GSA TOUTS NEW TOOL TO SAVE MONEY AND PROVIDE OPPORTUNITIES FOR SMALL BUSINESSES

FROM:  U.S. GENERAL SERVICES ADMINISTRATION 
GSA Launches Reverse Auction Platform for Use by Government Agencies
Innovative tool provides savings and opportunities for small businesses

July 9, 2013

WASHINGTON -- The U.S. General Services Administration (GSA) today announced the launch of a government-managed reverse auction platform— reverseauctions.gsa.gov— available through the National Information Technology Commodity Program (NITCP) of GSA’s Federal Acquisition Service (FAS).  GSA expects the platform to deliver increased savings for federal agencies on the most commonly purchased office products, equipment and services, while also making it easier for small businesses to compete for the government’s business.  

In a reverse auction, sellers compete to win business from agencies; prices will typically decrease as the competitive auction progresses.  GSA’s new reverse auction platform reduces federal agencies’ acquisition processing time and costs, drives prices and costs down, improves transparency and collection of data, and allows for small business set-asides.

“Using a government-run reverse auctions tool is a fantastic innovation for GSA’s customers, and we expect that it will drive even more savings and speed into the acquisition process,” said FAS Commissioner Thomas A. Sharpe, Jr.  “This approach to government procurement can be used with a good portion of GSA’s Multiple Award Schedules as an efficient and cost-effective process for purchasing commonly used products and simple services.  Reverse auctions can drive down prices paid, reduce the total cost of acquisitions, and save time and precious acquisition resources for both government and industry.”

Federal agencies now may use the GSA platform to conduct reverse auctions through select GSA’s Multiple Award Schedules and established select blanket purchase agreements (BPAs) for commodities like office supplies, laptops, tablets and monitors, as well as for simple services like warranty, training and installation.  Additionally, the platform will allow federal customers to set aside auctions for small business, increasing opportunities for small and disadvantaged companies to bid easily for government business.  

"GSA is doing a lot of exciting and positive things to improve acquisition efficiencies and drive competition, but the new reverse auction platform hits the ball out of the park," said U.S. Department of the Navy strategic program manager Jamey Halke.  Navy is the first agency to use the platform and is already engaged in a partnership with GSA to add the Navy's BPAs to the platform.

Historically, GSA’s customers have saved as much as 17 percent through use of reverse auctions.  With GSA offering front-loaded discounted pricing as a starting point through its BPAs, the reverse auction approach will provide additional savings to the government.

Reverse auctions also provide greater transparency into prices paid which improves the government’s ability to negotiate with vendors to receive best pricing possible.  The reverse auction platform also captures line-item data by agency bureau, which will aid agencies in performing prices paid analysis and provide insights into purchasing behavior for strategic sourcing opportunities.

GSA OFFICIAL'S TESTIMONY BEFORE HOUSE COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM

FROM: U.S. GENERAL SERVICES ADMINISTRAION

Bill Sisk Before the House Committee on Oversight and Government Reform

WRITTEN TESTIMONY OF
BILL SISK
ACTING DEPUTY COMMISSIONER
FEDERAL ACQUISITION SERVICE
BEFORE THE
HOUSE COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM
JUNE 26, 2013

Good morning Chairman Issa, Ranking Member Cummings and Members of the Committee. My name is Bill Sisk and I am the Acting Deputy Commissioner of GSA’s Federal Acquisition Service.


I have spent over twenty years at GSA. I started in GSA’s Regional office in Atlanta in 1990 and have served in a number of management positions including Assistant Regional Administrator and Regional Commissioner. In my capacity as Regional Commissioner, I represented GSA’s Assisted Acquisition Services, Network Services, and Personal Property. I have also served as Assistant Commissioner in the Office of General Supplies and Services within the Federal Acquisition Service and was appointed to the U.S. AbilityOne Commission which is a unique program that provides employment opportunities for individuals who are blind or have other significant disabilities.

I appreciate the opportunity to appear here today to discuss GSA’s Information Technology (IT) Schedule 70 program and the process by which GSA reviews Schedule 70 applications.

IT Schedule 70 -

IT Schedule 70 is the largest, most widely used acquisition vehicle in the federal government. Schedule 70 is an indefinite delivery/indefinite quantity (IDIQ) multiple award schedule, providing direct access to IT products and services from private sector partners around the country. There are currently 4,853 businesses under Schedule 70 and 4,172 of these, more than 85 percent, are small businesses. Many of these small businesses have socio-economic designations: 720 are 8(a), 128 are HUBZone, 381 are Service-Disabled Veteran-Owned, 333 are Veteran-Owned, and 1,027 are Women-Owned. Through June of Fiscal Year 2013, about $11.5 billion worth of procurement has gone through Schedule 70, $4.5 billion (39 percent) of which went to small business.

Schedule 70 has helped Federal agencies save time and money while ensuring a good value in the available goods and services. In addition, Schedule 70 is one of the two schedules that is available to state and local governments through the cooperative purchasing program, allowing them to leverage the buying power of the Federal Government to procure IT goods and services at competitive prices.

By allowing our partner agencies to purchase from pre-approved vendors they can receive goods and services faster. While having a schedule contract is not the only way to do business with the Government, having a schedule contract allows both vendors and agencies to cut down on administrative costs. Cost savings are also generated through pre-negotiated price ceilings which provide significant discounts from commercial pricing and serve as a starting point for additional competition and negotiations.

Process of Getting on Schedule 70 -

GSA has an established process by which to evaluate applications and make a determination of whether or not to approve businesses to get on Schedule. Over the past three years, GSA has processed approximately 2,800 applications for Schedule 70. Currently, the average application processing time is approximately 110 days.

Contractors can apply through GSA’s eoffer system; eOffer provides an online, paperless contracting environment, in a step-by-step process that complies with Federal Acquisition Regulation.

After an offer package is submitted electronically into our system, it is then assigned to a contracting officer (CO) or specialist (CS) who reviews the package for completeness. After the initial review, the CO/CS sends the offeror an Administrative letter identifying any areas for which additional information is required.

When a package is complete, the CO/CS conducts a responsibility determination using FAR Part 9 together with GSA’s in-house pricing tool or by submitting a Standard Form 1403 to GSA’s Office of Credit and Finance for review and approval. In the review, the CO/CS will also utilize the System for Award Management to review an offeror’s representations, certifications, past awards and performance, and to ensure that all information is current, accurate and complete.

After the responsibility determination is complete the CO/CS prepares a Pre-Negotiation Memorandum outlining negotiation strategy and any remaining deficiencies. If negotiations are successful a Final Proposal Revision (FPR) Letter is sent to the Offeror.

If the offeror accepts the FPR, the CO/CS conducts a final review of the offer and prepares and finalizes the Price Negotiation Memorandum. After all the required forms and additional information are completed and signed, the CO/CS inputs the offer into our system and prepares a package (approval letter, price list, and FPR), to send to the vendor.

Conclusion -

GSA’s Schedule 70 can be an important tool in meeting the IT needs of Federal agencies, and GSA has an established process to thoroughly review these applications in a timely fashion.

I appreciate the opportunity to be here today and I would be happy to answer any questions you have. Thank you.