There is a bill that has been introduced in the Senate that is designed to expand the use of Strategic Sourcing and make it mandatory and permanent throughout all agencies and all GSA multiple award schedules. GSA is responsible for management of the majority of federal supply purchases, and their Strategic Sourcing program is responsible for the funneling of awards from a pool of 500+ contractors into the hands of only 15 contractors.
The result has been a decrease in revenue of more than 70 million dollars to the majority GSA Multiple Award Schedule 75 office supplies contractors, both large and small. OVER 400 SMALL BUSINESSES HAVE ALREADY BEEN NEGATIVELY IMPACTED… and this was the pilot project for GSA Federal Strategic Sourcing Initiative (FSSI) programs. If GSA succeeds in the expansion of FSSI to all Schedules, 70, 36, 67 etc., it will essentially be the Death of Small Business Federal Contracting in America! PLEASE VOICE YOUR OPPOSITION TO SENATE BILL S.1736 “Acquisition Savings Reform Act of 2011” TODAY!
We all want the government to save money, but this bill (as currently written) has serious unintended consequences that will devastate small businesses nationally, and in the end is unlikely to result in real savings. This is not just speculation: this bill effectively expands the GSA’s Federal Strategic Sourcing Initiative that awarded blanket purchase agreements to just 15 of the 500+ “Schedule 75” contractors. The great majority of Schedule 75 contract holders are now struggling to survive, and the intent of Senate Bill S.1736 is to mandate the expanded use of the FSSI program to all GSA multiple award schedules, affecting dozens of industries, and thousands of businesses nationally.
The wording in the bill to protect small businesses protects only the dollar volume to businesses that were small when awarded, not the number of businesses or dollar volume under the full term of the resulting contracts. This effectively concentrates spending to a few lucky winners that will, by dint of this maneuver, no longer be small businesses as spending is funneled to them. This bill is the equivalent of saying were going to save money by picking a dozen restaurants that all Americans will eat at for the next four years, which will be either a current big chain or the next big chain fast food restaurant, driving every independent restaurant that provides quality, affordable, and local service out of business.
The trend of concentrating more and more spending through giant blanket purchase agreements (BPAs) is anti-small-business, ultimately anti-competitive and not cost effective. That trend, and this bill, must be stopped and fixed. Instead, let’s utilize existing technology that allows agencies to efficiently and competitively solicit products and services from all qualified businesses, not just the lucky anointed few. Please, please, ensure that this bill is stopped or amended to prevent the annihilation of 95% of the small businesses in your jurisdiction that provide quality and affordable products and services to the federal government.
Since FSSI is not yet law, NOW IS THE TIME TO TAKE ACTION! Here is what you need to do TODAY: Write, call and/or email your senator. Let them know that Senate Bill S.1736 is coming up for a vote, and urge them to vote NO on the bill. PLEASE DO IT TODAY! YOUR FUTURE FEDERAL SALES DEPEND ON IT!
Further, the study we are conducting, and the preparation of documentation for submission to the various federal entities we are engaging, is neither free, or simple to accomplish. This page is run by a group of 30+ contractors, various industry professionals, and academic professionals who are dedicating a great deal of time and capital to getting the word out about the negative effects of FSSI on our economy, and making some waves on capitol hill. PLEASE DONATE TO OUR CAUSE. We have a PayPal account that has been set up by Professor Bornstein to fund our efforts, and any amount given in support of our efforts is greatly appreciated. If you have been, or stand to be affected by Federal Strategic Sourcing Initiatives, or by Senate Bill S.1736, please contribute something today, as we are working for you, just as much as we are for ourselves and the everyday taxpayer. To find out more, please visit: https://www.stopfssi.org/
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