This is the third in a series of posts regarding the General Services Administration’s (“GSA”) consolidation of its federal supply schedules into one schedule contract. Our prior posts addressed GSA’s consolidation process in general and its use of Category Management in constructing the consolidated schedule. Here, we answer common industry questions regarding what is and is not changing as a result of schedule consolidation. Continue reading “GSA’s Big Changes in 2020, Part 3: With GSA’s Schedule Consolidation, What Is Changing and What Is Not”
This is the second in a series of blogs regarding the General Services Administration’s (“GSA”) Multiple Award Schedule consolidation. Previously, we addressed GSA’s three phases of consolidation. In this post, we focus on certain fundamental, structural changes to the consolidated schedule made during Phase I.
Category Management Comes to the GSA Federal Supply Schedule Program
Generally speaking, GSA’s restructuring can be labeled Category Management. Over the last year, the GSA Category Management Leadership Council and the Office of Management and Budget developed a government-wide category structure to support category management implementation across the federal government.
For years, there has been an increase in Special Item Numbers (“SINs”) under the 24 schedules. Schedules and SINs often overlapped. GSA preferred the overlap as opposed to having gaps in product and services offerings. The overlap, however, led to agency and Federal Supply Schedule (“FSS”) contract-holder confusion. And, as a result, contractors made sure to have their products and services listed under all potentially applicable schedules and SINs. This caused increased administrative work for all involved and less efficient agency purchasing as contracting officers sought to make sure contracting opportunities captured all potential vendors. Continue reading “GSA’s Big Changes in 2020, Part 2: Category Management and the New Consolidated Schedule”
2020 may prove to be one of the most active years for federal contractors holding General Services Administration (“GSA”) Federal Supply Schedule (“FSS”) contracts and certain federal contractor registration requirements managed by GSA. This post is the first of a series on GSA’s changes and addresses GSA’s most publicized action—the consolidation of its federal supply schedules into one schedule.
As promised, in October 2019, GSA released a solicitation that consolidated the solicitations for its 24 federal supply schedules into one solicitation to obtain an FSS contract. GSA’s consolidation involves three Phases. Continue reading “GSA’s Big Changes in 2020, Part 1: Federal Supply Schedules Consolidation”
A very Happy New Year to our GovCon Navigator readers! Further expanding recent supply chain restrictions across federal procurement, the Department of Defense (“DoD”) issued an interim rule prohibiting DoD from procuring equipment or services from certain Chinese entities (and possibly Russian) if used to carry out DoD nuclear deterrence or homeland defense missions. The rule builds on the Section 889 supply chain restrictions we previously covered in a prior blog post.
What should contractors do now given the interim rule is already in effect? Contractors should first evaluate their existing contract portfolios for covered missions and take immediate steps to eliminate all covered products from their supply chain (and find alternate sources of supply). If the rule might impact contract performance, you should be prepared to address this with the appropriate counterparty. And given the requirement for compliance certifications that mirror Section 889, contractors should also harmonize monitoring and compliance with their existing supply chain compliance programs. Among other things, this should address the requirement to obtain compliance certifications from downstream subcontractors and suppliers.
On August 15, 2019, the Defense Health Agency (“DHA”) and Defense Logistics Agency (“DLA”) agreed upon a joint approach to healthcare logistics. Under the Memorandum of Agreement (“MOA”), DLA will be responsible for materiel acquisitions, while DHA will take the lead on medical services acquisitions. The MOA clarifies the agencies’ complementary roles and responsibilities and avoids duplication of effort. The MOA covers all aspects of medical logistics support provided by DLA to DHA, and DHA’s consideration for that support in performance areas including pharmaceuticals, medical-surgical supplies, healthcare technology equipment, cataloging, and Class VIII surge and sustainment materiel required by the services to meet the demands of the national military support strategy.
The uninformed might question the need for DHA and DLA to formally enter into a MOA. After all, DHA and DLA are both under the Department of Defense (‘DoD”) umbrella. Why is an agreement required to coordinate the two agencies’ efforts? Why wasn’t such coordination and avoidance of duplication of effort simply ordered by DoD senior command? Good questions perhaps, but the MOA was necessary to ensure the agencies stay in their respective lanes. Continue reading “Defense Health Agency and Defense Logistics Agency Memorandum of Agreement: A Good First Step, but What about Coordination with the Department of Veterans Affairs?”
The effort to create an “Amazon-like” market for Government purchasing has taken another step forward. After completing its market consultation phase, the General Services Administration (“GSA”) has now put forth a proposal for an e-commerce test portal, through which federal agencies will be able to purchase commercial products from a select group of vendors that will set up new online marketplaces specifically for federal purchasing. (See Phase II Report here.)
To simplify regulatory requirements, all purchases on the test portal must be within the micro-purchase threshold—currently $10,000 for most types of purchases. To expand the breadth of its trial run, GSA has asked Congress to temporarily raise the micro-purchase threshold to $25,000 “for a limited period of five years,” only with respect to purchases “through GSA-approved commercial e-commerce portals.”
The scope of the trial program also will depend on which (and how many) vendors receive the “initial proof of concept contracts” to sell products through portals during the trial run. To avoid being locked in to a single supplier, GSA has said it needs “at least two [vendors] or we won’t award.” Will Amazon itself be a vendor? Right now, GSA says it is unclear “if Amazon will compete” for a spot in the pilot program.
Contractors with an interest in the direction of this effort should continue to express their views. Feedback from the pilot program will guide GSA’s next steps as it decides how to move forward with the commercial e-commerce purchasing concept.
If you’re like me, it’s the time of year when you clean out your garage and closets and do all those outside projects you delayed until the weather warmed up. If you are a government contractor, you should consider this to be the season to do some spring cleaning in terms of your government contract compliance programs and procedures. Not to be an alarmist, but there are numerous areas you can review now and, if you should find some compliance deficiencies, you still have ample time to get your house in order before an agency audit or the deadline for submission of certain government reports.
Set forth below is a list of areas you may want to clean up: Continue reading “Spring Cleaning for Government Contractors? Think Compliance.”