Skip to content Skip to left sidebar Skip to right sidebar Skip to footer

Selling to the government

Phase 2: Resistance is Futile

Although we covered this last month, it’s worth another review  as GSA moves to phase two of the MAS consolidation.

As you know, GSA is merging the Multiple Award Schedule (MAS) program contracts from 24 different schedules into one. Notices of changes to terms and conditions for current contract holders under the MAS program should be received by contract holders in the coming months.

The consolidated schedule makes it simpler for the government to make purchases and will roll out in three parts:

  1. Creation of a new contract vehicle for all future acquisitions
  2. Bring current contract holders onto the new consolidated schedule
  3. Consolidate those businesses that have multiple contracts across many schedules(Federal Times January 31, 2020)

Terms and conditions are being standardized and all current contract holders and contractors, placed on the consolidated schedule, must respond to them by July 31, 2020. (ibid)

Questions about the consolidation and how you and your contracts are affected? Give us a call.

Make a pitch, win a prize

In 2018, the Army acquisition office set up the Expeditionary Technology Search or xTechSearch. The Army has continued to use these pitch days to find small and nontraditional businesses with useful technologies. (Federal News Network, January 16, 2020)

In a pitch search, businesses propose their new technologies and ideas to the government in phases. Phase One is a white paper. Generally, 50 companies make it through the white paper phase and onto phase two. Companies chosen to move onto phase two receive a $5,000 prize which may be used to help defer the cost of engaging with government. The second phase is a 15-minute in-person pitch to a panel. Up to 24 companies can move from phase two to phase three, with the highest-ranking company receiving a $10,000 prize. Phase three participants are invited to a conference and provided exhibit space and asked to provide a proof-of-concept demonstration. Up to 12 participants move forward, with the highest-ranking business plan and proof-of-concept demonstration plan to receive a prize of $120,000. The technology solution and transition plans are presented during phase four, the final phase. Currently, xTechSearch 4.0 is in its second phase.

The grand prize winner will be announced in October at the Association of the United States Army annual meeting in Washington, DC. The grand prize winner receives a prize of $250,000, similar to the size of a Small Business Innovation Research grant.

Want to learn more about pitch days? Give us a call.

FAR 51 Deviation Authority is expired!

Here’s what you need to know.  Contracting officers were permitted to give contractors access to the Federal Supply Schedule (FSS) and GSA Global Supply Programs if appropriate, for the fulfillment of their agency requirements. They used the FAR 51 Deviation Authority vehicle for this purpose. On 23 October, the FAR 51 Deviation expired. It will no longer be used on orders placed after this date. Under Refresh 1, clause CI-FSS-056 Federal Acquisition Regulation (FAR) Part 51 Deviation Authority (Federal Supply Schedules) (Jan 2010) is deleted.

In lieu of FAR 51 Deviation, agencies may use Order Level Material (OLM) procedures to acquire other direct costs (OCDs) and material support items to meet specific order requirements. Additional information for OLMs may be found at www.gsa.gov/olm.

Many question if a contracting officer can issue a letter of authority (required by the Deviation) anytime during the life of the order, if the order or BPA was awarded on or before 23 October 2019. The short answer is yes, as long as the order was issued prior to the 23 October Deviation expiration date. However, if the BPA was awarded prior to then, and subsequent award terms were awarded after 23 October, those subsequent award terms may not use the deviation.

Wondering if you are grandfathered in and still able to take advantage of the FAR 51 Deviation Authority? Give us a call.

GSA, the Fed’s Amazon

Three months ago, GSA issued a solicitation for an e-marketplace so agencies can purchase off-the-shelf products. GSA intends for the portal to fulfill the Commercial Platforms pillar of its Federal Marketplace Strategy, while simultaneously streamlining agencies’ annual $260 million online spendings. (FedScoop, January 13, 2020)

Recently GSA clarified and added to the e-marketplace solicitation by stating, “offerors must have a functioning e-marketplace platform with B2B capabilities.” The amended RFP points out that “GSA is not seeking development services to build a new platform as that is not permissible under the authority granted under the [2018 National Defense Authorization Act] Section 846 legislation.” In addition, the updated RFP spells out that contracts will only be awarded to offerors receiving an “Acceptable” rating on both their performance work statement and live-test demonstration. This is a change from the original requirement that “all responsible offerors whose proposal meets the requirements outlined in this solicitation and is determined to provide the greatest overall benefit to the government in response to the requirement.”

The live-test demonstration section was updated allowing offerors up to 20 days post-award to meet the Mandatory Sources sections of the Statement of Objectives: Small Business Identification, AbilityOne and “Essentially the Same” items. (ibid)

Questions about all of the solicitation changes and updates? Give us a call.

 

Unpricing GSA

The Coalition for Government Procurement has been lobbying for an unpriced schedule, and Section 876 of Fiscal Year 2019 National Defense Authorization Act provides just that. It authorizes agencies, specifically GSA and its Schedules (41 USC 152) to not include price or cost as an evaluation criterion when awarding hourly rate and service contracts.  (Federal News Network, January 10, 2020)

An unpriced schedule is seen as more efficient by:

  • Allowing for evaluation against actual requirements
  • Reducing oversight activities associated with auditing of the award and the Price Reductions Clause
  • Honing competition by permitting customers to highlight speed and need for agency-specific service requirements
  • Allowing for common commercial practices in structuring contracts
  • Reducing hurdles to market entry for small businesses by allowing federal customers to leverage technology to meet end mission goals (ibid)

As we mentioned earlier in the week, GSA’s IG found that current pricing tools are resulting in insufficient price determinations. In many cases, the use of the CALC and CODCD pricing tools result in agency overpayment. The IG report stated, the “intent of the MAS Program is to leverage the government’s buying power in an effort to provide customer agencies with competitive, market-based pricing… GSA’s contracting officers are required to seek the best price granted to the contractor’s most favored commercial customer.”

The report outlines GSAM requirements that guide pricing determinations, such as requiring the government to pursue most favored customer pricing. It also defines methods that contracting officers should use to compare the terms and conditions of the MAS solicitation with those of the offeror’s commercial customers. MAS allows agencies to take advantage of the government’s purchasing power; moreover, it offers a channel for agencies to obtain commercial services and products swiftly. Per the statute, all responsible sources participate in the program, and all orders “result in the lowest overall cost alternative to meet the needs of the Federal Government (41 USC 152).” (ibid)

GSAR 538.270-1, states, “the Government recognizes that the terms and conditions of commercial sales vary and there may be legitimate reasons why the best price is not achieved.” This language actually reinforces leveraging the unpriced schedule. It highlights the complexity around contract-level pricing that is removed from government requirements reflected in a specific order. (ibid)

Federal News Network editorializes that an unpriced schedule focuses the price evaluation on actual requirements in real-time as they are being sought in the market. This type of competition, for agency-specific requirements, results in the most cost-effective, best value outcome for the agency.When resources are focused on competition, it’s a win for agencies, GSA and industry providers.

If you’re interested in learning more, give us a call.