The Procurement Spotlight Series highlights achievements by government procurement professionals who utilize technology to provide innovative strategies and solutions for their purchasing teams.
Darryl Mitchell, former Director of Strategic Sourcing for Georgia Department of Administrative Services, spent 11 years in the state’s central purchasing activity developing and implementing a data-driven process for contract pricing. This solution propelled the agency’s climb to the #1 spot in state procurement in 2016.
Mitchell brings a background in mathematics, statistics and accounting, which he drew from to establish an approach that targets data leveraging and analysis to improve transparency and results during the sourcing and contract management process.
“The program incorporates leading-edge pricing techniques proven in the field to boost purchasing staff dexterity while streamlining operations.”
The core of Mitchell’s program was leading a team of data analysts (“mathletes”) responsible for 4 key initiatives impacting pricing for an indirect spend portfolio exceeding $1.5 billion:
- Spend, demand, and trend analysis
- Cost/price strategy development and execution
- Cost/price response evaluation and negotiation
- Cost/price management post-award
Sourcing everything from office supplies to temporary staffing services, the mathletes used this unique approach to amass $74.5 million in price cuts annually across 52 initiatives. These improvements involved $621 million in annual spend, highlighted by significant price drops in these key categories:
- Printers and multi-functional devices (MFD) – 34%
- Office supplies – 33%
- Printing services – 21%
- Maintenance, repair, and operations (MRO) – 18%
In a push to add speed and meet the demands of the process, Mitchell and his team adopted several online procurement tools, including GovSpend, to help analyze massive quantities of purchasing data down to line item detail.
GovSpend is an online database of government purchase orders that aggregates historical data from over 24,000 agencies across the United States. Buyers use the platform to obtain clearer visibility into the government market, and make smarter purchasing decisions, through detailed price checking, vendor verification, sole sourcing, and other comprehensive solutions.
Since leaving his role at Georgia Department of Administration, Mitchell has adopted his proven data-driven approach into a full training program applicable for all government agencies (federal, state, local) and even private companies involved in competitive sourcing activities.
“The program is specifically designed for competitive sourcing situations – it is strategic, streamlined, methodical, logical, and transparent.”
The goal of the program is to empower buyers by filling the knowledge gap of quantitative cost and pricing analysis in pubic purchasing, giving them the ability to maximize their processes while maintaining a high level of quality in products and services procured.
Focusing on getting the best price in competitive procurement environments, Mitchell’s program extensively covers the 4 areas stated above, blending proven strategies from his accounting and mathematics background. Principles taught include data mining, normalization, classification and categorization, in addition to cost accounting, price structures, and more.
Prior to his service in local and state procurement, Mitchell spent 20 years in Auditing, Acquisition, and Logistics Planning for the United States Air Force.
Learn more about Darryl’s data-driven government procurement program by contacting ACQ360 LLC at firstname.lastname@example.org or (757) 593- 5207.
GovSpend is an online database of government purchase orders from federal, state and local agencies. Government municipalities are provided access to the system to identify local vendors, evaluate pricing for best available rate, confirm vendor performance, validate sole source and find piggyback opportunities. In addition, this solution includes GovQuote, the first web-based digital platform to seamlessly connect government agencies and private companies on the largest and fastest request for quote (RFQ) marketplace. Agencies can request quotes in under 60 seconds, stay 100% compliant, and keep all their vendor quotes centralized.