Governmentwide strategic sourcing effort launched

The Treasury Department and General Services Administration kicked off an interagency effort this week to target five commodities for strategic sourcing, a cost-savings technique that leverages the government's buying power.

The five commodities are copiers, cell phones, office supplies, information technology products and express delivery.

Treasury procurement executive Tom Sharpe, who has worked on the effort for the past year, said all federal agencies are invited to participate on a volunteer basis. Five interagency groups will be formed in December, he said, with each looking at one commodity.

The goal of the interagency groups is to reduce the amount the government pays for these products and services by leveraging buying power to negotiate better deals. That does not necessarily mean one large purchase will be shared by all agencies involved, Sharpe said. Purchases could be divided into smaller procurements.

The groups will concentrate on socioeconomic goals and quality in addition to price, Sharpe added.

They also will issue a monthly report to the Chief Acquisition Officers Council, a coalition of agency acquisition chiefs, he said.

Sharpe said that commodities groups improve buying practices across agencies. "We're sharing information," he said. "A lot of power can be had just from talking with each other and learning about best practices."

The Office of Management and Budget required that agencies submit a strategic sourcing plan, including three commodities they are targeting, by Oct. 1. They must report to OMB by January on savings generated from their efforts.