Last November, the Office of Management and Budget (OMB) designated the US Government Rental Car Program, managed by the Defense Travel Management Office (DTMO), as a "Best in Class" sourcing solution (BIC). The program provides special rental benefits and reduced rates to federal employees traveling on official business. It is designed to meet the needs of the federal traveler, and provide quality rentals through rental car companies at over 10,000 rental locations worldwide. This designation recognizes the program as an effective and efficient government-wide sourcing solution that should be used by all federal agencies.
A BIC designation is a way to distinguish those sourcing solutions that meet certain performance criteria outlined by OMB under its effort to improve the way the government acquires goods and services. Category Management, as it is known, is a sourcing approach to buy services smarter, more strategically, and as a single enterprise, resulting in increased effectiveness, eliminated redundancies, and reduced costs. To determine the "categories," OMB identified ten main areas of federal spend, with Travel and Lodging as one. Where possible, BIC will be designated in each category. The value of BIC designations is sharing best practices, leveraging lessons learned and expertise, and providing efficient acquisition management solutions.
To be designated as BIC, the sourcing solution must meet five key criteria that include using rigorous requirements definitions and planning processes, appropriate pricing strategies, data-driven demand management strategies, category and performance management practices, and passing an independent validation and review by the category team.
DTMO administers the program through an agreement with participating rental companies. Since implementing the current US Government Rental Gar Agreement, DTMO has worked to enhance management practices for the US Government Rental Car Program through:
* Transactional data reporting--DTMO actively uses performance metrics, collects and analyzes data, and monitors performance to enable true data-driven sourcing decisions. DTMO continues to work with the rental car vendors to refine data reporting to support the BIC requirement to delineate total spend by federal agencies.
* Stakeholder integration--DTMO hosts annual meetings with federal agency stakeholders and rental car vendors in an effort to continually improve the program. DTMO conducts program reviews...