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

1

Establish

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.

Censeo's recommendations

To establish BIC & SUM plans, analyze your projected spend to identify what to transfer to managed contracts.

 

Conduct a forward-looking spend analysis to develop year spend projections over the next 1 – 5 years

Identify potential opportunities based on PSC & NIACS codes

Hold proactive discussions with requirements owners to build contract strategies that balance OMB’s metrics with mission needs

2

Develop

effective vendor management strategies to improve communications with contractors, especially those that support critical mission functions. 

Censeo's recommendations

To develop vendor management strategies, segment & prioritize your supply base, & define objectives for select vendors.

 

Segment your supply base using factors such as risk and vendor replaceability

Prioritize your suppliers by focusing on vendor providing unique or mission-critical products or services

Develop measurable objectives to guide your discussions with vendors

3

Implement

demand management strategies to eliminate inefficient purchasing and consumption behaviors.

Censeo's recommendations

To implement demand management strategies, build cross-agency teams to identify ways to optimize requirements or usage.

 

Identify products or services that are used across the agency

Form a cross-agency category team to ensure diverse perspectives are represented

Conduct a best practice analysis to identify how the private sector manages the category

4

Share data

across the federal government to differentiate the quality and value of products and services in making buying decisions.

Censeo's recommendations

To share data across the government, select the data for collection to manage agency overhead costs.

 

Select only a few target categories for data collection to maximize the value of your efforts

Identify data elements to collect based on a use case of how the data will be analyzed

Add terms to vendor contracts to compel suppliers to provide pricing data in a structured and machine-readable format

5

Train

and develop the workforce in category management principles and practices.

Censeo's recommendations

To conduct category management training, train staff on how your agency uses category management.

 

Identify the right people to train, within both acquisition and program offices

Identify the right skills to build based on your agency's overall Category Management strategy

Evaluate using external trainers to customize training based on your agency's specific needs

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.

 

Talk To An Expert Today

See how our team of Category Management and technical experts can help.

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