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Federal Contracting

HHS is buying smarter

Over the past 18 months, the Department of Health and Human Services (DHHS) has been developing the Buy Smarter Initiative. The production phase has ended, and with it a new name: “Reimagined Buy Smarter.” Reimagined Buy Smarter uses artificial intelligence (AI) to analyze vast amounts of data, comparing prices along with other money saving plans. (Federal News Network, May 17, 2019)

Last year, 97,000 contracts were fed into an AI solution. Algorithms and a proof of concept of 10 product categories demonstrated significant price differentials on the same items. For instance, the same case of copy paper was $27 a case in one instance and $59 in another. (ibid)

DHHS wants requirements operating across all divisions in order to use of economies of scale. Through the development process, they have found that many departments order the same items, but from different contracts at pricing all over the map and duplication of efforts. With Reimagined Buy Smarter, DHHS  departments can consolidate requirements, utilize economies of scale, and eliminate unnecessary contracts. (ibid)

They plan to introduce 18 steps of technology for buyers.  The program has a $49 million multi-award Indefinite Delivery, Indefinite Quantity (IDIQ) contract for a catalog of new and emerging technologies. DHHS hopes “to get a very large number of vendors who can provide services that can be shared/scaled across HHS and ultimately the entire government.” (ibid)

DHHS created the new contract due to older contracts being so outdated. The Program Support Center for DHHS receives many requests for new technologies, but by the time the contracts are awarded, they are already obsolete. Additionally, contracting officers have spent a lot of time cutting and pasting from a “paper” system, which will be answered by a pre-populating process automation. (ibid)

Findings suggest the following categories of spending:

  • Medical and lab supplies
  • Software licenses
  • Professional services (ibid)

Workgroups are forming to address consolidating contracts for shared opportunities, eliminating overlapping or unnecessary contracts, and taking advantage of economies of scale. (ibid)

Interested in discussing Reimagined Buy Smarter? Give us a call at (301) 913-5000.

GSA’s New Rules!

GSA has issued a final rule amending the following parts of  the GSA Acquisition Regulation (GSAR):

  • Part 515, Contracting by Negotiation,
  • Part 538 Federal Supply Schedule Contracting
  • GSAR Part 552, Solicitation Provisions and Contract Clauses (GSA Interact, June 3, 2019)

The above changes were enacted to clarify, update, streamline and incorporate existing Federal Supply Schedule contract administration policies and procedures. The final rule became effective on May 23, 2019. (ibid)

Changes include the following:

  • deletion of 85 obsolete/duplicative clauses and provisions (see GSA Order ADP 29800.12B Change 100)
  • incorporation of 30 “new” clauses and provisions into GSAR.
  • reincorporation of four GSA Schedules program clauses and provisions (previously removed from GSAR in a rewrite) into GSAR.
  • updating 10 existing GSA Schedules program clauses and provisions to reflect current references and practices. (ibid)

The above changes will be part of GSA’s new Consolidated Schedule solicitation. More information to follow in the coming months.

If you have questions about the GSAR rule amendments will affect your contracts, 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.

Matchmaking Money

The Department of Defense (DoD) is concerned that Chinese firms investing money into U.S. tech companies could provide the Chinese with a military advantage. A new effort to counter this effect, called the Trusted Capital Marketplace, is launching in upcoming weeks. At least 50, generally small, innovative tech companies without the sophistication to obtain capital seem to  fall under this umbrella. The Trusted Capital Marketplace will match these companies with capital investors, circumventing the “red tape” they’d normally go through to obtain the much-needed capital. (Government Executive, May 2019)

Over the next month, investment goals will be developed and put in place. The current plan is to set up a website infrastructure where providers of trusted capital can aggregate with those businesses looking for capital. (ibid)

Back in October of 2018, the Pentagon said they would invest in domestic manufacturing in an effort to keep the U.S. from relying too heavily on Chinese and other foreign made parts for American weapons. The next month,  Commerce officials released a list of “specific emerging technologies that are essential to the national security of the United States,” with the desire to keep these technologies based and “backed” by U.S. companies. The infrastructure should be in place by the end of June for these companies to receive the capital they need to work with DoD.

Questions about the Trusted Capital Marketplace and how your firm can obtain much-needed capital? Give us a call at 301-913-5000.

GSA’s New Cool Tool

GSA has launched the Contract Awarded Labor Category (CALC) tool to make it easier for agencies to determine hourly rates for various labor categories. CALC allows purchasers to analyize labor category pricing on more than 5,000 recent GSA contracts. The new tool will make it far easier for contracting officers to determine accurate labor rates while conducting market analysis. (Federal Times, May 14, 2019) 

CALC works by searching awarded prices on GSA’s professional services schedules, such as:

  • Mission Oriented Business Integrated Services (MOBIS)
  • Environmental
  • Logistics Worldwide (LOGWORLD)
  • Professional Engineering Schedule
  • Language
  • Advertising and Integrated Marketing Schedules (AIMS)
  • Consolidated Schedule (ibid)

CALC cannot yet compare labor categories to those already awarded showing where rates fall; however, future versions will likely include this capability.(ibid)

Questions about how your labor rates stack up against other vendors? Give us a call at 301-913-5000.