The Office of Management and Budget has issued a memo
requiring agencies to begin “institutionalizing strategic
sourcing” to come up with ways to get cheaper goods.
It directs agencies to identify three commodities by
October 1, 2005 “that could be purchased more effectively
and efficiently,” and wants agency chief acquisition
officers to coordinate with chief financial, and
information officers as well as small business advocates
and other organizational leaders to drive the initiative.
“CAOs will spearhead agency efforts to analyze spending
data, identify high-volume commodity purchases, and
develop strategies to minimize acquisition prices for
each agency,” the memo said.
It said starting in January agencies will be required to
report “on the implementation of strategic sourcing plans,
reductions in prices, improvements in supplier performance
and changes in the achievement of socioeconomic goals.”
The memo is available at:
