.jpg)
In his first six months in office, President Trump has made it clear that a major priority of his second term is to eliminate waste in government spending. The Trump Administration has enacted a plethora of new policies aimed at streamlining government contracting, many of which have a direct impact on GSA. With so many changes in such a short period of time, it can be hard for contractors to keep up. That’s why in this blog, we’ll go over the most important new policies and their impact on current GSA Schedule contractors.
GSA Special Item Number (SIN) and SIN Scope Changes
As current contractors know, the GSA Multiple Award Schedule (MAS) Solicitation is periodically updated through Refreshes, which contain changes to both the overall scope of the Multiple Award Schedule and individual Special Item Numbers (SINs). Recently, these refreshes have included major changes to the scope of the GSA, influenced by Trump Administration goals and policies. One of the most dramatic changes came in Refresh 26, when 32 SINs were retired from GSA.
In addition to specific SINs being retired, certain products and services have been deemed out of scope for the entire Multiple Award Schedule, meaning they are ineligible to be added to a contract under any SIN. Some items were affected by various Executive Orders, including any products and services related to gender ideology, diversity, equity, and inclusion, and paper straws.
If you’re a current GSA Schedule contractor, these scope changes can have a big impact on your contract. Contractors whose items are deemed out of scope can face contract cancellation. To avoid this scenario, it’s important to keep your product listing up-to-date to ensure you aren’t getting flagged for obsolete products or services.
It’s even more important for contractors to familiarize themselves with the process of submitting modifications. If a Refresh affects the scope of your current SIN, you may be able to submit a modification to add new products or services under a different SIN. The modification process can be complex, so understanding how to make these changes now will help you avoid confusion later.
Consolidation of Government Procurement Under the GSA
In addition to these scope changes that remove items from the GSA, the Trump Administration also plans to streamline contracting by expanding GSA’s responsibilities with federal procurement. This may sound contradictory, but expanding the GSA doesn’t mean increasing government spending. Instead, we’re talking about consolidating existing government procurement under GSA, which will cause the GSA to effectively quadruple in size.
While this won’t necessarily have a direct impact on contractors the way scope changes might, there are indirect benefits. More procurement under GSA means more business opportunities. This consolidation also means several Best-In-Class (BIC) Governmentwide Acquisition Contracts (GWACs) are going to be managed by GSA. We anticipate changes to any GWACs that are currently under review (such as NASA SEWP VI), and GWACs that are looking to expand (such as OASIS+).
There are several things contractors can do to prepare for expanded procurement under GSA. The first thing is to simply ensure your contract is up-to-date, including your offerings, terms and conditions, and points of contact. If you do need to make any changes to your contract, you’ll want to get started sooner rather than later, as the rapid expansion of the GSA has led to increased lead times as contracting officers adjust to an increased workload. It’s also a good idea to put together a capabilities statement for potential government customers. A high-quality capability statement can help contractors effectively and efficiently showcase their offerings to new customers.
America First Trade Policy
Another major priority of the Trump Administration has been a heavy prioritization on domestic goods over foreign goods. While there’s been lots of discussion over tariffs on foreign goods, the Trump Administration’s America First Trade Policy actually encompasses much more than just tariffs. One key aspect of the policy is actually based on an Executive Order from President Trump’s first term, which instructed federal agencies to more strictly enforce the Buy American Act (BAA).
First passed in 1933, the BAA requires that the federal government prioritize products that are manufactured in the United States. However, it is possible for agencies to receive a waiver if the item they are seeking to purchase is not sufficiently available or is unreasonably expensive to source domestically. Under the Trump Administration’s America First Trade Policy, contractors can expect to see a stricter enforcement of the Buy American Act, meaning less waivers.
The America First Trade Policy will impact contractors in different ways depending on their offerings. Contractors who manufacture items in the United States may see increased business opportunities as more agencies are required to buy American-made products. It’s likely that costs for many products will increase due to stricter domestic sourcing requirements and tariffs on foreign goods and materials.
If you haven’t already, now is a good time to familiarize yourself with the Economic Price Adjustment (EPA) clause that governs price increases on your GSA contract, so you’re prepared for any price increases. Under MAS Solicitation Refresh #29, GSA is now consolidating the clauses into one main clause, so there will hopefully be more flexibility surrounding pricing with your MAS contract.
Want to Know More About Trump Administration Policies and the GSA?
This blog contained a broad overview of some of the most significant changes from the Trump Administration’s first six months. However, these are not the only new policies, and more changes are likely on the way. To stay informed about the impact of Trump Administration policies on the GSA, follow the Winvale blog. If you have questions about what contractors should be doing, or want help maintaining your GSA contract, reach out to us. One of our talented consultants will be happy to assist.
