May 16 2003 Copyright 2003 Business Research Services Inc. 202-364-6473 All rights reserved.

Features:
Web Watch
Procurement Watch
Issues
Teaming Opportunities
Recently Certified WBEs
Recently Certified 8(a)s
Recent 8(a) Contract Awards
Washington Insider
Calendar of Events
Return to Front Page

GSA Schedule 70 Now Open to State, Local Buyers

The General Services Administration has issued an interim rule allowing state and local government agencies to buy information technology products and services through GSA Schedule 70.

The rule eliminates one perceived obstacle to use of the schedule by states and localities: It would allow those buyers to add terms and conditions required by their own laws or regulations as long as they do not conflict with the schedule contract’s terms and conditions.

GSA officials had said earlier that nearly half the states have some procurement laws, such as environmental laws, that must be included in any contract with a vendor.

The interim rule, effective immediately, implements a provision of the E-Government Act passed by Congress last year.

Just how popular Schedule 70 will be with state and local IT buyers is not known. GSA officials insist the schedule offers lower prices than those agencies could get elsewhere.

But GSA has no plans for a marketing push to spread that message. At a public meeting on the proposed rule in March, GSA officials said schedule vendors will have to teach local purchasing officers how to use the schedules. Neal Fox, assistant commissioner of the Federal Supply Service, said GSA doesn’t have the resources to go “from Poughkeepsie to Pocatello” to educate buyers.

The market research firm Input of Chantilly, VA, said it expects state and local buyers will be slow to use the schedules. Some states have established their own multiple award schedules or statewide contract vehicles. Many states also have laws or regulations requiring them to favor local companies in procurement.

In other states, legal barriers would either prevent agencies from using GSA schedules or make it more complicated. “The administrative workload of approving a Schedule 70 purchase in New York would dissuade any state agency from working with GSA until the system is modified,” Input researcher Marcus Fedeli said. (SAA, 3/7)

Under the rule, Schedule 70 contractors are not required to sell to state and local governments. They may choose to stay out of that market altogether or, if they do participate, may decline any individual order.

The interim rule is GSAR Case No. 2002-G505 in the May 7 Federal Register. It is open for public comment until July 7.


*For more information about Set-Aside Alert, the leading newsletter
about Federal contracting for small, minority and woman-owned businesses,
contact the publisher Business Research Services in Washington DC at 800-845-8420