GSA Blog

2018 -- The Year of Acquisition Policy Innovation

Editor's Note: This is the first in a three-part series about acquisition innovation at GSA. Visit the second and third blog in the series.

So far, 2018 is sizing up to be a year of acquisition policy innovation at GSA. We have already implemented some really important acquisition reforms. As we continue pushing simplification, cost-reduction, and innovation we are including guardrails with essential controls to sustain a focus on meaningful competition and sound public policy outcomes.

Here are some highlights:

1. GSA started the year by publishing the Order Level Materials (OLM) final rule, culminating a 20-year journey to incorporate OLMs -- also known as Other Direct Costs -- into the Federal Supply Schedules. Implemented in June 2018, this rule makes it easier for customers to buy -- and industry partners to provide -- complete procurement solutions while ensuring excellent value for taxpayer dollars. This rule makes Schedules faster, easier, and less expensive to use and will reduce contract duplication and associated administrative costs.. It also includes several key controls to ensure oversight and awareness and limit risk of misuse. They include limits that only one-third of orders may be OLMs and putting them under a Special Item Number to increase transparency, as well as common sense price checks to ensure the government gets a good deal.
2. Early in the year GSA also published the final Commercial Software License Rule addressing common commercial supplier agreement (CSA) terms that are inconsistent with or create ambiguity with federal law. Implemented in June 2018, this rule mitigates risk for GSA’s federal agency customers, reduces proposal and administrative costs for industry partners, and helps expedite the contract review process for GSA Contracting Officers. CSAs (also known as software licenses or end user license agreements) very frequently have terms that conflict with federal law. This results in extensive conversations and negotiations on something we could not, by law, agree to. By explicitly addressing these unenforceable CSA terms, we expedite review and approval processes, reduce burden on both government and industry, and ensure that new software is available faster. Agencies will benefit from faster procurement lead times and Industry will benefit from decreased proposal costs associated with negotiating CSA terms and reduced administrative costs from maintaining separate federally compliant CSAs. At the same time, reducing the need for meaningless negotiations also levels the playing field between large competitors and small business concerns. Finally, the rule provides an essential control against imposition of terms which conflict with Federal law.
3. GSA worked with OMB and submitted the Phase 1 report under Section 846 of the FY18 National Defense Authorization Act, Procurement Though Commercial e-Commerce Portals to Congress. Under this statute, GSA is working to enable Federal agencies to acquire commercial-off-the-shelf supplies (COTS) by buying directly through commercial portals. Already in 2018, GSA has held two public meetings, issued three requests for information, and proposed four legislative changes. They include having GSA ordering procedures deemed compliant with the Competition in Contracting Act and raising the micro-purchase threshold for orders through the portals. GSA is beginning this effort with one or more proofs of concept, in micro-purchase level buys, and with only a subset of users. Doing so will enable us to learn, course correct as needed, and roll-out a program only when it's ready.
4. GSA worked closely with Hill staff in addressing key opportunities for acquisition reform. Six proposals drafted by GSA were included in the House version of the NDAA for FY19. These proposals would eliminate outdated approval and reporting requirements, direct a review of the many clauses and provisions the FAR currently applies to commercial item contracts, authorize unpriced indefinite delivery, indefinite quantity contracts (IDIQs) for services when true competition takes places at the task order level, and simplify the hiring process for acquisition and leasing contracting officers.
5. GSA published Commercial Solution Openings (CSOs) ordering procedures. CSOs are a competitive acquisition process not governed by the FAR which allow us to competitively procure innovation commercial items, technologies, and services. CSOs are designed to open up the field of competition through streamlined solicitations, fast-track vendor selection processes, simplified contract administration procedures and requirements, and carry a preference for the vendor retaining core intellectual property. CSOs are not the same as Other Transactional Authority (OTAs). OTAs are legally binding procurement agreements based on separate statutory authority. GSA does not have legal authority to enter into OTAs. Key controls on CSOs include requiring prior approval from a GSA Acquisition Innovation Advocate who will ensure the buy is truly competitive (and innovative), limits on order size, and creation of a resources center.
6. GSA issued a change to the GSAM to remove unnecessary bid guarantee and payment bond requirements for small disadvantaged contractors in the Small Business Administration’s (SBA) business development program, commonly called the 8(a) program. This change applies to construction contracts below $150,000. Contractors approved to participate in the 8(a) program were already vetted by the SBA, so these bonding requirements were unnecessary and time consuming,- generally adding up to 10 days to the acquisition cycle time and added an average of three percent to the cost of construction. Eliminating the requirement for bonds streamlines the process of awarding and administering construction projects and alleviates administrative and financial burdens for both the Government and industry. This may also encourage more small disadvantaged businesses to pursue contracts with GSA. The dollar limit serves as a key control.

7. Most recently, the Federal Acquisition Service completed a review of all active FAS acquisition policy documents, eliminating over 230 outdated internal. These policies had built up over many years and had the net effect of slowing down acquisition and adding unnecessary layers of complexity. This is a significant step toward making acquisition policy easier to understand for the acquisition workforce.

   GSA will continue to work on these, and other, efforts as we continue this acquisition policy innovation journey. Here is a look at some future innovative acquisition policy initiatives we are working on -- all while ensuring a focus on competition and establishing a reasonable set of guard rails.

   • Rolling out an enhanced post-award debriefing and communication program known as INFORM, or IN-depth Feedback through Open Reporting Methods this fall.
   • Beginning support of Phase III Small Business Innovative Research (SBIR) work. SBIR encourages domestic small businesses to engage in Federal Research/Development which may be commercialized through 3 phases. GSA has received numerous requests for assisted acquisition to help with SBIR work. By beginning SBIR work in phase III, GSA is again promoting innovation and small businesses, within the right limits and controls in place..
   • Publishing a proposed rule to authorize Construction Manager as Constructor (CMc), which models GSA’s construction practices based on best practices in the commercial sector. This streamlines construction and gets tenants in buildings faster.
   • Modernizing the way we acquire utility services from regulated monopoly utilities, saving the government considerable time and effort.
   • Furthering two-way communications on the Commercial E-Commerce Portal initiative in order to ensure a solution that not only streamlines the purchasing process, but also delivers quality goods at fair prices.