Federal Supply Class Review

What happens when the Defense Logistics Agency (DLA) and the General Services Administrations (GSA) get together to increase efficiencies and effectiveness of the national supply chain? You get the first Federal Supply Class (FSC) review in almost 50 years. (Defense Logistics Agency, October 9, 2019)

So why now, you ask? According to Alan Thomas, commissioner of GSA’s Federal Acquisition Service, it is to “optimize the movement of supplies to our nation’s troops and reduce duplication in the federal supply chain.”

FSC’s review involves all 600 FSCs, or about seven million items used by federal and military consumers and categorizes them by similarity. This review will reduce redundancies and improve purchasing efficiencies as well as customer readiness and responsiveness. Checks and balances will keep both organizations compliant with principles of their original agreement. (ibid)

The 1971 Supply Management Relationship Agreement between DLA and GSA gave DLA authority over supplies within assigned FSCs used by the military regardless of their use by civil agencies. GSA manages items used by federal agencies that are commercially available. Today GSA and DLA  maintain contracts with vendors delivering directly to customers. DLA forecasts demand and then supply chain representatives, vendors and DLA Distribution ensure on-time delivery worldwide.

DLA and GSA are working side by side to put together an automated tool that categorizes FSCs for analysis. The tool will produce summary-level data on all items to ultimately determine if a change in acquisition strategy might lead to improved efficiencies and effectiveness for the government, taxpayers, and customers. Both DLA and GSA must be in agreement to transfer logistics management of any items.

“Regardless of item transfer decisions, the process and tools we’ve developed in conducting this review provide an archive of information that supports FSC management determinations beyond the simple criteria identified in the 1971 agreement,” Jay Schaeufele, GSA account manager for DLA Logistics Operation’s Whole of Government Division, said. “This information is important as we navigate government and acquisition reform initiatives and evaluate potential economic efficiencies without losing vision of DLA’a first priority to warfighter readiness. (ibid)

Jeff Thurston, director of GSA’s Office of Supply Chain Management, said: “GSA’s new business model challenges us to identify new ways to serve environments where stocking product was previously the go-to solution.” (ibid)

The Commercial Platforms Program will update how commercial products are bought by federal agencies via partnerships with commercial e-platform providers. Government agencies will access commercial platforms as part of a whole-of-government approach. This approach will give agencies visibility into online spending, thus reducing supply-chain risk while providing more time for focusing on mission-oriented acquisition.

According to Laura Stanton, deputy assistant commissioner for Category Management in GSA’s Office of Information Technology Category, “this three-year proof of concept will offer federal buyers easy access to e-marketplace providers and commercial products. Additionally, agencies will have better visibility and insight on purchasing patterns to bring one-off spending under management. The Commercial Platform’s proof of concept offers a way for agencies to access commercial platforms as part of a whole-of-government approach, strengthening GSA’s commitment to maximize the government’s buying power through economies of scale.” (ibid)

GSA and DLA are consolidating purchasing, tracking, and spending analysis while taking advantage of government-wide and best-in-class acquisition vehicles. In addition, they are working together to communicate supply chain issues such as cybersecurity, fraud, and counterfeit parts while working with the military to determine optimal shipping routing.

Will this translate into possible changes to your current contract or bid? We’re available to discuss.

Program UnSupport Center

Back in June, the Health and Human Services Department (HHS) announced it would halt assisted acquisition services for non-HHS customers after September 30, 2020. Until the announcement, HHS provided assistance through the Program Support Center (PSC). After the deadline, all 19 agencies (with more than $1.4 billion in contracts per year) who had contracts administered by HHS will have to look elsewhere or figure out how to administer the contracts themselves. (Government Executive, September 13, 2019)

PSC lacks the procedures, policies, and internal controls to work with agencies outside of HHS. In addition, questions have been raised as to whether the PSC is actually legally authorized to administer contracts for agencies outside of HHS. (ibid)

Many questions remain unanswered, such as the fate of bids in the process of evaluation. Unfortunately, the PSC is not communicating with customers at this time, according to Federal News Network. This is surprising, as the Office of the Assistant Secretary of Administration focused on the need for “continuous communication” in customer service. (ibid)

So where will all of these contracts be administered? An EPA spokesperson said EPA contracts will either placed on new or existing EPA contract vehicles or handled through interagency agreements with other federal agencies. The Office of Special Counsel is partnering with Merit Systems Protection Board to process a number of mission-critical procurements. In 2020 GSA is assisting OSC with their procurement requirements. (ibid)

If you have questions about how this affects a current bid or your current HHS-administered contract, give us a call.