FED GOV CON - Category Management

Jennifer Schaus & Associates
SERVICES FOR US FEDERAL GOVERNMENT CONTRACTORS
WEBINAR WEDNESDAYS – 2018

WASHINGTON, DC
OFFICE PHONE: 2 0 2 – 3 6 5 – 0 5 9 8
Jennifer Schaus & Associates – GOV CON WEBINAR SERIES - 2018 - WASHINGTON DC www.JenniferSchaus.com
Join Us for Our 2018 Series of Complimentary Webinars

on various US Federal Government Contracting Topics.
Presenters are industry experts

sharing knowledge
about the competitive government contracting sector.
Find all of our Govt Contracting webinars (free download) at www.JenniferSchaus.com
Contact Us @ 2 0 2 – 3 6 5 – 0 5 9 8
REMINDERS:
All webinars are complimentary.

All webinars are recorded.
They are found on our website and on YouTube.
Please send your questions to the speaker directly.
Thank you for participating.
ABOUT JENNIFER SCHAUS & ASSOCIATES:

- Based in downtown Washington, DC;
- A la carte services for Federal Contractors;
- Proposal Writing to GSA Schedules, 8a Cert, Contract Admin &
more!;
- Educational webinars;
- Networking events and seminars;
WEBSITE: http://www.JenniferSchaus.com
GSA CLASSES CONSTRUCTION CONFERENCES
TUESDAY - September 18 - CGSA Schedules For Beginners THURSDAY - September 13

Register: https://tinyurl.com/ybrcrh2b Federal Government Construction Contracting Summit
Register: https://construction091318.eventbrite.com
THURSDAY - October 04 - GSA Schedule for Beginners
Register: https://tinyurl.com/yazpw7da
November 13-15
MONDAY - November 05 - So I Have a GSA Schedule, Now GroundBreak - The Construction Conference
What? Register: https://www.procore.com/groundbreak/schedule
Register: https://vaptap.ecenterdirect.com/events/2414
ABOUT OUR SPEAKER:

Jon Williams
Partner, PilieroMazza PLLC
Education: The Catholic University of America, Columbus School of Law, J.D.,
and Communications Law Institute, Certificate, 2001
Experience: Over 15 years of legal experience advising contractors on a wide
range of government contracting matters and Federal Acquisition
Regulation compliance, including the federal procurement
programs for small businesses (i.e., the 8(a), HUBZone, WOSB, and
SDVOSB programs)
Contact Info: Phone: (202) 857-1000 Email: jwilliams@pilieromazza.com
ABOUT PILIEROMAZZA:
PilieroMazza PLLC is a full-service law firm with offices in Washington, DC and Boulder, CO. We are
most well known as a government contracting firm and for 25 years we have helped our clients
navigate the complexities of doing business with the federal government. We also provide a full
range of legal services including advice on corporate, labor and employment, SBA procurement
programs, and litigation matters. Our clients value the diverse array of legal guidance they receive
from us and our responsiveness as we guide their growth and secure their success.
Our primary practice areas are:
• Government Contracting • Business & Corporate
• Small Business Programs & Advisory Services • Litigation
• Labor & Employment • Intellectual Property & Technology Rights
Sign up for our newsletters and blog at

www.pilieromazza.com
Category Management:
What You Need to Know
Wednesday, September 12, 2018

What Is Category Management?

• Government initiative to reduce contract duplication and save
money on common goods and services (i.e., “categories”)
purchased by the government
• Started in December 2014
• Successor to Federal Strategic Sourcing Initiative (“FSSI”)
• Three goals of the initiative:
• Save $
• Reduce the number of new contracts
• Increase the amount of spending under government-wide management
How Does it Work?

• Government will move to “best in class” or “BIC” contracting
solutions that will be used government-wide
• Today, many agencies buy the same goods and services, under different
contracts unique to each agency
• Category management will:
• Consolidate government purchasing of common goods and services into
fewer contracts that all agencies must use
• Create consistent terms and conditions
• Organize procurement resources to focus on specific spending areas
• Emphasize leveraging government buying power
Who Is Leading the Way?

• Led by the Office of Management & Budget (“OMB”), Office of
Federal Procurement Policy (“OFPP”)
• Teams with expertise manage each category
• Each category team is expected to gather and compile data, analyze and
assess the data, and identify opportunities to use category management
strategies
What Are the Categories?

• The first category OFPP focused on was Information Technology
(“IT”) and then nine more were added
• IT • Industrial Products and services
• Facilities and construction • Travel
• Professional services • Security and protection
• Medical • Human capital
• Transportation and logistics • Office management
FY17 common spend - $303B

Facilities & Construction Professional Services IT Medical Transportation & Logistics
≈$81.2B ≈$71.1B ≈$56.7B ≈$43.5B ≈$28.5B
Led by GSA Led by GSA Led by GSA Co-Led by DoD and VA Led by DoD
• Construction Related Materials • Business Admin Services • IT Software • Drugs & Pharmaceutical Products • Fuels
• Construction Related Services • Financial Services • IT Hardware • Healthcare Services • Logistics Support Services
• Facilities Purchase & Lease • Legal Services • IT Consulting • Medical Equipment, Accessories, & • Motor Vehicles (non-combat)
• Facility Related Materials • Management & Advisory Services • IT Security Supplies • Package Delivery & Packaging
• Facility Related Services • Marketing & Public Relations • IT Outsourcing • Transportation Equipment
• Research & Development • Telecomms • Transportation of Things
• Social Services
• Technical & Engineering Services
Industrial Products & Services Travel Security & Protection Human Capital Office Management
≈$11.1B ≈$7.5B ≈$5.4B ≈$4.5B ≈$2.3B
Led by GSA Led by GSA Led by DHS Led by OPM Led by GSA
• Basic Materials • Employee Relocation • Ammunition • Compensation & Benefits • Furniture
• Fire/Rescue/Safety/ Environmental • Lodging • Protective Apparel & Equipment • Employee Relations • Office Management Products
Protection Equipment • Passenger Travel • Security Animals & Related Services • Human Capital Evaluation • Office Management Services
• Hardware & Tools • Travel Agent & Misc. Services • Security Services • Strategy, Policies, & Ops Planning
• Industrial Products Install/ • Security Systems • Talent Acquisition
Maintenance/Repair • Weapons • Talent Development
• Machinery & Components
• Oils, Lubricants, & Waxes
• Test & Measurement Supplies
Spend Under Management (“SUM”)

• SUM = the percentage of an organization’s spend that is
actively managed according to category management
principles
• Belief is that increasing SUM will eliminate redundancies, increase
efficiency, and deliver more value and savings.
Tiers
• OMB uses the following tiered rating scale to evaluate agency
spend:
• Tier 3, Best-in-Class (BIC) Solutions – Dollars obligated on Best-in-Class contracts
• Tier 2, Multi-Agency Solutions – Dollars obligated on multi-agency contracts that
satisfy rigorous standards set for leadership, strategy, data, tools, and metrics
• Tier 1, Mandatory-Use Agency-Wide Solutions – Dollars obligated on agency-wide
contracts with mandatory-use or mandatory-consideration policies, along with
standards set for data-sharing and other criteria
• Tier 0, Spend NOT Aligned to Category Management Principals – Dollars obligated
on contracts that do not fit into one of the three tiers above. Agencies should
analyze Tier 0 spend to find opportunities for shifting to higher-tier solutions
What Are the BICs?

• Full list is available at:
https://hallways.cap.gsa.gov/app/#/gateway/best-class-
bic/22574/list-of-best-in-class-solutions
• Examples for IT:
• VETS2
• Alliant/Alliant 2 and Alliant/Alliant 2 SB
• NASA SEWP
• GSA Schedule IT 70
President Trump’s Management Initiative

• Issued earlier this year and sets aggressive category
management goals
• Increase spending through BICs to 40% by FY20
• 13% decrease in unique contracts by FY20
• Save $18B in FY20
Spending on BICs is Trending Up

• According to spending data from Bloomberg Government:
• FY17 BIC spending was up $26.8B, a 12% increase year-over-year
• BIC total spending was 57% higher than FY13 and now stands at the
highest level in five years
• Small business BIC spending is up 54% in five years
• More than 36% of BIC spending goes to SBs
• SB share of BIC spending is up 3.8% in the last three years
Downsides of Category Management

• The data shows it is creating have’s and have nots
• Reduction in contracts for certain goods and services makes it critical for
companies in those industries to have the right contracts
• Increased importance of teaming, joint ventures, mentor-protégé, and
strategic acquisitions to ensure you have access to BICs
• Companies that are unprepared could be shut out of their markets
Adverse Effects On SBs and the Industrial Base

• A relatively small number of companies are getting most of the $
• According to SBA, # of SBs winning prime contracts has decreased by 25%
since 2010
• Category management should focus on the number of SBs receiving BIC
spend, not just the percentage of BIC spend going to SBs
• According to spending data from Bloomberg Government:
• Even with recent gains, SB share of BIC spending is below FY13
• Only 138 companies (out of 3,257) win 80% of BIC money
• In FY17, the top SBs on BICs hold double the dollar share compared to the
top SBs on non-preferred contracts in BIC markets
What Should Be Done?

• SBA provided the following 7 recommendations to OFPP:
1. Ensuring accountability for small business participation by developing key performance
indicators and expanding the metrics to include specific goals for each socioeconomic category
2. Performing data analysis of how many socioeconomic small firms already are included in best-in-
class (BIC) contracts and whether both the total contract value and vendor base are enough to
support all the goals of category management
3. Clarify through policy or communications that category management, reducing contract
duplication and the emphasis to use best-in-class contracts do not conflict with current
acquisition regulations and laws
4. Develop a more transparent methodology to calculate cost savings, which is particularly
important given the regulations require a cost-benefit analysis for consolidated requirements
5. Ensure each BIC has on-ramps, particularly for firms in the socioeconomic programs
6. Satisfy mandatory set-asides requirements under policy and law
7. Require prime contractors to provide data on how they are meeting their subcontracting plans
What Should Be Done?

• OFPP says many of the best in class vehicles have groups or
pools for small businesses, which will help category managers
to meet and exceed the goals
• Small business advocates want more data and tools to hold the
government accountable
Key Takeaways
• Category management is changing the way the government
buys and appears here to stay with the Trump Administration’s
aggressive goals to continue saving money, reducing the
number of contracts, and increasing BIC spending
• While there have been some positive gains for SBs, this is
concentrated in a small percentage of firms, with many others
being left out
• If you are in the targeted industries, it is critical to know the
BIC vehicles and have a strategy to obtain those contracts or
partner with firms that do
THANK YOU FOR ATTENDING!! WWW.JENNIFERSCHAUS.COM
QUESTIONS?
CONTACT OUR SPEAKER JON WILLIAMS AT (202) 857-1000 AND AT JWILLIAMS@PILIEROMAZZA.COM
This material is presented with the understanding that the author is not rendering any legal, accounting, or other professional service or advice. Because of the rapidly changing nature of
the law, information contained in this presentation may become outdated. As a result, the user of this material must always research original sources of authority and update information
to ensure accuracy when dealing with a specific legal matter. In no event will the author be liable for any damages resulting from the use of this material.
SERVICES FOR US FEDERAL CONTRACTORS OFFICE: 2 0 2 – 3 6 5 – 0 5 9 8

FED GOV CON - Category Management

Caricato da

Informazioni sul documento

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

FED GOV CON - Category Management

Caricato da

Copyright:

Formati disponibili

Jennifer Schaus & Associates

SERVICES FOR US FEDERAL GOVERNMENT CONTRACTORS

WEBINAR WEDNESDAYS – 2018

Join Us for Our 2018 Series of Complimentary Webinars

Presenters are industry experts

Find all of our Govt Contracting webinars (free download) at www.JenniferSchaus.com

All webinars are complimentary.

ABOUT JENNIFER SCHAUS & ASSOCIATES:

GSA CLASSES CONSTRUCTION CONFERENCES

TUESDAY - September 18 - CGSA Schedules For Beginners THURSDAY - September 13

ABOUT OUR SPEAKER:

Sign up for our newsletters and blog at

Wednesday, September 12, 2018

What Is Category Management?

How Does it Work?

Who Is Leading the Way?

What Are the Categories?

FY17 common spend - $303B

Spend Under Management (“SUM”)

What Are the BICs?

President Trump’s Management Initiative

Spending on BICs is Trending Up

Downsides of Category Management

Adverse Effects On SBs and the Industrial Base

What Should Be Done?

What Should Be Done?

SERVICES FOR US FEDERAL CONTRACTORS OFFICE: 2 0 2 – 3 6 5 – 0 5 9 8

Potrebbero piacerti anche