Anne Rung, administrator of the Office of Management and Budget’s Office of Federal Procurement Policy, is leaving the public sector to head the government division of Amazon Business, several sources report.
The hire is a boon to Amazon, which gains an experienced government insider who can help connect the Seattle-based company with huge market opportunities in state and federal e-procurement applications. The self-described “online marketplace” has booked roughly $1 billion is sales in the year since it rebranded from AmazonSupply and appears to have its sights set beyond the small and medium-sized businesses that comprise its current customer base.
Best described as America’s CPO, Rung lead the OMB for two years following similar top roles at the General Services Administration and the Commerce Department. As global leader, public sector, at Amazon Business, Rung will direct the e-procurement marketplace’s strategic supplier program focusing on the government. Her first official day is Nov. 1.
Rung’s “strong leadership and deep knowledge of public sector procurement will help her build upon the progress Amazon Business has made in better serving public sector customers," Prentis Wilson, vice president of Amazon Business, told FedScoop.
During her time at the OMB, government watchers praised Rung for her efforts to transform federal procurement practices, particularly those surrounding category management.
Over the last year the OMB has rolled out a series of policies aimed at reducing duplication of contracts and leveraging the collective buying power of the federal government. The office has issued new memos requiring agencies to use government-wide contracts to buy laptops and desktops, software licenses and mobile devices and services.
Rung’s drive to improve IT procurement extended down to smaller-value purchases, too. She used her keynote speech at the 2016 Global Procurement Tech Summit to illustrate how good policy can deliver big results.
In one study Rung cited, the GSA was paying prices for 16GB flash drives (Imation) that ranged from $9.56 to $129.51. Individuals buying flash drives were only entering partial part numbers and were not directed to the best price. To fix the variance, the GSA has now standardized part numbers and guides those buying the SKU to a specific price. (In a coincidental nod to her future employer, Rung also noted that the lowest price paid for the flash drivers was still higher than the Amazon price.)
Stay tuned for further commentary and analysis around Amazon Business and its push into the public sector on Spend Matters PRO and Public Spend Forum.