DATE: May 25, 2005

SUBJECT: Office of Management and Budget (OMB); Implementing Strategic Sourcing

SOURCE: OMB Memorandum dated May 20, 2005


ACTION: Notice

SYNOPSIS: On May 20, 2005, Deputy Director for Management Clay Johnson III issued a memorandum to chief acquisition officers (CAOs), chief financial officers (CFOs), and chief information officers (CIOs) directing them to develop and implement an agency strategic sourcing effort to “optimize performance, minimize price, increase achievement of socio-economic acquisition goals, evaluate total life cycle management costs, improve vendor access to business opportunities, and otherwise increase the value of each dollar spent.”

FOR FURTHER INFORMATION CONTACT: Leslie Field, OFPP, e-mail: lfield@omb.eop.gov.

SUPPLEMENTAL INFORMATION: According to OMB, “strategic sourcing is the collaborative and structured process of critically analyzing an organization’s spending and using this information to make business decisions about acquiring commodities and services more effectively and efficiently.” To maximize the value of each dollar spent, OMB is directing each agency’s CAO, CFO, and CIO to develop and implement a strategic sourcing effort. The CAO will take the lead on this.

Based on information from the agency reports and other data, “OFPP may identify several commodities that could be strategically sourced government-wide, and will establish an interagency structure for managing the acquisition of these commodities.”

Agencies are to appoint a strategic sourcing point of contact by July 1, 2005.

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953.

Copyright 2005 by Panoptic Enterprises. All Rights Reserved.

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