Federal Acquisition Service

U.S. General Services Administration

MAS TRANSFORMATION:

COMPETITIVE PRICING INITIATIVE

Stakeholder MeetingApril 21st, 2015

Federal Acquisition Service

Welcoming Remarks&

FAS Strategy Overview

Tom Sharpe,FAS Commissioner

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FAS Strategy

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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

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MAS Background & Challenges

• MAS business model is outdated• 60-year old program• Designed around products, while market increasingly is

services-oriented• 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

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MAS Transformation&

Competitive Pricing Initiative

Donna Jenkins,Assistant Commissioner

FAS Office of Acquisition Management

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MAS Transformation

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Competitive Pricing Initiative Details

Josh Royko,Director, Pricing Analytics

FAS Office of Acquisition Management

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Competitive Pricing Initiative: Deeper Dive

• 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 (~45M).

• MAS 75 Pilot of 50 vendors yielded >300k offered price reductions, resulting in improved pricing to the Government, and increased Contractor business volume:

Common-sense price comparison at full-scale

Highest Schedule Price,$129.51

Lowest Schedule Price,$9.56 $0

$25

$50

$75

$100

$125

$150

MAS Price Distribution of a 16GB Flash Drive, Imation 27125 - 1 Each

Schedule Price

Threshold for Review

“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 DoD EMALL next week where we expect to see a large order surge there too.” – Multiple Award Schedule 75 Small Business Contractor

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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. ~4.5M items have been identified for review.

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Stakeholder Engagement

Kay Ely,Director, IT Schedule 70

Integrated Technology Services

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Stakeholder Engagement

• Industry Meetings

• Interact• www.interact.gsa.gov

• Rulemaking and Public Meetings• Friday April 17th: Transactional Data Rule Public Meeting

• Customer Engagement

• Congressional, OMB and OIG Presentations

Federal Acquisition Service

Thank you!

Questions?