GSA's Bulk Pricing Delivers Discounts for Maintenance, Repair, Operations Products
March 6, 2014
WASHINGTON -- Today, the General Services Administration’s (GSA) Federal Acquisition Service (FAS) announced that it awarded 23 blanket purchase agreements for a new strategic sourcing solution designed to help federal agencies purchase Maintenance, Repair, and Operations (MRO) equipment and supplies at discounted prices that are 12 percent lower than standard government pricing. GSA expects the use of the MRO solution can achieve a potential savings $16 million in Year One and rising to more than $30 million annually with increased use. For a complete list of awarded contract holders and the ordering guide, visit gsa.gov/fssimro.
FAS Commissioner Tom Sharpe says:
“We’re taking cues from the private sector to apply common-sense solutions to simple commodity purchasing. This is about smart shopping. GSA role is to help federal agencies acquire commonly purchased items at prices that are representative of the high volume of products purchased across the federal government,” said FAS Commissioner Tom Sharpe, Jr. “The consolidation of purchasing under programs such as these will help save taxpayer dollars and drive necessary spending on these type of products to our small business partners, making a positive impact for government agency budgets and improving the bottom line for selected small businesses and suppliers.”
MRO Key Facts
- GSA expects the use of the MRO solution can achieve a potential savings $16 million in Year One and rising to more than $30 million annually with increased use.
- GSA’s MRO solution supports the Strategic Sourcing program and the Obama Administration’s goal of cutting $40 billion a year from procurement spending.
- MRO also supports the Administration’s sustainable acquisition goals by including a variety of “green” products.
- The MRO procurement leverages feedback GSA received from the supplier community, including small businesses.
- GSA performed extensive market research and made changes in the acquisition strategy to include reserving the overwhelming majority of awards for small business or service disabled veteran owned small business
- GSA obtained a Waiver to the Non-Manufacturing Rule from the Small Business Administration, which allows for both increased participation of small businesses in the MRO program and for greater utilization by federal agencies.
- To complement guidance provided under the Small Business Jobs Act of 2010, GSA performed an economic impact analysis of the draft contract requirements to understand the effects of the MRO purchasing channel solution on small business.
GSA is currently facilitating the development of 10 new strategic sourcing solutions. The Federal Strategic Sourcing Initiative (FSSI) began in 2005 under the direction of the Office of Management and Budget. Today, GSA’s strategic sourcing program includes more than 20 agencies (military and civilian) that have collaborated to develop common procurement vehicles that offer greater discounts, provide improved management, and represent best practices