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FCW : October 30, 2012
Trending October 30, 2012 FCW.COM 3 Agencies are failing to take full advan- tage of the chance to save signi cant money through strategic sourcing, according to a new report from the Government Accountability Of ce. In scal 2011, the departments of Defense, Homeland Security, Energy and Veterans Affairs spent 80 percent of the government s total $537 billion in procurement spending, but fewer than 5 percent of those dollars were managed through strategic sourcing. The four departments reported $1.8 billion in savings from the purchases that were strategically sourced, a process in which an agency takes a broader cross-departmental approach to purchases. By consolidating individ- ual contracts, agencies can save from 5 percent to 20 percent, GAO found. For example, DHS saved $324 million through strategic sourcing in fiscal 2011 and earned praise last year from the Of ce of Management and Budget. But overall, strategic-sourcing sav- ings equaled less than 0.5 percent of total procurement spending. GAO compared the four depart- ments data to those of leading pri- vate-sector companies. The private rms strategically manage about 90 percent of their procurements and save roughly 10 percent or more. One unnamed company with $55 billion in annual spending focused on reducing expenses related to services so that it could cut operating costs by 10 per- cent to 15 percent. GAO auditors said a similar savings rate would yield the federal government as much as $50 bil- lion annually. GAO said the secret is to use strate- gic sourcing for services, which is the biggest area of spending for agencies. However, federal of cials told GAO that requirements for services are dif- cult to standardize and it is easier to show results when they use strategic sourcing for commodities. GAO s recommendations include having Joe Jordan, administrator of the Of ce of Federal Procurement Policy, tell agencies to track the savings gener- ated from strategic sourcing and use the Federal Strategic Sourcing Initia- tive to identify products and services governmentwide that would be well GAO: Strategic sourcing is a missed opportunity Federal procurement spending in scal 2011 $537 billion total $25.8 billion through strategic sourcing (5 percent of overall spending) $1.8 billion in savings through strategic sourcing (0.34 percent of overall spending) Source: GAO FCW CALENDAR 10/30 Big data This webcast will announce winners of the 2012 Government Big Data Solutions Award and highlight tips for mission-focused big data deployments. Cloudera Webcast Series. is.gd/wemomo 11/2-9 Innovation and social media The weeklong festival for designers, developers, entrepreneurs and social innovators of all kinds includes 100-plus events around Washington. DCWeek 2012. is.gd/alajoq 11/7 Secure information sharing Gen. Keith Alexander, commander of U.S. Cyber Command and NSA director, will keynote this conference on the security challenges that come with improved information sharing. Symantec Government Symposium, Washington, D.C. is.gd/lafafo 11/8 Election impacts Two days after the 2012 elections, a panel of journalists, including FCW Executive Editor Troy K. Schneider, will assess the outcome's implications for government/ business relations and longer-term technology trends. NVTC Business to Government Committee Event, McLean, Va. is.gd/qaraze 11/13 Digital government Harvard's John Palfrey will discuss the promise and perils of highly interconnected systems at this daylong conference on deploying Web-based applications, produced by FCW parent company 1105 Media. Akamai Government Forum, Washington, D.C. is.gd/icegid 11/14 Interagency collaboration GSA CIO Casey Coleman and OMB Deputy CIO Lisa Schlosser are slated to speak on the importance of dialogue across federal departments. AFFIRM Monthly Speaker Series, Washington, D.C. is.gd/onuqun 11/15 BYOD The role of bring-your-own- device policies in ful lling the Digital Government Strategy, federal case studies and pilot programs across government, and the management and cultural challenges that come with BYOD are among the topics of this breakfast discussion. AFCEA Bethesda Monthly Breakfast Series, Bethesda, Md. is.gd/saluwi Continued on Page 8 federal data centers were slated to close in Q3 of 2012. The latest agency progress reports were due Oct. 26. 119
October 15, 2012
November 15, 2012