Attempts to Streamline Federal Acquisition May Squeeze Out Competition

May 12, 2016

Is Category Management Excluding Small Federal Contractors?

Source: Public Spend Forum, Jonathon Messinger, April 7, 2016

While the White House and the General Services Administration have made category management a pillar of their attempts to streamline federal acquisition two members of the House Small Business Committee worry the more means small businesses will be squeezed out of competition for federal contracts. The White House and the federal CIO’s office have issued a series of polices in recent months calling for the elimination of what they term redundant or duplicative contracts, and moving agencies onto governmentwide contracts. But according to a letter from Rep. Nydia Velazquez (D-NY) and Rep. Steve Chabot (R-OH), the move within GSA spells doom for small businesses.

The lawmakers argue:

“Many of the new contracting vehicles coming out of the GSA have bundled so many goods together in one contract that a lot of small businesses do not have the capabilities to bid for it, despite having previously provided some of the goods or services under the [Multiple Award Schedules] contracts. As a result, the number of small firms serving as suppliers to the government in certain areas has gone from the hundreds to just a few handfuls….”  READ MORE….

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