The General Services Administration outlined plans to overhaul the Multiple Award Schedule contract system to convert to a “Demand Based Model” of operation, effective Sept. 21.

The GSA offered details on how the demand model would work to trim the 31 schedules of outdated and seldom-purchased items.

The goals are efficiency and reduced costs to the government to manage the schedules.

The GSA’s Federal Acquisition Service is proposing to move away from continuous open season for all schedules, in which new offers are accepted on an ongoing basis.

In the new model, GSA would assess each schedule and its Special Item Number level requirements to judge if they are up to date and aligned with needs.

The assessment will consider “federal demand, existing sources, sales performance under existing contracts, changing market dynamics, socio-economic considerations, and other available data,” the GSA said in a July 23 notice.

Schedules or item numbers judged to be outdated or misaligned with government needs may be temporarily closed off to new vendors. GSA said it plans to give 30-days notice of schedule and item closures on the FBO.gov website.

About 19,000 vendors currently have contracts on the schedules. Many have low sales.

More than 50% of the schedule contracts awarded in 2011 “will not have significant sales, and FAS will spend millions of dollars to support and manage such low/no sales contracts,” the GSA said.

The agency is accepting comments on the plan until Aug. 22.

Vendors should expect to be informed of schedule and item closings, re-openings, mergings and cancellations on FBO.gov.

GSA provided additional details of how the model would operate during the interim period after a 30-day notice is published, but before the effective date of a temporary closure.

The agency also offered detailed tips for contract holders in the final year of their third contract option period.

For more information: http://www.gpo.gov/fdsys/pkg/FR-2012-07-23/html/2012-17882.htm