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GWAC and BiC challenges for small businesses: HSBC (Part 1)
Small business federal contractors continue to struggle with agencies’ growing utilization of governmentwide and “Best-in-Class” (BiC) contracts, the House Small Business Committee concluded in a June 14 hearing.
For small contractors, “the challenges seem to outweigh the benefits,” the committee staff wrote in a Hearing Memo for the event.
The committee noted that large Government Wide Acquisition Contracts (GWACs) and BiC contracts can be very profitable for the small firms that gain a spot on those vehicles, either alone or by teaming.
In addition, a small firm with a place on a GWAC only need certify its size at the beginning, and usually will not need to recertify for five years, even if it grows beyond its small size standard. This may allow the contractor to benefit from its small status for a longer period of time than it would have if not on the GWAC.
However, as the committee summarized, there are many significant challenges, including:
- GWACs generally require businesses to provide a broad range of products and services. The vendors must have numerous certifications in place, some of which require substantial investments of time and money to obtain;
- Small firms complain of limited information regarding new GWACs and the “on ramps” to existing GWACs;
- GWACs are viewed as high risk for small firms because if a firm competes and does not obtain a spot, it will not be able to recoup its investment and will be shut out for multiple years;
- GWACs require more upfront costs and staff time with no guarantee of orders beyond a bare minimum. In some cases, such as for Alliant 2 Small Business, a GWAC itself may be dissolved;
- Agencies have been using a self-scoring process for many of the GWACs since 2013, which allows them to give points to firms with experience and past performance. This streamlines vendor selection for the agencies. However, the current system shuts out many small firms with limited experience. Also, it pressures the small firms to maximize their scores by entering into teaming arrangements or subcontracting arrangements that may or may not be ideal for them; and
- Although some GWACs and BiCs are set aside for small firms, they often attract many mentor-protege joint ventures. Even in such a set-aside, the small firms say they are being forced to compete against large firms, the memo said.
Next issue: Part II--Recommendations to improve the situation for small vendors
More information:
Hearing memo: https://bit.ly/3b9xqdN
Hearing website: https://bit.ly/3zONRXm
(URLs in Set-Aside Alert have been shortened by the bit.ly URL shortener)
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Inside this edition:
Two years--not one--to count avg number of employees: SBA
VA’s Pathfinder website is live
Size standards raised for 57 industries
GWAC and BiC challenges for small businesses: HSBC (Part 1)
Will TDR continue?
NMR waiver termination
Overseas Small Biz Opportunities
Construction firms’ survey
Column: Small Business Set Asides Now Allowed Outside the U.S.: What You Need to Know
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OASIS follow-on is now OASIS Plus or OASIS+
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Gov’t may part with partying vendors
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GSA Interact now at Buy.GSA.gov
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HSBC adds member
Coronavirus Update
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