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.
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.
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.
To view GSA’s Presentation click here.