Member Update & Commercial Market Initiative Roger Waldron – President, The Coalition for Government Procurement

Commercial Market Initiative

“While the MAS program has expanded and adjusted over the years; modernizing MAS to enhance this incredibly successful, $38 billion a year program will ensure that it continues to offer the efficiency and value it was created to provide.” ̶ Tom Sharpe, FAS Commissioner, GSA Modernizing GSA’s Schedules Program for Today’s Marketplace, GSA Blog, June 12, 2014

2015 Multiple Award Schedules Environment Standard Processes Complex time-consuming contract negotiation and evaluation processes based on outdated acquisition policies + GSA MAS Transformation Initiatives Competitive Pricing Initiative Transactional Data Reduce price variability for identical Schedule contract products and services through horizontal pricing comparisons Make pricing and other data available to Federal agencies to facilitate better purchasing decisions

Transactional Data Proposed Rule Published March 4, 2015 Contractors to report transactional data from orders and prices paid by ordering activities FSS contract and GSA non-FSS contract orders (not VA) Report transactional data at the order and BPA level to GSA monthly Transactional Data Contract or BPA Number Unit Measure (each, hour, case, lot) Order Number/Procurement Instrument Identifier (PIID) Quantity of Item Sold Non Federal Entity, if applicable Universal Product Code (UPC), if applicable Description of Deliverable Price Paid per Unit Manufacturer Name Total Price Manufacturer Part Number Approx 70 member company responses Small, medium and large businesses 98% GSA Schedule contractors 42% have GWACs through GSA One quarter small business

Proposed rule and the PRC Retains Price Reduction Clause (PRC) in GSA Schedule contracts Deletes requirement to monitor basis of award (BOA) customer if report transactional data Remaining pricing compliance requirements in effect Commercial Sales Practices (CSP) information Updates throughout life of the contract Price reductions may be requested at any time

Transactional data burden and cost GSA estimated a reduction in annual reporting burden for contractors Annual burden reduction approx. 750,000 hours Annual savings $51 million Member Survey revealed: Based on survey total implementation cost is $814,700,534—30 times GSA estimate of $24 million

“GSA can more effectively achieve its goals using methods that are less costly for industry and the Federal government.” Public comments from The Coalition for Government Procurement GSAR Case 2013-G504, Transactional Data Reporting May 4, 2015

Commercial Market Initiative

Why an Alternative? Transactional data as described in the proposed rule creates higher MAS program costs for government and industry Inconsistent with FAS initiatives to lower contract pricing/costs Dynamic market-based model an alternative Put commercial back in commercial item contracting Increase efficiency Reduce market barriers for businesses of all sizes Increase access to innovation

The Alternative – Straw-Man Online Federal catalogue Posts products and services at real-time competitive prices for products and services (labor or service rates) Simplified terms and conditions accepted at purchase Creates Basic Ordering Agreement (BOA) Open to all eligible ordering activities Offers Best Competitive Pricing Supports customer requirements to follow FAR 8.4 ordering procedures Opportunity to notify vendor of intent to purchase at high volume and request a quote

Alternative within GSA Authority Within already existing authority for Schedules program Federal Property and Administrative Services Act of 1949 41 U.S.C. 259(b)(3) Program participation must be open to all responsible sources Orders and contracts result in lowest overall cost alternative to meet Government’s needs

Benefits Dynamic competitive market for commercial items Market driven pricing Greater access to commercial innovation across industries Reduced lead times for new entrants and items Increased competition Terms and conditions aligned with commercial practices, as much as possible, to maximize best value

Recommended Pilot Develop using existing commercial tools through 18F Voluntary pilot for limited Schedules Simplified terms and conditions Measure pilot success based on: Total Acquisition Cost Cost of pilot participation vs current Schedules program (government and industry) Compare administrative, bid & proposal and compliance costs, and pricing Survey Customer agencies Contractors

Discussion What suggestions do you have on the Commercial Market Initiative? What is the appropriate role of transactional data? What can be done to reduce Contract Duplication? How can the processing time for modifications be reduced? Any additional ideas for GSA to improve its government-wide contract vehicles (MAS program and GWACs)?

Thank you

Keynote: The Need for Acquisition Reform Jack Gansler – Former Undersecretary of Defense for Acquisition, Technology, and Logistics

Legislative Reform – What to Expect from the Hill Troy Cribb – Senate Homeland Security & Government Affairs Committee Emily Murphy – House Small Business Committee Arun Seraphin – Senate Armed Services Committee Moderator: Jon Etherton- President, Etherton & Associates

Break

Executive Agencies – Leading Acquisition Change Soraya Correa – Chief Procurement Officer, DHS Major General Casey Blake – Deputy Assistant Secretary for Contracting, Office of the Assistant Secretary, Air Force Acquisition Gregory Giddens – Principal Executive Director, Office of Acquisition, Logistics, and Construction, VA Moderator: Bill Hilsman – Booz Allen Hamilton

Business Outlook – New Opportunities, New Challenges Brian Friel – Senior Contracts Analyst, Bloomberg Government Cameron Leuthy – Senior Budget Analyst, Bloomberg Government Tiffany Hixson – Regional Commissioner, GSA Moderator: Bill Gormley - President, The Gormley Group

Break

Acquisition Reform Discussion and Brainstorming Francis Rose, Anchor – In Depth, Federal News Radio Roger Waldron, President – The Coalition for Government Procurement

Discussion and Brainstorming What suggestions do you have on the Commercial Market Initiative? What is the appropriate role of transactional data? What can be done to reduce Contract Duplication? How can the processing time for modifications be reduced? Any additional ideas for GSA to improve its government-wide contract vehicles (MAS program and GWACs)?

Myth Buster Breakout Sessions Session 1, 2:15pm - 3:30pm Speakers Location DOD Update John Tenaglia, DoD; Mike Canales, DoD Doing Business with the VA Elegear Primus, VA; Craig Robinson, VA; David Elizalde, VA Doing Business with DHS Harrison Smith, DHS; Jackie Smyth, DHS; David Grant, DHS Alliant 2 Updates Casey Kelley, GSA; John Cavadias, GSA; Richard Blake, GSA Session 2, 3:45pm - 5:00pm Speakers Location GSA and VA Schedules Modernization Robert Bourne, GSA; Craig Robinson, VA; Mark Lee, GSA; Greg Rollins, GSA The GSA Acquisition Centers Shaloy Castle-Higgins, GSA; Kim Kittrell, GSA; Peter Han, GSA; Brian Knapp, GSA; Ralph Lentz, GSA Update on Government-wide IT Acquisitions Darlene Coen, NASA; Robert Coen, NIH; Kay Ely, GSA; Christopher Fornecker, GSA See the Conference program for more details

5:00 - 6:00 Networking Reception Please Join Us In The Main Foyer For A Networking Reception!