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Industry Group Seeks Aid For Mid-Sized Contractors

A leading contractor group urged GSA to protect opportunities for mid-sized companies in its proposed Alliant governmentwide acquisition contract.

The Professional Services Council said mid-sized firms are losing market share and are under “increasing pressure” in the federal marketplace.

GSA had asked for public comment on how the interests of mid-sized companies could be protected in the Alliant and Alliant Small Business GWACs, which are worth up to $65 billion over 10 years.

The PSC said mid-sized firms should be allowed to propose on some but not all of the 51 capabilities in the full and open contract. It also said those firms should be allowed to form teams and to have their entire team evaluated in the source selection process.

Among other recommendations, the PSC urged GSA to consider reducing the 50% small-business subcontracting requirement on the full and open contract, because there is a separate Alliant GWAC for small businesses.

The PSC said mid-sized contractors in IT services are being squeezed between an increasing number of small business set-asides on one hand and large, consolidated integration contracts on the other. That combination “is creating a growing void in business opportunities for mid-tier firms,” the PSC said.

Citing research by the Center for Strategic and International Studies, the group said the federal market share for mid-tier IT companies has fallen by 40% in the past 10 years.

But the PSC acknowledged that there may be no legal authority to grant preferential treatment to mid-sized companies.

In fact, there is no official definition of “mid-sized.” The small business size standard for IT services, NAICS code 541512, limits their annual revenues to $23 million. In its February request for information, GSA suggested three possible definitions of mid-sized for companies that have outgrown the size standard: revenues under $100 million, under $200 million or under $500 million. (SAA, 2/24)

GSA has said it plans to issue new draft RFPs for Alliant and Alliant Small Business in June.


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