Expiring Contracts give GSA a Chance for Change

Making government purchasing more streamlined and consolidated has been the mission of the GSA for the last couple years, especially since the new GSA Administrator Denise Turner Roth was sworn in. With so many professional services contracts expiring in fiscal year 2016 and even more coming up for expiration in fiscal year 2017, the opportunity is ripe to implement changes and get agencies working together and consolidate purchasing. The consolidation of multiple GSA contracts into the new PSS (Professional Services Schedule) was a starting off point.

Fewer contracting vehicles would mean a simpler way to purchase professional services that agencies need. The goal is to not increase the number of indefinite delivery indefinite quantity (IDIQ) contracts but to better utilize the ones that exist. Whether that means expanding GSA Schedules or OASIS, there are already vehicles out there for the services that the government purchases. There seems to be no need to increase the burden on the government by creating more and more IDIQs when existing contracts can be utilized and any new ones that would be created would exist within current frameworks.

Only 20 percent of government professional services spending is currently running through GSA with the rest going through the open market. Despite the governments wishes, open market competition is continually increasing, 10% between 2011 and 2014 (according to Bloomberg Government) creating the need for more contracting officers and more management, further bloating the government and its buying power.

Theoretically, this move will also increase competition. According to Bloomberg Government, about 80% of federal government spending on general professional services went to just 140 companies. Although there is a chance that those business then subcontracted to others, that is a very small number of companies gather a bulk of the work and money.

Utilizing the current vendor base (all vendors on the GSA have gone through a stringent approval process) and potentially making it easier for start ups to join the GSA can make this particular effort just what the government needs to stop creating new IDIQs and make sure they are utilizing government purchasing power in the best way!

GSA: Doubling Market Share by 2017?

With high hopes, new interactive purchasing tools, and a new digital system of contracting offerings the GSA plans to more than double its market share of government spending. Commissioner Tom Sharpe feels it is time for the GSA to really show what it is capable of and how it can help other government agencies.

“I would argue the Federal Acquisition Service at GSA should be a centralized buyer — and we are going to make that case and we are going to fight for that,” Sharpe said to the Federal Times. He also stated that the agency plans to boost its market share from 14 to 33 percent by the end of FY2016.

Sharpe claims that the GSA is able to give customers data on what they are spending on goods and services. With this data the GSA is able to see if there is a way to save any money by using different contracts or implementing internal reforms.

By the end of 2015 the GSA will make the website interactive and will provide the tools agencies need to enter into contracts, giving them the opportunity to choose the services they want. These areas will include professional services, human resources, transportation services, and IT hardware and software.

The GSA is also making its new contracts more flexible to avoid wasting money on contract duplicates. An example of this new model is the recently released OASIS contract.

Sharpe realizes that this is a huge challenge is aware that mistakes are possible but what is important is that they learn from those mistakes and reach the end goal.