Refurbishing Fraud

Yeow! GSA will be removing refurbished technology from the Schedules as part of the upcoming consolidation. We can thank cybercriminals for this lovely change.

Individuals not associated with the government have been placing IT orders. They trick small businesses into sending used hardware to empty warehouses, where they remove the equipment and sell it on the black market. Meanwhile, they never pay the original bill.

Additionally, some of the equipment has been discovered as counterfeit — which of course doesn’t meet government standards — as refurbished. This leaves the purchasing agencies open to risk. (FEDSCOOP, August 21, 2019)

According to Lawrence Hale, a director within the GSA Federal Acquisition Service, fraudsters phish small businesses, and GSA cannot guarantee the origin of refurbished products. “It’s a supply chain attack.” The only way to stop it is to shut the SIN down. (ibid)

As GSA consolidates 24 of its Multiple Award Schedules into one on October 1, 2019, a request for information is looking for industry feedback on supply and service categories and SINs that the forthcoming solicitation will be split into. (ibid)

Do you resell refurbished technology equipment to the government? Are you wondering how to provide feedback on the removal of SIN 132-9, allowing for the purchase of refurbished technology?  Give us a call.

TDR Pilot Still Flying

GSA is extending the Transactional Data Reporting (TDR) pilot program for an additional year, giving everyone ample time to work on the pilot while preparing for the upcoming Schedule consolidation.  The TDR pilot program collects pricing data, including cost to the government for services and products sold under GSA contracts. Ultimately, TDR will replace GSA’s Commercial Sales Practices. (Federal Computer Week, August 19, 2019)

TDR was implemented as a noncompulsory, three-year pilot that included eight schedules and their associated SINs. GSA created TDR to reduce bureaucratic burden and increase transparency by requiring monthly reporting of transactional sales data from government-wide contracts, including Multiple Award Schedules contracts. Ultimately, TDR promotes smarter purchasing by federal agencies by allowing expedited and more comprehensive data to assure best value. (ibid)

The GSA Office of Inspector General (OIG) issued a report last summer pointing out that the TDR pilot will not produce a quantifiable measurement. According to the OIG, data is not available for use and there are no performance targets. The IG asked GSA to set performance targets for each metric used and to verify the data is available and valid. (ibid) GSA and the FAS Commissioner Alan Thomas stated that the pilot was just getting ramped up and that some tweaks might be necessary based on the OIG report. However, the extension to the TDR pilot will allow more time for additional data gathering. According to Roger Waldron, president for the Coalition for Government Procurement, the extra time will give the pilot stability while allowing the price reductions clause to be removed. (ibid)

GSA will review the pilot at the end of fiscal year 2020 and at that time determine whether to cancel or expand the program to all GSA Schedule SINs. (ibid)

Still wondering how you can take part in the TDR pilot or how GSAs multiple schedule consolidation might work in your favor? Give us a call.

 

FAR Changes

With the end of the Fiscal Year looming, the push is on to exhaust agency budgets. In an effort to make acquisitions move through the process more quickly and smoothly, DOD, GSA, and NASA have issued an amendment to the Federal Acquisition Regulation (FAR). The amendment fine-tunes the  FAR and eliminates a step in the acquisition process. (Fedscoop, July 15, 2019)

Per the FAR, agencies were required to justify the best procurement approach when using GSA’s IT Schedule 70, Governmentwide Acquisition Contracts, or assisted acquisition solutions. As of June 5, the new FAR amendment allows agencies to skip that step. Agencies are now able to quickly find GSA IT category contracts and acquisition solutions. (ibid)

According to Bill Zielinski, assistant commissioner of GSA’s Federal Acquisition services office, agencies “can now identify and quickly use GSA IT Category contracts and acquisition solutions, especially as they embark on their end-of-year IT spending and acquisition efforts.” Zielinski feels the new change to the FAR reduces the administrative burden for agencies procuring through GSA’s IT Schedule 70 or through GWACs such as 8(a) STARS 2 and Alliant 2, as well as through assisted acquisition programs. (Federal Computer Week, July 15, 2019)

Curious about the new FAR language and how it affects your GSA schedule? Give us a call and we can review it with you.

 

 

COMET Commeth!

The General Services Administration (GSA) has released the second and much sought after piece of the IT services procurement known as COMET. The solicitation aims to create a multiple-award blanket purchase agreement (BPA) on top of IT schedule 70.

GSA plans to make between 10 and 12 awards with a minimum of 25 percent set aside for small businesses. The BPA will require a host of IT services, including operations and maintenance, cloud and the continued development, and support of the acquisition systems portal beta.SAM.gov. GSA’s goal is a three-step evaluation approach, including an in-person technical challenge.

In April, GSA issued the RFP for the first and substantially smaller piece of COMET focused on architecture, engineering, and advisory support. (FedBizOpps)

Have questions about COMET and how your company fits in? Give us a call at 301-913-5000.

Price Inconsistencies on Schedule 70? Nah…

GSA’s IG audit of GSA schedules in 2016 found large price discrepancies between identical items. For instance, the cost of one of Sharp’s 70-inch LED Smart TVs showed prices ranging from $1,597 to $3,000. The audit also turned up prices much lower on commercial products. In addition, from August 2014 to July 2015, most IT schedule purchases were for top-selling items priced higher than the lowest IT schedule price, completely defeating the purpose of the Schedules program. (Nextgov, May 21, 2019)

Recommendations to correct the disparities include:

  • Verify prices for identical IT schedule items by price analysis
  • Improve price protection for IT schedule reseller contracts by setting controls
  • Ensure contracting officers receive accurate and complete information around manufacturers’ commercial sales practices (ibid)

Per the review by the IG, the Federal Acquisition Service has taken “appropriate corrective actions” to address these price inconsistencies.

Questions about IT Schedule or other GSA Schedule pricing? Give us a call at 301-913-5000.