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GSA Schedule contract

Selling to the Government in a digital world

The COVID-19 pandemic brought about a major change in the way consumers make purchases. What was once a predominately in-person purchasing scenario has moved online. The Business to Government (B2G) segment has not moved as easily into the digital marketplace.

From a social media standpoint, government marketing spending is likely one of the lowest in the world. Therefore, it is not feasible for social media platforms to segment their offerings to accommodate B2G audience segmentation. LinkedIn however, is the one social media platform that does offer government-industry segmentation and programs, making it a powerful tool for those in the federal government acquisition arena.

Small and medium-sized contractors, however, should consider getting in on the ground floor of other social media outlets, before the digital environment begins to get crowded. When setting up your digital marketing plan, keep in mind the most used digital tools are search engine marketing, social media marketing, and programmatic marketing.

A procurement team or official might search for organization information such as past performance and proof of competence when evaluating bidders for requests for proposal compliance. As a contractor, this makes a contractor’s digital strategy extremely important.

The most effective B2G digital strategies include:

  • Consistent brand message across all social media platforms
  • Content compatible with SEO strategy.
  • Expanded or enhanced digital footprint/leverage content to stay “on brand.”
  • Powerful organic content – the original content copy and image posted on social media platforms.
  • Visibility – growth of followers by paid media within specific audiences.

Contractors’ digital content can bring their message to key influencers and decision-makers. Visibility during the RPF or RFQ phase is crucial, especially for small businesses and those on the ground floor looking to start or further their work with government agencies.

Digital strategy questions? Give us a call.

Cloud services bought “by the drink”

In May, Jeff Koses, GSA’s senior procurement executive, released a second draft policy allowing agencies to buy cloud services “by the drink”, via schedule contract. Koses includes in the draft, how the policy will work, the Price Reduction Clause, and how the funding works.

Koses said, “GSA anticipates purchasing cloud computing on a consumption basis will increase competition, as the move towards commercial practices will encourage new entrants to the FSS program. With a contract structure more closely tied to real-time demand, this approach also provides greater flexibility to take advantage of technology improvements and better support cybersecurity. Tying cloud computing procurements to commercial market prices will also provide cost transparency without burdening contractors with additional transactional price reporting requirements. Plus, this approach promotes cost efficiency as it reduces the need to lock into long term contracts in markets where falling prices are reasonably anticipated.”

Nick West, GSA’s deputy director of the Office of Policy, Integrity and Workforce said, “We hope the policy lays out a clear way to execute the pay by the drink execution strategy using the schedules. We hope to have some sort of language in the schedule contracts by the fall or maybe earlier, hopefully. We really are looking to build something that the IOs will use and [industry] will offer solutions for them to use.”

Keith Nakasone, who recently served as deputy assistant commissioner for acquisition in GSA’s Office of IT Category, feels the pay-by-the-drink model to the schedules allows the Federal Acquisition Service to develop special item number 518210C (previously 132-40).

The second and first draft memos differ slightly. The second draft memo directs agencies to buy off cloud service provider pricelists receiving discounts as prices change. This allows agencies to incrementally fund task orders for cloud services as opposed to putting all of the money on a specific contract at once. Although this doesn’t allow for heavy discounts upfront, it does mirror how private industry acquires cloud services.

The new policy will allow GSA to make it easier for agencies to buy cloud services. A long-time goal of the agency.  Have cloud services you want to get on schedule?  Give us a call.

 

 

GSA contracting just got a whole lot easier – well, maybe

This past May, the General Services (GSA) issued Refresh #6 to the Multiple Award Schedule (MAS) Program solicitation. The goal of Refresh #6 is to modernize and simplify the way contractors do business with the Federal Government. (SecurityInfowatch.com June 14, 2021)

Some of the most significant changes are:

  • Establishment of a Verified Products Portal (VPP). The VPP aims to keep vendors from unauthorized selling of products to the government, under the Federal Supply Schedule.  In most cases, manufacturers who did provide a Letter of Supply (LOS) to resellers will use the VPP as an alternative authorization. (The VPP will not replace GSA Advantage or the SIP program, see VPP@gsa.gov)
  • COVID-19 Waiver which creates a temporary waiver for some requirements of the GSA submission application for vendors who offer products or services supporting the government’s response to COVID-19. The two-year corporate experience requirement is waived.
  • MAS contract cancellation deferrals. This is extremely helpful to contractors who haven’t met the minimum sales requirements per the I-FSS-639 Contract Sales Criteria.
  • Consolidation of the GSA Schedules Program. GSA, by consolidating, hopes to eliminate duplication and standardize processes while at the same time updating terms and conditions. The original 25 GSA Schedules became one, with 12 large categories and 83 subcategories. Contractors may now add new SINs beyond their legacy SINs previously awarded. Current GSA contractors had their awarded SINs mapped to new SINs that correspond to NAICS Codes. (All integrators and contractors are advised to speak with their Contracting Officer to figure out the next steps for SINs from a different large category.)
  • Order Level Materials (OLM) SIN added across all categories. OLMs are acquired at the order level giving the contracting officer (OCO) responsibility for making a fair and reasonable price determination. OLMs are authorized for use in direct support of another awarded SIN, they are not Open Market Items.
  • Phase III of the MAS Consolidation requiring all current contractors to consolidate their contracts under one unique identifier  – Dunn & Bradstreet number. This gives contractors a single point of contact within GSA. GSA provides Modification Guidance with each refresh. Contractors should register for the GSA FAS ID and keep passwords up to date.
  • Unique Entity Identifier (UEI) will be issued to contractors in early 2022. This identifier will eliminate the usage of the Dunn & Bradstreet number as a contractor’s government identity. For contractors registered in SAM.gov, the process will take place automatically. (ibid)

GSA is making some major changes over the next 12 months to their GSA Schedules Program. However, the Cybersecurity Maturity Model Certification (CMMC) is not expected to be included in the MAS solicitation. Agency-specific requirements for technical certification will be outlined in each specific request for quotation. (ibid)

Are any or all of the above changes a little confusing? Give us a call.

 

 

 

Small business and startups are front and center

Boosting small businesses and software for DoD are priorities for the Biden administration and their nomination for the Defense Department’s technology efforts.  Heidi Shyu, nominated for undersecretary of defense,  recently introduced her priorities to modernize the military during her confirmation hearing. She stated, “In order to rapidly transition the latest software, we need to have an open architecture that isolates the software from the hardware then allows rapid user testing.” (Defense Systems May 26, 2021)

Shyu told the senate that DOD should be investing so that development and procurement are 70% of their costs for a new weapons system. Shyu proposed buying more emerging tech such as artificial intelligence, synthetic biology and hypersonics rather than investing in older systems. Shyu said, “today, sustainment makes up 70% of total weapon system cost, with development and procurement making up 30%.” (ibid)

During Shyu’s hearing, she mentioned small businesses, especially startups working on new technologies, repeatedly. Shyu feels they are necessary for the Defense Department’s success. Shyu did not lose sight of the inability of the acquisition system to shift prototypes into programs. Shyu plans to institute a clear transition path. (ibid)

Shyu said, “part of the reason there is a valley of death for technology is that a lot of the technology programs are being developed by small companies, and unless you had the foresight two years ago to understand that the technology is going to be mature within two years time, by the time you get the money to buy that technology it’s two years old now.” (ibid)

Shyu said, “I saw a six-person company that’s developed any type of fuel as input and the output is a DC-plug. Those are the types of creative, innovative companies we need to nurture. And they are struggling to figure out who to talk to in the DOD.” (ibid)

Are you an innovator or a small business looking to work with the Department of Defense? Give us a call.

 

 

 

 

Procurement vs. Purchase

If we can be certain of one thing, it is that the pandemic wreaked havoc on many businesses and their business models. We tend to see government procurement growth during times of crisis. Once the media blasted us with headlines of medical device and personal protective equipment shortages, procurement officials found themselves in a precarious position. How to get supplies and get them fast.

Rick Grimm, chief executive officer of NIGP, the Institute of Public Procurement worries that procurements may slow down, now that shortages are being met. According to a brief from NIGP, “when skilled, professional procurement is buried within an organization and disconnected from the decision-making process, key business opportunities efficiencies and full value for money may be lost.” (Route Fifty May 7, 2021)

We witness the word “purchasing”  being substituted for the more comprehensive term “procurement.” Many believe this field should cover a broad scope of activities such as developing suppliers, strategizing to enhance supplier relationships, actively managing acquisitions and supervising contracts, and evaluating supplier performance. (ibid)

State governments made great inroads with suppliers during the pandemic. Many incentivized the private sector. In Maryland, where weapons systems are made for the Department of Defense, producers pivoted to make ventilators. Hand sanitizers were also retooled and made locally. (ibid)

The challenge to governments was understanding how vendors could best be utilized. There was no way to work with overseas manufacturers. Local product lines were evaluated and swiftly shifted. (ibid)

What does the future hold? Hopefully, the speed of procurement progress over the past year will not be in vain. Grim stated, “leveraging the value of procurement in achieving the government’s mission, helps you achieve those goals and becomes procurement’s mission as well. The big challenge, still, is getting the bosses of procurement to understand its strategic value.”(ibid)

Ready to get into federal procurement? Give us a call.