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Contract management

Happy Birthday eBuy!

If you’ve not heard of eBuy it is the paperless request-for-quote (RFQ) system GSA put into place 20 years ago. It was set up to connect suppliers to the contracting process for various products and services. According to eBuy’s Senior Program Analyst Rich Carlson, “in 2001, this online program revolutionized how government connected buyers and sellers for contracting quotes. eBuy streamlined the process, allowing more suppliers, especially small businesses, to participate and connect in ways that they couldn’t before.”  (gsa.gov/blog June 25, 2021)

eBuy offers a single, user-friendly electronic platform with the appropriate supporting documentation and approved supplier oversight. eBuy provides the ability for federal clients, state and local governments to post RFQs, make changes in real-time, and connect buyers with suppliers to secure the best pricing and value for competitive quotes. Additionally, eBuy is available for use 24 hours a day, 7 days a week. (ibid)

eBuy gives clients the confidence that suppliers meet all FAR and acquisition regulations. Additionally, companies of all sizes find opportunities to bid on contracts, with these opportunities all on a centralized platform. Multiple types of RFQs have been added to eBuy such as blanket purchase agreements (BPAs), set-asides, and governmentwide acquisition contracts (GWACS) for complex IT solutions. 2020 saw a complete redesign and refresh of functionality. (ibid)

When eBuy was created, 5 RFQs were launched on the site. 22 years later, more than $22 billion in awards have been contracted through eBuy with no slow down in sight. (ibid)

Questions about eBuy and how you can take advantage of it? Give us a call.

 

 

 

Biden doubling up on Small Disadvantaged Business contracts

In June the Biden -Harris administration announced a plan to increase the small disadvantage business (SDB) contracting goal by 50% or $100 billion over the next 5 years. If met, this goal would represent the largest increase in SDB contracting in 30 years. The Biden-Harris administration is requiring agencies to assess every available tool to lower hurdles to entry and increase opportunities for small businesses to compete for federal contracts. (PilieroMazza.com June 21, 2021)

In addition, the Biden-Harris Administration also released the particulars of Biden’s American Jobs Plan. The Plan will inject $30 billion into new Small Business Administration (SBA) initiatives, reducing small business ownership and success obstacles. The Plan will increase access to capital by creating a new direct loan program for the smallest businesses, developing new loan products, available through the new Small Business Investment Corporation, to support small manufacturers who invest in clean energy. (ibid)

The American Jobs Plan will also invest in SBA technical assistance programs that incubate and offer technical assistance to 8(a) firms. The investment should encourage Fortune 500 firms to work with more socially and economically disadvantaged businesses. The investments include a $1 billion grant program through the Minority Business Development Agency. The grant program is to assist minority-owned manufacturers access to private capital. (ibid)

Curious about the American Jobs Plan and the new SDB contracting goal? 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.

 

 

 

What the new Minimum Wage Executive Order means

In late April, President Biden signed an executive order, requiring government contractors to increase the minimum wage to $15 per hour by 2022. Censeo Consulting Group analyzed the effect of the federal worker minimum wage increase. They determined that approximately 30,520 contracts will require modification. In addition, they expect the modifications to add 450,000 additional contracting office, workload hours. This equates to about 240 additional full-time positions. (ExecutiveGov May 27, 2021)

The executive order will impact federal spending from between $1 and $2 billion. Agencies can prepare by:

  • Segmenting contract portfolio by delivery location and spend category, highlighting impacted contracts
  • Developing a policy and process for addressing impacted contracts
  • Analyze internal pricing to identify contracts requiring modifications (ibid)

The departments of Veterans Affairs, Defense, Agriculture, and State are most impacted by the executive order and are likely preparing to make their contract modifications on or before the 2022 deadline.

Do you need to modify your contract? Give us a call.