Kevin Lancaster leads Winvale’s corporate growth strategies in both the commercial and governmentmarkets. He develops and drives solutions to meet Winvale’s business goals while enabling an operatingmodel to help staff identify and respond to emerging trends that affect both Winvale and the clients itserves.
Leo Alvarez’s primary focus is to advise private enterprises in building strong partnerships with the FederalGovernment and to facilitate their business goals. He and his team specializes in contract acquisition,federal market business strategy, acquisition policy, procurement, and schedule maintenance.
Lead Consultant with over 4 years of experience in GSA contract proposal writing and contract negotiations.Focuses on contract compliance consulting; Federal Acquisition Regulations (FAR) and procurementprocedures.
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Agenda• FY 2016 Budget Request
• Multiple Award Schedule Program Overview
• Spending on the GSA Schedule Program
• Popularity of FSSI (Federal Strategic Sourcing Initiatives)
• Requirements to Participate
• Other Popular Contract Vehicles
• Q&A
Presenter
Presentation Notes
Brief overview of how we will structure our conversation today
The best place to start any discussion on procurement and the overall government market is the Federal budget. On Feb. 2nd the White House released its proposed budget for FY 2016 -- a $4 trillion plan that would increase agencies‘ discretionary spending by $59.4 billion. As many of you know the federal fiscal year starts October 1 and runs through September 30, and agencies can only spend money when funds are authorized and appropriated. In the chart provided here, you can see the budget is broken down by federal agency, and the percentage shifts in agency appropriations. The government wide average is an increase of 5.78%. The Defense department gets almost 50% of the budget and all major agencies have been cited for budget increases. Now, whenever budget requests are put out people are inclined to say the proposal is dead on arrival. While Congress holds the final purse strings and is likely to balk at several of the proposals put out by the president, one can see that there will be increased opportunities due to proposed increases in annual appropriations. That’s important for commercial organizations when evaluating the Federal market. Important note, 80% of federal spend for professional services goes through 10 agencies Army, Navy, Air Force, Office of the Secretary of Defense (OSD), Department of Energy, Health and Human Services, Homeland Security, NASA, Transportation, State ADDITIONAL NOTES: Discretionary spending—that is, spending stemming from authority provided in annual appropriation acts; which are under the control of the House and Senate Appropriations Committees. Most defense, education, and transportation programs, for example, are funded that way, as are a variety of other federal programs and activities. Those appropriations are subject to a set of budget enforcement rules and processes that differ from those that apply to mandatory spending. Mandatory, or direct spending—that is, spending controlled by laws other than appropriation acts; includes spending for entitlement programs and certain other payments to people, businesses, and state and local governments. Mandatory spending is generally governed by statutory criteria; it is not normally set by annual appropriation acts. Outlays for the nation’s three largest entitlement programs (Social Security, Medicare, and Medicaid) and for many smaller programs (unemployment compensation, retirement programs for federal employees, student loans, and deposit insurance, for example) are mandatory spending. Republicans want to make cuts DHS IS THE ONLY AGENCY WHICH DOESN’T HAVE FULL YEAR FUNDING IN FISCAL YEAR 15; CAUGHT UP IN LARGER CONFLICT ON IMMIGRATION AND CYBER SECURITY Defense budget has big increases for military constructions (MILCON) and RDT&E (Research Development test and evaluation) Treasury (IRS – Funding increased); Commerce (census – funding increased for 2020 census); HUD – housing assistance programs; IT Spending – HHS down 10 % HHS – research for CDC and NIH budget consistent w previous years; zoonotic discrease research increase HHS – Change in how they reimburse services in medicare (mandatory budget side) – big change; medicare – big battle As an aside, this is also the same for most state and local governments, although their fiscal year runs July 1 through June 30th.
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Multiple Award Schedule OverviewThe General Services Administration (“GSA”) has created the Multiple Award Schedule for the federal government and other qualified entities to purchase product and services.
• GSA contracts offer government customers direct delivery of high-quality commercial supplies and services at discount pricing.
• Contracts can be up to 20 years long. • GSA MAS contracts are indefinite delivery, indefinite quantity
(“IDIQ”) contracts, which do not have a sales limit or ceiling.
Presenter
Presentation Notes
Since the federal government spends so much money, one Agency’s mission is to help them do that better, and that agency is the General Services Administration, or GSA. And many years ago they established the GSA Schedule program, which is a contract that commercial companies can apply for to get qualified to sell direct to the federal government. MAS is the largest and most successful buying program in the federal government. These GSA Schedule contracts are up to 20 years long, do not have a sales limit, and everyone in the federal government can use them. It is one of the most widely used government contacts available and they are recommended to anyone serious about selling to the federal government.
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Why Use a GSA Schedule?
Preferred Source:• Prequalifies and preapproves vendors to sell to Federal Buyers
Best price for customers:• GSA has already negotiated fair and reasonable pricing, so government buyers can
benefit from shorter lead-times, lower administrative costs, reduced inventories, and compliance with environmental, socioeconomic laws, and procurement regulations.
Quickest way to order:• The contracting officer can order directly from a GSA contact holder and does not
need to make it public. Depending on the dollars, the contracting officer must research or solicit 3-5 other GSA contract holders.
• By placing an order against a GSA Schedule contract, the government buyer has concluded that the order represents the “best value.”
Presenter
Presentation Notes
So why does the government use them? For one, GSA will negotiate a fair and reasonable price, so the government can purchase quickly and those purchases are compliant under laws and regulations. Because again, GSA already took care of many administrative requirements. The purchase also represents “Best Value”. Not to say that Price isn't important, because it is, but you don’t have to have the lowest price if you can meet other needs, such as delivery terms, past performance, warranty, or other technical considerations, which includes intellectual property or if your product can do something other products cant do. So the government is a Best Value buyer. The GSA Schedule program also represents the quickest way to order A recent study showed it takes a federal buyer an average of 15 days to issue an order under a GSA Schedule. This compares to an average of 268 days for a non-GSA Open Market contract. Need + Funding + Company with MAS/IDIQ Contract + Relationship = Shortest Time to Sale
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Who are your Customers?• Executive & Other Federal Agencies• Mixed-Ownership Government Corporation (FDIC, Federal
Home Loan Banks, etc.)• The District of Columbia• Cost Reimbursable Government Contractors authorized in
writing by a Federal agency (48 CFR 51.1)• State and Local Government for Information Technology
and Law Enforcement Solutions ONLY (Cooperative Purchasing)
Presenter
Presentation Notes
The GSA Schedule program is open to a variety of “ordering activities” that may purchase DIRECTLY from your GSA Schedule.
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Spending on the GSA Schedule Program
34.8232.84
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15
20
25
30
35
40
45
50
2013 2014
Spending on All GSA Schedules Over Time ($bn)
Source: GSA Schedule Sales Query (Excluding VA Schedule Sales)
Currently 32 different GSA Schedules (Not Including VA FSS)
Current # of GSA contractors: 19,576
Average Sales per GSA contractor: $1,677,700.20
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IT Schedule 70 is the dominant GSA Schedule by sales, accounting for more than 40% of 2014 volume.
$0.62
$0.63
$0.67
$0.78
$0.92
$1.54
$2.16
$2.59
$4.00
$14.15
$0 $10
51V: Hardware Superstore
66: Scientific Equipment and Services
36: Office, Imaging, and Document…
00CORP: Consolidated Schedule
71: Furniture
84: Law Enforcement
520: Financial and Business Solutions
871: Professional Engineering Services
874: MOBIS
70: Information Technology
BillionsSource: GSA Schedule Sales Query (Excluding VA Schedule Sales)
Top 10 GSA Schedule Contracts in FY 2015
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Source: GSA Schedule Sales Query (Excluding VA Schedule Sales)
Average Size of Top 10 Contracts in FY 2014
$1,374,946
$1,333,480
$1,996,886
$3,415,750
$1,224,304
$1,115,717
$3,233,170
$3,123,916
$1,814,146
$2,727,207
$0 $1,000,000 $2,000,000 $3,000,000 $4,000,000
51V: Hardware Superstore
66: Scientific Equipment and Services
36: Office, Imaging, and Document Solutions
00CORP: Consolidated Schedule
71: Furniture
84: Law Enforcement
520: Financial and Business Solutions
871: Professional Engineering Services
874: MOBIS
70: Information Technology
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State and Local Sales• Cooperative Purchasing allows state and local governments to purchase from
Schedule 70 for information technology and Schedule 84 for law enforcement and security products and services, at any time, for any reason, using any funds available.
• The state and local IT market is valued at over $60 billion. *
• The usage of Schedule 70 by state and local governments increased almost 30% last year to $846 Million in volume. *
• Growth in spend is occurring in areas such as software, IT services, systems, and IT outsourcing. *
• Schedule 84 State and Local sales have slowly grown since inception (2008), today exceeding $75M in FY 2014.
• Biggest State and Local SIN on Schedule 84: 426-4F (Emergency Preparedness and First Responder Equipment, Training and Services): $13.6 M
* Source: GSA Blog – “Schedule 70 In the State and Local Market”, Jan. 26, 2015
Presenter
Presentation Notes
As state and local governments continue to look beyond their borders for cost effective global sourcing solutions, companies that hold contracts for which cooperative Purchasing agreements in place will hold the advantage over their competitors in this market. Interesting, according to studies from The projected IT spend at the state and local level has increased over the past couple of years, and the growth of usage of Schedule 70 has outpaced that growth. GSA has increased overall focus on outreach and training to state and local governments on the use of Schedules 70 and 84. Local vendors: An enormous benefit to state and local governments is access to companies in their local communities. Schedule 70 has thousands of vendors located across the US and many state/local entities encourage local businesses to consider GSA Schedule as an option. 80% of the companies on Schedule 70 are small businesses and GSA can provide support to those companies seeking to obtain a Schedule contract.
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Requirements to Participate
• Financial Statements for previous 2 complete fiscal years
• Performance history (completed or ongoing projects over previous 2 years)
• Supporting pricing documentation (invoices, contracts, or quote sheets)
• Product offers must exhibit TAA compliance
Presenter
Presentation Notes
at a minimum, balance sheets and income statements
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How is Pricing Established
• Review of Commercial Sales Practices Disclosures forms the Basis of Award (BOA) customer
• GSA’s Price Reduction’s Clause (PRC)GSA determines who is the Most Favored Customer (MFC) prior to the award. For a typical GSA Schedule contract, a MFC might be “Educational Institutions”. GSA then negotiates the discount relationship of the MFC and the Government. For a typical GSA Schedule contract, a MFC receives a 5% discount and GSA might receive a 8% discount. The delta or discount relationship must be maintained throughout the contract period. Changes that occur to the MFC discount require an equal change to GSA’s discount. As an example, if your MFC now receives a 10% discount, GSA is entitled to a 13% discount.
Presenter
Presentation Notes
Commercial Sales Practices are a disclosure on how a contractor sells products / services in their commercial market. It includes WHO they sell to and HOW they sell. It should also delineate between standard policies & practices and non-standard policies & practices. A contractor’s CSP-1 data is how the Contracting Officer evaluates the GSA price proposed is “fair and reasonable”. Contractors should accurately describe all commercial pricing and discounting practices (standard and non-standard) and distinguish between policy and practice.
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Current MAS Program Improvements
• Professional Services Schedule (PSS) Consolidation
• Contract Modifications to be further automated
• eBuy opportunities to become visible to all schedule contractors
• EULA processing times to be reduced
Presenter
Presentation Notes
A few major MAS Program changes are in the works to make it easier for industry to partner with GSA and improve the MAS program. Automated mods - This will mean that vendors will be able to have better information on what the government needs and can offer their solutions to the government quicker.
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Popular State MAS Contracts
• State of California Multiple Award Schedule (CMAS)
• Total CMAS Sales for Fiscal year 2014: $220M
• Contractors can offer products, services, and prices from their own Federal GSA schedule.
• Contract Term: Expires on the same date as referenced GSA Schedule
• It is common for a contractor’s TXMAS catalog to be nearly identical to its GSA catalog.
• 27 out of 32 GSA Schedules (not including VA FSS) represented on the contract
Presenter
Presentation Notes
States sought to make it simpler, easier and more cost effective for State agencies and co-op members to purchase goods and services. purchasing vehicle that offers an alternative to the competitive sealed bid purchasing method These states prefers to use a vendor’s existing GSA Schedule contract to establish a separate contract. CMAS: CMAS contracts are established for both information technology and non-information technology products and services. In addition, contractors can also offer products, services, and prices from a Federal GSA schedule held by another company. In this scenario, however, the contractor must provide written substantiation that they are: 1) Authorized to sell the products and provide the technical services being offered, or 2) Provide references to demonstrate their qualification to provide the consulting, personal, or technical (without products) services being offered. (Refer to Section 2 of this guide for the details of a CMAS contract offer). TXMAS: Similar to CMAS, State of Texas uses the prices, terms and conditions of your GSA Contract as the basis for negotiation of a Texas Multiple Award Schedule contract. Schedules: http://portal.cpa.state.tx.us/txmas/ Vendor Performance Tracking System
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About The Federal Strategic Sourcing
• In November of 2005 the Federal Strategic Sourcing Initiative (FSSI) was established to improve the federal government acquisition value chain, increase socio-economic participation and ultimately lower total cost of operations and/or ownership for strategic sourcing vehicles. FSSI helps agencies to aggregate their requirements, minimize redundant acquisitions, and coordinate the purchase of commonly used products and services to leverage cross-agency expertise and to maximize the government’s buying power.
• FSSI is governed by the Strategic Sourcing Leadership Council under the guidance of OFPP and in conjunction to the Chief Acquisition Officer’s Council (CAOC). The FSSI Program Management Office within GSA supports the federal government’s Strategic Sourcing Community of Practice that is comprised of the strategic sourcing leads for the individual federal agencies.
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Federal Strategic Sourcing – Cont’d
How does Strategic Sourcing relate to the GSA Schedules Program?
• The Schedules program is a potential platform to be used for implementing a Strategic Sourcing solution as GSA Schedules carry a number of advantages.
• Key terms and conditions are already in place, and others (such as data reporting requirements) can easily be added in Blanket Purchase Agreement or task order
• Schedules provide a mechanism to harness the power of continual competition to ensure that performance remains high, throughout the life of the Strategic Sourcing solution
• Schedules speed the acquisition process for the government
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Current FSSI Programs• Maintenance, Repair and Operations (MRO)
• Domestic Delivery Services
• Office Supplies
• Information Services
• Janitorial and Sanitation Supplies (JanSan)
• Print Management
• SmartBUY – BPA (Blanket Purchasing Agreements)SmartBUY® is a federal procurement vehicle that leverages the government’s buying power to reduce the cost of commercial off-the-shelf (COTS) software and services. SmartBUY solutions are developed collaboratively with customers. While the strategy development process varies for each solution, the SmartBUY PMO collaborates with customers to develop solution requirements for all solutions. For additional information, please see www.gsa.gov/smartbuy.
• Wireless FSSI
Presenter
Presentation Notes
Maintenance, Repair and Operations (MRO) Maintenance, Repair, and Operations (MRO) is a dynamic solution offering benefits to government agencies by way of better pricing, additional savings and discounts, and convenience. Through MRO, there is now a streamlined process to buy supplies in the categories of hardware; tools and tool cabinets; and paints, sealants, and adhesives. Hundreds of thousands of products are available for purchase at an average savings of 12% off of standard government pricing.��The majority of purchase channel contractors have a strong focus on small business and meet socioeconomic factors like Women Owned Small Business, Disabled Veteran Owned Small Business, and Small Disadvantaged Business. The solution also requires contractors to offer environmentally sustainable products to customers. Learn more about MRO and how the solution can benefit your agency at www.gsa.gov/fssimro. Domestic Delivery Services The DDS solution was developed by a team of over 15 agencies who followed the disciplined strategic sourcing process developed by FSSI. This process allowed the team to develop a solution that meets the government’s unique shipping needs and to negotiate rates that truly leverage the government’s buying power. For additional information, please see http://www.gsa.gov/dds. Office Supplies As of December 4, 2014, the U.S. Government Accountability Office (GAO) has denied four protests regarding Contract Line Numbers (CLINs) 0001 to 0004 for the award of GSA’s FSSI Office Supplies Third Generation (OS3) Purchasing Channel solution. Therefore, GSA can now offer office supplies from the four CLINs in the OS3 solution. As the stay of performance has been lifted, we encourage our federal customers to fulfill their office supplies needs through the FSSI OS3 awardees. Please note, we are currently working with OS3 vendors to upload their contract items on GSAAdvantage!® and anticipate them to be available in the coming weeks. In the interim, please contact the OS3 vendors directly. A list of OS3 vendors can be found atwww.gsa.gov/os3. Information Services FEDLINK/Library of Congress (LOC) is the executive agency for the procurement of Information Resources via the Federal Strategic Sourcing Initiative (FSSI) solution. Initially, the FEDLINK Strategic Sourcing Program will target legal, medical, science, technology, and engineering online content. VisitFEDLINK Strategic Sourcing on the web.��Since 1974, FEDLINK has managed the acquisition of information products and services – such as online and traditional subscriptions, books, maps and newspapers – on behalf of federal agencies. Go the FEDLINK web site to learn more about federal agencies working together to achieve optimum use of the resources and facilities of federal libraries and information centers by promoting common services, coordinating and sharing available resources, and providing continuing professional education for federal library and information staff. Janitorial and Sanitation Supplies (JanSan) Janitorial and Sanitation Supplies (JanSan) is a dynamic solution offering benefits to government agencies by way of better pricing, additional savings and discounts, and convenience. Through JanSan, there is now a streamlined process to buy supplies in the categories of cleaning compounds and related dispensers, non-motorized cleaning equipment and trash receptacles, paper products and related dispensers, and motorized floor cleaning equipment and accessories. Hundreds of thousands of products are available for purchase at an average savings of 15.9% off of standard government pricing. The majority of purchase channel contractors have a strong focus on small business and meet socioeconomic factors like Women Owned Small Business and Disabled Veteran Owned Small Business. The solution also requires contractors to offer environmentally sustainable products to customers. Learn more about JanSan and how the solution can benefit your agency atwww.gsa.gov/fssijansan. Print Management U.S. Federal Strategic Sourcing for Print Management Program With the U.S. government currently spending over $1 billion a year on printing and its related commodities, a solution had to be developed that would lower these costs and support the government’s mission to be resource and environmentally sustainable. The Federal Strategic Sourcing for Print Management Program is a national commodity management approach that allows federal agencies to improve performance, promoteenvironmentally sustainable practices, support small businesses, and lower purchasing and ownership costs by acquiring printing, copying, scanning, and faxing commodities more efficiently. For more information about Print Management visit our About Print Management page. Go to the Acquisition Information Center page to learn more about how to develop print management initiatives. SmartBUY SmartBUY® is a federal procurement vehicle that leverages the government’s buying power to reduce the cost of commercial off-the-shelf (COTS) software and services. SmartBUY solutions are developed collaboratively with customers. While the strategy development process varies for each solution, the SmartBUY PMO collaborates with customers to develop solution requirements for all solutions. For additional information, please see www.gsa.gov/smartbuy. Wireless FSSI Wireless is a New FSSI Award! It was awarded in May 2013. Save 15-20 percent by using the Wireless FSSI BPA. Save time by consolidating multiple wireless services, plans, and devices. Easily select the best customized solution. Federal agencies and state and local governments may use the Wireless FSSI BPAs which are based on GSA's IT Schedule 70. To learn more about FSSI Wireless please visitwww.gsa.gov/wirelessfssi. To watch a video about the FSSI Wireless and MDM program please click here.
FSSI Office Supplies (Third Generation) As we move towards OS3, FSSI remains committed to maximum opportunities possible for small business. If you would like to learn more about the upcoming OS3 solutions, please visit GSA Interact. Domestic Delivery Services (Third Generation) As we move towards the third generation of DDS, FSSI is committed to ensuring that all agencies receive more value for their tax payer dollars. Please view the Points of Contact page for for information on DDS3. Furniture The U.S. General Services Administration (GSA) has started discussions with the furniture industry on a strategic sourcing solution focused on federal furniture purchasing. To access the press release on March 19, 2014 please visit here. For access to the interact page designed to ensure transparency and collaboration among GSA's industry partners, please visit GSA Interact. Janitorial and Sanitation (JANSAN) JANSAN solutions is one of the new FSSI efforts launched in 2013. For more information on future solutions, please visit GSA Interact. Building, Maintenance, and Operations (BMO) BMO Services is one of the new FSSI efforts launched in 2013. For more information please visit GSA Interact. Human Resources Services & Training (HRST) On April 28th, 2014, the Office of Personnel Management (OPM) and the U.S. General Services Administration (GSA) signed a Memorandum of Understanding (MOU) forming a partnership to provide the federal government with more effective and efficient human resource training and development and human capital management services. The objective is to replace OPM's existing Training and Management Assistance (TMA) contract vehicle with a contract vehicle that encompasses industry best practices in the fields of human resource training and development and human capital management services. Additionally, the goal is to meet the principles of OPM's Human Capital Assessment and Accountability Framework (HCAAF) and incorporate the benefits of the Federal Strategic Sourcing Initiative (FSSI). For more information please visit GSA Interact.
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Join us for our next webinar!Date: 3/4/2015 @ 1:00 PM EST
Topic: Researching Federal Opportunities
Read Winvale’s blog on current topics for government contractors:
• From the GSA: Audit Frequency and Scrutiny Increase
• 10 Tips for Ramping Up Your Government Marketing
• Watch out for GSA's New Mass Modifications!
About WinvaleWinvale is recognized as the leading provider of Government Advisory Services and Strategic Consulting & Training Services to government contractors across all industries and disciplines. For more information, visit www.winvale.com or call (202) 296-5505.
