8(a) STARS hits ceiling

Disruption for popular contract

      The popular 8(a) STARS II governmentwide contract has reached its $15 billion contract ceiling earlier than expected, putting the brakes on potentially many future awards for the nearly 800 vendors on the contract.

      On April 6, General Services Administration officials announced that additional task orders on 8(a) STARS II will not be permitted unless the contracting officer has obtained a "control number" from the GSA, which administers the 8(a) STARS II contract. Contractors may not accept task order awards without control numbers.

      The 8(a) STARS II (Streamlined Technology Acquisition Resource for Services) contract is a set-aside for 8(a) Business Development participants, which are small businesses owned by socially or economically disadvantaged owners.

      There currently are 788 vendors on 8(a) STARS II, which is an IDIQ contract for information technology and IT-related services, hardware, software and related supplies.

      Since it was created in 2011, the 8(a) STARS II contract has been popular and has reached its $15 billion obligation limit earlier than expected. The ordering period officially ends on Aug. 30, 2021.

      The GSA in August 2019 put out a draft solicitation for 8(a) STARS III, which will have a ceiling value of $20 million.

      Meanwhile, new task order awards have been disrupted just before the busy fourth quarter buying period. Some 8(a) STARS II vendors are likely to see their plans in disarray unless GSA raises the $15 billion ceiling.

      “This is going to have a negative impact on most 8(a) companies and will limit our abilities to pursue new business and/or bid on our recompetes,” Samar Ghadry, the executive vice president of Powertek, which is part of an 8(a) STARS II joint venture, told Federal News Network.

      Contracting officers “must request and receive an 8(a) STARS II Control Number in order to use the contract and make an award,” GSA said in a memo. “Control numbers are unique to a requirement and may not be transferred. At this time control numbers will only be issued for requirements expected to be awarded in FY20.”

      The requirement for control numbers applies to RFPs, RFIs, task orders and modifications.

      “There is no guarantee that the 8(a) STARS II contract will be available for use,” GSA wrote in its memo.

More information:
GSA memo: https://bit.ly/2MboBQV
GSA announcement: https://bit.ly/2XGbi0d
FedNewsNetwork: https://bit.ly/3gu5AqZ

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