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Senators Question Long-Term Savings from Strategic Sourcing

us senateThe administrators of General Services Administration and the Office of Management and Budget‘s Federal Procurement Policy office have asserted before the Senate the huge savings government can gain from strategic sourcing, FCW reported Tuesday.

Mark Rockwell writes GAO’s Dan Tangherlini and OMB’s Joseph Jordan pushed for the expansion of the bulk buying concept to enable long-term savings for the federal government.

Some senators doubted the capability of strategic sourcing to help the government adapt to the business model for a longer period while acquiring products and services at competitive prices, according to the report.

Cristina Chaplain, GAO director of acquisition and sourcing management, told the Senate that federal agencies needed to implement bulk buying for the government to achieve significant cost reductions, the FCW reported.

Sen. Tom Coburn said a method for agencies to measure their savings would help ensure the government could embrace the practice, reports Rockwell.

Sen. Ron Johnson added that budget cuts could also enable agencies to alter spending, according to the report.

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