The Building Maintenance & Operations (BMO) and Facilities and Construction category leadership team has been busy this summer! In June, GSA’s BMO vehicle became the first government-wide solution to acquire a best-in-class designation.
Best-in-class is a new contracting and acquisition designation which will be used across government, denoting those contracts and vehicles that meet five rigorous category management performance criteria as defined by Office of Management and Budget guidance.
The BMO contract is being rolled out in a zonal approach. BMO, Zone 1 was awarded in February 2016; Zones 2-6 will be awarded in early FY17; and there are plans to have coverage for the entire continental U.S. by the end of next fiscal year. This strategic sourcing vehicle is accessible to all federal agencies wanting all-inclusive, complete facilities maintenance or single-service trade work.
Deciding which solutions will be considered best-in-class is a collaborative – but objective and methodical – process. Our BMO vehicle seemed like an ideal first candidate to be considered as a best-in-class vehicle because of the many built-in attributes of the contract. The entire evaluation process was conducted with broad cross-governmental representation, with a mix of both leadership team and subject-matter experts. All participants agreed that BMO merits a best-in-class stamp of approval for facilities maintenance solutions.
So – why is this a big deal? Since one of the guiding principles in category management is to optimize existing contract vehicles, a best-in-class designation should help expand BMO’s appeal and usage with all federal agencies. The classification will give acquisition experts in other agencies the confidence to begin tapping into the BMO vehicle’s benefits. It is always easier to start down an unfamiliar path, knowing that knowledgeable experts have evaluated and approved of the path beforehand. In a nutshell, the best-in-class determination really paves the way for first time users to begin utilizing this high-value, acquisition tool. The contract, in turn, will help the government in its efforts to optimize and manage spend within the Facilities and Construction category.
Some key characteristics of the BMO solution:
- Spend under management (SUM) and reduced contract duplication – The initial geographic zone award will be available to potentially impact over $1.5B in annual spend. Nationwide, the addressable spend is estimated over $5.5B annually. The majority of this spend currently occurs in stand-alone contracting actions, creating the potential to substantially decrease duplication and inefficiencies.
- Savings Potential -The ceiling pricing evaluated for Zone 1 averaged 7-20% less than comparable ceiling rates available in the market. This implies lower price variance, less outlier pricing, and stronger competition that can drive real savings for customers at the task order level.
- Substantial consideration of small business – BMO is establishing a small business set-aside solicitation in each awarded zone. In Zone 1, there are 24 highly qualified small businesses on this set-aside, as well as two small businesses in the nine unrestricted solicitation awards. Additionally, in each implemented zone, BMO baselines current small business spend and seeks to meet or exceed that utilization rate moving forward. In Zone 1, that target is 55%.
- Transactional data reporting – BMO is the first government-wide facilities maintenance solution to provide standardized labor categories (497 in all) for all vendors, allowing much easier and more efficient comparisons of proposals.
- Stakeholder integration – The formation and operation of BMO relied upon the direct input and participation of 18 different agencies. It was further impacted by large segments of the vendor community, particularly small business, that were actively engaged and accessed through requests for information (RFIs), Industry Days, and online outreach through GSA Interact.
Learn more about BMO here.
Congratulations and huge thanks to entire BMO and Facilities and Construction category leadership team for your collaboration and hard work to help us earn this designation.
Learn more about category management here.