In a strong rebuke, the Small Business Administration is accusing the General Services Administration of failing to consider the economic consequences to small businesses of the GSA’s upcoming Office Supplies 3 (OS3) contract.

      The SBA claims the GSA did not properly analyze the potential negative impacts of OS3 on small businesses.

      As a result, the SBA is urging the Government Accountability Office to uphold protests against the office supply procurement. More than a dozen small companies have submitted OS3 protests to the GAO since January.

      The OS3 contract, valued at about $1.25 billion over five years, is the third iteration of strategic sourcing for office supplies. The GSA anticipates that most of the awards will go to small businesses. OS3 is structured around Contract Line Item Numbers, with a “strong socioeconomic preference” given in three of the four CLINs.

      In an April 3 letter to GAO, John Klein, associate general counsel at the SBA, said OS3 is a consolidation contract subject to the Small Business Jobs Act of 2010, which the SBA oversees, effective December 2013.

      “With OS3, GSA was required to prepare a consolidation analysis that assessed the negative impact the acquisition will have (if any) on small businesses. GSA failed to do so,” Klein wrote.

      GSA previously told GAO it was not required to perform a consolidation analysis because OS3 is a “follow-on” contract. GSA officials declined to comment further, under its policy for legal disputes.

More information: SBA letter (published by FedNewsRadio): http://goo.gl/Yxja9D