VA Leads the Way in Strategic Sourcing

The Office of Management and Budget has directed certain federal agencies to prepare strategic sourcing (leveraged buying) plans for three commodities by Jan. 31, but the Department of Veterans Affairs has already complied. Seven years ago, the VA was captive to a single company that had hiked the price of burial flags to $41 each. It developed three vendors and was able to reduce the price to $32. In addition, the department has been conducting leveraged buying of pharmaceuticals for itself, the Defense Department and certain other agencies. Its third program is hearing aid acquisition.