GSA Announces Big Changes to Professional Services GSA Schedules
After months of speculation GSA announced on Friday that a new single Professional Services Schedule is in the works and unfortunately, this is not going to pretty for some!
The new GSA “Consolidated GSA Schedule” will be called The Professional Services Multiple Award Schedule or “PSS” for short. Although the exact migration process has not been announced by GSA and future application details are still yet to be hashed out, the GSA expects to complete the consolidation of current applicable Schedules by December 2015.
Starting with GSA’s goals, here is what you need to know.
GSA’s stated goals for the consolidation
- Eliminate scope overlap across multiple GSA Schedules
- Make it easier to determine which GSA Schedule is the best fit for your organization
- Allow agencies to utilize single GSA Schedules to acquire a total solution
- Simplify the management of multiple GSA Schedules
GSA’s anticipated benefits of the consolidation
- Improved contract usability; agencies will be able to obtain and contractors can provide total service solutions through one contract vehicle.
- Increased program management efficiency by managing fewer contracts and GSA solicitations “GSA applications”.
- Reduced administrative costs to industry by reducing the number of contracts they have to manage.
- Eliminate the need to submit separate offers for professional services; firms would have the ability to submit a modification request instead – this equates to a substantial decrease in time required to add new services.
GSA Schedules impacted by the consolidation
- 520 – Financial and Business Solutions (FABS)
- 541 – Advertising and Integrated Marketing Services (AIMS)
- 70 – IT Services (SIN C132-51, Professional Information Technology)
- 738II – Language Services
- 738X – Human Resources & Equal Opportunity Services (SIN C595-21, Human Resource Services)
- 871 – Professional Engineering Services (PES)
- 874 – Mission Oriented Business Integrated Services (MOBIS)
- 874-V – Logistics Worldwide (Logworld)
- 899 – Environmental Services
- 00CORP – Consolidated Services
Negative impacts as a result of this consolidation
Although this consolidation will seemingly reduce “administration” and redundant GSA Schedule SINs (Service Categories), the stated benefits don’t add up. In fact, they will have significant and potentially devastating impacts to many Schedule Holders.
Potential impacts of the proposed consolidation
Basis of Award and Commercial Sales Practices Discrepancies
It is not uncommon for companies with more than one GSA Schedule type to differentiate their discounting practices based on the specific offering. This could be a potential margin killer for organizations if they are forced to consolidate CSP’s and re-negotiate. Commercial Sales Practices should be disclosed per SIN and narrowed to solely represent the scope of services offered under each awarded SIN.
Renegotiation Economic Price Adjustments (EPA)
Because these GSA Schedules were applied for and negotiated independent of each other, many will have negotiated different EPA percentages. Through consolidation, pre-existing EPA rates will get hammered. Contractors with multiple EPA rates awarded, will need to renegotiate to a single rate based off of current market indicators.
Labor Category Overlap
An obvious example of this would be a labor category titled “Project Manager”. Organizations with multiple service schedules typically have overlapping labor categories, such as a “Project Manager”. Contractors will be forced to re-address the scope and pricing associated with these labor categories, as well as justify differing job functions if they wish to retain them.
Task Order Isolation & Reporting
This will become an administrative and compliance headache for companies that have existing task orders awarded with pre-negotiated EPA’s. At “consolidation” GSA will require that you isolate these task orders, file them with your CO and report on them at your next CAV. While you will be permitted to maintain these already negotiated rates, you will need to disclose them to the GSA during consolidation.
00CORP & Additional Schedules
00CORP Schedule holders that have non-professional service SINS will be required to obtain the corresponding parent schedule. Vendors may begin the process once the new PSS Solicitation is issued, or at their next contract extension. The GSA has stated that they will work with contractors to keep those SINs even if none or insignificant sales have been generated. Again, this will mean that contractors’ minimum sales requirements will increase with the number of additional non-professional services Schedules they obtain.
Zero Sales Termination
Unfortunately for many, the consolidation will speed up the cancellation of the “Zero Sales GSA Schedules”. Any Schedule that has not met the minimum sales requirements will be subject to cancellation during the consolidation period. Furthermore, contractors that had professional service and non-professional service schedules awarded under 00CORP, will be required to meet the minimum sales goals for not just their new PSS contract, but their non-professional service schedules as well. So while government spending has decreased over the years, your sales requirements will be increasing.
About Kevin Lancaster
Kevin Lancaster leads Winvale’s corporate growth strategies in both the commercial and government markets. He develops and drives solutions to meet Winvale’s business goals while enabling an operating model to help staff identify and respond to emerging trends that affect both Winvale and the clients it serves. He is integrally involved in all aspects of managing the firm’s operations and workforce, leading efforts to improve productivity, profitability, and customer satisfaction.