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Tag: federal contracting

Stephen Ehikian’s vision for GSA

Last week, Stephen Ehikian shared his vision for GSA with more than 8,000 employees, and today, he wants to share it more broadly. Ehikian aims to return GSA to its founding mission—streamlining federal operations, consolidating resources, and efficiently delivering essential services that allow agencies to focus on their core missions. According to Ehikian, GSA leads by example, helping agencies cut wasteful contract spending, right-size the federal real estate portfolio, and deploy software that drives efficiency and productivity. (gsa.gov/blog March 25, 2025)

Path Forward

GSA focuses on serving our customers, congressional partners, and communities by:

  • Optimizing the federal buildings portfolio
  • Streamlining and centralizing procurement under the new Executive Order
  • Rationalizing IT infrastructure and software as a Shared Service
  • Applying GSA’s efficiency model to itself (ibid)

Optimizing the Federal Buildings Portfolio

Eliminate years of deferred maintenance liabilities, which now exceed $17 billion, up from $5 billion a decade ago. In many cases, these liabilities outweigh the value of the properties we own. For example, selling the long-vacant Webster School in Washington, D.C., reduced our liabilities by $24 million and revitalized a historic neighborhood. (ibid)

Increase office occupancy above 80% by selling underutilized assets and terminating cancellable leases. With occupancy averaging 31%, we collaborate with tenant agencies to assess space needs and support the return to office while adjusting for a downsized federal workforce. (ibid)

We foster greater collaboration between agencies, breaking down silos in real estate, IT, and facility operations to reduce redundancy and inefficiency. (ibid)

Streamlining and Centralizing Procurement

Maximize the government’s negotiating power by centralizing procurement for common goods and services, securing better prices for taxpayers. We have already launched this initiative with four agencies and continue building strong partnerships to meet specialized procurement needs. (ibid)

Simplify procurement and reduce compliance burdens to increase competition and ensure contracts go to vendors best suited to serve government needs. By modernizing compliance standards, we help both large and small businesses compete for government contracts. (ibid)

Enhance procurement technology to streamline vendor onboarding, reduce paper-based workflows, and improve vendor management and data-driven decision-making. (ibid)

Rationalizing IT Infrastructure and Software as a Shared Service

Consolidate systems by reimagining business processes and automation, improving employee and taxpayer experiences while eliminating redundant solutions. (ibid)

Drive innovation by piloting Generative AI to boost productivity. Early use cases include AI-powered acquisition policy searches for contracting officers, directive searches for policy teams, and code generation for engineers. (ibid)

Centralize data across teams to increase collaboration and prepare for AI-driven efficiencies by breaking down data silos and improving system interoperability. (ibid)

Accelerate adoption of best-in-class technologies by reimagining the FedRAMP authorization process, modernizing aging IT infrastructure, and enhancing security. (ibid)

Optimize cloud and software spending through a line-by-line review of technology solutions, ensuring we only pay for necessary licenses and eliminate redundant systems. (ibid)

Applying GSA’s Efficiency Model to Itself

Ehikian’s goal is to guide other agencies to consolidate and centralize shared services while GSA reviews its own operations to maximize efficiencies. (ibid)

GSA plays a critical role in reducing the federal deficit while enabling agencies to move faster toward their goals. As the backbone of federal operations, we have a unique opportunity to drive innovation in procurement, real estate, and technology. (ibid)

The American people deserve a commonsense government that respects tax dollars, prioritizes efficiency, and delivers results. At GSA, we commit to making that vision a reality and pushing government forward. (ibid)

Need additional information on your specific contract and how the new streamlining and effeciencies affect your contract? Give us a call.

New Leadership for GSA

The White House has appointed new leadership to the General Services Administration (GSA), drawing heavily from the tech and finance sectors. On day one of the Trump administration, GSA welcomed its new team, including Stephen Ehikian as deputy administrator and acting administrator. (Federal News Network January 20, 2025)

Larry Allen, a longtime GSA expert, will become the associate administrator of the Office of Governmentwide Policy. Ehikian also introduced key political appointments: Josh Gruenbaum as commissioner of the Federal Acquisition Service, Mike Peters as commissioner of the Public Building Service, and Thomas Shedd as director of the Technology Transformation Service and deputy FAS commissioner. (ibid)

In an email message, Ehikian emphasized the GSA’s recommitment to its founding purpose of ensuring governmentwide efficiency and maximizing taxpayer value. “I recognize the critical importance of our agency’s mission and look forward to working together in the coming weeks to achieve it,” he stated. (ibid)

Ehikian outlined six guiding principles for the GSA:

  • Foster a culture of performance and accountability across federal government operations.
  • Eliminate waste, fraud, and abuse across the federal budget and processes.
  • Leverage best-in-class technologies to accelerate digital transformation and modernize IT infrastructure.
  • Uphold competitive principles that strengthen America’s economy, including fair and merit-based contract awards.
  • Promote “Made in America” policies to support domestic jobs and businesses.
  • Improve transparency, accountability, and collaboration within the GSA and with external partners. (ibid)

In a separate message, Ehikian detailed the agency’s future direction. He highlighted the GSA’s traditional role as a model of efficiency and pledged to refocus on streamlining government operations. “We will prioritize smarter, faster government services over larger, slower systems,” he explained. Ehikian also committed to aligning GSA priorities with the Trump administration’s objectives, such as:

  • Relocating federal operations from Washington, D.C., to regional facilities to boost economic opportunities nationwide.
  • Transitioning federal employees back to office environments to improve collaboration and accountability.
  • Supporting American innovation and removing ideological mandates, such as Green New Deal and ESG requirements, from construction and procurement policies.
  • Right-sizing the federal office portfolio by disposing of underutilized buildings and improving operational efficiency.
  • Enhancing transparency, accountability, and partnerships across government and industry. (ibid)

Ehikian acknowledged the dedication of GSA employees, attributing the agency’s transformation to their expertise and hard work. He announced plans for a new performance-based reward structure to align employee incentives with the agency’s mission. (ibid)

Ehikian brings extensive private-sector experience to his role, including positions at Salesforce and co-founding Airkit.ai, which Salesforce acquired in 2023. He also led RelateIQ, sold to Salesforce in 2014 for $390 million. Ehikian earned an MBA from Stanford and degrees in mechanical engineering and economics from Yale. (ibid)

Josh Gruenbaum, the new commissioner of FAS, joins GSA after serving as a director at the global investment firm KKR. This marks his first public-sector role following private-sector experience since graduating from NYU with dual MBA and JD degrees. (ibid)

Additionally, Ehikian named Frank Schuler and Michael Lynch as senior advisors in the administrator’s office and appointed Rusty McGranahan as general counsel. (ibid)

Questions concerning the changes at GSA and how your contract might be affected? Give us a call.

The Rule of Two to Transform Small Businesses

The SBA proposed a rule on October 25, 2024, aiming to transform small business contracting by requiring agencies to apply the “Rule of Two” to task and delivery orders under multiple-award contracts (MACs). The Rule of Two ensures contracts go to small businesses when at least two qualified small firms can meet price, quality, and delivery standards. This rule will apply to orders exceeding the micro-purchase threshold, with exemptions for orders placed under the General Services Administration’s Federal Supply Schedule or in cases where there are supply chain risks or national security concerns. (HSToday.US November 7, 2024)

Driven by concerns over declining small business participation, the SBA estimates this rule could increase small business contracts by $6.1 billion annually. It supports the Biden administration’s goal of 15% federal contract spending with small disadvantaged businesses (SDBs) by 2025. In fiscal 2023, 28.4% of federal contract dollars went to small businesses, yet new entrants to federal contracting have dropped nearly 60% since 2010. (ibid)

The SBA proposal requires agencies to document their decision when they choose not to set aside a contract under the Rule of Two. Agencies must conduct market research, justify their rationale, and coordinate with small business specialists. For orders under MACs with fewer than two small business contract holders, agencies must explain their decision, with exceptions for contracts under the Federal Supply Schedule and other specific exemptions. (ibid)

This proposal builds on a January 2024 memorandum from the Office of Federal Procurement Policy, which directed agencies to document such decisions. The SBA aims to address inconsistencies in applying the Rule of Two, which arose from differing interpretations by the Court of Federal Claims and the GAO regarding its use in MACs.aiming to improve compliance and Public comments are open until December 24, 2024, with the SBA encouraging input from stakeholders. If adopted, the rule promises to level the playing field, boost small business participation, and diversify the federal supply chain. (ibid)

Questions concerning the Rule of Two? Give us a call.

Don’t lose your Federal Government business – add a backup

The days are getting shorter, and surprises lurk in the night. Don’t let missing your entity registration renewal stop you from doing business with the federal government—that’s scarier than anything else!(Buy.GSA.GOV October 10, 2024)

Here’s some good news: your current Entity Administrator can add one or more backup Entity Administrators today. They simply log in, choose trustworthy team members, and invite them to join as Entity Administrators. No tricks, no complicated approval process. The new admins will have the same permissions, so make sure they’re a good fit! If they need guidance, we’ve got easy-to-follow instructions ready.(ibid)

Don’t wait until the last minute—ask your current Entity Administrator to invite backups now. With extra admins in place, you’ll always have someone ready to renew your registration on time and keep business with the federal government running smoothly. (ibid)

Need some help adding additional Entity Administrators? Give us a call.

OMB Issues First Governmentwide AI Acquisition Policy

The Office of Management and Budget (OMB) released new guidance today to improve how Federal agencies acquire artificial intelligence (AI) technologies. The guidance, outlined in the memo Advancing the Responsible Acquisition of AI in Government, directs agencies to boost cross-functional collaboration, manage AI risks and performance, and foster a competitive AI market. (MeriTalk October 3, 2024)

OMB’s Deputy Director for Management, Jason Miller, emphasized the need for responsible AI procurement, stating that Federal agencies will either have AI systems built by contractors or purchase them directly. “This new memo equips agencies with the tools to capture AI’s potential while managing its risks,” Miller said. (ibid)

A large portion of the memo focuses on managing AI risks, with OMB mandating early involvement from agency privacy officials in AI acquisition processes to identify privacy risks and ensure legal compliance. Agencies are also instructed to negotiate contracts that require vendors to provide detailed information for evaluating AI systems, assessing risks, and protecting government data. (ibid)

The guidance addresses generative AI specifically, calling for testing, red-teaming, and evaluation to ensure the safety and appropriateness of AI tools. It also promotes practices to avoid vendor lock-in, prioritize transparency, and ensure interoperability in AI systems. (ibid)

This guidance fulfills a key part of the Biden-Harris administration’s October 2023 AI executive order and reflects input gathered from public comments and industry roundtables. OMB’s Miller highlighted the Federal government’s significant purchasing power, noting that in 2023, it spent over $100 billion on IT products and services. He stressed that responsible procurement decisions can accelerate AI advancements while mitigating risks for government use. (ibid)

Questions concerning the new OMB issued AI guidance? Give us a call.