FED
SPEND
Efficiency
Why does efficiency matter?
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It is widely acknowledged that the federal government has many redundant activities and contracts. This redundancy not only increases costs for government but also for suppliers.
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Government can not only reduce cost but also improve the overall effectiveness of the procurement process by allowing customers to fill mission-critical needs faster, leveraging best-in-class contracts and attracting more suppliers.
​Questions to Consider
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​ Redundancy - How many contracts were used for identical
or similar requirements across a department? Across the
government? -
Requirements - Are requirements being grouped in a manner
that maximizes competition and attracts the best suppliers?
In this case a larger number of contracts may be okay. -
Suppliers - Does a department have multiple contracts with
the same supplier for the same requirements? See the graph
below for more information.
TOTAL CONTRACT COUNT
contracts per vendor
Questions to Consider
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Which vendors hold the most contracts within a specific
department or category? -
What is being purchased from those suppliers?
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For the same types of goods and services, is there an opportunity to consolidate contracts or establish "master agreements"?
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Is there significant variability in price from one agreement to the next? If so, why?
​
Additional Notes
​
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The same vendor may have multiple contracts.
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On the other hand, by consolidating contracts, there may be an opportunity to reduce redundancy and price variability.