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The General Services Administration should open up all its supply schedules to state and local governments, the head of the agency said on Thursday.

Acting GSA Administrator Jim Williams endorsed a bold, across-the-board cooperative purchasing plan that would provide state and local municipalities with access to the same goods and services that contractors sell to the federal government. "Everything we do should be open to state and local entities," Williams said at the 27th annual Government Contract Management Conference in Bethesda, Md.

The cooperative purchasing plan would require an act of Congress, but legislation hasn't been introduced yet. Currently, only a handful of GSA's multiple awards schedules are open to nonfederal governments. Cooperative purchasing is available for the procurement of IT equipment through GSA's Schedule 70, and for the acquisition of all equipment needed to prepare and recover from a natural disaster or terrorist attack.


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In June, President Bush signed H.R. 3179, a bill that allows state and local governments to purchase law enforcement, firefighting, and security products and services off GSA's Schedule 84. GSA said at the time that cooperative purchasing could increase the schedule's revenue by $100 million to $200 million annually.

While the bill had bipartisan support, there has been little buzz since then about opening all GSA schedules to nonfederal governments. Williams, however, would like to build momentum for such a change. "I hope that if I keep talking about it, then it will happen," said Williams, whose tenure as administrator could come to an end in a matter of weeks, if, as expected, President-elect Barack Obama appoints his own GSA chief.

GSA should leverage its tremendous purchasing power horizontally across the entire federal government and vertically across state and local entities to provide customers with goods and services at the lowest possible price, he said.

Echoing complaints made by his predecessor, former administrator Lurita A. Doan, Williams argued against the multitude of agency-specific IT support vehicles that have proliferated in civilian agencies during the past several years. With a dire lack of contracting professionals across the government, he said resources were being wasted developing new vehicles rather than on driving value onto existing task order contracts.

These large governmentwide acquisition vehicles, such as the Homeland Security Department's EAGLE, also have created an unnecessary level of duplicity that fails to optimize a strategic sourcing mentality, according to Williams. "We have a system that is not really a system," he said. "We have stovepiped operations that are not integrated."

A veteran of the acquisition community who has worked at DHS and the Internal Revenue Service, Williams also railed against the "knee-jerk reactions" by some lawmakers to ban specific contracting types, such as cost-plus awards. He said the focus should be on beefing up the size and training of the acquisition workforce rather than on tying the hands of acquisition professionals.

"These are just tools in the tool belt," Williams said.

Obama and his Republican rival, Arizona Sen. John McCain, both criticized cost-plus contracts during the presidential campaign. Lawmakers also issued restrictions on the use of cost-plus vehicles in the 2009 Defense Authorization Act.

COMMENTS

  • Before Lurita Doan was forced out of GSA earlier in the year, this was one of her big lobbying initiatives. If GSA contractors could sell to State and Local customers from any GSA contract, this could double IFF revenue (.75%) for GSA. Keep in mind, that when you combine total state and local spending in all 50 states, it exceeds total federal spending. This could be a very good thing for GSA and their role in USG procurement.
  • In a situation of GSA, or any Fed Rep, actually negotiating the "best deal" this would be an excellent idea. However, I am far from convinced that those doing the "negotiating" for federal purchases, including our FEP health insurance plans, know or care enough about what they are doing to "negotiate" a "best" price and term arrangement. The appearance is that the "negotiator for Feds" hears an offer to discount the product or service 10% and thinks that is some kind of "deal" for a high volume, or bulk, type of purchase. What a misconception for which we all pay the higher price. Some people just don't have it in their character to actually "negotiate" or "bargain" for a beneficial agreement. For example, I have friends and others that I know, that go to buy a car and when the salesman says we can take a thousand off of the sticker they think that is a tremendous savings and jump on it with out even attempting to haggle. Basically, I don't know if there is any real incentive for the state, local, or others to take the GSA, or Fed otherwise, up on a supposed opportunity to buy at the Fed "negotiated" price. They likely obtain better pricing, or just as good, on their own; unless Federal Gov contract negotiators are better educated in the art of negotiating in consideration of what ever market/product they are pursuing. Sorry, but I am not impressed with what I have seen representing a Federal negotiated deal of any kind. Is anyone else impressed?
  • The interim rule expanding Schedule 84 to state and local governments as required by the Local Preparedness Acquisition Act (Pub. L. 110-248) is found at 73 Fed. Reg. 54334, 9/19/2008. I'm just not sure just who is going to conduct the GSA Contracting Officer-to-State/Local Contracting Officer training that would be necessary under such a Schedules expansion. State & Local COs speak a similar general language of procurement, but it is very different dialect than the FAR-based terminology of Federal COs. Nothing in the the Federal Acquisition Regulation is binding on State and Local government COs.