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Tag: commercial platforms

New E-Commerce Platform

The 2018 Defense Authorization Act requires the government to utilize a new e-commerce platform. Well, after several protests, several solicitation rewrites, and the COVID-19 pandemic, we now have the proof-of-concept phase, with three vendors: Amazon Business, Overstock.com, and Fischer Scientific will allow access to their e-commerce sites with micropurchases of $10,000 or less. By awarding a contract to three vendors, GSA hopes to ensure pricing competition and high service levels. (Federal News Network, June 29, 2020)

During the 30 day proof-of-concept phase, agencies receive access to order from vendors’ e-commerce platforms for testing and stakeholder feedback. Participating agencies include Veterans Affairs, Justice and Labor, the Environmental Protection Agency, and GSA. Additional agencies may join in the coming months.

However, contractors are still questioning the apparent two sets of rules for micropurchases; those made under e-commerce and those made from other platforms, such as GSA Advantage. They believe transparency to be vital as well as understanding the pilot parameters. Remaining questions include e-marketplace conflict of interest issues, restriction on platform provider uses of third party transactional data, and how country of origin and counterfeit products are handled.” (ibid)

Not sure how government agencies ordering from e-commerce platforms will affect your ability to do business with them? Give us a call.

GSA, the Fed’s Amazon

Three months ago, GSA issued a solicitation for an e-marketplace so agencies can purchase off-the-shelf products. GSA intends for the portal to fulfill the Commercial Platforms pillar of its Federal Marketplace Strategy, while simultaneously streamlining agencies’ annual $260 million online spendings. (FedScoop, January 13, 2020)

Recently GSA clarified and added to the e-marketplace solicitation by stating, “offerors must have a functioning e-marketplace platform with B2B capabilities.” The amended RFP points out that “GSA is not seeking development services to build a new platform as that is not permissible under the authority granted under the [2018 National Defense Authorization Act] Section 846 legislation.” In addition, the updated RFP spells out that contracts will only be awarded to offerors receiving an “Acceptable” rating on both their performance work statement and live-test demonstration. This is a change from the original requirement that “all responsible offerors whose proposal meets the requirements outlined in this solicitation and is determined to provide the greatest overall benefit to the government in response to the requirement.”

The live-test demonstration section was updated allowing offerors up to 20 days post-award to meet the Mandatory Sources sections of the Statement of Objectives: Small Business Identification, AbilityOne and “Essentially the Same” items. (ibid)

Questions about all of the solicitation changes and updates? Give us a call.

 

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.