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SAVING ON SERVICES
Richard Sloop Jr., center left, site manager for a contracting company, discusses plans for an Ebola treatment center in Zorzor, Liberia, with MG Gary J. Volesky, left, commanding general of Joint Forces Command – United Assistance, and site engineer Emmanuel Tucker, center right, Nov. 18, 2014. Knowledge-based and facility-related services are fertile ground for the Army to save money through strategic sourcing. (U.S. Army photo by SFC Brien Vorhees, 55th Combat Camera)
and cost, and made available one vehicle to satisfy enterprise- wide requirements.
OPPORTUNITY ASSESSMENT Te initial step in strategic sourcing, during the early stages of acquisition planning, is to analyze spending across all services to determine the most economical way to satisfy requirements through long-term, enterprisewide investments. Tese assess- ments include thorough market research and analysis of requirements to determine the best options to pursue efficien- cies and cost savings, including contract vehicles and cost-sharing arrangements.
Te Strategic Sourcing Steering Group (SSSG) plays a leading role in the assessments by providing operational-level planning
and guidance to commodity and service teams, commands and direct reporting units involved in strategic sourcing. In its mis- sion to meet the goals, objectives and strategic guidance set forth by the SSEC, the SSSG collaborates with enterprisewide strate- gic sourcing working groups (SSWGs) to identify requirements needed to support the mission.
Aiding this collaboration is an ongoing analysis of business per- formance called “spend analysis.” Portfolio coordinators analyze trends in spending by each portfolio group, command or orga- nization, focusing on product service codes, which describe the products, services, and research and development that the fed- eral government purchases; these codes are the primary means of identifying strategic sourcing opportunities. Te analysis not only defines spending patterns and requirements, but also
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