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

Previous PageTable Of ContentsAFFARSNext Page

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

Appendix: Strategic Sourcing Resources 17

Strategic Sourcing References 19

Overview

What is strategic sourcing?

Why is it important?

What does strategic sourcing mean to the Air Force?

What is the purpose of this IG?

What is a commodity council/strategic sourcing team?

Figure 1: Air Force Strategic Sourcing Model

Graphic

Definitions

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

Graphic

Figure 3: Commodity Council Organization

Graphic

CMP Development Phase

Figure 4: CMP Development Phase

Graphic

Current Strategy Review

Market Intelligence

Requirements Definition

CSS Development Phase

Figure 5: CSS Development Phase

Graphic

Current Strategy Review

Spiral Market Intelligence

Requirements Definition

Sourcing Strategy Development

Execution Phase

Figure 6: Execution Phase

Graphic

Strategy Execution


Manage Performance Phase

Figure 7: Manage Performance Phase

Graphic

Performance Management

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

Appendix: Strategic Sourcing Resources

Deliverable Examples

Charter

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

Charter Approval

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.

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

Return to Develop Spiral CSS

Strategic Sourcing References

Go Back

Figure 9: Opportunity Assessment Tool

Graphic

Previous PageTop Of PageTable Of ContentsAFFARSNext Page