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Introducing a New Tool - the FSSI OS2 Savings and Small Business Dashboard

With an eye toward transparency and demonstrating its commitment to Small Business, today GSA released its Federal Strategic Sourcing Initiative Second Generation Office Supplies (OS2) Savings and Small Business Dashboard. The OS2 dashboard was developed as a key component of GSA’s goal to increase transparency and demonstrate success with its ongoing support of small business, veterans, and taxpayers. The easy to use, interactive dashboard displays pricing and sales data that demonstrates cumulative cost savings and small business utilization goals across federal agencies, clearly illustrating GSA’s commitment to maximizing opportunities for small business and veteran communities.

GSA first launched the Federal Strategic Sourcing Initiative (FSSI) Office Supplies (OS1) solution in 2006, capturing $35 million of federal spend. Springboarding from this experience, GSA developed an even stronger OS2 solution in 2010, saving the government more than $364 million as of February 2014 and increasing Small Business utilization from 67% to 76%. GSA looks to continue building on its success, by collaborating with customer agencies, industry, OMB, and the Strategic Sourcing Leadership Council (SSLC) in the implementation of the third generation solution, OS3.

OS3 will provide:

  • Lower prices and administration costs through increased competition, dynamic pricing (for reduced price variability), a streamlined acquisition process, and simplified contractual terms

  • Greater channel options and improved ease of use for customers with standardized product descriptions for more efficient comparison shopping and inclusion of future channels including the requisition channel and the Fourth Party Logistics (4PL) channel

  • Government savings of $65 million a year in administrative costs in addition to the $90 million a year of savings captured through OS2

  • GSA also worked extensively with the Small Business Administration (SBA) and the Veterans Administration (VA) to address small business and Service-Disabled Veteran Owned Small Business (SDVOSB) concerns, resulting in:

    • More preferences for Small Business and SDVOSBs

    • Seasonal on-ramping for unlimited qualified Small Businesses with pricing at least 1% below the OS3 median on the purchasing channel to continuously drive overall OS3 pricing even lower

    • Higher forecasted Small Business utilization than OS2 (from 76% to 82%)

The Second Generation Office Supplies (OS2) Savings and Small Business Dashboard is a graphical depiction of OS2 spend, savings and small business utilization, further highlighting FSSI OS2’s accomplishments on behalf of small businesses, veterans, and the taxpayer. Its easy to use, and provides filters for users to focus on geographical, government agency, small or large business, and SDVOSB specifics.

The dashboard provides the following key insights:

OS2 has maximized opportunities for small business, with 76% of OS2 spend going to small business as of February 2014. This percentage has increased from 67% in previous years and is anticipated to increase to 82% with the next generation FSSI vehicle OS3. OS2 also compares strongly to GSA’s Schedule 75, SIN 75-200 where 71% of spend goes to small businesses.

OS2 is also maximizing opportunities for Service  Disabled Veteran Owned Small Business, averaging more than 600% of the SBA’s SDVOB utilization goal since inception with a 19% figure vs. a 3% goal, and showing growth each year. The SDVOSB percentage stands at 26% for FY14 through February 2014 with one out of every four dollars going to SDVOSB. The percentage of SDVOB businesses is actually greater under OS2 (20.6% for FY13, all of SDVOSB) than under Schedule 75 as a whole (12.8% for FY13, including 1.8% SDVOSB).

OS2 maximizes taxpayer savings, with lowered prices in OS2 also driving down prices on Schedule 75 and cumulative indirect savings from OS2 now exceeding $232 million. In fact, lessons learned from OS2 are also being applied to Schedule 75. An independent third party estimated that OS2 has increased competitive pressure in the Federal Office Supplies Market, thereby reducing actual transaction prices by 14% (in real dollars), while inflationary forces drifted upwards 12.3% over the same three year period, resulting in a net indirect savings of 26.3% in the most recent year and cumulative indirect savings of $232.7 million through OS2 and indirectly through Schedule 75.  

The dashboard also demonstrates GSA’s commitment to strong data integrity and transparency with a price comparison table comparing prices on Schedule 75 with OS2 prices. In 9 out of 10 cases, the median OS2 price is lower than the median Schedule 75 (non-OS2) price.

 
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