The General Services Administration has delayed implementation of a demand-based model for its Multiple Award Schedules (MAS) program for 60 days, until late November, to allow more time for vendor comments.

Currently there are 31 schedules with 19,000 contractors. Under the new model, GSA would close off underperforming schedules to new entrants, and remove vendors who have few or no sales.

Some business owners are unhappy with the plan. The Coalition for Government Procurement cautioned that temporary or permanent schedule closings under the new model would make it harder for new firms trying to enter the government market, consequently limiting innovation.

“The demand-based model attempts to achieve efficiency at the cost of innovation and flexibility,” the coalition wrote to GSA in official comments.

“Closing schedules is not the answer,” the coalition added in a blog post. “It puts GSA in a position of trying to pick winners and losers in an ever-changing commercial marketplace.”

Furthermore, since the schedules historically have provided a low-cost entry point for small companies--with about a third of all MAS annual contract value doing to small firms--the closing of schedules to new offerers likely will “significantly reduce opportunities for small business,” the coalition added.

The GSA’s Federal Acquisition Service announced in July that it would put the new rule into effect Sept. 21.

On Sept. 25, the service published a notice in the Federal Register that comments would be extended for 30 days, and deployment would occur in 60 days. The presumed effective dates are Oct. 25 and Nov. 24, respectively.

The GSA said it will evaluate each schedule individually to determine whether to limit open season for that schedule.

GSA plans to assess Special Item Number-level requirements from the standpoint of federal demand, existing sources, sales performance under existing contracts, changing market dynamics and socio-economic considerations, among other factors.

More information:
http://goo.gl/hLkZQ