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Executive Corner

Message from the PSC Director

 

We are excited to announce that we recently changed the name of our quarterly customer newsletter from Service Matters to Partners. Welcome to the Summer 2017 edition.

The name change reflects that we are focusing on solutions to solve some of your most pressing concerns and provide operational flexibility — as a strong partner and ally. I have challenged my team to foster a partnership with each of your agencies that is highly collaborative and increasingly responsive.

The purpose of our recent PSC Partners initiative is to conduct strategic customer engagements focusing on how PSC can transform and update key solutions to meet agency requirements in light of the Office of Management and Budget (OMB) memo M-17-22 directive to improve service quality and generate cost efficiencies. This is also in support of U.S. Department of Health and Human Services (HHS) Secretary Price’s ReImagine HHS initiative.

We understand that agencies may be facing significant challenges with Executive Order 137891 to reform and restructure government. PSC Partners is a first step to further leverage PSC’s capacity, build partnerships, and build solutions for agency’s most pressing needs. The initiative is about moving from services to solutions — building sustainable partnerships to enhance mission readiness.

HHS Secretary Price has further inspired all to ‘reimagine’ their agencies. PSC has taken an active role in the ReImagine HHS initiative. Myself and Bill McCabe, Director, Financial Management and Procurement Portfolio and the Chief Financial Officer, PSC, served on the management and stewardship team and we helped develop ideas to streamline and create efficiencies. The benefits are passed onto to you, our customer agencies, with faster delivery, higher quality, and lower costs.

We are proud to have kicked off the PSC Partners initiative to work together with you to better manage these challenges. We recently held an event at HHS with our partners to present some strong and viable solutions. We know that PSC can play a vital role in your success. I look forward to our partnership and achieving our goals. This issue offers just one example of how we are transforming government — taking a new approach to the acquisition of lab supplies with a new online model.

I wish you a successful fourth quarter, and please let us know how we can best serve you. I hope you enjoy your summer and thank you for allowing us to serve you.

Cordially,


Al Sample
Director, Program Support Center

 
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Feature

PSC Selected by HHS IDEA Lab
Ventures Board

 

Online Marketplace for Lab Supply Acquisitions using Amazon.com-type Model

PSC has been selected by the HHS IDEA Lab Ventures Board to develop and implement an innovative project to streamline the acquisition of lab supplies!

logo: H.H.S. Idea Lab

HHS Ventures Fund

The HHS Ventures Fund invests in and supports bold ideas to transform HHS operations. There were 39 applicants — a new record! This was a three-part competition, and the PSC project team made it to the final round with the top seven groups. PSC presented their innovative project to a panel of HHS judges in convincing fashion on February 17.

The Idea

PSC’s initiative, called Streamlining Acquisitions for Lab Supplies is about improving the business of lab supply chain management by using PSC procurement vehicles and leveraging automation. HHS currently spends about $290 million annually for laboratory supplies using a variety of methods that may be potentially expensive, inefficient, and duplicative. PSC’s proposed lab supplies acquisition method will provide for greater efficiencies, reduced costs, and eliminate duplicative processes.

“Congratulations for being selected for this prestigious award. This is a significant accomplishment for the Supply Chain Management services team which reflects very highly upon the preparation, thought leadership, and outstanding teamwork that went into achieving this award.”

― Al Sample, Director, PSC

PSC is developing an end-to-end process to acquire laboratory supplies by creating an online marketplace to be used by laboratories across HHS. By applying proven supply chain and category management methodologies along with state-of-the-art technology, HHS can reduce inefficiencies, improve consumer satisfaction, and improve business processes. This approach is scalable to other commodities purchased across HHS and the federal government. The same engine could later be used to order other supplies such as medical surgical supplies or pharmaceuticals.

The idea is to make buying lab supplies easier by providing a one-stop shop for purchasing laboratory supplies for HHS using an Amazon.com-type procurement and delivery model. It would utilize a proven, commercial off-the-shelf software package solution. The team has looked at approving a system and is exploring various options.

PSC would create a number of IDIQ (Indefinite Delivery, Indefinite Quantity) contracts with pre-negotiated best pricing and terms and conditions for lab supplies, and load that data in an Amazon.com infrastructure. HHS users would have access to the lowest possible pricing since all the demand would come through one place. The benefits would include lower costs, more availability, shorter lead and order cycle time, a simplified process, and aggregate orders. PSC can leverage its expertise in supply chain management, acquisitions management, as well as shared services with economies of scale for lab supplies.

“By bringing all the demand data together from the divergent sources, you can get a better picture of the demand and a better price negotiation,” said Mark Burchess, Deputy Director, Supply Chain Management Services. “It is the very definition of shared services. We will bring shared services expertise to lab supplies.”

The Team

PSC project team members include: Lori Frederick, Director, Supply Chain Management Services, PSC; Mark Burchess, Deputy Director, Supply Chain Management Services, PSC; Doris Gibson, Director, Office of Acquisition Program Support; Patrick Joy, Head of Contract Activity, PSC; and Jd Walter, Director of Customer Relationship Management, PSC. Project champions include Al Sample, Director, PSC; Bill McCabe, Chief Financial Officer, PSC; and Mike Saunders, Director, Real Estate and Logistics Portfolio, PSC.

For more information, visit the HHS IDEA Lab Ventures Fund website.

Learn more about PSC’s Medical Supply Fulfillment service and explore how PSC can support your mission needs by visiting the Medical Supply Fulfillment web page

 
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