US Department of Health & Human Sciences: Strategic Sourcing Program

It collaborated with Accenture to learn how DHHS could improve efficiency and reduce costs, which led to DHHS saving nearly $20 million.

"With Accenture's help, the Department of Health and Human Services has consolidated and leveraged its considerable buying power—bringing us closer to our vision of operating as 'One Department' and saving millions of dollars in the process."
—Marc Weisman, director, Office of Acquisition Management and Policy, United States Department of Health and Human Sciences

Each DHHS agency used to operate fairly independently, buying what it needed to equip its own operations and staff. However, as regulations changed and scrutiny tightened, it became more apparent that the department's significant purchasing power was under-utilized and under-leveraged.

Department leaders thus set out to improve efficiency and reduce costs by leveraging category spend and standardizing processes across the department's operating and staff agencies. Accenture was engaged to help make it all happen.

Accenture supported DHHS' negotiations of contracts with chosen pool of vendors. Additionally, Accenture helped streamline the organization's diverse buying practices for each purchase category.

Accenture researched the potential value of implementing a strategic sourcing program across all agencies within DHHS. For each in-scope purchase category, the advice was to collect purchase data, assess pool of vendors and identify optimal vendor and product choices. Accenture supported DHHS' negotiations of contracts with chosen pool of vendors. We helped streamline the organization's diverse buying practices for each purchase category, thus creating a single easy-to-use process. We assisted with conversion of paper-based procedures to a web-based, order-placement process. And we trained agency employees to use the established contracts and new procurement process.

Accenture identified 20 percent annual spending reduction opportunities across six categories—a savings of nearly $20 million.

Subsequent analysis across all DHHS categories showed opportunities to reduce spending by an additional $50 million. New opportunities were disclosed for savings in procurement of services, (e.g., event management and temporary staffing).

Accenture identified more savings from streamlined procurement process, standardized procedures and better supplier management. We implemented strategic sourcing methodology that allows DHHS to plan for small business involvement and to target specific commodities for small business awards. With Accenture's help, DHHS received a citation from the Government Accountability Office for best practices in procurement.