Senior federal executives, along with dozens of lawmakers, have notched up their efforts in recent days to pressure federal agencies to expand their use of strategic sourcing to save money for the government.

In a Senate panel hearing on July 15, Dan Tangherlini, administrator of the General Services Administration, described plans to implement six additional bulk buying initiatives--on top of the four currently in place--that he said would result in $1 billion savings annually. “GSA estimates the potential savings from strategic sourcing at $1 billion annually when all ten solutions are in place and agencies are fully participating,” he said.

To date, the four existing solutions have saved the government $330 million since 2010, Tangherlini said.

Also, a Government Accountability Office executive forecasted much larger savings, as much as $50 billion a year, while setting a savings goal of possibly 10% due to buying strategically.

“Strategic sourcing...has allowed leading companies to achieve savings of 10% or more,” Cristina Chaplain, GAO director of acquisition and sourcing management, told the Senate Committee on Homeland Security and Governmental Affairs. “A savings rate of 10% of total federal procurement spending would represent more than $50 billion annually.”

Joe Jordan, administrator of the Office of Federal Procurement Policy, said the government is striving to include small businesses in strategic sourcing by reducing barriers to entry, engaging industry and giving interested sources adequate time to respond.

On July 18, a group of about 80 lawmakers in the newly-formed No Labels Coalition unveiled new legislation that would encourage strategic sourcing and bulk buying.

The Buy Smarter and Save Act of 2013 (HR 2694) would have agencies aim for $10 billion a year in savings based on $100 billion in federal spending in fiscal 2014 and 2015. It is sponsored by Rep. Tim Griffin R-AZ, and Sen. Mark Begich, D-AK.

More information: Senate hearing: http://goo.gl/gM2F83
No Labels Coalition: http://goo.gl/5GrJ5