A new report by the Government Accountability Office says strategic sourcing initiatives could generate at least $50 billion in annual savings for the U.S. government, Fedscoop reported Tuesday.
Cory Bennett writes GAO says the government allocates $537 billion per year to support federal acquisition programs and only a fraction of the funds are used to strategically source common products and services.
“We found that most selected agencies’ efforts did not address their highest spending areas, such as services, which may provide opportunities for significant savings,” the GAO says.
The report finds the departments of Defense, Energy, Homeland Security and Veterans Affairs account for 80 percent of the total procurement budget but invest only 5 percent in strategic sourcing.
Launched in 2005, the Federal Strategic Sourcing Initiative aims for agencies to collaborate and share best practices in acquiring contract services.
The GAO report also highlights efforts by DoD and the VA to reexamine department-wide spending and identify opportunities for strategic sourcing.