GSA’s Rightsizing Initiative – What Does it Mean for MAS Contractors?

At a Glance:

• Main Takeaway: The General Services Administration (GSA)’s rightsizing of the Multiple Award Schedule (MAS) Program will have a significant impact on MAS contract holders. 
• Business Impact: Non-compliance with MAS contract terms, especially the minimum sales criteria, may lead to contract expiration or termination. 
• Next Steps: Contact Aprio to assess the current state of your MAS contract to help safeguard it against the impact of GSA’s rightsizing initiative. 

The Full Story:

The General Services Administration (GSA) launched a new initiative aimed at rightsizing its flagship Multiple Award Schedule (MAS) contract vehicle. This initiative aligns with the recent Trump Executive Order Eliminating Waste and Saving Taxpayer Dollars by Consolidating Procurement. The MAS Program is the largest government commercial acquisition program worldwide with over $50 Billion in sales in Fiscal Year 2024. MAS plays a crucial role in helping government customers purchase commercial products and services, so the rightsizing effort seeks to enhance its effectiveness by ensuring that only productive and compliant contracts remain active.

Key Actions of the Rightsizing Initiative:

GSA designed the rightsizing initiative to optimize the MAS Program by focusing on key areas that enhance overall efficiency and effectiveness. This initiative aims to ensure that the program remains productive, while addressing performance and compliance issues. Below are the primary actions GSA outlined as part of this initiative:

• Allowing contracts that fail to meet sales thresholds to expire: GSA will not exercise the option on MAS contracts that do not meet the minimum sales criteria.
• Addressing contractor non-compliance: The initiative will tackle performance concerns and non-compliance issues to ensure that only productive contracts remain in the program.
• Simplifying processes and eliminating inefficiencies: Efforts will be made to streamline processes and ensure proper alignment of management and oversight within the program.
• Eliminating items with insufficient market demand: GSA will remove items from the MAS Program whose administrative costs outweigh the procurement benefits.
• Reducing redundancies with other procurement channels: GSA aims to minimize overlap between MAS with other government contract vehicles.

Anticipated Impacts to Existing MAS Contract Holders:

The rightsizing initiative is expected to have a significant impact on existing MAS contract holders. Contractors who do not meet the minimum sales criteria or have a history of non-compliance may face loss of their contracts. Additionally, the removal of low-demand items and Special Item Numbers (SINs) may require contractors to reassess their offerings to focus on items in higher demand. GSA has already identified over 30 SINs that average less than $25,000 in annual sales for removal. As GSA implements the new administration’s priorities, negotiations of modifications and new offers may become more challenging for contractors. 

Recommended Actions for Current MAS Contractors:

Current MAS contractors should take proactive steps to ensure their contracts remain compliant and productive. Below are some key considerations:

• Meet sales thresholds: Ensure your contract meets the minimum sales criteria. There are no guaranteed orders under MAS contracts, so it’s important to diligently track and respond to MAS opportunities in your pipeline. It can take time to meet the minimum sales criteria, so be proactive! 
• Prioritize compliance: Address any performance concerns and ensure adherence to all contract terms and conditions. Now is a good time to conduct an internal health check for your MAS contract to identify and remedy any compliance concerns. 
• Submit required reports and Industrial Funding Fee (IFF): There are likely multiple reporting requirements on your MAS contract, including sales reporting and subcontracting reporting. Ensure you are submitting all necessary reports and IFF payments as required by the contract. Late or incorrect submissions may result in findings of non-compliance, increasing the risk of contract termination. 
• Complete required Purchase Order (PO) Portal actions: Contractorsselling products on GSA Advantage and Global Supply are required to provide order status and shipping information in the PO Portal. GSA evaluates each contractor’s metrics monthly against set performance standards for order acknowledgements, cancellations, and on-time deliveries. This information may be a factor in targeting non-compliant contracts for termination. 
• Update your Vendor Support Center (VSC) profile and authorized negotiators: Keep your authorized negotiators and VSC profile current to receive timely notifications and communications from GSA. With the reductions to the federal workforce, contractors may need to respond to GSA’s requests in a shorter timeframe. 

The Bottom Line:

MAS contractors must be proactive in safeguarding their contracts to limit the risk of contract expiration or termination under GSA’s new rightsizing initiative. Aprio’s GSA team has worked with hundreds of MAS contractors to identify and mitigate compliance issues to help ensure their contracts are successful. Get in touch with us today to learn more about our GSA consulting services. 

Related Resources:

• https://www.aprio.com/does-your-multiple-award-schedule-mas-contract-need-a-health-check-ins-article-gc/
• https://www.aprio.com/an-introduction-to-multiple-award-schedule-mas-oig-audits-ins-article-gc/
• https://www.aprio.com/from-thorns-to-roses-taming-unqualified-gsa-labor/