This column was originally published on Roger Waldron’s blog at The Coalition for Common Sense in Government Procurement and was republished here with permission from the author.
The Revolutionary Federal Acquisition Regulation (FAR) Overhaul continues apace! In August, the FAR Council issued 12 model deviations covering FAR parts 4, 5, 8, 9, 12, 26, 33, 38, 40, 46, 49 and 51. To date, the FAR Council has issued model deviations for 28 parts, as well as corresponding changes to FAR parts 2 (Definitions of Words and Terms) and 52 (Solicitation Provisions and Contract Clauses) representing over half the total parts of the FAR. While all the FAR parts are important, it is significant to see the FAR Council’s revision to two of the more impactful FAR parts, 8 (Required Sources of Supplies and Services) and 12 (Acquisition of Commercial Products and Commercial Services). This blog will focus on the rewrite of FAR part 8.4 (Federal Supply Schedules), and what it means for the Federal Supply Schedule program, customer agencies and contractors.
The most consequential change to the revised FAR part 8 is the removal of the FAR 8.4 FSS ordering procedures and their relocation to a new General Services Acquisition Regulation, Subpart 538.71. The move to the GSAR is wholly consistent with GSA’s statutory authority for the program which derives primarily from the Federal Property and Administrative Services Act of 1949. It also provides a sound, flexible framework for management of the program. The GSAR provides GSA with a platform whereby it can more rapidly and effectively adjust the ordering procedures and associated guidance to reflect and leverage changes in the federal market. It eliminates bureaucratic layers in the process of making updates to the contracting and ordering process for the FSS program. At the same time, transparency and accountability remain in balance as the GSAR changes ultimately do go through the public rule making process.
There is power in simplicity. The GSAR rewrite of the FSS ordering process is clear and concise. It eliminates unnecessarily complex and confusing guidance, getting back to the fundamentals of the ordering process while embracing flexibility and innovation. FAR 8.4 also included duplicative guidance regarding contract administration (e.g., payment, order placement, inspection and acceptance, disputes and terminations). As these terms are already covered in the FSS contracts, it makes common sense that they were eliminated from GSAR rewrite of the ordering procedures. The word count reduction from FAR 8.4 to the GSAR version is remarkable. FAR 8.4 contained about 9,500 words. In contrast, the GSAR rewrite contains about 2,400 words. This reduction represents meaningful simplification of the ordering process that will enhance competition, increase efficiency and deliver greater value for agencies and contractors.
In addition to the reduction in the word count, there are several notable updates contained in the new GSAR ordering procedures:
The new GSAR makes clear that FAR part 15 type processes like evaluation plans, scoring quotations and establishing competitive ranges do not apply. At the same time, the GSAR encourages agencies to use innovative Request for Quote approaches to increase efficiency. See GSAR 538.7102-2(a) and (b)(1).
The new GSAR maintains the ability of customer agencies, at their discretion, to set aside orders for small businesses. See GSAR 538.7102-2(c)(1). Historically, under the FSS program, over 30 percent of the total value of purchases have gone to small businesses, far exceeding the governmentwide goal of 23%. The new GSAR maintains that key acquisition tool to support small businesses and assist agencies in meeting their small business goals.
The new GSAR embraces “best value,” directing agencies to “award the FSS order (or establish the FSS BPA with) the FSS contractor that represents the best value (as defined in FAR 2.101) and notify any unsuccessful quoters.” The “lowest cost alternative” language has been removed. See GSAR 538.7102-2(b)(4).
The new GSAR eliminates the old FAR’s separate ordering procedures for supplies and services requiring a statement of work. See GSAR 538.7103-2 and 538.7103-3. This commonsense revision eliminates unnecessary complexity for customer agencies and contractors.
The new GSAR eliminates the restrictions on the use of single-award Blanket Purchase Agreements over $100 million. See GSAR 538.7104-1. The Coalition for Common Sense in Government Procurement has long championed this change, as single-award BPAs are a powerful tool for customer agencies to leverage their requirements to increase competition and obtain best value solutions. Approximately 52% of all purchases under the FSS program are through BPAs. Unleashing the use of single-award BPAs will power future growth in the use of BPAs. Past FAR & Beyond blogs on this issue include:
Optimizing the Multiple Award Schedule Program
Driving Best Value Pricing – Let’s Go for A Ride
Make the Multiple Award Schedules Great…Again!
The new GSAR eliminates the guidance regarding “open market items.” Instead, GSAR 538.72 addresses the inclusion of non-contract items via the “order level materials” Special Item Number. This change clearly demonstrates the value of having the new ordering procedures and other related provisions regarding the FSS program in one place, the GSAR.
The FSS program, including the VA FSS, accounts for over $70 billion in annual purchases by customer agencies. The RFO’s “deregulation” of the FSS ordering process will further empower customer agencies and contractors to focus on sound requirements developments and streamlined, flexible competitions at the order level to deliver best value mission support for the American people.
Next, the FAR & Beyond will address best-in-class contracts and the priorities outlined in the RFO’s FAR Part 8.
The post FAR & beyond: a Revolutionary overhaul of the FSS ordering procedures first appeared on Federal News Network.