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.

 

 

 

Expected Growth in 2021 – Don’t miss out!

The federal government adapted to many challenges during the COVID-19 pandemic.  At the same time, government contractors were dealing with their own set of challenges. Declining margins and watching nearly 70% of projects that were ahead of schedule, fall behind in 2020. (Nextgov June 7, 2021)

The hardest hit were small business contractors. Their profit margins dropped nearly 35%, with costs to bid on contracts rising exponentially. (ibid)

With all the changes in 2020, government contractors still remain optimistic that government contracting will increase into 2021 and 2022. Vendors trust that the changes to government operations will prove beneficial, in the long run. Especially with remote workforces expanding the available talent pool since companies will no longer be limited to specific geographic areas. (ibid)

A recent study showed contractors in the federal information technology sector expecting significant growth in 2021. Additionally professional services and aerospace and defense expect large gains as well as state, with local and higher education spending growing too. (ibid)

The study also shows industry is focused on exploring new ways to do business in a more virtual world. In-person meetings and events are still rare, forcing companies to seek new business opportunities from their existing client base. Fewer companies rely on public bid notices such as those found on SAM.gov or industry events or conferences. (ibid)

Companies must acclimate to doing business in a virtual world. Many may find, the best use of their resources is no longer face-to-face meetings.  Working virtually may be the optimum use of their assets, going forward. (ibid)

Are you looking to benefit from the predicted growth trend? 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.

 

Small business and startups are front and center

Boosting small businesses and software for DoD are priorities for the Biden administration and their nomination for the Defense Department’s technology efforts.  Heidi Shyu, nominated for undersecretary of defense,  recently introduced her priorities to modernize the military during her confirmation hearing. She stated, “In order to rapidly transition the latest software, we need to have an open architecture that isolates the software from the hardware then allows rapid user testing.” (Defense Systems May 26, 2021)

Shyu told the senate that DOD should be investing so that development and procurement are 70% of their costs for a new weapons system. Shyu proposed buying more emerging tech such as artificial intelligence, synthetic biology and hypersonics rather than investing in older systems. Shyu said, “today, sustainment makes up 70% of total weapon system cost, with development and procurement making up 30%.” (ibid)

During Shyu’s hearing, she mentioned small businesses, especially startups working on new technologies, repeatedly. Shyu feels they are necessary for the Defense Department’s success. Shyu did not lose sight of the inability of the acquisition system to shift prototypes into programs. Shyu plans to institute a clear transition path. (ibid)

Shyu said, “part of the reason there is a valley of death for technology is that a lot of the technology programs are being developed by small companies, and unless you had the foresight two years ago to understand that the technology is going to be mature within two years time, by the time you get the money to buy that technology it’s two years old now.” (ibid)

Shyu said, “I saw a six-person company that’s developed any type of fuel as input and the output is a DC-plug. Those are the types of creative, innovative companies we need to nurture. And they are struggling to figure out who to talk to in the DOD.” (ibid)

Are you an innovator or a small business looking to work with the Department of Defense? Give us a call.

 

 

 

 

The FY 2022 Budget Request is good news for contractors

In early April, the Office of Management and Budget released the Biden administration’s first cut at the fiscal year (FY) 2022 Discretionary Budget Request. The proposed budget includes $1.5 trillion in discretionary budget requests for federal departments and agencies. (Federal Times May 12, 2022)

The Department of Defense budget slightly increased by 1.6 percent or $715 billion up from $703.7 billion in Fiscal Year 2021. The civilian agencies, however, will see a 16 percent increase. Education will potentially increase by 40.8 percent, Commerce 28.1 percent, Health and Human Services 23.1 percent, EPA 21.7 percent, and the National Science Foundations rounding out at 20 percent. (ibid)

The Biden budget shows continued growth in spending to revive the economy. This comes after record-breaking stimulus spending. With the uptick in spending comes an increase in contract awards to Small Disadvantaged Businesses and programs supporting women, people of color, and underserved entrepreneurs. (ibid)

There are a few things contractors should keep front of mind while reviewing the FY 2022 budget:

  • Congress may be conservative with spending after the number of stimulus bills recently passed
  • Expect to see opportunities from DOD for the Internet of Things and Artificial Intelligence
  • Look for DOD to switch up their resources from legacy systems to priority technologies, cybersecurity, and cloud computing (ibid)

An increased budget suggests additional spending and an increased number of contracts awarded throughout 2022. Contractors who understand the spending priorities and policies will benefit most.

If you have questions about agency spending trends or if GSA is right for you, please give us a call.