Reform 6.1: Strategic Sourcing

Using “Strategic Sourcing” to Reduce Contracts for Consulting Services and Supplies.

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The City of San Diego has a myriad of contracts with outside firms for consulting services, support services, and the provision of commodities and goods. After excluding contracts for public works projects, the City spends more than $132 million annually on contracts for supplies and services. “Strategic Sourcing” refers to efforts on the part of organizations to examine the entirety of their contracts and procurements of services, goods and commodities to carefully evaluate ways to reduce expenses through reduced purchases, securing of bulk rates and discounts, and enhance the depth and management of relationships with suppliers. The Roadmap to Recovery believes an immediate easy target of a 5% reduction in Contracts and Supplies can and should be implemented for the General Fund. Our plan excludes Police and Fire from these cuts, bringing the General Fund total 5% reduction from $5.3 million down to a proposed reduction of $4.2 million1.

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