# IG5307.104-93 AF Strategic Sourcing and Commodity Council Guide

Informational Guidance

IG5307.104-93
AF Strategic Sourcing and Commodity Council Guide

April 2010

TABLE OF CONTENTS

Overview 2

Definitions 3

Roles and Responsibilities 3

Process 4

Standup Phase 5
CMP Development Phase 8
CSS Development Phase 10
Execution Phase 14
Manage Performance Phase 15

Appendix: Strategic Sourcing Resources 17

Deliverable Examples 17
Charter 17
CMP 17
CSS 18

Strategic Sourcing References 19

# Overview

What is strategic sourcing?

● The Office of Management and Budget has defined strategic sourcing as, “The collaborative and structured process of critically analyzing an organization’s spending and using this information to make business decisions about acquiring commodities and services more effectively and efficiently.

Why is it important?

● In 2005 the Office of Management and Budget directed all federal departments and agencies to develop and implement a strategic sourcing program. The Air Force reports status every year in an annual report that gets consolidated at the DoD level and is then sent to OMB.
● Strategic sourcing helps alleviate some of the issues currently surrounding AF contracting.

○ Inconsistent use of skilled contracting resources
○ Strain on buying activities supporting contingency contracting
○ Redundant procurement of similar commodities (supplies and services)
○ Inability to leverage scale of the Air Force to drive efficiencies
○ Increase in contracting workload and complexity
○ Significant decrease in journeyman-level personnel and experience

● In 2009, OMB issued a memo directing agencies to “expand their use of enterprise-wise strategic acquisition initiatives that offer significant savings opportunities from both business process improvements and access to lower product and service costs which would reduce the total cost of ownership to the Air Force.”

What does strategic sourcing mean to the Air Force?

● The Air Force knows that strategic sourcing is a process and there are various possible outcomes and strategies that are determined as a part of that process. Figure 1 is a graphic of the Air Force strategic sourcing model. This model has also been adopted by OSD. Each strategic sourcing effort should follow this process, whether it is an AF-wide, commodity council, MAJCOM specific or other type of strategic sourcing effort.

What is the purpose of this IG?

● The purpose of this AF Strategic Sourcing and Commodity Council Guide is to document the processes required to develop and sustain strategic sourcing teams and commodity councils. The Guide provides information regarding commodity council/strategic sourcing team structure and governance, roles and responsibilities and a general process flow for team implementation and operations. The Guide is meant to provide a roadmap but each council may have unique aspects and each council may tailor this guide to meet their needs. The Guide includes a listing of the required information for several deliverables, as well as tool examples that a commodity council/strategic sourcing team may find useful.

What is a commodity council/strategic sourcing team?

● A commodity council/strategic sourcing team is a cross-functional group of individuals responsible for the development of AF or MAJCOM-wide sourcing strategy for a particular commodity (a defined category of supplies or services)
See https://cs.eis.af.mil/airforcecontracting/Strategic%20Sourcing/Communications%20and%20Briefings/

Figure 1: Air Force Strategic Sourcing Model

# Definitions

● Commodity Management Plan (“CMP”): The CMP is a high level strategy for an overarching commodity (good/service), e.g., information technology, which recommends the commodity objectives, spiral strategy, implementation schedule and resources. The CSOs approve the CMP.
● Commodity Sourcing Strategy (“CSS”): The CSS is a detailed sourcing strategy for a specific spiral (e.g., Desktops/Laptops) which recommends a policy, demand management, and/or an acquisition for the spiral. This document includes anticipated results, resources and an implementation schedule
● Commodity Strategy Official (“CSO”): The CSO is the individual responsible for approval and execution of a commodity council’s charter and sourcing strategy which includes the CMP and CSS. CSO additional responsibilities include directing the use of strategic agreements and ensuring adequate representation on the commodity council.

# Roles and Responsibilities

Overarching Commodity Councils

AFGLSC: Provides overarching oversight of sustainment commodity councils and reports metrics to SAF/AQC.
AFPEO/CM: Coordinates on charters, CMPs, CSSs and approves the acquisition plan if the acquisition falls within the PEO/CM portfolio (i.e., services acquisitions >$100M, to include any delegations, and acquisitions where a preponderance of the acquisition is services) (back to contact AFPEO/CM if applicable step)

Commodity Council Director: Serves as the program director for the commodity council. The commodity council director manages the core commodity council team, oversees the development of the CMP and CSS, ensures execution of the commodity strategy and reports compliance as required by the commodity strategy official (CSO).

CSO(s): Approves and assists in executing a commodity council’s charter, CMP and CSS. CSO additional responsibilities include directing the use of strategic agreements and ensuring adequate representation on the commodity council.

SAF/AQC: Develops and issues policy, metrics, and reporting guidance per the Office of the Secretary of Defense (OSD) and the Office of Management and Budget (OMB). SAF/AQC is the Air Force representative on the OSD Strategic Sourcing Directors Board (SSDB) and the Federal Strategic Sourcing Initiative (FSSI) working group at the federal level.

Small Business: Provides guidance to the Council on the Small Business procedures and recommended strategies regarding small business suppliers. Small Business also develops and coordinates on an effective and efficient use of socio-economic programs in the CMP and CSS.

Installation Focused Commodity Councils

IAT Governance Board - approves initial strategic sourcing initiative, resources the team and reviews charter
HAF Functional 2 Letter – Sponsor installation strategic sourcing initiative and assign co-CSO
ESG – Enterprise Sourcing Group develops AF-wide opportunity analyses and provides recommendations on standing up commodity councils. The ESG also provides some of the staffing for the AF-wide commodity councils

Operational MAJCOMs – Execute MAJCOM specific strategic sourcing initiatives, report metrics to SAF/AQC
Process

How do you accomplish strategic sourcing?
For the purposes of this document the examples given are for AF-wide commodity councils, but the same process applies to MAJCOM level strategic sourcing. The owners and/or approvers may be different. The strategic sourcing model shown above can be segmented into logical phases: 1) Standup Phase; 2) CMP Phase; 3) CSS Phase; 4) Execution Phase and 5) Manage Performance Phase.
Standup Phase

Figure 2: Standup Phase

● Identify AF-wide (or MAJCOM, etc) Strategic Sourcing Opportunity (Centralized group (ESG or MAJCOM equivalent) conducts this assessment)

○ Collect Air Force spend data from available sources:

n FPDS-NG
n GPC databases
n Suppliers
n CBIS
n MIPRS

○ Segment AF spend into logical buying groups based on % of total Air Force Spend (or by % of supplies and services spend). These groups may be driven by Federal Supply Classification (FSC) codes but groups should include all commodities that are related by type of user and/or type of buyer. Other options by which to segment spend may include by market structure (it may make sense to group vehicle maintenance with boat maintenance if the companies have both skill bases) or based on a linkage analysis (may be beneficial to group airfield grounds maintenance with airfield operations so there is not a situation where one contractor can fail due to another contractor’s poor performance). Also, consider qualitative factors that will influence the need for a commodity grouping (user group has expressed an interest; a large contract is expiring, etc.)
○ Document the following statistics for each commodity (supplies or services) group:

n % of total AF spend
n % of AF Goods & Services spend
n # of total contract
n # of purchasing offices
n # of contractors
n Top 5 suppliers and % of AF spend and/or AF Goods & Services spend
n Top 3 purchasing locations (Base and Office) and % of AF spend and/or AF Goods & Services spend

○ Evaluate selection criteria that reflect ease of implementation and expected benefit for each commodity group (see example: IAT Opportunity Assessment once you click into the file there are multiple tabs)

n Ease of spend analysis
n Ease of market analysis
n Level of skilled commodity experts
n Short and Long Term saving opportunities
n % Key supplier spend (Low <20%, Med 21 – 60%, High >60%)
n # of purchasing locations (Base and Office)
n Contracts vs. contractors (Low 1 – 1.5, Med 1.5 – 2, High >2)
n % AF Goods & Services Spend (Low <1%, Med 1 – 2%, High >2%)
n Short Term Win
n Emotional attachment

○ Document other relevant information for each commodity group, such as:

n Existing Centers of Excellence (CoEs)
n Expertise in the field
n Work already completed
n Regionalization opportunities
n Spiral opportunities
n Small business opportunities
n Political relationships
n MAJCOM spend
n Constraints and concerns

○ The relevant information should be captured and briefed to the official approving the strategy. This should include a high level summary and business case.

n Opportunity assessment process
n Current state of recommended opportunity
n Expected benefits/costs
n High level timeline for the effort
n Needed resources
n Constraints and concerns
n Total cost of ownership

● Approve the Strategic Sourcing Opportunity

○ The authorities for this step will vary but ultimately should include AQC (or designee) and the lead for the functional commodity. For example, the IT commodity council opportunity was approved by AQC and the CIO. Installation opportunities will be presented to the IAT governance structure where the Executive Committee will have the final approval. The governance structure consists of AQC and functional membership. MAJCOM strategic sourcing initiatives should follow the same pattern with the A7K and MAJCOM functional lead approving the initiative.
○ As part of the approval the authorities are also agreeing to provide the needed resources for the effort

● Prepare and Gain Approval of the Charter

○ Define the authority under which the council shall operate. This will aid in the establishment of goals and the scope in which the council operates. Recent industry examples reported that companies setting up commodity teams without the CEO’s participation and leadership achieved 50 percent less savings than when the CEO led the effort.
○ Define the primary goals and objectives of the council. Develop the charter document in accordance with the required/recommended information as detailed here.
○ Meet with the appropriate approval authorities for the specific commodity and obtain approvals and signatures.

● Assign Resources

○ Cross-functional representatives may be selected to ensure adequate representation from across the Air Force. The commodity council/strategic sourcing team should contain commodity expertise, as well as knowledge in procurement, technology, market analysis, project management, business processes, acquisition strategy, and analysis. An example is provided in Figure 3, but each team may be different.
○ The exact core team size and composition may vary according to the commodity and anticipated associated workload. The size, complexity and magnitude of the commodity dictate whether or not a particular council/team warrants full-time or part-time personnel and the number of extended members needed. The councils/teams also need administrative support for scheduling, documenting, and tracking sessions.
○ Core team members are expected to fill full-time positions throughout CC/SS team operations, while auxiliary team members provide expertise on an ad hoc basis, depending on the stage of the process or the nature of a particular commodity spiral group. Each Director needs to determine what roles are essential for the specific CC/SS team. In addition, some roles may be combined if a single individual possesses the adequate qualifications and the responsibilities can be met with that level of effort.
○ Overall, each commodity council/SS team member needs to have a basic understanding of the Air Force Contracting vision, possess basic knowledge of the strategic sourcing concept, be committed to the success of the Commodity Council and be available to fulfill the requirements of their position (whether full-time or part-time).
○ Identify MAJCOM Representatives:

n Select representatives to provide appropriate representation based on the goals for the council. The Director should determine how many Headquarters staff experts, operational experts, support personnel, and contingency experts are needed.
n Coordinate with MAJCOM, DRU, and FOA headquarters to adequately fill roles. Headquarters may select representatives or a Director may request an individual by name, when a person has the required expertise.
n Emphasize the time and effort required for council participation. These efforts require time and often there is a sense of urgency to complete the tasks at hand. An individual’s role on the council may be their primary job until the first strategy is approved.
n Identify auxiliary team members who serve on an ad-hoc (as needed) basis.

○ Review the SharePoint site for templates, best practices and lessons learned from various other strategic sourcing teams/commodity councils that have gone through the process. Once the team has been established conduct a kickoff meeting detailing roles and responsibilities, rationale, schedule and goals. Also, set up the team to take or participate in any needed training. There are CLC overviews of Strategic Sourcing CLC 108; Spend Analysis – CLC 110 and Market Research - CLC 004 as well as just-in-time training modules owned by the IAT PMO.

Figure 3: Commodity Council Organization

CMP Development Phase

Figure 4: CMP Development Phase

Current Strategy Review

● Define current strategy

○ Coordinate with the Deputy Assistant Secretary of the Air Force (Contracting) and IAT PMO. This helps to ensure that lessons learned and best practices from other councils are collectively shared across the enterprise. SAF/AQC also plays a large role in helping the council manage risks within their strategy without overlooking statutory regulations, designated policy, or socio-economic goals.
○ The Commodity Council can detail the current lifecycle of the commodity, including acquisition, utilizing text documents, flow charts, regulatory guidelines, and other documentation.
○ At a minimum, the Commodity Council should detail the acquisition process utilizing a flowchart with some additional textual description of each of the major activities in the process.
○ The documentation should clearly define the current process in terms of major activities which will allow the team to:

n Clearly define areas needing improvement
n Detail strategies addressing process improvement
n Provide a baseline template for future review

○ Identify current constraints or issues

Market Intelligence

● Conduct Market Intelligence

○ This should be a high level effort that follows similar steps to the market intelligence process in the CSS process
○ Develop an understanding of the complexity of the market and the competitive landscape
○ The purpose of this step is to identify how the overarching commodity is segmented in the market place, especially if a spiral approach is going to be taken. It will help determine the spirals on which the sourcing team/commodity council will focus and the priority of each.

Requirements Definition

● Define Commodity Past/Future Requirements

○ This should be a high level effort that follows similar steps to the requirements definition process in the CSS process
○ The purpose of this step is to understand past buying patterns and volume of the overarching commodity. The team should also engage in a dialogue to understand the potential future needs

● Develop CMP

○ The CMP document should be a consolidation of the team’s findings from each of the previous steps and present the recommended way forward for the team
○ The recommended components of a CMP can be found here

● Review CMP with Key Stakeholders (e.g., SCO, SB, etc.)

○ Ensure the team has reviewed the strategy and recommendations with key stakeholders, including but not limited to AFPEO/CM, Legal, Finance, and Small Business
○ Incorporate feedback into the CMP

● Chair and Approve CMP

○ Engage the CSOs and schedule a meeting with them to review the CMP
○ Obtain approval to move forward on the recommended course(s) of action

CSS Development Phase

Figure 5: CSS Development Phase

Current Strategy Review

● Profile Spiral

○ Develop communication and implementation plans

n Continue to refine the council Communication Plan, with the focus on the specific spiral. The Communication Plan identifies all relevant stakeholders, what communication messages apply to each stakeholder group, what communication methods may be used for each message to each group as well as a schedule for the messages to be distributed. In addition, a feedback mechanism may be established to collect and evaluate data from stakeholders.
n Coordinate with MAJCOMs, DRUs, and FOAs. The council needs enterprise buy-in at every step of the process. The level of buy-in increases council momentum while decreasing obstacles, thus making future steps in the process more efficient.
n Begin to document action items and schedule constraints that may affect the implementation of the future strategy. Examples include policies that need to be written or revised, processes that need to be reengineered, and system requirements that need to be defined. Working groups may need to be formed to address specific action items as warranted.

○ Conduct spend analysis

n Review spend analysis specific to the spiral. The spend analysis reflects how much money was spent, who spent the money, where the commodities are being used, the number of actions each base/installation made in conjunction with a commodity, and who the major suppliers are.
n Identify any potential subcategories within the spiral and determine which ones may be incorporated into the strategy.
n Determine the time span of pertinent historical information. The time frame determined by the council provides enough baseline data to develop and pursue council goals and objectives. Teams often use one year of data but may use more if there are known or discovered abnormalities that would impact understanding past requirements.
n Gather additional spend data as required. The data provides factual and relevant information as to the spiral’s historical information, commercial and governmental uses, acquisition processes, and other information about the commodity as deemed relevant. This can include, but is not limited to: CBIS; FPDS-NG; and Government Purchase Card (GPC) spend data. In addition, the team can examine commercial processes based on end-to-end procurement (order receipt to commodity delivery and ultimate payment). This data could also include government-buy cycles for the commodity, command practices, contingency processes, and operational commodity practices. Obtain forecast future spend data for the commodity through budgets and/or POMs.

○ Identify current initiatives / contracts

n Review other DoD and federal agency activities to see if the same type of effort has been performed elsewhere. This may result in some quick wins early in the process and eliminate duplication of efforts.

○ Identify current policy and statutory requirements

n Policy and statutory requirements should be considered early in the process in order to avoid unnecessary delays when developing a new strategy.

○ Detail current processes with users

n Processes to be detailed include: user/customer requirements, acquisition processes, supply steps, transportation functions, vendor functions, and contingency processes.
n Document current cost of the commodity from inception through disposal (life-cycle cost). Costs associated with the commodity may include:

○ Price of item
○ Air Force labor hours required from the original request through disposal
○ Internal maintenance and upkeep costs
○ Warranty costs
○ Normal transportation cost associated with the commodity
○ Disposal cost, including any special environmental handling and disposal costs

n Identify process elements that need improvement
n Identify current constraints and challenges associated with commodity, based on commercial demand and availability, changes to military and civilian manning, flexibility, field training requirements, technology demands, effects on readiness, regulatory and legal requirements, etc.
n Consider the effect on small business participation. The Council’s strategy should continue to meet small business goals. Engage the SAF/SB at initial stages. Support from that organization provides credibility for the Council’s proposed strategies. See FAR 6.2 for additional guidance.
n Begin to identify bundling and/or consolidation concerns, if applicable

○ Document current metrics being tracked

n If available, this data may provide insight into the current strategy and may be useful as justification when defining future strategies. If the MAJCOMs do not currently maintain metrics of the process, have them contact their operational squadrons to determine if metrics are available.

○ Hold review sessions with major users and suppliers to validate the commodity council/sourcing team’s assumptions
○ Benchmark existing strategies (How do various internal strategies compare?)

● Contact AFPEO/CM if applicable (see AFPEO/CM role)

○ Ensure early contact with AFPEO/CM if the commodity spiral will be within their purview (this includes AFPEO/CM programs that have been delegated)
○ Involve representatives at various status meetings to ensure continuing knowledge and participation

● Define Spiral 1 Current Strategy

○ Based on the data and discussions document the current strategy of acquiring, maintaining and disposing of the spiral 1 commodity.

Spiral Market Intelligence

● Conduct Spiral 1 Market Intelligence

○ Determine data sources and evaluate the current market climate and processes. Sources of data may include: commerce magazines, trade associations, libraries, government subject matter experts, and leaders in the commercial industry.
○ Document market trends, such as:

n Do price fluctuations occur periodically (i.e., each quarter or year)?
n Is the commodity readily available?
n Does the industrial sector forecast any shortages, which could produce price and delivery fluctuations?
n What is the current market share of the federal government and the Air Force?
n What is the normal reporting cycle for quarterly economic status of the leaders in the industry?
n Who are the current commercial market leaders for the commodity?
n What is the availability and number of small business vendors with government experience and commodity expertise?

○ Analyze market for emerging suppliers and commodities. Evaluate the market to determine what new suppliers and commodities are coming on the market in order to take advantage of potential benefits of new commodities and suppliers. Prepare for requirements that may rise from stakeholders in the future. Assess impacts of obsolete technology products, commodities, etc.
○ Request information from leading suppliers. Ask them how others are accomplishing the same goals. What are the trends in the industry? How does the AF compare as a customer?
○ Analyze supplier capacity and capabilities. Determine the volume of the commodity that can be delivered by individual suppliers. Review their manufacturing capabilities, performance capabilities, understand what they can do, etc. Use information from the supplier and from external sources.
○ Determine market availability of commodities. Research the availability of the commodity. Is it available commercially? Is it readily available? Is it sole sourced? Does it require exclusive manufacturing? Or, is it available off-the-shelf?
○ Stratify suppliers by socio-economic status. To ensure compliance with FAR requirements, break out the available suppliers by socio-economic indicators such as: small business, woman owned, minority owned, historically underutilized business zone, disabled veteran owned, large business, and so forth. Provide the types of suppliers available; the list may not include all suppliers across the U.S. but a representative sample.
○ Reach out to other industries, services, companies that may be similar to determine how they are accomplishing the same goal (e.g., a University for the refuse commodity, a casino or bank for intrusion detection systems, etc.)
○ Identify key industry cost drivers. Drivers calculated in the base cost of the item may include:

n Costs for the item or services. Do not break out each and every component of an item, but do list the cost for the main components.
n Labor costs are the main driver of cost in many segments of industry. The labor cost is the total labor cost included in one unit.
n Transportation costs aid the determination of shipping methods, storage costs, and/or expediting cost.
n Research and development costs for past and future efforts.
n IBIS World reports can help develop this type of information

○ Evaluate current strategy against best practices within the industry that could produce increased efficiency and/or effectiveness in the current market.

Requirements Definition

● Define Spiral 1 Requirements

○ Collect requirements from stakeholders. This information can be obtained from MAJCOMs, bases, and contingency units. A lesson learned is to include a “major” user representative on the commodity council. If one or more users participate in the forecasting process, accuracy increases.
○ Develop customer-approved demand forecast based on the requirements information. Often this will consist of a conversation with requirements owner determining if they anticipate the same volume or higher/lower? Double/half? 50% higher/lower? Sometimes requirement owners will have a separate system to track anticipated demand. Other times teams will need to rely on conversations. Teams should not focus on obtaining 100% accuracy.
○ Establish cost estimate for demand forecast. To estimate cost, multiply the current price by the estimated inflation rate, and then multiply that by the forecasted quantity required. The end result provides the estimated total cost. The estimate total cost provides important information for the development of strategic sourcing decisions. Consider quantity discounts as well as learning curves. These factors may have a significant impact on the average price over time.
○ Develop standards for the requirements to minimize costs and effort, if appropriate
○ Analyze projected funding against demand forecast. Determine the portion of the demand plan that can be satisfied within the funding constraints based on cost estimate and within any supplier capacity constraints.
○ Validate spend plan with stakeholders. Engage the stakeholders in discussions about requirements funding. Can command buys be consolidated once a quarter? Can buys be coordinated with other users to enable spend leveraging?

Sourcing Strategy Development

● Develop Spiral CSS

○ Sourcing Strategies have far reaching implications. They focus on more than just on acquisition cost. The team should identify all facets of the supply value chain and the touch points with the sourcing strategy
○ Ensure the team evaluates non-acquisition strategies as options. These may include demand management, standardization, policy, insourcing, etc.
○ Define leverage opportunities. Consider ways to lower costs, consolidation of purchasing office activities, and how the number of contracts may affect overall commodity costs
○ The recommended components of a CSS can be found here.
○ Brief customers on sourcing strategy recommendations and solution set

● Chair and Approve Spiral CSS

○ The CSOs will review and approve the CSS after meeting with the team to obtain an understanding of the recommendations and how they were identified and validated

Execution Phase

Figure 6: Execution Phase

Strategy Execution

● Acquisition Strategy Execution

○ Develop Spiral Acquisition Plan

n This step should follow the standard process, and include the necessary information, as detailed in the AFFARs

○ Chair ASP and Approve Acquisition Plan

n The approving authority for acquisition plans is detailed in the AFFARs 5307.104-91

○ Approve Solicitation

n The approving authority for solicitations will follow the direction of the AFFARs

○ Conduct Source Selection

n The source selection team will go through the standard source selection process

○ Make Source Selection Decision

n The approving authority for source selections will follow the direction of the AFFARs

○ Award Contract(s)

n The commodity council will award contracts after the source selection has been approved

● Non-Acquisition Strategy Execution

○ Implement Non-Acquisition Sourcing Strategy

n The commodity council team will begin activities and communications necessary to implement the non-acquisition strategies in conjunction with the acquisition strategies

● Draft any Necessary Policy

○ Formalize any policy recommendations and staff appropriately
○ Typically any mandatory policy letters (mandating contracts/sources of supply) are signed out by both CSOs, and AQC if not one of the CSOs

● Issue Policy

○ Ensure the policy is issued appropriately and widely communicated to obtain maximum benefits

Manage Performance Phase

Figure 7: Manage Performance Phase

Performance Management

● Manage Strategy Performance

○ Begin tracking the success of the strategy based on the metrics provided in the CSS
○ Address any variances from expectations to understand what is driving them. (e.g., Is the volume of orders significantly less than what you expected? Are people going outside the contract? Has there been a significant decrease in need for some reason?)

● Conduct Contract Admin

○ The contracting officer will conduct the appropriate contract administration activities

Process Summary

A detailed commodity council process map of is illustrated below and demonstrates how the steps identified above work in relation to each other.

Figure 8: Commodity Council Process

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# Appendix: Strategic Sourcing Resources

#

Deliverable Examples
Charter

The commodity council director shall prepare a commodity council charter which shall at a minimum:

1) Identify the proposed Commodity Strategy Officials (CSO),
2) Identify anticipated results of the council activities,
3) Identify the responsibilities of the primary organizations involved in the commodity council and
4) Identify the source of resources necessary to create and sustain the commodity council

a. PEO/CM shall coordinate on all charters involving acquisition of services to determine if the acquisition should be conducted within the PEO/CM portfolio.
b. SAF/AQC shall review and approve all AF-wide commodity council charters.

5) Other recommended information to be included:

a. Purpose
b. Definitions
c. Background
d. Anticipated Results
e. Specific Responsibilities for Members
f. Schedule/Timeline to develop CMP
g. References
h. Authority
i. Source of Resources
j. Terms of Understanding
k. Approvals/Signatures

Charter Approval

● Installation: HAF Functional Director and AQC (with Gov. Board approval)

○ If no HAF Functional Director AFMC/CC (with Gov. Board approval) and SAF/AQC

● Sustainment: AFGLSC and AFMC/CC (Delegable to AFMC/PK <possible to delegate further?>)

Return to Prepare Charter
CMP

A CMP recommends the commodity objectives, spiral strategy, implementation schedule and resources. It should contain the following, at a minimum.

● Commodity Profile

○ Description
○ Current State Summary ($, Funding, Actions, Sub-categories)
○ Market Assessment Summary

● Existing Governance Standards
● Governance and Stakeholder Integration
● Organizational Structure
● Barriers/Impediments (Risks and Mitigation)
● Commodity Strategic Objectives (Desired Outcomes)
● Spiral Strategy Overview
● Metrics
● Spiral Implementation Schedule

Return to Develop CMP
CSS

A CSS recommends a sourcing strategy (policy/demand management/acquisition) for the specific spiral with anticipated results, resources and an implementation schedule

● Spiral Profile

○ Description
○ Current Strategy Review Summary ($, Actions, Sub-categories, Interview results, Other similar contracts)
○ Market Research Summary (SB, Interview results)
○ Requirements Definition

● Key Findings/Areas for Improvement
● Recommended Strategy

○ Strategy overview (details)
○ Roles and Responsibilities of Implementation (Acq./Non-Acq)
○ Timeline (Acq./Non-Acq)

● Expected Results

○ How does this achieve the strategic objectives (as identified in CMP)
○ Define how strategy addresses areas for Improvement
○ What are the quantitative and qualitative benefits (compared to cost of implementation and current costs

● Risks and mitigation (barriers)
● Communication plan (summary)
● Metrics (How will you measure success?)

Return to Develop Spiral CSS

Strategic Sourcing References

● Link to the AF-wide Strategic Sourcing Community of Practice. It provides templates, examples and information regarding AF strategic sourcing - https://afkm.wpafb.af.mil/afstrategicsourcing and https://cs.eis.af.mil/airorcecontracting/Pages/StrategicSourcing.asp

● The FM Center of Expertise (CoE) provides expert, on-demand, specialized financial analysis for decision support to Air Force installations and Major Commands at no cost.- https://www.my.af.mil/gcss-af/USAF/ep/globalTab.do?channelPageId=s6925EC13498D0FB5E044080020E329A9

● Strategic and enterprise contract list provides information and POCs for commodities that have been strategically sourced or sourced at an enterprise level. Use of these resources should help eliminate redundant activities. - https://www.my.af.mil/gcss-af/USAF/AFP40/d/s6925EC1351670FB5E044080020E329A9/Files/Procure.Trans/contracts-by-service.xlsx

● Defense Procurement and Acquisition Policy, (DPAP) strategic sourcing website containing information about strategic sourcing at the DoD level - http://www.acq.osd.mil/dpap/ss/index.html

● Program Executive Office for Combat and Mission Support (PEO/CM) website containing references and templates -
https://www.my.af.mil/gcss-af/USAF/ep/globalTab.do?channelPageId=s6925EC133D040FB5E044080020E329A9

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Figure 9: Opportunity Assessment Tool