The Federal government spends more than $325B on common goods and services each year.
As part of a broader effort to improve the efficiency of government operations, the Office of Management and Budget (OMB) has mandated that all agencies adopt Category Management practices.
Category Management is an established commercial practice which has been gaining traction in the federal government in the past three years. The OMB began focusing on Category Management late in the Obama administration. The 2018 President’s management agenda established Category Management as the government's overall acquisition strategy.
In OMB's new memo, M-19-13, the OMB established five actions all executive agencies and departments must take.
Censeo's Five Key Steps for OMB Policy Implementation
The OMB has Directed Agencies to Take Action in These Five Areas
plans to reduce unaligned spend and increase the use of BIC solutions for common goods and services, consistent with small business and other statutory socioeconomic responsibilities.
To establish BIC & SUM plans, analyze your projected spend to identify what to transfer to managed contracts.
effective vendor management strategies to improve communications with contractors, especially those that support critical mission functions.
To develop vendor management strategies, segment & prioritize your supply base, & define objectives for select vendors.
demand management strategies to eliminate inefficient purchasing and consumption behaviors.
To implement demand management strategies, build cross-agency teams to identify ways to optimize requirements or usage.
across the federal government to differentiate the quality and value of products and services in making buying decisions.
To share data across the government, select the data for collection to manage agency overhead costs.
and develop the workforce in category management principles and practices.
To conduct category management training, train staff on how your agency uses category management.
Censeo: The Proven Choice
Censeo is the leading provider of Category Management, Strategic Sourcing, and Critical Procurement Support services in the Federal government. Our teams have saved defense and civilian agencies hundreds of millions of dollars and have pioneered the practices that formed the foundation of OMB’s Category Management strategy. Our methodology has been tested across the government and has been proven to consistently drive real and measurable savings for our client agencies.
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