U S General Services Administration Federal Acquisition Service

U. S. General Services Administration Federal Acquisition Service MAS TRANSFORMATION: COMPETITIVE PRICING INITIATIVE Stakeholder Meeting April 21 st, 2015

Federal Acquisition Service Welcoming Remarks & FAS Strategy Overview Tom Sharpe, FAS Commissioner

Federal Acquisition Service FAS Strategy 3

Federal Acquisition Service Category Management • Government-wide governance • Create competition among federal contracts/programs to drive greater value • Data-driven decisions • Third-party benchmarking • MAS needs to evolve to survive and thrive in this world 4

Federal Acquisition Service MAS Background & Challenges • MAS business model is outdated • 60 -year old program • Designed around products, while market increasingly is servicesoriented • Ceiling pricing based on vertical negotiations; orders engage horizontal competition • Limited customer interaction • Old technology systems reduce agility and speed • Limited visibility for GSA at order level as to what is bought and at what prices • Need for speed is increasing to get new companies and products on MAS 5

Federal Acquisition Service MAS Transformation & Competitive Pricing Initiative Donna Jenkins, Assistant Commissioner FAS Office of Acquisition Management

Federal Acquisition Service MAS Transformation 7

Federal Acquisition Service Competitive Pricing Initiative Details Josh Royko, Director, Pricing Analytics FAS Office of Acquisition Management

Federal Acquisition Service Competitive Pricing Initiative: Deeper Dive Common-sense price comparison at full-scale • Recognizes that “reasonableness” and “best value” are determined by both price and non-price factors. • Establishes a non-determinative threshold, above which non-price factors are unlikely to offset the magnitude of price disparity. • Applies to identical products only (i. e. doesn’t compare “Duracell” to “Energizer”) for all MAS product offerings (~45 M). • MAS 75 Pilot of 50 vendors yielded >300 k offered price reductions, resulting in improved pricing to the Government, and increased Contractor business volume: “In reference to {our} 30, 000+ Price Reductions for the Requisite Price Analysis{redacted mod#}. I just wanted to let you know that our order rate has more than doubled since going live in the past two days. This increase in orders is due to the price reductions that Federal activities are fully taking advantage of. I will be loading these onto Do. D EMALL next week where we expect to see a large 9 order surge there too. ” – Multiple Award Schedule 75 Small Business Contractor

Federal Acquisition Service Competitive Pricing Initiative: Deeper Dive To strengthen the MAS program, FAS is rolling out the Competitive Pricing Initiative to all product-based schedules beginning in May 2015. ~4. 5 M items have been identified for review. 10

Federal Acquisition Service Stakeholder Engagement Kay Ely, Director, IT Schedule 70 Integrated Technology Services

Federal Acquisition Service Stakeholder Engagement • Industry Meetings • Interact • www. interact. gsa. gov • Rulemaking and Public Meetings • Friday April 17 th: Transactional Data Rule Public Meeting • Customer Engagement • Congressional, OMB and OIG Presentations 12

Federal Acquisition Service Thank you! Questions?