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STRATEGIC SOURCING

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Strategic sourcing is a collaborative and structured process of analyzing an organization's spending and using the information to make business decisions about acquiring commodities and services more effectively and efficiently.

Pursuant to the intent of the Office of Management and Budget (OMB) Memorandum dated, May 20, 2005 to Improve Government Acquisition, the National Aeronautics and Space Administration (NASA) established the NASA Strategic Sourcing Plan (NSSP) under the auspices of the Office of Procurement, Procurement Operations Division.  OMB has directed federal agencies to leverage spending to the maximum extent possible through strategic sourcing.

The overarching goal of the OMB initiative is to institutionalize the strategic sourcing process and secure top management commitment. The OMB expectation is that through implementation of sound strategic sourcing plans, the following results can be achieved throughout the federal government:

  • Reduction in prices
  • Reduction in administrative costs
  • Improved performance
  • Increased small business participation
  • Improved business intelligence

The primary goal of the NASA strategic Sourcing Program is to establish a process that enables NASA to strategically acquire products and services common across the agency, Centers or organizations to support the Agency's mission in a more effective and efficient manner. This process involves critical analysis of agency spending and the utilization of the data obtained through the analysis in structured and collaborative acquisition planning efforts that:

  • Increase effectiveness and efficiency within the acquisition life-cycle
  • Optimize contractor performance
  • Evaluate total life-cycle management costs
  • Create value to the Agency in the form of tangible and intangible process and resource savings
  • Improve the methods and processes utilized for managing spending
  • Enhance achievement of socio-economic goals, and
  • Reduce the total cost of ownership