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Agencies Set Strategic Sourcing of Some Commodities

Most agencies are preparing to implement strategic sourcing plans that will centralize purchases of some commodities, said Robert Burton, acting administrator of OMB’s Office of Federal Procurement Policy.

He said all but a handful of agencies have submitted their plans to his office. OFPP had told each agency to identify three commodities that could be purchased more efficiently through strategic sourcing. (SAA, 6/10)

Speaking Oct. 12 to the Contract Services Association conference in Washington, Burton insisted that strategic sourcing will not hurt small vendors. “Meeting small business goals…should be part of [each agency’s] strategy,” he said.

In its May memo, OMB said, “In addition to cost and performance goals, any strategic sourcing plan must be balanced with socio-economic goals” for all targeted groups of small businesses.

Burton said OFPP will analyze the lists of commodities submitted by various agencies and may recommend that some of them be purchased governmentwide. He said the initiative has “more potential bang for the buck” because it will leverage the government’s massive buying power to negotiate lower prices.

“Contracting officers look at the GSA schedule as the rock-bottom price, and that’s just not so,” he added.

Burton also said his office will lead an interagency working group to look at procurements through GSA schedules and other interagency vehicles. The Government Accountability Office has added interagency contracting to its “high-risk” list of federal programs after GSA’s inspector general and other investigators documented instances of misuse of the vehicles.

Burton said new guidance may be needed to clarify the responsibilities of the purchasing agency, such as GSA, and the requiring agency that will actually use the product or service.

“I don’t know whether it will lead to new regulations or legislation,” he said.

The Acquisition Advisory Panel created by Congress last year is also looking at the issue. Its report is due in February.


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