Yet another abbreviation!
GSA is an abbreviation referring to an independent agency within the Federal Executive Branch which stands for General Services Administration. GSA consists of 2 basic service agencies: Public Building Service (PBS) and Federal Acquisition Service (FAS). 70 years ago, then President Truman asked prior President Herbert Hoover (who was by then pretty bored with nothing to do) to rebuild the dilapidated White House. From this undertaking, GSA was founded. And today GSA holds the responsibility of acquiring, maintaining, and liquidating all of GSA real estate/buildings including leasing. Only later, after realizing the exorbitant prices that it was paying for items it needed, did GSA create FAS.
FAS was founded on the notion that there is an economic advantage realize in “PRE-NEGOTIATING” prices, terms, and conditions that the Federal government routinely needs. There are 3 main advantages of “PRE-NEGOTIATED” prices, terms, and conditions. First, it is more likely to obtain prices that are fair and reasonable in advance of a particular need. Second, it costs time and therefore money to negotiate everytime there is an acquisition. And third, and perhaps most importantly, Federal purchases are controlled under our zero based budgeting system of rules. Basically, all taxpayer dollars used to purchase are approved with an obligation deadline. In other words, the procurement personnel are working to a deadline (usually at the end of a fiscal quarter) by which an obligation to purchase must be made. If the obligation is not made, the approval of the money’s funding expires and is sent to a general fund. In other words, all the efforts toward justifying and obtaining the funding is wasted. PS: that’s where the “spend it or lose it” expression comes in. There is sometimes some wiggle room on what the money can be used for. So rather than lose it, procurement personnel some other similar obligation is made.
So, imagine being a Procurement Contracting Officer (PCO – that’s what the government call its buyers) that has a full INBOX of purchase requisitions from perhaps 20 different agencies. And a good portion of these requisitions have a deadline of award of less than 90 days (end of upcoming quarter). The PCO has a responsibility to ensure that these contracts are awarded (obligated) to companies at fair and reasonable prices. One way to accomplish that is to publicly advertise on Beta Sam, the Federal website for Business Opportunities. This lengthy process can often take several months and labor hours. It is also subject to things like bidder questions, protests, audits, etc.
ENTER GSA! With items being PRE-NEGOTIATED, GSA contracts become an attractive alternative to public advertising as the GSA has already established the price, terms, and conditions with the contractor. A PCO, within a few hours or days can avoid the risk of losing the funding by using GSA.
Take a look at www.gsaadvantage.gov. This is the agency facing e-commerce website. Search for simiar items similar to what you might offer. You will likely see prices and delivery for several firms. These are all pre-negotiated items. And the PCO can in most cases place an order right then and there with a Government purchase card.
