Page 24 - CARAHSOFT, March/April 2020

Artificial Intelligence
Executive Viewpoint
A Conversation with
KEN THOMSON
KEN THOMSON
BuySmarter Solution Architect, Department of Health and Human Services
A BuySmarter leader discusses how HHS is using artificial intelligence as part of a data-driven initiative to leverage the department’s collective purchasing power
How is HHS using artificial intelli- gence to improve acquisition through its BuySmarter initiative?
The ReImagine HHS transformation effort launched the BuySmarter initiative with the mission to deliver a holistic capability that enables the U.S. Department of Health and Human Services to leverage its tremendous buying power as a singular buying entity. BuySmarter is based in an enterprisewide category management concept, which follows the group purchasing organization model used in the health care industry to bring the collective buying power of health care providers to deliver cost savings and optimal terms and conditions.
Given the size and complexity of
the federal procurement process, the BuySmarter team will “AI-enable” the process of bringing agencies together to acquire goods and services as one.
HHS has over 40 different contracting shops across the 20-plus operating and staff divisions, each buying similar and frequently the same goods and services at disparate prices. Due to siloed purchasing, HHS agencies have minimal buying power, and vendors thus have the advantage in contract negotiations. In other words, the vendors have an advantage as smart sellers.
To shift this power equation in favor
of the government, HHS is using AI to centralize its contract information into a single data layer, converting contract and attachment data into metadata (plain text), structuring it by category and sub-categories, and building a universal taxonomy for how to understand the information in a common way. The AI identifies where we are buying
“like-to-like” goods and services across our divisions utilizing data algorithms derived from the variables developed by HHS
contracting and mission subject-matter experts (SMEs).
The algorithms list every variable that could drive pricing (e.g., a registered nurse working in New York vs. Iowa). Our Category Collaboratives — the groups of SMEs and contracting professionals in charge of a category — will have the full suite of information on every vendor’s pricing, delivery, logistics, quality, support and more for a group purchase of a product or service. The new AI tool will empower HHS divisions with new levels of negotiating power.
What new developments are in the works for BuySmarter?
HHS is in the final phase of developing the AI capability described above, known as the Full Contract Scan (FCS) Tool, for the medical category. It has already ingested
1.37 million documents comprising 4.6 billion words with the taxonomy built from the primary category (product, equipment and service) down to the sixth sub-category level.
Using natural language processing, the team developed an inference protocol that allows the AI tool to “read” in a human way and make logical inferences when matching words and phrases. For example, when searching for “neonatal nurse,” the AI tool makes the logical leap that “NICU” belongs alongside “neonatal” in other search results.
The user interface will be simple and familiar, with similarities to Microsoft Excel. Our initial human-centered design sessions received positive feedback, despite demonstrating just four screens while behind the scenes the tool is grinding through 1.37 million documents in mere seconds.
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