2024 Procurement Landscape Updates

by | Feb 13, 2024 | Insights, Procurement and Pricing

As the new government fiscal year is underway, we’re tracking several acquisition policy issues and opportunities that may impact your public sector sales strategy.

 

Congress Averts Government Shutdown - Again

The Federal government has been running on a series of continuing resolutions (CRs) since the start of its new fiscal year (Oct. 1) while lawmakers have been battling it out over approving a full budget for 2024. While CRs are not unusual, and keep federal workers on the job, the effects of these temporary spending bills can’t be ignored. CRs generally continue funding levels based on the prior year’s budget; as a result, new programs and planned acquisitions may be stalled, staffing levels frozen, and existing program funds swept to cover mission critical needs. Additionally, administrative delays become increasingly common as attention is shifted from day-to-day operations to contingency planning for a potential shutdown.

While Congress voted to extend government funding into March, we’re already seeing a slowdown in spending through the government-run eCommerce websites, GSA Advantage! and DoD FedMall. Q1 commercial item sales are lagging compared to the same period in FY23. We’ll continue to track the impact of the budget delays as Q2 progresses and share more about overall Q1 eCommerce spend metrics in our next newsletter.

    NASA SEWP VI RFP Update

    The NASA SEWP Program Management Office has been challenged on their decision to use revenue-based NAICS codes for its pending SEWP VI Government-Wide Acquisition IDIQ contracts. With tens-of-billions of procurement dollars at stake (for Information Technology, Communications and Audio/Visual products and services), Industry and lawmakers have been vocal about the size standards limiting opportunities for small businesses to compete without losing their status. A revised draft RFP is not planned, but the PMO has appears to be taking feedback on NAICS codes and scope into consideration. The SEWP VI RFP is planned to be released through SAM.gov before the end of government FY Q2.

    Planning to pursue a SEWP VI contract? Warwick can help identify high demand items across the supply chain and ensure your prices are competitive.

    DoD FedMall System Overhaul

    FedMall, DoD’s eCommerce ordering system is getting a facelift. The Program Management Office announced plans to improve system performance and security, and provide users with a more modern, commercial look and feel by the end of the year. FedMall sales have been on a steady decline, down more than 33% from just two years ago; with increased competition from commercial eMarketplace contract holders, the overhaul may be just what the program needs to keep pace with commercial platforms and draw buyers (and their procurement dollars) back.  

    Warwick provides FedMall reporting to help understand how your price compares to the overall market.  It also identifies and tracks competitors to help understand what they’re selling and at what price.

    But Wait, There's More!

    These recent articles are valuable for any organization trying to maximize their sales to the government in 2024.

    GSA FCP Transition in Full Swing
    If you hold a GSA Multiple Award Schedule (MAS) contract, you’ll want to pay attention to updates on the on-going rollout of the Federal Acquisition Service Catalog Platform (FCP).

    GSA Commercial Platform Program Update
    A solicitation for the next-generation of platform contracts has been issued with expected awards coming in 2024. We’re keeping a close eye on which eMarketplace providers will be issued contracts.

    The Future of Fair and Reasonable Pricing Policy
    As the government has aligned with commercial purchasing practices, they have also started to leverage lessons learned from the commercial marketplace; for example, allowing market forces to determine the price and availability of goods. So, what does the future of fair and reasonable pricing (and practice) look like for eCommerce Suppliers?

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