Independent Office Products and Furniture Dealers Association (IOPFDA)

Recap & Overview of NDAA Section 846’s Ecommerce Marketplace Presented by: Mike tucker & Paul miller

Board Orientation Background Amazon lobbied Congress to consolidate existing internet portals and contracts with a government wide Amazon Ecommerce portal. Congressman Thornberry from Texas submits rider to National Defense Authorization Act (NDAA) to make this law. NOPA and other industry groups express significant concerns. House and Senate compromise bill calls for a phased in plan with industry input and review and oversight from GSA and OMB.

Original HASC Proposal Considered granting “one or more” marketplace contract without competition Prohibited GSA (or any Government agency) from running the marketplace Enforced marketplace requirements that VERY few companies could satisfy Relieved DOD purchasers from most competition obligations Prohibited federal buyers from opposing marketplace TS&Cs

H Proposal vs. H/S Compromise Online marketplace provider selected without competition Online purchases considered “competitive” as long as multiple vendors offer product Inhibited who could become an online marketplace Utilizes current procurement laws to ecommerce portals unless explicitly excluded Online purchases must meet current competition conditions Lessens restriction to becoming an ecommerce portal

Ecommerce Portals GSA’s definition of an ecommerce portal is a “commercial solution providing for the purchase of commercial products aggregated, distributed, sold, or manufactured via an online portal” Directs GSA to “consider” portals that Are “widely used in the private sector” “Have or can be configured to have” regularly revised supplier and product choices, as well as a collection of product and supplier reviews Unlike original House wording, new wording makes a spectrum of commercial entities accessible

Ecommerce Portal Program VERY Broad Board Orientation Ecommerce Portal Program VERY Broad Ecommerce portals will accommodate purchases up to the SAT Program must entertain government-wide purchasing Related legislation expands concept of commercial items Once commercial, inferred as still commercial DOD can’t hold FAR 15 competition for purchases made through FAR 12 procurements DOD must launch an audit of current contract vehicles DAU is charged with creating a new CO training program directed at commercial purchases

H Proposal vs. H/S Compromise Quick, non-competitive selection of 1 to 2 current online marketplaces Phased-in approach to plan, schedule, evaluate, and develop new program

GSA/OMB Implementation Timeline Develop implementation plan Establish a schedule Complete market research Consult with agencies, suppliers, portal providers Determine data security concerns Analyze impact of fees Establish guidance for use of portals Create protocols for oversight 90 Days 12 Months 24 Months After Plan

H Proposal vs. H/S Compromise Products sold through marketplace must be screened to meet regulatory requirements Products sold through marketplace must be screened to meet regulatory requirements

Potential Regulatory Requirements Country of Origin Data Security Trade Agreements Act Small Business Buy American Act Socio-Economic Berry Amendment Environmental

H Proposal vs. H/S Compromise Ecommerce portal providers prohibited from using data for their own purposes Online marketplace Providers prohibited from disseminating data to third parties

Questions Regarding Portal Selection Will GSA conduct conventional direct competition? OR Will GSA conduct a schedule-like “everyone who meets the requirements receives a contract” competition?

Recommendations of NOPA & Industry Partners “Encourage” GSA to “resist the urge to make changes to the existing features, terms and conditions, and business models of available ecommerce portals…” AND “Pursuant to a diligent review of existing law and regulation,… direct [GSA] to be judicious in requesting exceptions.”

Next Steps: So where does this leave us? Work with GSA Implementation team Educate GSA on current Industry best practices and how the current system fosters competition, compliance, ease of ordering and data Get feedback from industry partners on possible solutions Work for inclusion in tasks force/working groups Make sure GSA understands impact of having to sell through another’s existing marketplace Regular communication with industry partners

Thank you. Mike Tucker & Paul Miller