When nGAP introduced the Open Acquisition System (OAS) nearly a decade ago, reduced transaction time and related savings were our major marketing focus. This focus was the result of what customers were telling us at that time. Since then, government acquisition priorities have changed and nGAP’s focus has changed as well.
Transaction time savings are still important. However, the government’s attention has shifted to address the economics of ever tightening budgets, and the savings needed to help manage them.
Complicating the problem has been an ongoing litany of articles on government fraud, waste, and abuse (FWA). The focus on this waste has opened many doors for nGAP to speak with elected officials, agencies, and their staffs about how nGAP can help.
One of the things we have seen is that while the public’s attention is often caught by embarrassing billion dollar acquisition failures such as the Air Force’s attempt to integrate 237 ERP systems, a significant and more easily addressed opportunity is the 5-10% waste and abuse that exists across the entire government. With discretionary budgets totaling nearly $1 trillion, the 5-10% loss factor produces a $50-100 billion opportunity that can be successfully addressed by more effective management of daily spending.
As we introduced OAS to several government agencies, we also had the opportunity to demonstrate and discuss major pricing savings that can be achieved using OAS features:
- Volume discount/BPA opportunities
- Reporting analytics that find the most price competitive vendors in general
- Reverse auction functionality to lower commodity prices
- RFQ functionality to fine tune pricing on multiple award contracts
One simple thing we have learned with OAS is that the more it is used, transaction and feature-wise, the more the savings.
When you add things up, saving 3-5% in FWA and 2-3% in pricing benefits can make a big difference for any organization. Remember, the 5-8% is available every year, and it’s captured locally in real time as transactions are processed, so losses are cut and savings accrue immediately. The government acquisition landscape is constantly changing to reflect current political and economic initiatives. The current focus on waste and tight budgets is one that should continue for some time to come.
If you would like to know more about OAS can save your organization money, please contact: