This is the first in a series about the principles of the Transform Manifesto. If you want to start at the beginning, go here. When you’re ready for the next one, go here.

For a long time, having all the right engineering documentation was all you needed to get the job done. Up until the mid 1990s, that meant piles and piles of paper documents and drawings. In the late 1990s, all the non-GD&T (Geometric Dimension and Tolerance) information such as industry specs and standards, technical data packages, work instructions, test methods, and internal corporate standards, moved from paper to PDF. At the time, it was a revolution that increased speed and enabled easy sharing – but PDF was never meant to be an engineering information tool.

Amazingly, not much has changed since then: most engineering documentation is in PDF format. This means that all the text, graphs, tables, equations, images, and references that comprise manufacturing notes, part/material/process attributes, requirements, test methods, work instructions, supplier instructions, customer requirements, and more are trapped in static PDF (and sometimes PowerPoint, MS Word, or even paper). Nearly every information user in the product development lifecycle struggles to find the precise information they need, extract the relevant data for the task at hand, and feel confident they are using the right versions and references in a sea of disconnected, static documents.

An engineering document is essentially a vast collection of individual pieces of data that engineers need to do their jobs. We believe these individual pieces of data must be liberated from the static document and free to be used where and how end-users need them.

If a worker needs the hole drilling requirements, they should be able to call them up quickly and easily and feed them into the machine. Better still, the machine should be able to extract them on its own and take action based on the data. If you need to share a complex table of values with a supplier, you should be able to extract the values and variables and transfer them easily while maintaining fidelity (and copyright ownership) to the source document. The supplier should be able to receive them in the application in which they are working. And if a change is made to the source document, the supplier should receive a notification of that change. 

We also believe that each individual piece of data is more than just a jumble of letters or numbers: it has a purpose, it conveys meaning, and each piece of data shares a relationship with many other pieces of data. This is what we mean by context.

Context is the nuance, the unwritten but implied, the actionable intelligence that helps us better understand and use the data contained in the documents. For example, from context we can glean part, material, and process attributes (such as a process that involves hazardous materials). We can determine whether a prescribed process is dependent on another process or requirement, necessitating one process to come before the other in a project timeline. Using context, we can more accurately identify candidates for additive manufacturing. With context, we can quickly and easily qualify vendors as suitable or unsuitable for a particular task.

For many decades, the general wisdom in the information economy was that “content is king”. Today, content is still critical but context is becoming ever more important. By turning documents into data, we can identify, extract, and deliver the contextual and actionable intelligence that users need to make better decisions faster. If content is king, then context is surely queen.

The SWISS platform transforms engineering documents and drawings into interoperable, intelligent, and reusable collections of data that integrate seamlessly into modern engineering workflow. SWISS combines content, context, and software to reduce manual labor and deliver insights that help individuals make better decisions faster.

What do you think? Does this resonate with you? If you think it’s time to shift from documents to data and from content to context, let’s talk.

Ready for the next in the series? Go here.

If you want to read all seven principles of the Transform Manifesto, start here.

Engineering documents have largely been left behind in the wider quest for digital transformation, but as more companies are seeing concrete benefits from addressing this “last mile” of the digital thread, we felt it would be useful to describe the critical areas where we think you and your company should be focused.

We published a set of principles – called “The Digital Transform Manifesto” (aka the “Transform Manifesto)– that you can use on the path to transform your engineering documentation into more usable, efficient digital twins. For the short and sweet version, take a look at our digestible slide deck here.

For a deeper dive into each of the seven principles, we’re posting a series of articles explaining each one and offering examples and best practices that you can implement in your own organization. Please share with your friends and colleagues and leave us a comment!

Why a manifesto? In a word, status quo. Ok, that’s two words but one concept. The status quo is hard to change but we’re going to give you powerful reasons to shift to a better way of working.

Engineering documents and drawings are full of essential data like requirements, references, materials, manufacturing processes, and more – necessary for ensuring high-quality, compliant products. But most of these documents are in flat-text PDF format, which is a poor container for data that hasn’t changed in almost 30 years. The only way to access this data from PDF is deep analysis by subject matter experts, then manually copying, pasting, and data-entry into other applications. None of this static data is linked to the sources or to the digital thread, so change management and impact assessment are difficult and uncertain. This results in overwhelming manual labor, too many errors, too much rework, and unacceptable risk.

Follow these principles to turn your engineering documents and drawings into actionable intelligence with new capabilities that reduce time, cost, and risk throughout the product life cycle.

The Seven Principles of the Transform Manifesto

1. Documents are out. Data is in. Content is out. Context is in. Read here.
2. Engineering data should be connected to a single authoritative source of truth, with changes communicated to all. Read here.
3. Engineering data should be interoperable across IP owners, users, and software applications. Read here.
4. Engineering information should be delivered at the point of need, anywhere in the enterprise, through APIs. Coming soon.
5. Engineering data should be machine-readable. Coming soon.
6. AI can be used to derive insights and intelligence from unstructured text. But AI must be used responsibly to ensure high accuracy and transparent sources. Coming soon.
7. Data contained in documents should be available as authoritative and reusable data objects. Coming soon.

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.

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.

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.

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?

Warwick customers have access to on-demand market intelligence, including procurement history, price benchmarks, and compliance data.

In public procurement, pricing decisions are governed by the ‘Fair and Reasonable’ litmus test; however, procurement regulations (i.e., the FAR) don’t explicitly define ‘Fair and Reasonable’. While buyers and sellers likely have different ideas about what constitutes a fair price for an item of supply, the fundamental market premise is that buyers want to be able to find the right product, at the right price, and suppliers want to deliver!

Pricing requirements and objectives change over time and are influenced by market and economic conditions. Most recently, we saw how the sharp rise in inflation coupled with supply chain shortages and shifting demand caused by the COVID-19 pandemic, affected GSA’s ability to keep up with supplier price changes.

As the government has aligned itself 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?

• GSA schedules currently contain numerous clauses that govern economic price adjustments. MV–22–02, an acquisition memo issued by GSA in 2022 (extended through March 2024) suspended the restrictions in these clauses, such as price caps and limits on how many, and how often, a Supplier may request a price increase. GSA is now pursuing a proposed rule to eliminate outdated economic price adjustment rules and establish a single, simplified provision governing price changes. The proposed contract language will make it easier for Suppliers to seek a price adjustment and respond quickly to the market conditions impacting their business.

• GSA recently announced an update to how market threshold pricing will be established. Threshold pricing is used to evaluate and negotiate commercial item pricing by comparing a Supplier’s proposed price to the wider market (for the identical item). The new pricing rules rely more heavily on the median price (vs. low price) and incorporate Transactional (TDR) and commercial web pricing data points when available. Additionally, threshold pricing is demand weighted with price targets set more aggressively for frequently purchased or ‘high demand’ SKUs. GSA has also sought to address price changes driven by inflation by building in an inflation adjustment based on the Consumer Price Index. To help alleviate Supplier confusion over changes in pricing policy, GSA has made the model publicly available via the interact site.

• GSA is also pursuing policy changes to reinforce its goal of achieving ‘best value’ in procurement decisions by balancing price and non-price factors (i.e., service, risk, etc.). The agency is seeking to replace the ‘lowest overall cost alternative’ language with ‘best value’ in the Competition in Contracting Act’s competitive procedures. The proposed changes were submitted to Congress for review in November 2023.

Warwick customers have access to on-demand market intelligence, including procurement history, price benchmarks, and compliance data.

In government fiscal year 23 (10.1.22 – 9.30.23), Supplier’s reported more than $9 Billion in commercial-off-the shelf (COTS) product sales through GSA MAS Contracts. About 1/3 of these sales were through small businesses. While sales transacted through GSA Advantage! represent a small portion (~8%) of the program’s annual volume, they’re indicative of the larger market opportunity and Suppliers should take note.

As you can see in the chart below, GSA Advantage! product sales have returned to their pre-pandemic levels and continue to trend positively, while sales through DoD’s eCommerce platform, FedMall, have continued to decline (despite the program’s modernization efforts).

While FedMall is still heavily utilized for micro-purchases (under $10k) by DoD buyers, most of its sales (66%) are for NSN stock items sent to DLA Enterprise Business System or GSA Global Supply for fulfillment. GSA Advantage! sales, however, are overwhelmingly (~90%) for commercial items including IT products,  office supplies, furniture, and laboratory test equipment.

In the final hours of fiscal year 23, a continuing resolution was passed, narrowly avoiding a shut-down and funding the Federal government through mid-November (at FY23 budget levels). However, until a FY24 budget is approved, agencies may be inclined to tap the breaks on spending as the fear of a shutdown still looms.  Budget pressures may also force already price sensitive buyers to focus on lower price alternatives that meet their needs.

In Federal eCommerce sales, competition drives prices down and keeps them low, just as it does in the wider commercial market; thousands of Suppliers are vying for their share of the government’s procurement dollars. While FY24 may be off to a slow(er) start, there is still plenty of work you can do to start the year off strong.

1. Pricing is one of the most important parts of your company’s sales strategy. Ensure your prices are competitive with market but remember, you’ll need to honor those prices; be sure you’re covering your costs when deciding on a pricing strategy.  Remember, MAS awarded prices are a ceiling, you can always put an item on sale or offer a discount at the order level.
2. Maximize revenue opportunity by aligning the products offered on your contract with evolving market demand.
3. Explore additional sales channels:

• GSA’s Commercial Platforms Program. Government Purchase Card (GPC) holders from dozens of agencies currently leverage these approved commercial shopping portals (including Amazon business and Overstock Government) for the purchase of routine, commercial items (to the tune of ~$40M in annual spend).
• NASA’s Solutions for Enterprise-Wide Procurement (SEWP) Government-Wide Acquisition Contract for IT and AV related products and services. SEWP’s draft RFP is available for review and comment with the full RFP expected to be released in 2024. SEWP can be used by all Federal Agencies and their approved contractors and accounts for more than $10B in annual sales.
• Explore opportunities at the state government level; organizations like NASPO (National Association of State Procurement Officials) issue solicitations for cooperative procurement contracts for goods and services across many of the same categories as their counterparts in the Federal government.

Public sector sales are challenging, complex, and highly competitive. Successful suppliers invest the time to regularly analyze performance and identify changes that need to be made in their sales strategy.  As a current or prospective supplier, it’s important to understand the market as a whole and what is trending; Warwick can help answer important questions such as:

• What is the demand for the products I offer?
• What Agencies should I be marketing to?
• Are my prices competitive? 

Reach out to learn more about how we can help you save valuable time in understanding what the government is buying, and how you stack up against the competition.

The U. S. government is the single largest purchaser of goods and services in the world. They leverage their purchasing power to ensure the best value in terms of cost, quality, and service. To improve efficiency and simplify the federal government’s ability to buy commercial products and services, GSA revamped its Multiple Award Schedule (MAS) program in 2020. MAS consolidation was an enormous step forward in modernizing federal procurement, eliminating duplication across Schedules, consolidating Special Item Numbers (SINs), and standardizing contract terms & conditions. 24 GSA Schedules and more than 900 SINs were folded into a single comprehensive contract vehicle covering more than 12 million unique parts and services.

1. How the GSA MAS Program is organized.
2. Simple steps every supplier can take to improve sales.
3. SIN and Sales Insights
   > Top 10 SINs by Sales Volume
   > Top Selling Commercial Products by SIN
   > Top Selling Commercial Products by Government Agency

Let’s get started!

Today, the MAS program is organized into 12 large industry categories and about 80 subcategories:

A – OFFICE MANAGEMENT

B – FACILITIES

C – FURNITURE & FURNISHINGS

D – HUMAN CAPITAL

E – INDUSTRIAL PRODUCTS & SERVICES

F – INFORMATION TECHNOLOGY

G – MISCELLANEOUS

H – PROFESSIONAL SERVICES

I – SCIENTIFIC MANAGEMENT & SOLUTIONS

J – SECURITY & PROTECTION

K – TRANSPORTATION & LOGISTICS SERVICES

L – TRAVEL

Under these Subcategories, ~300 Special Item Numbers (SINs) identify products and services that authorized GSA suppliers can sell to federal buyers (including state and local government entities). To simplify the identification process for both buyers and sellers, SINs are associated with standard North American Industry Classification System (NAICS) codes.

It’s a Sin Not to Understand SINs!

Each year, nearly $1B in federal spending flows directly through the government-run eCommerce sites, GSA Advantage! and DoD FedMALL. There are many advantages in using SINs to streamline the acquisition of commercial items.

Reduced Acquisition Lead Times

Buyers can quickly identify those sellers offering the specific products and services they’re looking to buy; this saves time and effort in searching for suppliers who can meet an agency’s needs and reduces procurement cycle times.

Reduced Administration Time & Cost

Suppliers can offer a full range of products and services (across all SINs) under a single MAS contract; this means increased efficiency and far less administrative cost and time spent managing multiple contracts with different terms and conditions. Additionally, a single contract means suppliers work with a dedicated GSA Contracting Officer who can get to know you and your business, reducing friction in the administration process.

Simple Steps You Can Take to Improve Sales

While MAS consolidation has been overwhelmingly positive, there are potential drawbacks for suppliers, including increased competition! However, there are simple steps that every supplier can take to improve their sales:

1. Review your product and service offerings regularly! Make sure your contract reflects your current business and that all applicable SINs are aligned with your MAS contract so you don’t miss out on potential sales opportunities.
2. GSA has a formal process for adding new SINs. Familiarize yourself with that process for the specific SINs you want to add and ensure you have the documentation needed to substantiate your request before reaching out to your GSA CO!
3. GSA’s eBuy platform is an excellent way to find new business. Invest the time to learn how to navigate eBuy and review open Request for Quotes for the SINs listed on your contract.
4. As the government is required by law to consider buying from small businesses, pay attention to set-aside opportunities if they apply.
5. The MAS PMO hosts monthly webinars so that suppliers can engage directly with policy makers and program managers. Take advantage of this opportunity and ensure you stay up to date on changes impacting your contract.
   Even if you’re not full of questions, join a webinar because you might hear great questions from other sellers and you might gain some valuable information.
6. Last, but not least…Do your homework! Less than 5% of all items available for sale are purchased in a given. year. Don’t waste time and resources managing SKUs that no one buys. Research the market, identify the top selling products for your approved SINs, and price them competitively!

We’ve compiled some incredible data on GSA Advantage! sales by SIN to kickstart your market research.

SIN and Sales Insights

The table below highlights the most popular SINs listed across all GSA MAS contracts. The most popular SIN, 33411 – Purchasing of new Electronic Equipment, is listed on 695 supplier contracts. This category includes desktops, laptops, servers, routers, switches, and other electronic equipment.

Below are the top 10 SINs by GSA Advantage! sales volume over the last year.  We’ve included the total number of MAS contracts that had sales in each SIN and the annual sales volume.

Top Selling Commercial Products by SIN

Drilling deeper into the top selling SINs, we’ve identified the top products in each over the last year.

Top Selling Commercial Products by SIN within an Agency

Ever wonder which agencies are buying the products you sell and where to focus your marketing efforts? We’ve identified the top agencies by procurement dollars spent in each of the top 5-SINs. We’ve also  analyzed spend for the top 3 agencies down to the SKU level so you can see what items each agency is most likely to buy.

Small Business is Making a Big Impact

When GSA announced their plans for MAS consolidation, they predicted it would provide numerous opportunities for small and disadvantaged businesses by eliminating many of the burdensome requirements for suppliers looking to obtain a GSA contract.  As we analyzed sales transaction data, we were thrilled to see the huge impact small and disadvantaged businesses are having in the market.

Sales by small businesses under the MAS program have increased by more than 30%. Small businesses (under 500 employees) and certified 8a/other disadvantaged businesses account for the majority of sales in each of the top 5 SINs we analyzed.

Final Thoughts

GSA took the initiative to revise the MAS program, the largest commercial item contracting vehicle in the federal government. It’s easier than ever before to offer a full range of products across all SINs to government buyers looking for exactly what you sell.

We’ve amassed some great data on MAS sales by SIN and included some tips on how you can leverage this data to drive sales and kickstart your company’s success in FY 2024. We urge you to take a few minutes to go through our report and discover new insights into what’s selling and how you can refocus your sales strategy ahead of the new federal fiscal year. There may be a new SIN you want to add to your contract, or SKUs you should be promoting to new potential customers. 

If you need a deeper dive into a particular category, let us know and we’ll see if we can help provide additional intelligence that’s specific to your target business.

If you have any suggestions or need additional information or metrics, please contact us at 678.457.9634 or g.bousquet@xsb.com.

You can learn more about XSB and how Warwick can help you modernize your federal eCommerce sales strategy at https://xsb.com/warwick/

Thank you!

We recently read this interesting view of AI and the differences between Generative AI and SynthAI.

In B2C markets, Generative AI is mostly being used for fun and to create something to share: art, poems, essays, blog posts (not this one!), and more. The content has sound grammar and vocabulary but is not always technically accurate. But in the consumer and blogger/influencer world, quality or correctness are not high priorities.

In B2B, the calculus is quite different. In knowledge work, there is huge value in precision, accuracy, and intelligent decision making. Employees have to make the best possible decisions with imperfect information, and often, by analyzing impossibly-large amounts of information. Think material selection, customer specifications, or regulatory information across multiple countries.

In the next wave of AI, large language models (LLMs) will need to focus on synthesis and analysis – SynthAI – that improves the quality and/or speed of decision-making, if not make the actual decision itself. The most obvious application here is to summarize high volumes of information that humans could never digest themselves directly. The real value of SynthAI will be in helping humans make better decisions, faster.

This also happens to be the vision of SWISS AI as well: we process large amounts of information, filter out the noise, and synthesize relevant, accurate insights. SWISS AI is designed to augment and improve humans, not replace them. As Hex CEO and co-founder, Barry McCardel explains, “When it comes to understanding the world and making decisions, you want humans in the loop. What AI can do is help us apply more of our brainwaves to valuable, creative work, so that we not only spend more hours in a day on the work that matters, but also free ourselves to do our best work.”

Read the full article here.