The Impact from the Federal Strategic Sourcing Initiative (FSSI)… the Debate Continues

FSSI in government contracting

FSSI has long term impact on small businesses

 

A few weeks ago, we have published a blog “5 Themes in the Changing Paradigm in Government Contracting”. Mr. Robert Burton, the former Deputy Administrator of the Office of Federal Procurement Policy (OFPP) shared his observations. One of them, as he commented, is that “the government-wide “strategic sourcing” initiative could have a long-term, negative impact on small businesses.”

I was so impressed by Mr. Burton’s speech at the Tyson’s Regional Chamber of Commerce. I invited him to be a guest speaker at our upcoming webinar on Nov. 7th. I am very excited that Mr. Burton has agreed to host this webinar with us.

 

The timing couldn’t be better. A few days ago, Bornstein & Song Research released a research alert about the concern that the FSSI will cause significant damage to small business, jobs, and the US economy. Based upon Bornstein & Song Research, the 550+ FSSI BPA “non-winners” suffered nearly an average 60% loss of GSA sales, while the 15 FSSI BPAs “winners” reaped an average increase in GSA sales of almost 145%.

I am sure we will have interesting discussion around the FSSI next week in our webinar. If you haven’t signed up yet, here is the link to sign up to the webinar.

The five themes in the changing paradigm in government contracting:

  • Theme #1. The “Low Price Technically Acceptable” criteria are here to stay, and are replacing, to some extent, the traditional “Best Value” criteria.
  • Theme #2. There is a lack of transparent communications between federal agencies and vendors.
  • Theme #3. The growing influence of agency Inspectors General and auditors.
  • Theme #4. The government-wide “strategic sourcing” initiative could have a long-term, negative impact on small businesses.
  • Theme #5. There are increasing regulatory and compliance burdens on government contractors.

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