E-Sourcing Forum » US Government – Leveraging their spend

US Government – Leveraging their spend

July 2nd, 2010 at 10:01am David Bush - Iasta

According to Peter Orszag, head of the Congressional Budget Office (CBO) and contributor to the Office of Management and Budget blog, “Federal agencies usually rely on hundreds of separate contracts for commonly used office supplies that vary in price. Purchasing supplies through separate contracts does not leverage the government’s buying power across all agencies, providing the cheapest prices.”

As all smart buying organizations do, the U.S. Government finally has consolidated its purchasing power to buy office supplies. According to CNN, the U.S. General Services Administration (US GSA) has just finished conducting multiple reverse auctions on office supplies, saving the government roughly 200 million on office supplies over the next 4 years.

It is great to see that the federal government is finally utilizing its leverage with these types of categories and strategically sourcing where possible – even if it is about 8 years later than it needed to be. With the amount of spend within the U.S. government, we all know there are enormous savings to be had, if they are smart with their purchasing.

“We are working with agencies to change these inefficient practices,” claims Dan Gordon, the Administrator for Federal Procurement Policy. “Effective strategic sourcing begins with good acquisition planning.”

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