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Federal Contracting

Will Ascend make it easier to buy cloud services?

GSA recently released a draft statement of work as part of their latest effort to give agencies an easier way to buy cloud services. They are calling it Ascend.

At a recent ACT-IAC sponsored conference, Sonny Hashmi, the commissioner of the Federal Acquisition Service within GSA, said “I don’t want to make the presumption that we’ve figured it out. The process to get to an endpoint on Ascend is going to require a lot of dialogue, and I don’t want us to move forward without it. It goes back to how we were talking about user-centric design. There’s got to be a user need, and in this case, it’s got to be an agency need that Ascend will address. That will dictate what the vehicle looks like, how it’s going to be designed because, without it, it is not going to be successful.”

“At this point, we’re being very deliberate about making sure that there is an actual need on the other side of this. Adoption is going to happen not just because it’s going to be a forcing function, but because there’s actually a need that we’re solving. If we’re not, if it turns out that we’re behind and agencies don’t have a need, then I would rather actually not do this. While we’re excited about this program, ultimately, its job is to solve a problem and help agencies to deliver on their mission. If there’s a better way or different way to solve the problems that we are facing, we’re happy to change tactics on it.”

The draft statement of work for Ascend creates three separate buckets of vendors to deliver infrastructure – platform-as-a-service, software-as-a-service, and cloud professional services.

The draft solicitation states, “the Ascend BPA is part of GSA’s cloud marketplace vision of empowering agencies to develop and implement enterprise-level cloud acquisition strategies through a modernized and simplified approach to meet their IT and cybersecurity requirements. The BPA will emphasize cloud smart/security smart objectives and establish minimum baseline requirements for the acquisition, business operations reporting, and technology capabilities provided by commercial cloud service providers (CSPs) and cloud-focused labor service providers that are not currently accessible under other GSA Multiple Award Schedule (MAS) or governmentwide acquisition contracts (GWACs). The Ascend BPA will focus on enabling support for both vertical (e.g., IaaS, PaaS, SaaS) and horizontal capabilities across the ecosystem and will provide more effective system integration and managed support services for the delivery of flexible, diverse, and secure cloud solutions.”

Hashmi said, “we’re hoping this will be one mechanism or the primary and most usable mechanism for agencies to think about when they’re thinking about modernizing their digital stacks.” Hashmi feels Ascend will allow agencies to buy “by the drink”. This gives GSA the ability to on-ramp new cloud service providers as they become available. It also gives contract holders the opportunity to bring innovation to the federal sector as required and needed.

Hashimi feels this gives agencies greater flexibility. Hashmi said, “the other thing for me is creating a marketplace that is competitive. It can’t just be a small number of highly capable cloud companies. If you don’t create continuous opportunities for new companies to join the marketplace, then we have failed because this market is changing very rapidly.” From past experience, GSA found agencies didn’t want to just contract for cloud services, but a full range of support from the cloud itself along with integration services and ongoing support.

The first versions of Ascend came under scrutiny by industry associations. However, Hashmi said these concerns and other questions concerning the BPA are exactly why GSA put out a draft statement of work. The draft statement of work allows for feedback from agencies, associations, and anyone critical to Ascend’s success.

Are you interested in Ascend and what your company can offer on this procurement vehicle? Give us a call.

So You Want To Be A Federal Government Contractor

A recent American Express OPEN survey showed that 57 percent of businesses noted a significant increase in revenue when engaged in government contracting. In fact, those businesses saw their revenue grow at a rate of 61percent. Our focus will be on the largest source of doing business with the government, federal government contracting. (The National Law Review May 9, 2022)

Each year the federal government contract spending is in the billions of dollars. The United States government is the single largest procurer of goods and services in the world. Vendors sell anything from paper clips to fighter jets for the Department of Defense. In order to take advantage of this business, at any level, vendors must complete several required steps. (ibid)

Completion of Regulatory Basics

Businesses wishing to work with the federal government must complete specific regulatory requirements. All potential contractors are required to obtain a Unique Entity Identifier (UEI). Your business is assigned a UEI when you register on SAM.gov. Click here to learn more about obtaining a UEI. (ibid)

For a contract to be awarded by the federal government, approval must be obtained by a Contracting Officer (CO). COs only approve responsible contractors. The government will not enter into a contract with a vendor who:

  • owes back taxes
  • has a current or pending legal judgment with the government
  • does not have a checking account
  • is on the government’s excluded parties list
  • has not completed the basic regulatory requirement for doing business with the government

Before moving on, potential contractors should verify all required registrations are completed and a UEI is assigned. (ibid)

Locating Opportunities

Looking for opportunities within the federal government is similar to private industry. One must determine which agency has a need for a particular good or service.

There are many sources to help locate opportunities suited to a specific business. The main portals for entry into the federal government contracting are:

General Services Administration (GSA) Schedule

This is the most common form of a federal government contract. GSA is the “acquisition arm” of the federal government. Vendors who wish to be included on the primary contract vehicle, a GSA Schedule, can find additional information here. (ibid)

To be eligible for a GSA Schedule contract, a potential GSA vendor must show proof of at least two years of measurable past performance and provide two years of financial statements. References from the Federal arena may be used in lieu of experience. (ibid)

FedBizOpps

Federal Business Opportunities (FedBizOpps) contains government contracting opportunities with values over $25,000. (ibid)

GWACs

This is a government-wide acquisition contract (GWAC) in which multiple government agencies align their needs and purchase a contract for goods or services. Government-wide acquisition contracts (GWACs) allow for economies of scale, which usually reduce per-unit costs.

Vendors may also act as a subcontractor to prime contractors. There are several sites to research for subcontracting opportunities. GSA and the Small Business Administration (SBA) both maintain subcontracting databases. Additionally, the SAM website, as well as the Federal Procurement Data System (FPDS), contain sources of information including trade and business publications.

There are two types of government contract offers – bids and proposals. Bids are made in sealed bidding purchases, proposals generally involve contract awards following a negotiation process. The three offer types are:

  • Request for Quotation (RFQ): Used for proposed contracts with a value of less than $150,000.
  • Request for Proposal (RFP): Used for acquisitions with higher values than an RFQ.
  • Invitation for Bid (IFB): Similar to an RFP, with values over $100,000. Contractors submit a sealed bid for government procurement. Generally, negotiation follows. (ibid)

It is extremely important that all information provided in an offer be factually sound and contain all information necessary for a CO to make an evaluation. Vendors should note that responses to technical specifications will become part of the contract, so it is wise not to overpromise. (ibid)

Once all requirements are satisfied the offer is ready for submission. Note, that the lowest-priced offer does not necessarily ensure a win. More often than not, experience and service excellence are deemed more important. (ibid)

The evaluation of offers begins when the government agency receives es the bids. Patience is key as acceptance of bids can take up to several months. The key is knowing and staying up-to-date with your Contracting Officer. (ibid)

Have questions about contracting with the federal government? Give us a call.

GSA has an equity plan

For the first time in its history, GSA has an equity action plan. Their goal is to increase investments in small disadvantaged businesses (SDB)s. This while the Biden Administration addresses systemic issues, negatively affecting underserved communities. (Federal Computer Week April 14, 2022)

Last week, GSA announced its plan to administer $75 billion in annual contracts. GSA plans to focus on three particular areas: federal procurement, federal buildings, and federal technology design and delivery. (ibid)

The GSA plan identified five barriers impacting SDBs from achieving equitable outcomes in the federal marketplace:

  • Lack of centralized portal
  • Inability to access potential awards
  • Lack of knowledge of federal procurement requirements
  • Inability to navigate and or comply with federal procurement requirements. (ibid)

GSA is looking for new ways for SDBs to find places on existing governmentwide acquisition contracts while creating a supplier diversity plan along with a “robust post-award engagement strategy” to make sure SDBs are successful. GSA is simplifying the process for new candidates, educating and creating new pathways into the federal procurement arena. (ibid)

According to Robin Carnahan, GSA Administrator, “this plan lays out how GSA intends to integrate diversity, equity, inclusion, and accessibility as a priority in everything we do, from delivering projects to designing websites. For government to work, it needs to work for everyone. That’s why we are focused on improving how we at GSA, and our federal partners, can improve how we deliver services to all of America’s communities.” (ibid)

In support of the Biden Administration’s goal to increase federal contract spending on SDBs, GSA plans to increase federal contract spending by 50% over the coming five years. The Small Business Administration is investing in technology to improve program applications. The goal is to increase access to capital for minority-owned businesses. In addition, the White House plans to invest $31 billion in various forms of assistance for socially and economically disadvantaged businesses. (ibid)

Are you an SDB or minority-owned business looking to work with the Federal Government? Give us a call.

The SBA should focus on small businesses, not fraudulent businesses

Last week the small business community urged lawmakers to shrink administrative burdens complicating entry into the Small. Business Administration’s (SBA’s) 8(a) program.

This is timely as the Biden Administration has set a goal to bolster the share of federal contracts awarded to small disadvantaged businesses from 5% to 15% by 2025. A former SBA official suggests the SBA focus on expanding entry to the program for disadvantaged businesses and not spend time penalizing those who fraudulently attempt to gain entry. This will go a long way to help achieve the goals as set by the administration.

Jackie Robinson-Burnette, CEO of Senior Executive Strategic Solutions and a former SBA senior program executive said SBA should, “shift their focus to include every firm that is eligible'” for the 8(a) program. She mentioned that she served at the SBA, the SBA received over 2,000 applications a year and accepted only 300 participants. The Government Accountability Office believes steps were taken to address fraudulent applications to the 8(a) program. Unfortunately, there remains no official verification procedure. The Government Accountability Office did not take steps to improve oversight of the program, according to report filings.

Robinson-Burnette said, “right now, the focus is making sure they mitigate the risk of firms getting into the program that shouldn’t be in the program – focusing on the fraud – when really that’s 1% or 2% of firms that apply. The other 90-plus percent of firms are struggling to get in … because the SBA is focused on the wrong thing.”

In addition to misplaced focus, Rep. Kweisi Mfune (D-MD) said business owners have reported concerns with the length of the program and that it takes most firms multiple years to receive their first awards. Mfune said, “this hinders the development of program participants and raises the question of whether enterprises are ready for graduation when they exit the program.”

Darryl Hairston, the SBA’s former associate administrator of business development, said he submitted a proposal to redesign the 8(a) program a few years ago. Hairston took into account the complexities small businesses encounter in navigating the federal marketplace during their initial years in operation.

Hairston said, “one of the things that we talked about was that most firms coming into the program, who are truly eligible for the program, had little experience in the federal marketplace. The timeframe is highly dependent upon how successful you are coming into the program and how well you take off with the benefits that are available to you.”

Robinson-Burnette feels adding priority access for SDB mentors will increase successful outcomes. This will occur by shifting some of the SBA’s dependence from their assigned business opportunity and creating additional inroads to work opportunities. Mfume is considering meeting with the SBA administrator to figure out “what can be done in the time we have.”

Are you a small disadvantaged business or a business looking to work with one on an upcoming contract? Give us a call.

The push to buy “Made in America” just got bigger

Last week President Biden announced actions to amplify his “made in America” pledge for federal procurements. These actions came in the form of a pending final rule that builds on the Biden administration’s “Made in America” efforts, announced via executive order in January of 2021. (Federal Computer Week March 8, 2022)

To qualify as “Made in America” for federal procurement, at least 55% of the value of the component parts of a product must be made in the US. The final rule will increase the threshold to 60% in 2022, 65% in 2024, and 75% in 2029, and close any current regulation loopholes. Additionally, it will create more opportunities for small and medium-sized and disadvantaged businesses. (ibid)

The final rule also institutes a foundation for the government “to apply enhanced price preferences to select critical products and components identified in a subsequent rulemaking,” according to a fact-sheet from the White House. “These preferences, once in place, will support the development and expansion of domestic supply chains. They provide a source of stable demand for domestically-produced critical products.” (ibid)

To smooth the transition and assist industry in their preparation for the new domestic content threshold, the final rule will take effect on October 25. This allows time to train the acquisition workforce on the new concepts of the final rule. (ibid)

Currently, there is no ability to verify claims made by contractors regarding the percentage of domestically made content in their products. The Administration plans to institute a reporting requirement validating the percentage of domestically made content in products. Biden pledged this during his announcement, last year. (ibid)

During President Biden’s State of the Union address, he said, “we’ll buy American to make sure everything from the deck of an aircraft carrier to the steel on highway guardrails is made in America from beginning to end.” According to Lonnie Stephenson, international president of the International Brotherhood of Electrical Workers, the Biden administration’s Made in America efforts “support good-paying, union jobs across the country.”

A new Made in America office is being created within the Office of the Management and Budget. Celeste Drake, director of the Made in America Office, recently said, “our strategy is working; businesses are investing in American manufacturing at historic rates.”

Questions about the “Made in America” rule and your current government contract or an upcoming proposal? Give us a call.