The Department of Defense issued new policy on May 27 regarding professional and administrative services contracts. This change may also forecast policy changes to occur across all federal agencies, military and civilian.
The new policy:
- Bans new contracts for IT consulting and management with integrators or consulting firms. Contracts valued at under $10 million are exempt.
- Limits advisory and assistance services contracts, such as studies, expert advice, surveys, reports, or technical expertise. Contracts valued under $1 million are exempt.
- Optimizes use of DoD civilian employees and existing contract workforces.
- Prioritizes use of GSA multiple-award GWACs for “common spend” products and services.
These actions appear to lead the movement to centralize more of the government’s procurement authority into the General Services Administration and its existing term contracts programs.
The two thresholds ($10 million and $1 million) will impact small business contracting in several ways. For example, large businesses may aggressively bid on contracts they otherwise would have considered too small. On the other hand, if those smaller jobs under the threshold are set aside for small business, small govcons may gain.
In any case, all companies seeking federal opportunities should consider joining GSA’s multiple-award schedules program by submitting offers and pricing for those RFPs which are now open for bidding.
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