Wednesday, December 14, 2016

Will Category Management Take a Pause, or Full Speed Ahead?
One of the initiatives that the Office of Management and Budget (OMB) continues to diligently institutionalize is Category Management. This initiative, a governmentwide effort to consolidate contracts to save money through reduced duplication, is widely used in the private sector.

However, many in industry and government are concerned, and with good reason. Improving federal acquisition is a very difficult task, and OMB and the General Services Administration's (GSA) efforts are laudable and should be commended, especially those that look to reduce contract duplication, and save taxpayer money. However, the OMB Circular No. A-XXX, “Implementing Category Management for Common Goods and Services” raises many issues.

My principal concern is the way that contracts are to be consolidated, and the way execution of this goal under Category Management will affect the small business community. My firm's comments to the circular can be found here.

Roger Waldron, president of the The Coalition for Government Procurement, has raised a number of significant issues when it comes to Category Management, and the concerns with the “best-in-class” (BIC) contract solutions for mandatory use, I believe, are worth noting.

...Mandatory contract vehicles could lead to significant risk for government and industry. Without vigilance, a well-intended cross-functional team could designate “winners and losers” through mandatory contract solutions for customer agencies and contractors in an attempt to manage the market. Such an approach can limit access to ongoing commercial competition and innovation, as well as negatively impact the small business community... 

One size does not necessarily fit all, and this is one of the major concerns for both government and industry that needs further review. Also of note is the fact that BIC contract solutions are seemingly not getting enough industry input. For these initiatives to be successful, more input, not less, is necessary from both industry and government stakeholders.

Certainly input from industry partners should be sought to help government make more informed decisions about commercial solutions.

It will be interesting to see how this initiative moves forward under a Trump Administration. I believe the goals to be important, but I know many in industry do not have the information they need to help government reduce regulations, streamline processes, and improve competition and innovation.

Perhaps a pause is in order, and a fully vetted review and cost benefit analysis can be conducted or shared. If after all the facts are in, and the initiatives need to move forward as-is, then I believe we can call agree to get on board and do what is necessary for successful implementation.

I am just not sure we are there yet...

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