GSA Plans to Close Some GSA Schedules to New Offerors
On June 7th I attended “Scheduling Success? Issues and Opportunities for Small Businesses on the GSA Schedules,” a Congressional Hearing before the Subcommittee on Contracting and Workforce, Committee on Small Business. During the hearing Steven J. Kempf, Commissioner of GSA, testified about a new Demand Based Efficiency Model (DBEM) that GSA will be rolling out as soon as 2013. One of the key features to the DBEM is that GSA will be shutting down certain Special Item Numbers (SINs) and some Schedules to new offers from vendors. This freeze on accepting new offers will at least last one year and could be expanded for up to three years. It has not been confirmed but a list of Schedules that will be closed or have SINs closed is listed below.
The reason for this change is to create a more cost-effective environment for managing the schedule program. Kempf stated, “The plan will include a review of the major part of the each Schedule and determination of whether it represents an opportunity for continued innovation and program growth, or if it is an area no longer in need of additional contractors.” The DBEM “will also create a healthier business environment both for current and prospective vendors.”
Another key change to be set forth with the DBEM is that current GSA contractors that do not meet the minimum sales requirement of $25,000 would have their contracts terminated. They have to reach $25,000 in GSA sales within the first two years and $25,000 each subsequent year.
During the hearing some criticism of the DBEM included whether the savings for GSA would offset the lost opportunities to small businesses. GSA predicts that the DBEM would create approximately $6 million in savings while TAPS, one of the schedules they plan to close, generated almost $126 million in sales for small businesses last year. Another criticism regarding the cancelling of contracts that don’t meet minimum sales is that some contractors use their GSA contract as a prerequisite for state contracts like Texas and California. So a contractor may have zero GSA sales but millions in state contract sales which they would lose if their GSA contract was cancelled.
If you have concerns about how the DBEM will affect your business contact your local congressman and if you’re interested in becoming a GSA contractor time is of the essence!
Schedules that may be closed to new offers:
- 871 – Professional Engineering Services
- 736 – Temporary Administrative and Professional Staffing (TAPS)
- 75 – Office Products/Supplies And Services And New Products/Technology
- 73 – Food Service, Hospitality, Cleaning Equipment And Supplies, Chemicals And Services
- 541 – Advertising & Integrated Marketing Solutions (AIMS)
Schedules that may have some SINs closed to new offers:
- 738X – Human Resources and Equal Employment Opportunity Services
- 72 – Furnishings and Floor Coverings
- 36 – The Office, Imaging and Document Solution
- 58 I – Professional Audio/Video Telemetry/Tracking, Recording/Reproducing And Signal Data Solutions
- 81 IB – Shipping, Packaging and Packing Supplies
- 78 – Sports, Promotional, Outdoor, Recreation, Trophies And Signs (SPORTS)
- 51V – Hardware Superstore
- 67 – Photographic Equipment – Cameras, Photographic Printers And Related Supplies & Services (Digital And Film-Based)
- 56 – Buildings and Building Materials/Industrial Services And Supplies
- 84 – Total Solutions for Law Enforcement, Security, Facilities Management, Fire, Rescue, Clothing, Marine Craft And Emergency/Disaster Response