Posts tagged "Pricing"
Jun 13, 2016

The General Services Administration first brought up the concept of having an “unpriced” schedule a year or so ago.

The idea is to evaluate vendors for their capabilities, past performance and overall skillsets, and not on their prices. And then let the price competition happen at the task order level.

This concept would be a huge change in the federal market where price has always been a factor in the evaluations of bids.

But the recent success of governmentwide multiple award contracts such as OASIS, and the acceptance of a similar approach for the recent $11.5 billion Human Capital and Training Solutions (HCaTS) procurement and the soon-to-be released solicitation for Alliant 2, there is a growing recognition that this may be the future of federal contracting for multiple award, indefinite delivery, indefinite quantity vehicles. Reference Article.

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Jul 24, 2014

Do federal strategic sourcing initiatives put price ahead of good business relationships -- and hurt both small businesses and the agencies seeking their services in the process?

"The strategic sourcing that Wal-Mart does builds long-term relationships with suppliers," said Emily Murphy, senior counsel of the House Committee on Small Business. The federal government's brand of strategic sourcing, however, has become "more about leveraging buying and limiting the number of companies that might be able to compete."
 
That emphasis on pricing in the government's growing strategic sourcing efforts can work to squeeze small businesses out of the running for government contracts, she said. Unclear regulations from the Small Business Administration concerning how smaller businesses can partner with larger ones to vie for large contracts add to the pressure.
 
"We need industry to point out that there could be long-term harm," Murphy said. Although strategic sourcing can produce savings as competitors vie for an initial contract, "those savings won't continue" as the initial incentive to get the lowest price tends to fade as contracts are locked in. Full Article.

 

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