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!

What's new in government procurement?

This week's blog post we want to focus on what is going on in the world of government procurement. Staying on top of recent developments can help when looking at what agencies your company wants to work with, what products the government is focusing on, and many more advantages.

So what's new?

Well, I am sure many of you have heard about the conflict between the Department of Defense and the GSA. A few articles have been written recently highlighting the issues between the two agencies as new developments when really there is nothing new. The DoD has their own methods of procurement and have not been big proponents of the GSA right out of the gate. If you're looking at dealing with either agency don't let this shy you away.

A few noteworthy things have been going on in the world of IT this week.
 GSA's CIO, Sonny Hashmi took to the internet with a question ans answer session. He touches base on cloud-based services, shift to modular contracts and a few other topics. Take a look at the session here: https://github.com/govfresh/gitchat/issues/3
The DoD is also expanding its use of IT Dashboard, the agency has reported more than $2.5 billion in ongoing IT projects that have been introduced since the last fiscal year. Take a look at the full article here: http://fcw.com/articles/2014/04/11/dod-it-dashboard.aspx

Are you in the telecommunications industry? You may be interested in the RFI that the GSA has released for Enterprise Infrastructure Solutions. This will replace the Networx vehicle. Comments are due by May 5th and the GSA plans to solicit bids in FY 2015.  Check out the full article here: http://fcw.com/articles/2014/04/14/ns2020-rfi.aspx

Good news for anyone in the construction industry was recently released. The Government announced new flexibility for federal construction standards. It allows for contractors to focus on the end product and not the method to getting there. Take a look at the full article for an example: http://www.fiercegovernment.com/story/new-flexibility-federal-construction-standards/2014-03-18

When people think of things the government buys they think military, but if you think about it the government is just like any other company. They purchase everyday items too. The latest strategic sourcing the GSA is exploring is furniture. The goal is be able to offer agencies better deals and easier access to furniture product and services.

These are just a few of the noteworthy stories our team has come across recently. If you find anything that is not listed here and believe people should be aware of feel free to send them our way. We appreciate all feedback.

-Cristi Kaib