Blog Post

What's Ahead for FY 2012 Government Procurement and How Contractors Can Prepare

[updated 11/21/2011] Given the efforts of Congress' "super committee" to reduce the deficit, there are signs of uncertainty amongst government contractors around federal budgets this year. But the start of the new federal fiscal year also brings new opportunities, making preparation all the more important. So how can your business best prepare for 2012?

First, see if your business can take advantage of the following developments and trends:

  • Green government contractors and women-owned small businesses may have an edge in 2012 with the Executive Order 13514 requiring at least 95% of the government's future acquisitions to be green and sustainable and with the Women-Owned Small Business Federal Contract Program in full swing.
  • There seems to be tremendous government contracting opportunities for construction, engineering and architecture firms in 2012 following the GSA Public Buildings Service announcement that every federal building in the nation – roughly 9,000 – must meet LEED (Leadership in Energy and Environmental Design) Silver standards by 2017.
  • IT services will continue to be in high demand as more and more agencies adopt cloud computing to control and manage spending.
  • Recently enacted rules may require federal agencies to set aside contracts and task orders via multiple award contracts, i.e. Indefinite Delivery, Indefinite Quantity (IDIQ) contracts, making this the contracting vehicle of choice for agencies this year.
  • To help you plan accordingly, here are some tips to keep in mind:

    • Start reviewing 2012 procurement forecasts NOW: Each federal agency is required to post their annual procurement forecast on their website, maintained by its Office of Small and Disadvantaged Business Utilization (OSDBU) or equivalent. Many of these forecasts are already available so business owners should contact each agency’s OSDBU to see what goods or services they anticipate buying in 2012 and get more information on any set asides anticipated for small businesses.
    • Team, team and team: Teaming up with other business owners to jointly bid on federal contracts can help increase chances of landing larger contracts. Business owners who team win 50% more contracts, according to American Express OPEN’s survey of contractors.
    • Study the websites of large prime contractors, like Booz Allen Hamilton, Office Depot and Raytheon, for IDIQ contract information: They post this information online to attract small business subcontractors. Keep in mind, large firms must have a small business subcontracting plan for contracts over $550,000 in products and services.
    • Learn how to get on a GSA Schedule: In fiscal year 2010, government agencies purchased over $38.8 billion in products and services through the GSA Schedules. Visit here for more information.

    Lourdes Martin-Rosa is the American Express OPEN Advisor on Government Contracting and has nearly 20 years of experience in the federal procurement arena. She helps small businesses get contract ready and achieve contract success.
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Comments:

gerihaworth

Set Asides on MAS

The fourth bullet in your post states that agencies are "required" to set-aside task order for MAS.  I believe that is wrong.  Here is some info posted at http://www.gsa.gov/portal/content/202261 that may clarify that point.

Interim rule for FAR Case 2011-024, effective Nov. 2, 2011, provides agencies with the ability to set aside orders and Blanket Purchase Agreements (BPAs) issued under Multiple Award Schedules (MAS) program.

Before this rule, agencies were prohibited from setting aside orders and BPAs under the MAS program.

Set Asides

Contracting Officers, at their discretion, may set aside orders and BPAs for small business and some small business subcategories.

Lourdes

RE: Set Asides on MAS

Hi gerihaworth - thank you for reading and alerting me to my oversight. In the world of federal government contracting, the word "may" should be used in almost every content where we are referring to an action being taken by the procurement individuals. I have corrected the post and would like to offer further explanation -- see below.

In an effort to encourage more small businesses to participate in the GSA’s multiple award contracts,GSA is instituting an interim rule that permits procurement officers to set aside a larger share of the awards to small, veteran owned, disadvantaged, minority, women owned businesses.  This new rule took effect in November 2, 2011, advising agencies to seriously consider setting aside task and delivery orders for small businesses. Changes in the FAR make clear that agencies can set aside orders for small businesses on blanket purchase agreements (BPA's), under the GSA's Multiple Award Schedules and  Contracts.
 
Lourdes Martin-Rosa is the American Express OPEN Advisor on Government Contracting and has 20 years of experience in the federal procurement arena. She helps small businesses get contract ready and achieve contract success. For more information, visit www

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