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Lisa Hershman,Acting Chief Management Officer, Department of Defense
Lesley Field,Deputy Administrator for Federal Procurement Policy and Shared Services Policy Officer, Office of Management and Budget
Federal agencies will leverage common contracts,
meaning that they share in contracts that get the
best value for taxpayers, in order to buy common
goods and services as an enterprise. This
approach will eliminate redundancies, increase
efficiency, and deliver more value and savings
from Federal acquisition programs.
By the end of FY 2020, the Government will
achieve $18 billion in savings for taxpayers by
applying category management principles—or
smart decision-making where agencies buy the
same kinds of goods and services through best
value contract solutions—to 60% of common
spend.1 In addition, the Government will reduce
duplicative contracts by 50,000, potentially
reducing administrative costs by hundreds of
millions of dollars.
The Federal Government spends over $300 billion2
on common goods and services every year. However, because agencies buy in a fragmented manner, taxpayers often do not get the benefit of the Government’s position as the largest
buyer in the world. Hundreds—and in some cases thousands—of duplicative contracts are awarded to the same vendors for similar requirements.
This fragmentation leads agencies to pay significantly different prices—sometimes varying
by over 300%3—for the same items.
Success means the Government will not only
save taxpayer dollars but will improve mission outcomes. For example, this work will allow:  our law enforcement personnel to ensure their safety through easy access to equipment such as ammunition and body armor; medical professionals to save time and focus more on patients by ordering pharmaceuticals through electronic catalogues; agencies to more easily prioritize modernizing the Government’s IT infrastructure, to include efforts such as buying standardized computers; and the goal will be evaluated using industry best practice metrics, including savings, spend through common contract solutions, reduction of duplicative contracts, small business utilization and training the workforce.
1Savings and cost avoidance for category management is measured from increased use of Best In Class solutions (BIC), which on average
produce 10-15% savings. Details on each solution’s savings method can be found on the Acquisition Gateway.
2 Based on the Federal Procurement Data System.
The President’s Management Agenda identifies cross-agency priority (CAP) goals to target those areas where multiple agencies must collaborate to effect change and report progress in a manner the public can easily track.
In this the section, find the key indicators from the CAP Goal Action Plan used to measure how this goal is performing.