GSA Saves $200 Million While Providing Opportunities for Small Businesses
Strategic Sourcing Program for Office Supplies Continues to Deliver Savings
June 21, 2013
WASHINGTON -- The U.S. General Services Administration’s (GSA) Strategic Sourcing program continues to lead the way in delivering value to GSA’s small business partners and the American taxpayer. At the Small Business Administration’s National Small Business Week Phoenix and Procurement Awards ceremony in Washington, DC, GSA’s Chief Acquisition Officer, Anne Rung announced that as of today, GSA’s Office Supplies Second Generation (OS2) program reached a significant milestone of saving the government $200 million on purchases of common office supplies while also supporting small businesses.
“GSA is firmly committed to providing the government with solutions that deliver significant savings and increase small business participation in the federal market,” said Rung. “The OS2 solution is a great example of how the government can buy smarter to save money while at the same time ensuring that we are maximizing small business opportunities to the fullest extent possible.”
Through the Federal Strategic Sourcing Initiative, GSA has awarded fifteen Blanket Purchase Agreements (BPA) for OS2. Thirteen of the 15 BPAs were awarded to small business entities, providing federal agencies with a purchasing option that meets socioeconomic goals and saves budget dollars. The small-business OS2 suppliers received more than $461 million in sales with 76 percent of the OS2 business.
“In this critical time of reduced budgets, this strategic sourcing initiative helps the government to leverage data, dollars and good business sense in meeting its goals,” said Rung. “Under the OS2 program, discounts increase as the collective purchases grow across the federal government. Through this pricing structure, the vehicle truly leverages the government’s buying power.”
As another benefit to small business, GSA recently developed a Dynamic Market Pricing Model to help the OS2 small businesses negotiate better pricing with their own suppliers in order to pass those savings back to the government. This pricing model, which is based on transactional data provided to the vendors, will result in more than $12 million in incremental direct savings.
GSA is facilitating the development and launch of 10 new strategic sourcing solutions for launch by the end of FY2014. Through the Federal Strategic Sourcing Initiative (FSSI), agencies pool their purchases to collectively achieve greater cost savings through data-driven purchasing that leverages the scale of the government. The FSSI program now includes more than 20 agencies (military and civilian) that have collaborated to develop government-wide common procurement vehicles that offer greater discounts, provide improved management, support small business and represent best practices.