by Brianna Crandall — August 20, 2014—The U.S. General Services Administration (GSA) recently issued an official Notice to Proceed on its Maintenance, Repair and Operations (MRO) purchase channel strategic sourcing Blanket Purchase Agreements (BPA), clearing the path forward for facilities managers and other specifiers in federal agencies to save taxpayer dollars by reducing spending on commonly purchased MRO products such as hardware, tools, paints, adhesives and sealants.
The issuance of a Notice to Proceed signifies that contractors have a targeted 30 days to make their discounted pricing available for federal agencies, who can then begin to purchase the supplies and equipment covered under the BPAs. This Notice to Proceed was issued upon the dismissal of several protests filed with the U.S. Government Accountability Office (GAO).
MRO purchase channel key facts:
- 11 of the 12 BPA vendors are small businesses, including women-owned, veteran-owned, and service-disabled veteran-owned businesses.
- Product prices are an average 12 percent lower than standard government pricing.
- GSA expects the use of the MRO purchase channel solution can achieve a potential savings of $16 million in Year One, rising to more than $30 million annually with increased use.
- Contractors have pre-established pricing for items that fall within the three GSA MRO product categories, comprised of most-often-purchased items. The average discount price for these categorized items is applied to all items within the contractor’s catalog, unless the items are not part of the MRO BPA.
- As agencies use the MRO solution, additional volume tier discounts may become available to reduce prices even further.
- Hundreds of thousands of products are available within the GSA MRO strategic sourcing catalog.
GSA is currently facilitating the development of 10 new strategic sourcing solutions. The Federal Strategic Sourcing Initiative (FSSI) began in 2005 under the direction of the Office of Management and Budget. Today, GSA’s strategic sourcing program includes more than 20 agencies (military and civilian) that have collaborated to develop common procurement vehicles that offer greater discounts, provide improved management, and represent best practices.
For more information about the MRO purchase channel solution and to view a complete list of awarded contract holders, visit GSA’s Maintenance, Repair and Operations Web site.
