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What is Industrial Products and Services Category - Find out about the big opportunity!

George Prochaska, Industrial Products & Services (IPS) Category Manager would like to welcome you to the IPS Hallway. 

 

What is Industrial Products and Services Category - Find out about the big opportunity!
 

Over the next few months, we will communicate the composition of the IPS category, our strategy to take spend under management (SUM) from $0 (where it currently is) to a much improved state, and metrics for success.  We will also explore each of the IPS sub-categories, explaining the role of each subcategory, arraying opportunities, suggesting approaches to capture these opportunities, and most importantly, seeking input from readers.
  

Let's get started!
  

An easy way to visualize IPS is by understanding the mission behind the products and services within the category. Industrial Products and Services Category is the muscle that supports our nation’s industrial infrastructure.  It helps keep the wheels rolling on our military vehicles, keeps our boats in ship shape, and our planes in the air and on the right path. These are the products and services that put out fires and keep our firefighters safe.  The category also supports our nation’s financial system by providing precious metals to mint, all while promoting the growth of our country’s small business owners and supporting the earth with sustainable products.
  

Some quick facts about the IPS category:
 

  • IPS is a complex and diverse category with nearly $11 billion in spend annually.  The spend has actually been declining slightly in recent years.  

  • The top three spenders in the category are Treasury, Office of Secretary of Defense, and Army.  Many other federal agencies purchase a smaller share within this category.

  • There are 43k contracts with 301 product service codes in this category.  

  • The small business spend is relatively high at 51%.

  • Open market procurements represent $1.6 billion or about 15% of the spend.

  • There are nearly 15,000 suppliers, and 80% of the spend is with only 649 suppliers.

 

 The category is further divided into 7 Level two subcategories.  They include:

  • Machinery and Components:  $2.9B
  • Basic Materials:  $2.8B

  • Test & Measurement Supplies: $2.1B

  • Industrial Products Install/Maint/Repair/Rebuild: $1.1B

  • Hardware & Tools: $1.1B

  • Fire/Rescue/Safety/Env. Protection: $0.7B

  • Oils, Lubricants, and Waxes: $14.9M

I hope that introduction paints a picture for you.  The big surprise for me as I began studying the category is that there is $0 under management.  This means that none of the dollars spent in this category have been captured as having been procured through a Best-In-Class governmentwide contract vehicle.  Huge opportunity for improvement here!

The obvious macro strategy is to harness some of that spending.  In the next blog we will talk about the approach for doing this, and explain our plan for starting with 3 of the subcategories to develop actions that will reduce contract duplication, move spending to government-wide contracts, ensure that we have contracts that meet OFPP’s Best-in-Class criteria, maintain, or better yet increase small business, embark on supplier relationship management, and increase the sustainability of offerings.

Until next time, thanks for reading.

 


 

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Welcome to the Industrial Products & Services Category (IP&S) Community.  Of GSA's 17 categories of spend under our new Category Management... More

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