Allow for Expanded Choice and Cooperation in the Use of Supply Schedules Background Consolidated government procurement actions tend to maximize the economic advantage of volume buying with lower costs for the taxpayer. Currently, governments at various levels cannot enter into arrangements to consolidate their procurement requirements and then place orders under one another's contracts. In addition, federal grantees and qualified nonprofit agencies for the blind and others with severe disabilities, which are awarded government contracts under the program operated by the Committee for Purchase from People who are Blind or Severely Disabled, are not authorized to use federal supply services. The federal government supply sources, such as the Defense Logistics Agency (DLA), the General Services Administration (GSA), and the Department of Veterans Affairs (VA), consolidate the requirements of various federal agencies for procurement purposes. As a result, these procuring agencies secure price advantages from volume buying. In certain circumstances, it is to the federal government's advantage to use supply sources established by state and local governments. Federal government supply sources are currently authorized to procure and supply personal property and nonpersonal services for the use of executive agencies, mixedownership government corporations,1 the District of Columbia, the Senate, the House of Representatives, the Architect of the Capitol, and certain other organizations authorized by law to use federal supply sources. However, they cannot acquire items for state or local governments, nor may federal agencies use state or local supply sources. Federal agencies must acquire certain supplies and services from qualified nonprofit agencies for the blind or others with severe disabilities approved by the Committee for Purchase from People who are Blind or Severely Disabled.2 Normally the contracts with these nonprofit agencies are fixedprice contracts. The Federal Acquisition Regulation (FAR) provides that agencies may authorize certain contractors (generally costreimbursement contractors) to use government supply sources if it is in the government's interest to do so.3 Need for Change Federal managers will benefit if they have the option of entering into arrangements with state and local governments to consolidate requirements for procurements under a single contract. One recent example involving the Department of Veterans Affairs demonstrates the potential benefits. A state Veterans Home was constructed on the federal VA Medical Center site in Albany, New York. This provided veterans with convenient access to both VA and state medical facilities. Even though the state home was located on federal property, the VA and the state could not consolidate their common service requirements under one contract. Both VA and the state had to enter into separate contracts for services such as snow removal, trash removal, and laundering. As a result, the VA and state were unable to achieve the cost efficiencies that would have resulted from single contracts. Allowing governments at various levels to enter into agreements to use one another's contracts represents a winwin situation for the governments and the taxpayers. Governments at all levels will reduce administrative staffs and costs if they are authorized to use one another's contracts. In addition, all levels of government will be able to negotiate better prices as a result of the increased volume of sales under the contracts. Contract consolidation will be particularly beneficial to governments in the areas of new technology, such as alternate fuel vehicles, energyefficient computers, and products containing recycled material. Governments at all levels would have a greater impact on the marketplace and could acquire products and services at lower cost. If grantees could use federal supply sources, specifically the Multiple Award Schedules, they would be able to do more with the funds provided to them through the grant. Similarly, nonprofit agencies awarded contracts under the program administered by the Committee for Purchase from People who are Blind or Severely Disabled would be able to reduce the cost of the supplies or services provided to federal agencies under such contracts if they were able to acquire the supplies used to produce the item or service at a lower cost. The workforce and procurement systems are already in place at the federal level to accomplish this. Endnotes 1. Government Corporation Control Act (31 U.S.C. 9101). 2. Javits Wagner O'Day Act (41 U.S.C. 4648c). 3. Part 51, Federal Acquisition Regulation (48 CFR Part 51).
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