STOP THE FSSI BPA
The Obama Job-Killing Initiative - Release date on this website 1/26/12
Federal Strategic Sourcing Initiative (FSSI) Blanket Purchasing Agreement (BPA) for Office Supplies. GSA Group 75
Coming Soon to GSA Group 70 IT Equipment, Hardware, Software and Professional IT Services
Help the American Economy and Small Businesses by Protesting the FSSI BPA
In March of 2011, the General Services Administration (GSA) and the Office of Management and Budget (OMB) created a new Federal Strategic Sourcing Initiative (FSSI) Blanket Purchasing Agreement (BPA). This
undemocratic contractor selection process and unfairly awarded BPA for office supplies was only awarded to
a select 15 companies/federal contractors out of roughly 520 federal GSA
schedule contractors and includes only one Service-Disabled Veteran-Owned Small Business (SDVOSB). This initiative, which is
touted as a money saver for the government and billed as a purchasing option, is
mandated by several government agencies. These agencies include the Department of Commerce, Department of the Interior, Veterans Administration, USDA and the Navy.
The effect of these mandates mean that these government agencies will only purchase office supplies from one of the 15 chosen FSSI
BPA contractor companies. All of the other small businesses who used to sell to these agencies can no longer do so.
The companies left out/forced out and their employees and families are facing
foreclosures, bankruptcies, and untold personal tragedies through the loss of
revenues, incomes, health insurance and much, much more.
The facts will show the government is not saving any money
through this FSSI initiative. In fact, new fees from GSA have been added
to the basic cost of goods. What a government agency previously paid for a
box a pens, for example, now cost them more than they used to pay, and the extra
money coming in is going right into the pockets of GSA. I thought GSA
was supposed to assist the government in the procurement process, not make money
off of it!
This extreme loss of business/revenues has created severe economic hardships for hundreds of
businesses of all sizes. Not only is the FSSI BPA affecting large and small
businesses/federal contractors, but also all their suppliers up and down the
channel. This FSSI BPA is hitting the veteran-owned companies harder than most
others, but all approved GSA Group 75 contractors are feeling the bite. Over 45
Veteran-Owned and SDVO businesses were on the GSA Schedule 75 schedule contract allowing for fair competition among veteran-owned companies. Choosing only 1 SDVOSB for the entire office supply BPA creates a monopoly for that
company/contractor. This BPA essentially makes it mandatory for government agencies to buy from that single company in order to meet their veteran-owned business purchasing quotas. They will no longer buy from other VO and SDVO small businesses.
Many businesses have already felt the negative effects of the BPA losing customers in
thousands of geographic locations, including the VA, the very agency that pledges to help SDVO businesses.
We are asking you to help all businesses caught up in this ill-placed and
ill-timed initiative by sending a letter to your Congressperson urging them to demand that the GSA and OMB reverse this
FSSI BPA. We have to stop this before it grows into other procurement
areas like IT, Security and commodities. To make the job even easier we are including text for a letter
(below) that does just that. Simply print this letter on your own company letterhead, sign it, and mail it to your Congressperson. It's a simple way to help small business, our veterans and the American economy. Thank you in advance for your help.
For more information, or if you have questions about FSSI, please email
me today at TSbridge@FBBS-GSA.com.
Here is the letter.
Dear Congressman,
Recently the Office of Management and Budget (OMB) along with the General Services Administration (GSA) introduced a new Federal Strategic Sourcing Initiative (FSSI) Blanket Purchasing Agreement (BPA) for Office Supplies. This BPA which is touted as a money saving measure, troubles me deeply as it is unfair and restrictive. Before the introduction of FSSI, government agencies purchased their office supplies through GSA Schedule 75. Almost 500 companies belonged to Schedule 75 giving the government a broad range of companies from which to make their purchases. More than 200 of these companies were small businesses.
This new FSSI BPA was awarded to only 15 companies/federal contractors total, including 2 “big box” retailers, namely Staples and Office Depot, both which have been fined by GSA for fraudulent procurement practices. The minute number of companies chosen created concern for those who belonged to the GSA Group 75 Schedule Contract, but the way the BPA was implemented has caused justifiable fear. FSSI was initially touted/billed as a money-saving purchasing option, however; numerous government agencies, under the advisement of OMB and the GSA, have decided to make it mandatory. These agencies include the Department of Commerce, Department of the Interior, Veterans Administration, USDA and the Navy. This means that these agencies will only purchase office supplies from one of the 15 chosen FSSI companies. All of the other small businesses who used to sell to these agencies can no longer do so. The more companies that mandate FSSI, the more small businesses that will fail, along with the hardships faced by their supply chains.
Mandating the BPA instantly leads to dramatic financial losses to small businesses. Each of these agencies supplied small businesses with hundreds of customers. My company alone will lose customers at approximately 200 locations due to these mandates. Losing just one of these agencies is enough to cause financial hardship, losing them all is a death sentence. Many small businesses felt the effects immediately. One company’s sales quickly fell from over a hundred orders a day, to 2. In the few months since the introduction of the FSSI, I have been in contact with over 50 companies who continue to feel the negative effects. Some have seen drops in business of up to 70%; others have lain off 1/3 of their workforce. Small businesses cannot survive such losses.
The small business community needs help. We need the GSA and other federal agencies to see the overarching negative effects of FSSI. Hundreds of businesses will be barred from selling to the government; they will fail and all of their employees will be added to our country’s already high unemployment rates. Given the current state of the economy, our government should be doing everything in their power to support small business. There are initiatives to help give small businesses loans and tax breaks to help them get their business started, but none of these initiatives will undo the damage that FSSI is causing. Small businesses are failing and people are losing their livelihoods. The FSSI BPA must be reversed. Please contact the OMB and the GSA and urge them to end the use of FSSI; the small business community and the American economy depend on it.
Sincerely,