Anne Rung on Tackling $445 Billion in Federal Spending: GPTS 2016

Anne Rung federal procurement

The ISM and Spend Matters Global Procurement Tech Summit (#ProcureTech2016) kicked off this morning in Baltimore with Anne Rung taking the stage as the morning’s first keynote. By title, Anne serves as, administrator, Office of Federal Procurement Policy. In reality, she’s a procurement and policy expert who serves as our federal CPO. Anne has a deep passion for improving not only federal procurement but government through procurement, which presents a great lesson for the private sector as well.

Anne centered much of her talk on federal IT procurement, which within the Office of Management and Budget (OMB) represents over 10% of the overall Federal procurement budget — $51 billion in IT spend, to be precise.

“The challenge for me in this position is that to improve IT in the federal government we need to fix the acquisition piece [first]," Anne said.

When it comes to acquisition (procurement) practice, change involves policy, practice and technology. As an example, Anne cited a study that showed that paid General Services Administration (GSA) prices for 16GB flash drives (Imation) ranged from $9.56 to $129.51. (The lower price was still higher than the Amazon price, Anne said.)

What explains the variance? Individuals buying flash drives would only enter partial part numbers and were not directed to the best price. To fix the variance, GSA has now standardized part numbers and guides those buying the SKU to a specific price.

This is one small contribution in reforming broader federal acquisition, which Anne observes today:

  • Represents $445 billion in annual spending spread across 100 agencies
  • Has a clear “80/20 rule” for spending by agency (i.e., 7 agencies comprise 90% of spend, with the Department of Defense leading the way with the largest spend)
  • Has a 23% small business spending goal (which has been met in recent years)
  • Has appointed “10 category CEOs” to manage federal categories working closely with agency and department procurement heads

In the Beltway and beyond, Anne is a procurement disruptor. And she did an exceptional job kicking off #ProcureTech2016. From Spend Matters and ISM, a giant round of thanks to Anne (and the Obama administration) for putting procurement at the center of improving government and sharing her war stories with 300 GPTS attendees this mornings.

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