November 18 2005 Copyright 2005 Business Research Services Inc. 301-229-5561 All rights reserved.

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"Confusion" at DOD Slows GSA Schedules Sales

Sales growth on GSA schedules slowed in fiscal 2005 as some industry executives say the Defense Department’s new policy guidance discouraged many DOD buyers from using the schedules.

GSA said schedules sales totaled $34.7 billion in 2005, 11.5% higher than the year before. Sales grew year-over-year by 16% in fiscal 2004 and 35% in fiscal 2003, according to agency figures.

Barbara Shelton, acting commissioner of GSA’s new Federal Acquisition Service, acknowledged that some Defense Department buyers have shied away from the schedules since the department ordered a new level of review of procurements through the schedules and other inter-agency contracts more than a year ago. Defense is by far the schedules’ largest customer.

One industry executive said the new guidance has caused “mass confusion” among DOD buyers, with some contracting officers believing they are no longer permitted to use the schedules.

“We still want them to use the GSA schedules when it makes sense,” said Domenico Cipicchio, acting director of defense procurement and acquisition policy. He said contracting officers are now required to review each procurement to determine whether it is appropriate to use GSA or any other buying agency.

Fiscal 2005 also saw the full implementation of GSA’s “Get It Right” campaign, which requires GSA contracting officers to follow a checklist to ensure that orders are handled properly. Industry executives said those new procedures slowed procurements. (SAA, 4/15)

Shelton and Cipicchio spoke at the Coalition for Government Procurement’s fall conference in Arlington, VA, Nov. 9. The coalition’s executive vice president, Larry Allen, said bringing disaffected customers back to the schedules is “perhaps the largest question about the success” of GSA’s reorganization of its contracting activities.

Shelton said the reorganization is a work in progress that will not be completed for more than a year.

As part of the overhaul, GSA’s chief financial officer is reviewing the fees charged by the schedules and governmentwide acquisition contracts. If changes are made, all fees may not be the same, “but it will be rational,” Shelton said.

She said the review is part of an effort to achieve consistent policies across all GSA regional offices. Some industry advocates have said the reorganization plan does not clearly set out the lines of authority between headquarters, the 11 GSA regions, and the six zones of the Federal Acquisition Service. Shelton acknowledged that some regions “have been operating somewhat independently” and added, “Some of those issues still exist.”

More BPA’s Planned

GSA will set up more blanket purchase agreements under its schedules to drive down prices for commodities, according to Joseph Jeu, assistant commissioner of the Office of General Supplies and Services.

He said a BPA for building supplies is being used in hurricane relief on the Gulf Coast. “We are going to expand this BPA concept in the coming months.” he added.


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