The Federal Government spends over $300 billion on common goods and services every year, making it the largest buyer in the world. However, American taxpayers only get the benefits of this buying power if agencies share in contracts when buying common goods and services to get the best value. The Category Management CAP Goal is helping federal agencies leverage common contracts by eliminating redundancies, increasing efficiency, and delivering more value and savings from Federal acquisition programs. GSA’s City Pair Program is one example of how applying category management principles, including best-in-class contracts, can save taxpayer dollars.
Under the GSA City Pair Program, airfare rates for the federal government’s official travel are pre-negotiated and firm-fixed-price, offering a 49 percent discount on comparable commercial fares. GSA awarded its Fiscal Year 2019 City Pair Program air travel contracts, which will save the government approximately $2.38 billion next year.