Alert to Federal Contractors! GSA Awards $300M Contract for Federal Strategic Sourcing (FSSI)

OAKHURST, N.J. - Oct. 28, 2013 - PRLog -- This $300 million contract indicates the commitment that the GSA and the federal government is making which will impact all small business federal contractors and vendors. The FSSI has gone mostly unnoticed. Everyone should become aware of how the FSSI will impact their businesses and the inherent risks of this procurement policy.

There is an immediate sense of urgency as the federal government will require that the FSSI will be the vehicle by which all federal agencies will purchase goods and services.

The Mandatory aspect of the FSSI has been emphasized by the Office of Federal Procurement Policy (OFPP) and the OMB in a statement made by Joseph Jordan, Administrator of the OFPP.  “Mandatory is what we’re moving toward. There will be winners and losers, and not all who want to sell to the government can sell to the government,” said Mr. Jordan.

There are lessons to be learned from the GSA Pilot FSSI for GSA Schedule 75 Office Supplies (OS2) which was implemented in June 2010.  The GSA awarded FSSI Blanket Purchase Agreements (BPAs) to only 15 office supply contractors, from among 569 who were previously selling to the federal government under the GSA Schedule 75 Contract.

Based upon Bornstein & Song Research, the 550+ FSSI BPA "non-winners" suffered nearly an average 60% loss of GSA sales, while the 15 FSSI BPAs "winners" reaped an average increase in GSA sales of almost 145%.

This trend will continue as the 550+ “non-winners” continue to lose GSA sales, while the 15 “winners” continue to benefit from the Mandatory requirement as set forth in the Commitment Letters issued by the 20 Federal Agencies which require the purchase of Office Supplies from the 15 FSSI BPAs.

This does not bode well for all small business federal contractors and vendors as GSA aggressively moves forward with plans to implement the FSSI in 10 new categories within the next 2 years. The GSA $300 Million contract is an indication of the GSA intent to aggressively proceed with this policy.

There is much to be done, but first, all should devote their time and effort to inquire about this policy and determine how they will be affected.

Bornstein & Song Research has developed a FSSI informational website which is intended to educate the public on the Federal Strategic Sourcing Initiative. All are invited to visit the website at http://www.bornsteinsongFSSI.com  .