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How Category Management Drives Savings, Equity, and Supports Small Businesses

December 07, 2024

By Performance.gov

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This blog is part of a series highlighting successes from each priority area and celebrating the achievements of the Biden-Harris President’s Management Agenda (PMA). The following post, authored by the Government-wide Category Management team at the Office of Federal Procurement Policy, discusses how category management has made federal procurement more effective.

Category Management (CM) is a strategic approach that helps organizations buy smarter for everyday goods and services. By working together, agencies can save money and get better deals by purchasing as one group. CM is a core part of the President’s Management Agenda (PMA) under Priority 3: Managing the Business of Government. This approach focuses on making federal buying more sustainable, fair, and resilient.

A critical element in optimizing the government’s buying power is ensuring it has a diverse and resilient supplier base, which the Office of Management and Budget (OMB) emphasized in Memo-23-11. To support this goal, OMB launched a government-wide procurement equity tool that leverages integrated market research. Through collaborative efforts between CFO Act agencies and government-wide categories, the government avoided $87 billion in cumulative cost in fiscal year 2023.

Category Management successes have helped increase diversity, resilience, and stewardship across federal acquisition efforts. Read on for highlights from the Department of Justice (DOJ), Department of Homeland Security (DHS), Department of Interior (DOI), and government-wide contract vehicles.

DOJ and DHS Partner for Small Business Success

In FY23, the DOJ used cross-agency small business set-aside procurements to meet its mission needs. The Bureau of Alcohol, Tobacco, and Firearms (ATF) partnered with DHS to buy three distinct types of small unmanned aircraft through collaborative procurement principles. ATF and DHS worked to identify and address the shared needs of both agencies. This collaborative effort resulted in the award of two contracts, totaling $2.36 million, which were exclusively set aside for small businesses.

DOI’s Commitment to Buy Indian Act Sets the Standard

DOI strengthened its commitment to supporting Indian small businesses through a series of policy updates. These updates clarified how contracting officers can use Buy Indian Act set-asides and establish an annual performance goal for awarding prime and subcontracts to these businesses. In FY23, DOI increased its awards to Indian small business economic enterprises (ISBEEs) by more than $302 million. The total acquisitions supporting the Buy Indian Act were published in the DPC 2023 Progress Report for Tribal Nations. To enhance transparency and facilitate business opportunities, DOI has also made it easier to find Indian-owned businesses through the Native American Businesses in the SAM.gov dashboard, which visually lists registered businesses and their capabilities.

OASIS+ Streamlines Federal Procurement

OASIS+ is a contract vehicle designed to increase efficiency within federal procurement processes and significantly expand opportunities for small businesses. Through a strategic approach that prioritizes inclusivity and accessibility, OASIS+ aims to award nearly 1,400 contracts to small businesses across seven distinct service domains. By eliminating barriers to entry and fostering a level playing field, this initiative empowers small businesses to compete effectively for federal contracts, while also ensuring that government agencies have access to the best professional services solutions tailored to their specific needs.

These examples showcase the government’s multifaceted approach to fostering a thriving small business ecosystem. Each initiative demonstrates a commitment to inclusivity and efficiency. As these programs continue to evolve, there will be increased opportunities for small businesses to contribute their expertise and innovation to government needs. Category Management continues to play a key role in supporting Priority 3 of the PMA with a focus on sustainability, equity, and supply chain resilience.

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