FAIR in the News
FAIR and Censeo Consulting Group Release New Report: State of Competition Across Federal Government Supply Chain
Issues in Achieving Competition Goals Outlined and Recommendations Made to Increase Innovation within Federal Government
Washington, D.C., November 12, 2009 - The Federal Acquisition Innovation and Reform Institute (FAIR) (www.thefairinstitute.org) today released a report in partnership with Censeo Consulting Group, a leader in supply chain management and operations, recommending that the federal acquisition system adopt a more proactive, systematic and holistic approach to fostering competition.
The report, co-authored by FAIR and Censeo Consulting Group, titled “The State of Competition: Enhancing Competition and Increasing Innovation Across the Federal Government Supply Chain,” outlines why the current competitive environment does not allow the government to attract the most innovative and capable supplier or manage total lifecycle costs in an effective manner. It also outlines a series of recommendations for government to improve the “quality of competition” including:
- Develop a common set of definitions and metrics to measure levels of competition;
- Pursue strategies to attract new suppliers and reduce “barriers to entry” for the federal marketplace
- Strengthen capabilities in industry analysis and cost modeling
- Modify acquisition strategies to enhance “quality” of competition and ensure adequate controls in sole source scenarios
The report states that while there are many pockets of excellence across the government and the acquisition workforce continues to deliver value to taxpayers, there are a number of issues that prevent further progress. These issues, the report states, result in negative consequences for both government and industry including barriers to entry inhibiting many suppliers from competing.
“This report is significant because as part of the FAIR Institute, we believe there is room for improving the competitive environment that exists with the federal government. FAIR believes the current competitive environment neither leads to lowest total costs nor creates an environment to attract the most innovative and capable suppliers. We further contend that the primary issue related competition is not how many contracts or dollars are being competed. Rather, it is whether we have created a competitive marketplace that allows us to partner with the most capable and innovative suppliers while managing total costs,” said Raj Sharma, President and Board Co-Chair of the Institute, and President and CEO of Censeo Consulting Group.
“At a time when government is taking on many complex policy challenges, from health care reform to clean energy to green buildings, we need an acquisition system that facilitates relationships with the most innovative, capable and ultimately, best suppliers,” said Dr. Allan V. Burman, Co-chair of the FAIR Board and President of Jefferson Solutions. “This report cites issues and recommendations for improving the state of competition for federal acquisition.”
“Going forward, we must ask ourselves if we are creating a competitive marketplace for federal contracts that is a source innovation, one capable of attracting the most qualified, innovative and ultimately best suppliers for any given need AND ensuring lowest total lifecycle costs for purchased products and service, ensuring public dollars are spent effectively,” said David Litman, member of the FAIR board and Former Senior Procurement Executive for the U.S. Department of Transportation and Former Chair of the Federal Chief Acquisition Officers’ Council Human Capital Working Group.
To obtain this report, please register at www.thefairinstitute.org or contact us at contactus@thefairinstitute.org.
About FAIR
The FAIR Institute is a nonpartisan, nonprofit* organization being led by several leaders in acquisition and supply management. The Board of Directors consists of the leaders in acquisition and supply management from private industry, government and academia including Raj Sharma, President/CEO of Censeo Consulting Group, Dr. Allan V. Burman, Co-Chair of the FAIR Board, former Administrator of the Office of Federal Procurement Policy and President of Jefferson Solutions, David Nelson, former Senior Executive in Procurement with Honda of America and chair emeritus of the Institute of Supply Management, David Litman former Senior Procurement Executive for the U.S. Department of Transportation, and Joseph Sandor, Hoagland-Metzler Professor of Supply Chain Management at Michigan State University, one of the leading supply chain programs in the world. The Institute’s priorities include providing input and recommendations to decision makers within OMB, Congress and federal agencies on comprehensive acquisition and workforce reform as well as implementation of the stimulus funding.
*501 (c) (3) Tax Exempt Status Pending.
About Censeo Consulting Group, Inc.
Censeo Consulting Group, a leader in supply chain, operations and procurement, works with management teams to drive practical innovation and efficiency across supply chains worldwide—resulting in implement able, lasting solutions. Censeo delivers exceptional ROI through comprehensive and collaborative approaches that help our clients achieve real change and real results.
Censeo Consulting Group has recently been named one of The Wall Street Journal’s “2009 Top Small Workplaces” and is also a winner of Consulting magazine’s “2009 Best Small Firms to Work For” award. For more information, visit Censeo at www.censeoconsulting.com.
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