Welcome to SellingToTheFeds.com
Every year the federal government spends approximately
$300,000,000,000 on goods and services. In addition, state and local
governments spend billions more on goods and services each year. That
much money makes government contracting an interesting sector of the
economy.
For the last 15 years, Government Video magazine has graciously
provided me with an outlet to exercise my fascination with government
contracting through my "Market Watch" column. From my perch as a
market-wise legal eagle, I've never been at a loss in finding an
interesting topic to explore. Some topics come from cases that I've
recently worked on, others from the news or suggested to me by
Government Video's editors. Together they have allowed me to
take the pulse of trends in government contracting.
Over the past decade and a half, government contracting has both
changed and remained the same. Federal acquisition is in many ways
the same because it is still a relatively regulated market governed
by numerous rules and policies. A company must understand these
government practices and requirements to succeed in the government
market, or else lose to a competitor that understands them better.
Government contracting is different, however, because the government
market is much less formal than it was 15 years ago. At that time,
the Commerce Business Daily, Invitations for Bids, and Requests
for Proposals were the norm. Today, publication and competition
formalities are on the decline. Getting the contract is no longer the
linchpin of the government contract process. Instead, agencies assume
that you have a contract vehicle in place, such as a GSA Schedule. As
a result, marketing to agencies has become more important than the
contracting process.
The single biggest change over the last 15 years is the ascendancy of
GSA Schedules to a position of dominance. In 1990, GSA Schedules were
merely one of several contract vehicles, and certainly not the
biggest. In fact, GSA Schedules were dwarfed by the Indefinite
Delivery Indefinite Quantity (IDIQ) contracts of the time.
Then Congress enacted laws broadening the definition of what is a
commercial item and relaxed the rules covering their procurement. At
the same time, downsizing in many agencies decimated the ranks of the
procurement officers who had managed those mega-contracts. Finally,
GSA dropped the Maximum Order Limitation (MOL) from Schedules, which
removed the $500,000 order limit, and added a plethora of services to
what had been predominantly product contracts.
The results have been impressive. Since 1996, GSA sales under all of
its GSA Schedule contracts have grown from $2,500,000,000 to almost
$31,900,000,000 in FY04, with estimates projected even higher in
FY05. Agencies can now buy whole facilities, integrated systems, and
custom support services on the GSA Schedules of contractors banding
together in teaming arrangements. And GSA Schedule Blanket Purchase
Agreements (BPAs) allow agencies to repetitively buy goods and
services easier than ever.
I hope that Government Video asks me to write another
retrospective in 2020. In the meantime, I have selected 45 articles
from the past 15 years that together provide an overview of current
issues in government contracting. Some topics have remained timely
despite their age, while others are quite recent. All the articles
have been edited to revise information that is no longer accurate.
Thanks for your e-mails, telephone calls, inquiries and suggestions
over the years. I appreciate all of your comments.
Andrew Mohr, Esq.
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