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Tag: FAS

GSA is about to get really big

The head of GSA’s Federal Acquisition Service told employees Thursday that the agency will manage about $400 billion in procurement under an expansion set to quadruple the size of GSA. (Next GOV/FCW March 20, 2025)

A new executive order shifts some agencies’ contracting work to GSA, which already plays a key role in government procurement. President Trump reportedly signed the order Thursday, though the text remains unavailable, and the White House has not commented. (ibid)

“We will ingest all domestic and commercial goods and services into GSA. While we won’t handle all $900 billion, we will manage about $400 billion, effectively quadrupling our size,” said Josh Gruenbaum, head of GSA’s Federal Acquisition Service. (ibid)

GSA has already piloted onboarding two to three agencies to evaluate centralized procurement. The Office of Management and Budget is currently onboarding, along with the Office of Personnel Management, which recently laid off its entire procurement team. (ibid)

“We now have a mobilized operational process to absorb procurement across the government,” Gruenbaum said. GSA plans to automate procurement and integrate talent from the agencies it will serve. (ibid)

GSA operates the schedules program, allowing agencies to buy various services and goods, and oversees several major governmentwide contract vehicles. It also serves as the government’s landlord and develops procurement strategies such as category management and best-in-class contracts.(ibid)

GSA’s acting leader, Stephen Ehikian, highlighted potential cost savings by purchasing as “one buyer on behalf of the government.”(ibid)

As GSA expands procurement operations, it continues downsizing its workforce, eliminating entire offices. Last week, the agency cut the Technology Transformation Services’ talent division and market development and partnerships division while offering Voluntary Early Retirement and Voluntary Separation Incentive Payments. So far, contracting officers remain largely unaffected.(ibid)

Employees who remain will utilize a new AI bot, recently demoed. GSA announced plans to offer the tool to other federal agencies. Ehikian has prioritized AI to reduce headcount, tasking some employees with identifying how AI can take over their work. (ibid)

The AI tool includes a chat function and an API, with plans for continuous improvements based on staff feedback. Ehikian described this as part of the agency’s “build back phase” after its “slimming down phase,” emphasizing efficiency. A meeting slide deck outlined goals such as reducing IT systems per job, centralizing data, optimizing cloud spending, and investing in shared services. (ibid)

Next week, GSA will unveil a major FedRAMP program overhaul, according to Nextgov/FCW. (ibid)

GSA also continues efforts to shrink the federal real estate footprint. Ehikian reported that the agency canceled nearly 700 leases but acknowledged instances where it reinstated leases after receiving feedback from senators and stakeholders. (ibid)

Trying to make sense of all of the new changes at GSA, give us a call.

A Quick Dive into GSA’s Game-Changing Proposed Economic Price Adjustment Clause

The General Services Administration’s (GSA) recently proposed to revise the General Services Acquisition Regulation (GSAR) Federal Supply Schedule Economic Price Adjustment (EPA) clauses. Issued on November 16, 2023, the rule aims to align with commercial standards and practices by eliminating specific EPA requirements and introducing a standardized clause: 552.238-118, Economic Price Adjustment, Federal Supply Schedule Contracts. (Federal News Network, January 12, 2024)

This new clause mirrors the principles outlined in GSA Acquisition Letter MV-22-02 from March 2022, which temporarily suspended certain procedural limits within FSS clauses. This move provided contractors with increased flexibility in processing EPAs, responding more effectively to shifts in the commercial market. The proposed rule extends this market-driven flexibility into the GSAR. (ibid)

The EPA proposed rule is defined as the “agreed-upon procedure” for adjusting pricing throughout a contract period.” The proposed clause empowers contracting officers and contractors to negotiate the mechanism, timing, and frequency of price adjustments. This streamlined, flexible approach is poised to enhance responsiveness to market changes. (ibid)

When contract prices are based on commercial catalog pricing, adjustments can align with changes in the catalog price. Similarly, if an index determines adjustments, changes in the index can dictate price adjustments. These mechanisms, being part of the contract, underscore the proposal’s pragmatic approach. (ibid)

For the success of this flexible EPA, implementation across the FSS program is crucial. Proper training for the acquisition workforce, focusing on pricing context and accurate data usage, is paramount. The proposed rule’s success depends on aligning the FSS program with the commercial market, necessitating revisions to current policies such as Federal Acquisition Service (FAS) Policy and Procedure (PAP) 2021-05. (ibid)

The PAP, as it stands, contains contradictory guidance inconsistent with the Federal Acquisition Regulation, escalating data submission burdens on FSS contractors. To streamline the EPA process effectively, reforming, revising, and reissuing the PAP in accordance with legal and operational goals is a logical starting point. (ibid)

Beyond reducing regulatory burdens, success hinges on comprehensive training, clear guidance, and accountability. Stakeholders, including coalition members, stand ready to assist the agency in operationalizing the rule successfully. (ibid)

Questions concerning price adjustments to your current contract? Give us a call.

A workflow for everyone


The Catalog Management Office (CMO) is actively finalizing the workflow for Multiple Award Schedule (MAS) services between eMod and the new FAS Catalog Platform (FCP). Simultaneously, they are completing the new Services Plus File for FCP use, marking progress towards launching MAS service functionality in FCP by fiscal year-end 2024 (refer to the attached file for the Services Plus file). (BUY.GSA.GOV NOVEMBER 30, 2023)

The Services Plus file, formerly the Service File, will now accommodate all service contract and catalog data from the Services and Training, and the Language Services Price Proposal Templates. Vendors will also utilize it for non-GSA Advantage! publishable products, such as highly customizable items. (ibid)

Vendors can categorize their offerings in the new template under eight catalog item types:

  1. Commercial Labor Categories: Vendor-defined labor categories, using the hour (HR) unit of measure.
  2. Service Contract Labor Standards (SCLS) labor categories: Governed by Service Contract Act laws and regulations, using the HR unit of measure.
  3. Fixed Price Solutions: Services outside the labor category paradigm, using any unit of measure.
  4. Courses and Training: Sessions with minimum and maximum student constraints.
  5. Other Direct Costs (ODCs): Contract-level items sold, supporting public relations and marketing services.
  6. Language Services: Translation services, translating languages, one or both ways.
  7. Highly Customizable Products: Products with multiple options, that cannot be sold on GSA Advantage! Priced as a discount to a manufacturer group or family, as opposed to pricing products as a discrete set of line items.
  8. Ancillary Items: Products or services supporting the dominant service in the Services Plus File, and not sold on GSA Advantage! (ibid)

Questions about how to categorize your offerings? Give us a call.

Prohibited telcom equipment may cost you

The General Services Administration’s (GSA) Office of the Inspector General (OIG) published a new report highlighting GSA’s failure to address prohibited telecom items on its Multiple Award Schedule (MAS) contracts. The report states that this puts customers at risk of unauthorized surveillance by foreign adversaries. In 2017 and 2018, Congress passed laws prohibiting the procurement of certain telecom and video surveillance services from specific entities, with FAS responsible for ensuring compliance. However, the OIG report reveals that FAS’s reliance on contractor self-certifications and the Prohibited Products Robomod process is inadequate in preventing the inclusion of prohibited items on MAS contract price lists. (MerriTalk July 11,2023)

The report also identifies FAS’s shortcomings in taking sufficient action against contractors violating Federal Acquisition Regulation (FAR) restrictions, as well as the lack of a process to notify customer agencies about purchases of prohibited telecom items. Furthermore, FAS initially failed to comply with FAR requirements by not including subsidiaries and affiliates of named entities in their efforts to identify prohibited items on MAS contracts. To address these issues, the OIG has made five recommendations to FAS Commissioner Sonny Hashmi, including strengthening controls and implementing more stringent consequences for non-compliant contractors. (ibid)

This report from the GSA’s OIG follows the release of the Federal Communications Commission’s (FCC) “Covered List,” which prohibits the sale of telecom network equipment and services from certain China-based providers due to national security concerns. The FCC’s ban aims to safeguard the nation’s communications networks and enhance the security and resilience of the domestic supply chain. These efforts reflect the commitment of both agencies to protect national security and mitigate risks associated with unauthorized telecommunications equipment and services. (ibid)

Questions about prohibited telcom items? give us a call.

GSA is about to make Cloud purchases a whole lot easier

GSA is about to reveal a plan for a governmentwide marketplace for cloud solutions. This new marketplace will not only make it convenient, it will also set up a one-stop-shop for agencies to purchase commercial Software as a Service, Infrastructure as a Service, and Platform as a Service, offerings. (FedTech October 7, 2021)

On a recent webinar, Laura Stanton, assistant commissioner for the Office of Information Technology Category in the GSA’s Federal Acquisition Service, said, “We’re looking at how we put together a cloud marketplace that then becomes a buying platform for agencies. We want to put together not just a framework, but a market contractual vehicle that will allow our agencies to buy these core cloud services that we’re seeing them need more and more.” (ibid)

The GSA marketplace will provide agencies with professional IT services as well as post-award contract management tools. It would also set the requirements to verify cloud services meet the baseline security and adherence to guidance from the Federal Risk and Authorization Management Program (FedRAMP). (ibid)

GSA wants to streamline the entire cloud procurement process for agencies. According to Laura Stanton, “GSA uses the cloud and cloud-related IT professional services special item number (SIN) 518210C as a vehicle for multiple-award procurements. The contract type can be used to acquire cloud computing services, as defined by the National Institute of Standards and Technology.” Stanton said that GSA is “hearing that agencies have to go to multiple places to buy cloud. We decided it was time to take the next step.” (ibid)

An RFI is expected early in the new fiscal year, which began October 1, 2021. (ibid)

Questions concerning the upcoming RFI? Give us a call.