The guidance calls for increased agency use of centralized contracts managed by GSA. Image: Rena Schild/Shutterstock.com
By: FEDweek StaffOMB has issued guidance to agencies on complying with a March executive order to consolidate the procurement of common goods and services under the GSA, saying that despite use of category management, “best-in-class” contracts and other government-wide contracts, “less than 20 percent of common spend currently goes through GSA.”
Savings from such initiatives “can be significantly increased through smart consolidation efforts that further reduce redundant or otherwise inefficient procurement activity,” says memo M-25-31.
The guidance calls for increased agency use of centralized contracts managed by GSA, especially for widely available commercial products and basic services, and centralization in GSA of procurement functions “whenever such centralization promotes greater economy and efficiency. Agencies should work proactively with GSA and 0MB to implement these workstreams and fully leverage GSA’s expertise and statutory role as the Federal Government’s core buyer for addressing prevalent and repetitive needs.”
It says higher priority is to be given to requirements that (in its words) do not vary based on the mission of the agency; involve highly commercialized products and services acquired without any customization; are easy to standardize; and allow achievement of economy and efficiency through reduced variation in offerings and services.
Lower priority meanwhile is to be given to requirements that are similar across agencies, but exact needs differ from one agency to another and may require some customization; and are of a sufficiently complex or mission-specific nature where contract performance is likely to involve ongoing engagement between buying and program offices.
“For requirements that involve specialized knowledge and skills that reside outside of GSA, but the requirement is still appropriate for consolidation, consideration will be given to centralization at an agency with the requisite knowledge,” OMB said, adding that it will revise prior guidance on category management to incorporate those principles.
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