having a gsa schedule is more important to your government practice than ever before

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  1. 1. 1 Having a GSA Schedule Is More Important to Your Government Practice Than Ever Before February 25, 2015
  2. 2. 22 Meet the Presenters Kevin Lancaster CEO, Winvale 202-296-5505 klancaster@winvale.com Kevin Lancaster leads Winvales corporate growth strategies in both the commercial and government markets. He develops and drives solutions to meet Winvales business goals while enabling an operating model to help staff identify and respond to emerging trends that affect both Winvale and the clients it serves. Leo Alvarez Engagement Manager, Winvale 202-296-5505 lalvarez@winvale.com Leo Alvarezs primary focus is to advise private enterprises in building strong partnerships with the Federal Government and to facilitate their business goals. He and his team specializes in contract acquisition, federal market business strategy, acquisition policy, procurement, and schedule maintenance. Carina Linder Lead Consultant, Winvale 202-296-5505 clinder@winvale.com 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 procurement procedures.
  3. 3. 3 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
  4. 4. 4 Federal Budget for Fiscal Year 2016 8.6 9.8 10.7 13.1 13.2 13.5 14.3 18.5 24.4 28.3 29.9 41 46.3 47.9 70.2 70.7 83.8 585 0 100 200 300 400 500 600 700 EPA Commerce Social Security Interior Labor Treasury Transportation NASA Agriculture Justice Energy HUD State and USAID DHS VA Education HHS Defense Discretionary Budget Request 2016 ($bn) 6% 11% 6% 8% 10% 10% 4% 3% 2% 4% 9% 18% 15% 7% 8% 5% 6% 4% 0% 5% 10% 15% 20% EPA Commerce Social Security Interior Labor Treasury Transportation NASA Agriculture Justice Energy HUD State and USAID DHS VA Education HHS Defense Budget Change From FY2015 Source: Office of Management and Budget
  5. 5. 5 Multiple Award Schedule Overview The 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.
  6. 6. 6 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.
  7. 7. 7 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)
  8. 8. 8 Spending on the GSA Schedule Program 34.82 32.84 10 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
  9. 9. 9 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 Billions Source: GSA Schedule Sales Query (Excluding VA Schedule Sales) Top 10 GSA Schedule Contracts in FY 2015
  10. 10. 10 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
  11. 11. 11 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
  12. 12. 12 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
  13. 13. 13 How is Pricing Established Review of Commercial Sales Practices Disclosures forms the Basis of Award (BOA) customer GSAs Price Reductions 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 GSAs discount. As an example, if your MFC now receives a 10% discount, GSA is entitled to a 13% discount.
  14. 14. 14 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
  15. 15. 15 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 Services Not Available: Architectural Services, Engineering Services, Environmental Services, Facility Planning, Financial Audits, Legal Services, Public works, Registered Nursing, & Security Guard Services Texas Multiple Award Schedule (TXMAS) It is common for a contractors TXMAS catalog to be nearly identical to its GSA catalog. 27 out of 32 GSA Schedules (not including VA FSS) represented on the contract
  16. 16. 16 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 governments buying power. FSSI is governed by the Strategic Sourcing Leadership Council under the guidance of OFPP and in conjunction to the Chief Acquisition Officers Council (CAOC). The FSSI Program Management Office within GSA supports the federal governments Strategic Sourcing Community of Practice that is comprised of the strategic sourcing leads for the individual federal agencies.
  17. 17. 17 Federal Strategic Sourcing Contd 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
  18. 18. 18 Current FSSI Programs Maintenance, Repair and Operations (MRO) Domestic Delivery Services Office Supplies Information Services Janitorial an