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Update on California's Strategic Sourcing Initiative

"We completed a strategic sourcing integration plan in January. That's the best way to transition from strategic sourcing as a project to strategic sourcing as another set of tools in the tool box for conducting procurements in general"

California's Strategic Sourcing Initiative (CSSI) is in the process of transitioning from a three-year contract with CGI-AMS that concludes in June of 2007, to building a stronger reliance on in-house procurement expertise.

"The share-in-savings model," said Terese Butler, CSSI project director, "depends on cost savings for remuneration to the vendor which doesn't occur until after the procurements have been awarded and purchasing begins on the contracts. With not much time left to bring in big procurements under the existing contract, there are no new procurements under way with CGI-AMS, although the door is open to opportunities."

Most IT procurements were finished up in late summer, she said, with many of the other non-IT procurements finishing up in late Fall. Currently, there is just one CSSI procurement still in process. As activity winds down, the vendor is still onsite helping state contract managers and offering support. "The intent has always been that CGI-AMS would be there full force up front during the first cycle of procurements," said Butler, "and there would be knowledge transfer during that time, so our staff could then conduct these procurements on their own.

"We completed a strategic sourcing integration plan in January," she said. "That's the best way to transition from strategic sourcing as a project to strategic sourcing as another set of tools in the tool box for conducting procurements in general." IT contracts in place have language to allow the state to refresh common configurations that were built into the procurements. With rapid technology changes, said Butler, the state had to find a way to have newer technologies available without going to new procurements.

The procurement division is doing those refreshes now. The IT perspective, she said, is that commodities should be as up-to-date as possible.

The division is looking forward to doing the sourcing events, Butler said, and now has a year to build a solid strategic sourcing base for the division. "There may be small portions of sourcing expertise that require short-term contracts," she said, but expects those will be minor in light of the training already done to augment staff expertise.
Wayne E. Hanson served as a writer and editor with e.Republic from 1989 to 2013, having worked for several business units including Government Technology magazine, the Center for Digital Government, Governing, and Digital Communities. Hanson was a juror from 1999 to 2004 with the Stockholm Challenge and Global Junior Challenge competitions in information technology and education.