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Small Business

Time to Uncover Some Chinese Equipment

Recently, GSA sent a letter to contractors explaining the new FAR interim rule regarding supply chain security, which went into effect last month. The rule prohibits federal agencies from procuring, obtaining, extending, or renewing a contract to procure or obtain “any equipment, system, or service that uses covered telecommunications equipment or services  as a substantial or essential component of any system or as critical technology as part of any system.” (Acquisition.gov)

Covered equipment encompasses telecommunications and video surveillance products and services by Hauwei Technologies Company, ZTE Corporation, Hytera Communications Corporation, Hikvision Digital Technology Company, or Hahua Technology Company, or any company that the head of a relevant federal agency reasonably believes is controlled by the government of the Peoples Republic of China.

The interim rule:

  • Prohibits contractors from providing covered telecommunications services/equipment unless an exception or waiver is granted
  • Mandates every offeror represent whether it will provide covered telecommunications equipment/services as part of its offer, and if that is the case, the offeror must provide details about the covered equipment or services
  • Requires contractors to report any covered equipment/services throughout the life of the contract. (ibid)

At the same time, the FAR interim rule went into effect, GSA issued a class deviation. This essentially takes a risk-based approach to the new FAR interim rule by limiting the representation requirement for GSA funded orders to the indefinite-delivery contract level. The deviation necessitates the following:

  • At all times requires an order-level representation for acquisition vehicles that carry a “high risk” of including covered telecommunications equipment or services.
  • Must have an order-level representation for all orders that could include information technology or communications technology under all GSA acquisitions.
  • The creation of a GSA Acquisition Regulation (GSAR) representation clause, requiring the GSAR and FAR reporting clauses in all new and ongoing GSA contracts.
  • Initiates GSA specific implementation targets for modification of existing contracts.
  • Simplifies the application of Section 889 of the NDAA to other GSA program areas. (ibid)

The interim rule affects ALL contractors. As a contractor, you are responsible for determining whether covered telecommunications equipment/services will be provided under both new and existing contracts and orders.

Below is some fundamental information to help you prepare as GSA puts into place the interim rule and class deviation:

  • FAS contracting activity will issue a mod requiring you to respond to incorporate FAR clause 52.204-25 and GSAR clause 552.204-70.
  • Your mod response must delineate if you will or will not provide covered telecommunications equipment/services in the performance of any contract, subcontract, order, or any other contractual instrument.
  • The substance of FAR clause 52.204-25 must be inserted into all subcontracts.
  • You must report any covered telecommunication equipment or services you discover during the course of contract performance.
  • For new GSA solicitations, you are required to represent at the contract level if you will or won’t provide covered telecommunications equipment/services to the Government in the performance of a contract or subcontract.
  • Contract level solicitations will include FAR provision 52.204-24, clause 52.204-25and GSAR clause 552.204-70.
  • In responses to solicitations and orders under indefinite-delivery contracts, representation of FAR 52.204-24 is required when there is a high risk of inclusion of covered telecommunications equipment/services. (ibid)

Wondering how all this might affect your current contract or upcoming bid? Give us a call.

Ready for the Single Schedule?

As heard at the water cooler of every GSA Schedule holder, the Federal Acquisition Service (FAS) is consolidating the 24 Multiple Award Schedules (MAS) into one single Schedule for services and products. The first announcement arrived in November 2018. And it does appear that GSA will meet their deadline of 1 October  2019 for creating the new solicitation. (GSA.gov, August 28, 2019)

“The new solicitation with its simplified format is going to make it much easier for customers to find and purchase the solutions they need to meet their missions,” said GSA’s Federal Acquisition Service Commissioner Alan Thomas. “It will also make working with the government easier by streamlining and simplifying the offer process for new contractors. One Schedule means vendors no longer have to manage contracts across multiple schedules.” (ibid)

We’re betting it won’t be so streamlined and simplified for at least six months. Those applying for a new Schedule may experience less confusion with SIN selection, but the mass mods and changes that current Schedule holders will have to deal with … let’s just say we expect there to be some pain.

The new single Schedule was put together using feedback from consumer agencies and industry. GSA asked for feedback through two RFQs. A final solicitation for industry review prior to the October 1, 2019 release has been provided by GSA. Comments on the new draft solicitation should be sent to maspmo@gsa.gov. Alternatively, comments on the draft can be left directly on the GSA interact landing page. (ibid)

GSA urges all industry members to review the most recent version of Frequently Asked Questions. Additionally, GSA is offering two webinars which will allow questions to be asked of GSA subject matter experts. The registration link for the first webinar, September 17 can be found by clicking here. The registration link for the second webinar, September 19, can be found by clicking here. (ibid)

Wondering how this affects the schedule contract you currrently hold? Questions about the new single Schedule and how it will affect bidding? Give us a call.

 

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.

STARS in Your Eyes?

After spending more than $1.6 billion on STARS 2 in 2018, GSA is constructing the third version of the 8(a) government-wide Streamlined Technology Acquisition Resource for services or better known as STARS. The third draft solicitation focuses on IT services. Those services include:

  • Software Development
  • Software Maintenance
  • Emerging Technology such as artificial intelligence (AI)

STARS 3 will be an eight-year contract, with a $20 billion ceiling. All responses to the draft RFP are due September 6, 2019. (Federal News Network, August 12, 2019)

Have questions concerning the STARS 3 draft RFP? Give us a call.

Setting Aside the Small Biz Set Asides

The National Background Investigations Bureau (NBIB) is moving from the Office of Personnel Management to the Department of Defense (DoD), merging with the Defense Counterintelligence and Security Agency (DCSA). Of interest to many of EZGSA clients, sources say the move anticipates plans to significantly diminish small business goals at the agency from 65 percent to 10 percent, according to Elizabeth Mudd, small business program manager. (Defense Systems, August 7, 2019)

Mudd believes that the whopping decline in small business goals intends to promote more subcontracting to supplement the four primes that oversee background investigation services. While this may be true, the bottom lines remains that in this fiscal year, NBIB is contributing about $804 million in small business eligible dollars compared to DCSA’s $73.4 million. (ibid)  Maybe the merger won’t actually change the dollar amount contracted with small businesses in the long run, but we’re not holding our breath.

Want to gripe or discuss strategy? We’re here.