Thursday, September 6, 2012

GSA, FSSI & "Savings"

The GSA Blog reports a savings of $10.2 million in the first year since Schedule 75 became the poster child for FSSI. Here is the link:

 In the words of Steve Kempf, Commissioner of FAS:

GSA’s Federal Acquisition Service recently celebrated the one year anniversary of a strategic sourcing program for office supplies, which we call OS2. In the first year of the program we saw $10.2 million in savings, which is 9 percent less than what federal agencies would have paid without OS2. 

I am uncertain where the 9% figure comes from, but in FY 2011 606 contractors on Schedule 75 accounted for $722,584,165. Now there are 15 companies on the FSSI BPA, which by my calculations leaves 591 companies and thousands of employees out in the cold.

Historically the GSA Schedules have been touted as the main entry for small businesses into the government market. That, it seems, may be history.

With the impending closing of 5 Schedules to new vendors in early 2013, including Schedule 70, GSA is making it more difficult for small business to successfully enter the government market.

GSA is attempting to become more efficient, and for this it should be applauded, but efficient at what price?

As the economy struggles to recover, more businesses try to do business with Federal, state and local governments.

Many successful Schedule 75 contractors have suffered severe setbacks as a result of the FSSI BPA award, and most of those are small businesses.
efficient at what price?

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