Expansion of Strategic Sourcing Worries Professional Services Contractors
January 31, 2013
Professional services contractors are worried that a new government purchasing strategy will emphasize low cost at the expense of quality.
The General Services Administration aims to conduct $9 billion worth of federal purchases this year using strategic sourcing contracts, in which multiple agencies use a single contract to buy products and services in order to obtain deeper bulk discounts.
Joseph Jordan, federal procurement policy administrator at the Office of Management and Budget, said at a Thursday event that he sees strategic sourcing eventually encompassing about $150 billion of the $513 billion the government spends on goods and services each year.