Federal Manager's Daily Report

OMB has told agencies to use, with limited exceptions, a central contract for package delivery services, saying that “despite earlier efforts to better leverage our buying power in this mature and commercial market, agencies still manage about 100 separate contracts, with different requirements and prices.”

“These contracts are awarded and administrated across multiple agencies, which limits the application and benefit of comprehensive demand management practices, resulting in increased expense for the government. There is tremendous opportunity to improve the way the government both buys and manages domestic and international package delivery services by implementing a category management strategy,” a memo said.

“Category management provides a pathway for agencies to move toward the use of best-in-class sourcing solutions, application of better buying strategies, and more effective vendor engagement” for the more than $350 million the government spends annually on package delivery services, said memo M-17-29.

Agency CAOs and senior procurement executives are to develop transition plans and submit them by September 1 to consolidate into one government-wide contract under the purview of DoD’s Transportation Command. Exceptions will be allowed only if the agency head, or other official acceptable to OMB, certifies that use of the contract would not be in the government’s best interests and submits a justification meeting standards set in the memo.

The contract and related information are available on the transportation and logistics services hallway on the GSA Acquisition Gateway.