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Strategic Objective

Deliver contracting solutions to generate customer savings

Strategic Objective

GSA will effectively leverage the government’s buying power to reduce costs.

Lead Office: Federal Acquisition Service (FAS)

Themes:

General Government Management

GSA.gov

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Overview
Progress Update

Overview

GSA will effectively leverage existing, and develop new, federal strategic sourcing initiatives to provide competitively priced solutions to drive savings in technology, real property and other acquisitions throughout the federal government. Through these solutions, GSA will be able to leverage governmentwide business volume for better pricing, and standardize contracting terms and conditions in order to reduce the cost of purchasing across government.

Strategies:

Continue to assess government purchasing and supply markets to develop federal strategic

Progress Update

For this strategic objective, GSA manages four savings performance goals: Integrated Technology Service (ITS) cost savings, Federal Strategic Sourcing Initiatives (FSSI), Global Supply blended markup, and leases negotiated at or below market rates. GSA met its targets for three of the four performance goals for FY 2015. Full success was realized for ITS cost savings, Global Supply blended markup, and for leases negotiated at or below the market rate. GSA achieved $129 million of its $144 million savings target for Federal Strategic Sourcing Initiatives.

GSA anticipates future growth in providing savings for the federal government and will begin reporting total savings for our federal acquisition services programs. Integrated Technology Service and Federal Strategic Sourcing Initiatives savings will be incorporated into our new performance indicator. For FY 2015, GSA acquisitions solutions provided over $5.1 billion in savings to the federal government.

To promote better acquisition decisions, GSA launched the Acquisition Gateway in September 30, 2014. The Acquisition Gateway provides agencies an interactive online portal that allows customers to access and compare best in class solutions to efficiently make cost effective purchasing decisions. It also provides a place to share best practices and learn from other acquisition professionals leading to better buying for the Federal customers The Acquisition Gateway includes acquisition tools developed across government. As of the end of FY 2015, 39 agencies have accessed the Acquisition Gateway in its first full year of operation.

Strategic Objective Next Steps. GSA will take the following actions in support of this strategic objective over the next two years:

Continue to negotiate the lowest possible lease rates for its customer agencies

Pursue opportunities to backfill or buy out vacant space leases
Leverage information and existing data sources to negotiate better prices including analyzing spending patterns and share information such as prices paid
Continue to consolidate financial, information, and human resources operations to reduce costs of our services to federal client agencies
Work with the Category Management Leadership Council (CMLC) to introduce new strategic sourcing solutions to increase saving opportunities
Increase adoption of industry and government agency best practices
Increase consolidations of leased vehicles
Transition to E-gov Travel Service 2 and increase the number of agencies deployed
Increase the use of reverse auctions for non-complex commodities and simple services acquisitions
Implement Enterprise Infrastructure Solution to reduce GSA telecommunications contracts from 87 to less than ten
Utilize transactional data to identify the current pricing spread for specific commercial items to reduce the variability between prices charged for like items.

A key external factor is that federal agencies are not required to use GSA for most of their personal property procurements. GSA will focus on providing the best, most cost-effective procurement solutions for agencies, and will support the Administration’s priority to increase savings, adoption, reduce contract duplication, and meet small business participation goals across the federal government.

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Strategic Goals

Strategic Goal:

Savings

Statement:

We will use our purchasing power and expertise to deliver cost-effective real estate, acquisition and technology solutions to federal departments and agencies.

Strategic Objectives

Deliver contracting solutions to generate customer savings

Statement:

GSA will effectively leverage the government’s buying power to reduce costs.

Description:

Strategies:

Continue to assess government purchasing and supply markets to develop federal strategic sourcing initiatives that provide our customers with services and equipment, at an excellent value, from suitable suppliers using standard solution pricing menus.
Use standard solutions and pricing with qualified suppliers to make it easier for agencies to meet their acquisition needs with minimal administrative demands, and, in turn, allow agencies to focus their time and resources towards their core mission-critical operations.
Promote the use of strategic sourcing solutions by our customers and work with our federal partners and industry to develop solutions for a broader array of products and services.
Reduce the operating costs for providing supplies to customers, which in turn will lead to customer savings.
Continue to use solutions such as Smartbuy, Networx Services and Reverse Auctions to provide customers with significant savings for information technology and telecommunications services and equipment.
Continue to develop and refine real estate market analysis tools and leasing processes to offer our customers leased workspace, when needed, at an excellent value.

Key Performance Goals:

Generate savings through Federal Strategic Sourcing Initiatives
Reduce the Global Supply blended markup
Procure lease space at below industry market rates
Realize savings through Integrated Technology Service solutions

Contributing Programs:

Assisted Acquisition
Electronic Government
General Supplies and Services
Integrated Acquisition Environment
Integrated Technology Services
Rental of Space
Travel, Motor Vehicle and Card Services

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FY 14-15 Priority Goal: Generate savings through Federal Strategic Sourcing Initiative

Statement:

By September 30, 2015, GSA will save $255M through the use of Federal Strategic Sourcing Initiative (FSSI).

Description:

By September 30, 2015, GSA will save $255 million ($111 million during FY 2014 and $144 million during FY 2015) through the use of Federal Strategic Sourcing Initiative (FSSI). Federal agencies purchase over $500B of goods and services annually. A key vehicle used by GSA, and other top purchasing federal government agencies, to promote cost savings, improved management visibility and adoption of best practices, has been the Federal Strategic Sourcing Initiative. Established in 2005, FSSI is designed to improve government management of commonly purchased goods and services. FSSI provides customers with significant savings, decreases administrative redundancy, and improves business intelligence while meeting or exceeding small business and sustainability goals.

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Improve the federal utilization of space

Statement:

GSA will improve the federal utilization of space.

Description:

GSA is leading efforts to improve asset utilization, reduce agency space requirements, effectively manage real property, and pursue innovative proposals to leverage resources. We are a government-wide leader and expert in real estate solutions. We will assist and educate federal departments and agencies to develop plans that will assist agencies with consolidating their space to reduce their footprint.

GSA is encouraging agencies to reduce space to minimize costs. We use a variety of tools, strategies, and portfolio planning options to determine the optimal housing solutions for agencies. We are also targeting our large, more costly new construction, major repairs and alterations, and leasing prospectus projects. By working with customer agencies, GSA will identify opportunities to optimize federal real estate portfolios by reducing space, improving utilization, disposing of underutilized assets, and leveraging market opportunities to reduce the footprint and investment and operating costs.

GSA supports the Office of Management and Budget’s “Freeze the Footprint” policy – aimed at maintaining government-wide square footage for offices and warehouses – by collecting government-wide data and conducting analysis to assess the performance of each agency towards meeting the national goal.

Strategies:

Use of the Customer Portfolio Plans process to develop and implement space saving opportunities with demonstrated value for both the client and GSA. These plans create value by proposing solutions which align Administration, Client Agency and GSA goals, and help optimize an agency’s existing portfolio while more effectively anticipating, capturing, and advising on future portfolio needs.
Where it is advantageous to the federal government, work to house tenants in federally owned space, rather than leasing from the private sector.
Minimize the amount of vacant space in the inventory and increase the utilization of existing space.

Key Performance Goals:

Reduce the federal footprint
Reduce vacant space in the government-owned and leased inventory

Contributing Programs:

Building Operations
Construction and Acquisition of Facilities
Government-wide Policy
Operating Expense
Real Property Disposal
Real Property Relocation
Rental of Space

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FY 14-15 Priority Goal: Reduce the Federal Footprint

Statement:

By September 30, 2015, GSA will reduce the amount of leased space by 5 percent for replacement leases. GSA will also work with agencies to complete a total of 15 Client Portfolio Plans (three new plans each year) to identify opportunities for agencies to optimize their real estate portfolios.

Description:No Data Available

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Reduce resource use and environmental impact

Statement:

GSA will reduce resource use and enviromental impact.

Description:

GSA will reduce resource usage by installing and implementing energy and water efficiency improvements in its portfolio; procuring more fuel efficient vehicles; reducing waste generation and diverting waste from landfills; offering more sustainable products and services on its schedules; reducing business travel and making remote meeting technologies more available and accessible; and increasing telework and designing workspaces that increase space utilization.

GSA also serves as a test-bed for innovative technologies and management practices that improve environmental performance while reducing costs. This will be accomplished by testing and, where proven effective, deploying Green Proving Ground building technologies and by making innovative products and services available and affordable to customer agencies.

Strategies:

Employ new technologies and building management practices that are both cost-effective and environmentally responsible.
Expand the use of alternative fuel vehicles governmentwide and ensure that low-cost, high-efficiency vehicle options are available to customer agencies.
Building on its capability to deliver comprehensive products and services across Government at the best value possible, GSA will continue to expand its offerings of sustainable products. Assist federal agencies in meeting environmental sustainability purchasing requirements by identifying and increasing the availability of green products and services.
Enhance the usefulness of energy efficiency research, strategies, practices, and tools provided to federal agencies by improving existing and deploying new resources that will enable better measurement of the use and impact of the resources provided; and obtaining user feedback, and disseminating research, strategies, practices and tools.

Key Performance Goals: