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October 13, 2017 By AMK

The federal market: Is competition in the eye of the beholder?

Two weeks ago, the Coalition for Government Procurement was privileged to participate in the Section 809 Panel’s September stakeholder meeting, an opportunity, for which, the Coalition is grateful, as it provided for a wide-ranging conversation on current challenges and opportunities facing the federal procurement system.

The Coalition also appreciates the opportunity to provide our 29 “common sense” recommendations to improve and streamline federal procurement.

Chief among the issues discussed was the role of Multiple Award IDIQ (MAIDIQ) contracts in supporting agency missions.  With regard to MAIDIQs, the conversation quickly turned to the degree, manner, and role of competition in the federal market.  It was an interesting and dynamic discussion.

The Coalition highlighted a measure of market concentration which is used by both economists and the Justice Department when evaluating anti-trust issues, the Herfindahl-Hirschman Index (HHI).  The HHI scale for measuring market concentration ranges from 0 to 10,000, with 0 representing “perfect competition,” and 10,000 representing a pure monopoly.  Based on various market concentration criteria, a market is scored along this scale.  Basically, the lower a market’s HHI score, the higher that market’s level of competition and vice-versa.  When considering the HHI, we find some interesting results.

Keep reading this article at: https://federalnewsradio.com/commentary/2017/10/the-federal-market-is-competition-in-the-eye-of-the-beholder/

Filed Under: Government Contracting News Tagged With: acquisition reform, CICA, Coalition for Government Procurement, commercial sales, competition, full and open competition, IDIQ, market analysis, multiple award contract, NDAA, procurement reform, Section 809 Panel

July 12, 2016 By AMK

GSA finalizes major update to acquisition policy

Nearly a decade after a panel of experts recommended major changes to the way the government buys services, the General Services Administration (GSA) is going through with two significant updates.

GSA logoGSA released the final data transaction reporting rule June 23 creating a requirement for government contractors to submit information about transactions through the schedule contracts and those governmentwide acquisition contracts run by the agency.

The agency says transactional data refers to the information generated when the government purchases goods or services from a vendor. It includes specific details such as descriptions, part numbers, quantities and prices paid for the items purchased.

In that final rule, which has been in the works for more than a year and has been drawn the ire of many vendors, GSA says “vendors will no longer be subject to the existing requirements for Commercial Sales Practices (CSP) disclosures and Price Reductions clause (PRC) basis of award monitoring, resulting in a substantial burden reduction.”

Keep reading this article at: http://federalnewsradio.com/acquisition-policy/2016/06/gsa-finalizes-major-update-acquisition-policy/

Filed Under: Government Contracting News Tagged With: acquisition policy, commercial sales, commercial sales practices, CSP, GSA, GSA Schedule, policy, price reduction, schedule, TDR, Transactional Data Reporting

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