Appendix-B-Summary-of-Savings Reinventing-Federal-Procurement 2. Reinventing Federal Procurement These estimates assume: a. The General Service Administration's estimate that total annual procurement costs equal $200 billion (GSA Federal Procurement Report). b. Savings can be generated by a variety of reforms in procurement systems, including simplified acquisition thresholds, labor law reforms, IT procurement reforms, shifting from government specifications to commercial items, expanded use of purchase cards, and electronic commerce. c. Savings up to 12% of procurement spending may be achieved through these reforms (study by Defense Systems Management College). The NPR used 5% as a mid-range estimate. d. To avoid double-counting, savings associated with reductions in procurement personnel are excluded from this "reinventing procurement" savings estimate.