ART - Internal Team Gets It Done in Texas - Strategic Sourcing and Vehicle Fleets 2010

The document discusses the strategic sourcing of fleet vehicles by the state of Texas. The state aimed to save money and improve efficiency in the procurement process. They focused on factors such as fuel efficiency and total cost of ownership (TCO) rather than just the purchase price of the vehicles. This led to a larger portion of the state's vehicle business going to manufacturers like Honda and Toyota, who had higher sticker prices but were more cost-effective in the long run. The state also provided historic volumes for each class of vehicle in the Request for Proposal (RFP) to get the most competitive pricing from suppliers. They held a preproposal conference and incorporated suggestions from vendors into the RFP. After receiving responses, they held a round of Best and Final Offers (BAFOs) to further negotiate prices. The strategic sourcing of fleet vehicles saved the state $5.7 million and was well-received by the user community and vehicle dealers. The document emphasizes the importance of standardization, volume aggregation, and TCO factoring in achieving savings without sacrificing quality.