(This blog post is part of a multi-week series reviewing data and trends from GSA’s IT acquisition vehicles for FY14. Read previous posts at http://gsablogs.gsa.gov/technology/)
Small businesses are the backbone of job growth and constitute a major force in the U.S. economy. They generate a vital portion of our gross domestic product (GDP) and contribute to growth and vitality of economic and socioeconomic development. In particular, small businesses create jobs and spark innovation, which complement the economic activity of large organizations by providing them with products and services that contribute to their bottom line.
Here at GSA, we pride ourselves on helping the government utilize small business. We have multiple acquisition vehicles that connect government to small business. This provides agencies the flexibility to choose the best acquisition vehicle to meet their need. Some of these vehicles reside in our Governmentwide Acquisition Contracts (GWAC) program.
Small Business (SB) GWACs provide powerful and flexible contracts that support agencies’ complex projects and requirements. These contracts experienced a tremendous amount of growth in FY 2014. Total business volume growth increased by approximately $400M on our three active SB GWACs, comprising 8(a) STARS II, Alliant Small Business, and VETS, from FY13 to FY14; an increase of approximately 19%.
Scope Reviews: Lowering risk and increasing customer support
Part of that increase is due to our complimentary scope reviews for statements of work (SOW). The team works with agencies to help determine whether requirements are within scope of a GWAC within two to five business days. This service reduces the risk of protest. The Small Business GWAC Pre-award Scope Review Team recently analyzed the pre-award scope review process to see how our contracts are being used.
The number of pre-award scope reviews conducted on our active small business GWAC increased by 12% (253 to 287) from FY13 to FY14. Across all three of the small business GWACs, IT Support Services is the predominant type of work being considered.
During FY14, GSA conducted 285 reviews and performed those reviews in 1.3 days on average. Retrospectively, the scope review process provides a clear understanding of the requirements, establishes a baseline for proposal evaluation, reduces evaluation and negotiation time, and most importantly minimizes the need for future changes. Understanding the trends of these scopes gives us a better understanding of how to promote small business contracting and satisfy our customers’ needs.
Buying Trends
Some of the most popular uses were for IT Support Services like Help Desk, software maintenance, and system operations.
Small Business GWACs represent 45% of GSA’s total GWAC obligations for FY14.
- The Alliant Small Business Program experienced a 17% increase in obligations for FY14 compared to FY13.
- 60 of 80 Alliant small business primes have at least one task order award
- The 8(a) STARS II GWAC is the follow-on to the very successful 8(a) STARS GWAC. The contract was awarded August 31, 2011 and resulted in 645 awards in FY14 with over $641 million in obligations.
- The 8(a) STARS II Program has seen a 41% increase in obligations for FY14 compared to FY13.
- The Veterans Technology Services (VETS) GWAC has obligations from 16 different federal agency customers. All contract holders have received task orders totaling over $1 billion in obligations. In FY14, VETS added 14 task orders with $17.1 million in obligations.
Looking Ahead
The future of Small Business GWACs is bright. We’ve seen agencies increase the use of our GWACs to reach their small business goals and meet their IT demands, and we’ve seen businesses grow beyond their small-business designation due to their participation on our program.
This next year is going to be an exciting time for our Small Business GWACs. We’re going to continue to exceed customer expectations by bringing additional value like our complimentary scope reviews and prices paid data. Our flexible vehicles and focus on customer service should help us continue to expand the usage of these vehicles as we look into the future toward our next generation Small Business GWACs.
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