The Acquisition Gateway

What is Category Management?

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Category management is a business model the federal government is applying to buy smarter and more like a single enterprise. 

It involves:

• Identifying core areas of spend

• Collectively developing heightened levels of expertise

• Leveraging shared best practices, and

• Providing acquisition, supply and demand management solutions. 

Category management enables us to eliminate redundancies, increase efficiency and effectiveness, and boost satisfaction with the products and services we deliver.

Category Management Defined

Why Focus on Category Management?

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• In FY 2014, the federal government spent over $428 billion in purchases, which accounted for about 20 percent of the entire Federal budget.

• This was done through 500+ separate federal departments and agencies.

$2.7 billion Very Limited

Total FY 2014Spend

Government-WideSpend Visibility

Case-in-Point: One Federal Government Contractor

Federal Government Goals for Category Management

Federal Government has the following goals for category management:

• Increase spend under management through better interagency collaboration and understanding of user requirements, market dynamics, and purchasing patterns.

• Reduce contract duplication through adoption of shared solutions for common products/services.

• Generate volume savings and administrative savings from leveraged buying power better use of procurement resources.

• Enhance data transparency to improve contracts and performance against priorities such as small business goals and sustainability.

• Boost innovation through improved interagency and supplier partnership.

• Increase efficiency and effectiveness through improved supplier performance, better buying decisions, and supply chain cost savings.

Government-Wide Collaboration

GSA will work with the Office of Management and Budget (OMB) and the SSLC agencies to encourage government-wide adoption of category management by:

• Determining the priority categories.

• Defining spend under management and best in-class criteria.

• Creating performance metrics.

• Collecting data on best practices, contract terms and conditions, and contract prices paid.

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Category Management Governance Structure

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Category Leads are responsible for the development and execution of category strategies for a specific category (e.g., IT software within the IT category).

PMO

The SSLC is the governing board for Category Management initiatives. Provides government-wide direction on CM strategy and initiatives.

Category Managers are experts in the category (e.g., Information Technology). They develop the government-wide strategy to drive improved performance and act as change agents for the category.

Commodity Teams are traditional strategic sourcing working group formed when the category management process identifies the need for a new acquisition solution.

Common Acquisition PlatformProvides overall program management support to the groups and

individuals in the governance structure; facilitates the development and implementation of business rules and processes.

Develops and executes the IT strategy to support category management business strategy via the Acquisition Gateway.

Category ManagersSSLC

Administrator of OFPP

Category Leads

Chair

Agency A

Rep

Age

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B

Rep

Agency CRep

Age

ncy

ER

ep

Agency D

Rep

Commodity Teams

Chair

Agency A

Rep

Age

ncy

B

Rep

Agency CRep

Age

ncy

ER

ep

Agency D

Rep

Commodity Team

Category Team

Category Manager

CategoryX

Category Manager

Category Y

The Ten Government-Wide Categories

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The government-wide category structure approved by the SSLC consists of 10 categories of commonly purchased goods and services valued at $275B in FY14

1. IT

$49.9B1.1 IT Software1.2 IT Hardware1.3 IT Consulting1.4 IT Security1.5 IT Outsourcing1.6 Telecommunications

2. Professional Services$61.9B

2.1 Business Administration Services2.2 Legal Services

2.3Management Advisory Services (excl. R&D)

2.4 Marketing and Distribution

2.5Public Relations and Professional Communications Services

2.6 Real Estate Services2.7 Trade Policy and Services2.8 Technical & Engineering Services (non-IT)2.9 Financial Services2.10 Social Services

3. Security and Protection$5.5B

3.1 Security Animals & Related Services3.2 Security Systems3.3 Security Services

4. Facilities & Construction$75.7B

4.1 Construction Related Materials4.2 Construction Related Services4.3 Facility Related Materials4.4 Facility Related Services4.5 Facilities Purchase & Lease

5. Industrial Products and Services$10.5B

5.1 Machinery & Components

5.2Fire/Rescue/Safety/Environmental Protection Equipment

5.3 Hardware & Tools5.4 Test & Measurement Supplies

5.5Industrial Products Install/Maintenance/Repair/Rebuild

5.6 Basic Materials5.7 Oils, Lubricants, and Waxes

6. Office Management$1.9B

6.1 Office Management Products6.2 Office Management Services6.3 Furniture

7. Transportation & Logistics Services$26.8B

7.1 Package Delivery & Packaging7.2 Logistics Support Services7.3 Transportation of Things7.4 Motor Vehicles (non-combat)7.5 Transportation Equipment 7.6 Fuels

8. Travel & Lodging$2.7B

8.1 Passenger Travel8.2 Lodging8.3 Travel Agent & Misc. Services

9. Human Capital$4.1B

9.1 Specialized Educational Services9.2 Vocational Training9.3 Human Resources Services

10. Medical

$36.0B10.1 Drugs and Pharmaceutical Products

10.2Medical Equipment & Accessories & Supplies

10.3 Healthcare Services

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