Category Management Support

OMB Policy Implementation

Strategies to Comply with the OMB's requirements & Drive Savings

$325 000 000 000

The Federal Government Spends on Common Goods and Services Each Year

In OMB's new memo established five actions all executive agencies and departments must take

As part of a broader effort to improve the efficiency of government operations, the Office of Management and Budget (OMB) has mandated that all agencies adopt Category Management practices.

Category Management is an established commercial practice which has been gaining traction in the federal government in the past three years. The OMB began focusing on Category Management late in the Obama administration. The 2018 President’s management agenda established Category Management as the government's overall acquisition strategy.

Censeo's Five Key Steps for OMB Policy Implementation

The OMB has Directed Agencies to Take Action in These Five Areas

Reduce unaligned spend Establish plans to reduce unaligned spend and increase the use of BIC solutions for common goods and services, consistent with small business and other statutory socioeconomic responsibilities

Censeo's recommendations

To establish BIC & SUM plans, analyze your projected spend to identify what to transfer to managed contracts.

Conduct a forward-looking spend analysis to develop year spend projections over the next 1-5 years
Identify potential opportunities based on PSC & NIACS codes
Hold proactive discussions with requirements owners to build contract strategies that balance OMB’s metrics with mission needs

Develop Vendor Management Strategies Develop effective vendor management strategies to improve communications with contractors, especially those that support critical mission functions

Censeo's recommendations

To develop vendor management strategies, segment & prioritize your supply base, & define objectives for select vendors.

Segment your supply base using factors such as risk and vendor replaceability
Prioritize your suppliers by focusing on vendor providing unique or mission-critical products or services
Develop measurable objectives to guide your discussions with vendors

Implement Demand Management Strategies Implement demand management strategies to eliminate inefficient purchasing and consumption behaviors

Share Data Share data across the federal government to differentiate the quality and value of products and services in making buying decisions

Censeo's recommendations

To share data across the government, select the data for collection to manage agency overhead costs.

Select only a few target categories for data collection to maximize the value of your efforts
Identify data elements to collect based on a use case of how the data will be analyzed
Add terms to vendor contracts to compel suppliers to provide pricing data in a structured and machine-readable format

Develop the Workforce Train and develop the workforce in category management principles and practices

Censeo: The Proven Choice

Censeo is the leading provider of Category Management, Strategic Sourcing, and Critical Procurement Support services in the Federal government. Our teams have saved defense and civilian agencies hundreds of millions of dollars and have pioneered the practices that formed the foundation of OMB’s Category Management strategy. Our methodology has been tested across the government and has been proven to consistently drive real and measurable savings for our client agencies. We have helped our clients with category management across these agencies: