The BUYSMARTER philosophy is grounded in a collaborative approach to generate “like-to-like” requirements while ensuring unique mission needs are met. BUYSMARTER’s inclusive process leverages the collective purchasing power of HHS to negotiate, drive better pricing, and achieve better terms and conditions. HHS is evolving as a creator of sustainable competitive advantage by streamlining procurement functions and developing quality enterprise contracts.
An AI proof of concept was conducted and 18 months of HHS-wide spend data was analyzed resulting in never- before visibility into HHS-wide goods and services spending. The HHS contract data results from the AI proof of concept showed highest/lowest price paid and the price difference for each good/service. An initial business case analysis was developed to focus on understanding current purchasing fragmentation and potential inefficiencies of the current acquisition function.
Figure 1: Contract Data (FY 2016-2017)
Figure 2: Proof-Of-Concept HHS Contract Data Results for 18 Months (FY 2016-2017)
| Goods/Services | High | Low | % Difference |
|---|---|---|---|
| Nitrile Gloves | $1,398,092.17 | $940,221.00 | 33% |
| VMware vSphere | $1,028.00 | $571.00 | 80% |
| Case Copy Paper | $59.41 | $27.00 | 102% |
| Registered Nurse Services | $96.20 | $42.00 | 129% |
| Automated External Defibrillator | $2,627.00 | $946.00 | 178% |
| Adobe Connect (500 Seats) | $18,149.00 | $4,309.00 | 322% |
The BUYSMARTER philosophy and principles resulted in two major accomplishments for HHS:
- Showed that HHS had over 200 contracts with VMware, with significant price variations. Through direct vendor discussions, VMware consolidated the multiple contracts into a single contract which will enable HHS to realize significant cost avoidance over five years. On February 6, 2020, HHS Secretary Alex Azar mentioned the accomplishment during his State of the Department address.
- Transformed HHS decentralized implementation approach of Enterprise Infrastructure Solutions, the new General Services Administration (GSA) telecommunications contract vehicle for the federal government, to a centralized approach from 11 Fair Opportunities to a single Fair Opportunity for all of HHS that was awarded in August of 2020, yielding a significant cost avoidance for the Department.
