchasing power to get better deals on goods and services.

In a letter dated Aug. 30, Al Sligh, director of strategic sourcing and acquisition systems at Homeland Security, asked contractors to cooperate with GSA's efforts to collect data on DHS' spending habits. According to the letter, contractors will be contacted by phone during the next several days. The letter was sent electronically to vendors that supply goods or services to DHS through GSA Schedules.

As agencies embark on strategic sourcing programs, as required by the Office of Management and Budget, they often decide to negotiate directly with companies instead of going through GSA, which sets up contracts with the goal of negotiating better prices on behalf of individual agencies. The U.S. Postal Service and the Internal Revenue Service were among those that said they got better deals without GSA's help.

Homeland Security reached the same conclusion after it analyzed expenses for express delivery services. Most of its express shipping contracts were administered through GSA, but in June, DHS announced an award for a contract with DHL.

GSA has downplayed this threat to its schedules. In March, spokeswoman Viki Reath said GSA Schedules can meet the majority of agencies' needs and it is working to make acquisition officials more aware of the flexibility of GSA offerings. In an interview with Government Executive in June, GSA chief acquisition officer Emily W. Murphy said GSA can support agencies' strategic sourcing plans and is not competing with them.

GSA is taking steps to secure agency allegiance. "[GSA's Federal Acquisition Service] is well-positioned to provide agencies with analysis of past purchase behavior and how like requirements can be aggregated, taken to market and negotiated to get the best price possible. We are working with DHS and other agencies to determine the most effective way for FAS to introduce this new service," said GSA spokeswoman Mary Alice Johnson. She declined to identify the other agencies.

"[GSA] came over to see how they can meet our needs and to see if there are things they can do that they're not doing," said Sligh "Some things GSA supplies to us, we could leverage a lot better." Sligh initially proposed the partnership between the two agencies.

After its meeting with Homeland Security officials, GSA agreed to provide data on what the department is currently buying and then analyze it. Sligh said that will be followed by a joint analysis by both agencies. Sligh said this information will help his department determine how to negotiate better deals for itself through GSA.

One option, he said, was to present Homeland Security's requirements for certain services at once, in one comprehensive contract. The department could use a blanket purchase agreement, or a contract based off of a GSA schedule.

"The opportunity is out there, we just have to execute it," said Sligh. "By having a strategic relationship with GSA, my belief is that we can get better treatment."