The US Army has entered a ten-year renewable partnership with Sourcewell, a Minnesota-based service cooperative, to enhance the efficiency and cost-effectiveness of garrison operations nationwide.
The IGSA with Sourcewell was signed during a ceremony held at the Pentagon auditorium in Arlington, Virginia, US.
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Addressing the event, US Army Installations, Energy and Environment assistant secretary Rachel Jacobson highlighted that this partnership with Sourcewell is the largest agreement ever initiated by the US Army.
The strategic alliance is set to enhance the procurement process for base supplies across multiple army installations.
The US Army anticipates that this IGSA with Sourcewell could yield annual savings of 15–50% on various services, supplies and equipment.
The IGSA will further provide an efficient and flexible alternative to each garrison for replacing the existing contract options.
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By GlobalDataAccording to Sourcewell CEO Chad Coauette, the cooperative has been preparing to scale up its processes to meet the Army’s procurement needs and its mission is in line with the US Army’s objectives, as both seek to enhance government efficiency.
Garrison planners are particularly poised to benefit from the new procurement options available through Sourcewell, which promises more direct dealings with suppliers and more competitive rates.
Although it may take up to a year to quantify the exact savings, the Army is optimistic about the substantial financial benefits the partnership will deliver.
The partnership also serves the broader national interest by enabling commands to procure the most efficient products available.
US Army Community Partnerships manager David Leinberger said: “On behalf of the Army, I just want to say that we recognise the commitment Sourcewell is bringing, not just to the Army but after this we have a business meeting with our other service partners, and we are looking forward to working in a joint environment across all the services to make sure not just the Army gets the benefit of what we are doing here, but all services.”
