GSA to Eliminate Low-Demand or Obsolete Contracts

WASHINGTON - The U.S. General Services Administration (GSA) outlined its plans to stop adding new contractors for obsolete items and to eliminate contracts for items that have low or no demand.

"By stopping the proliferation of low performance contracts and cutting products or services that are no longer mission-critical to the government, GSA will reduce waste and save millions of taxpayer dollars annually," said Dan Tangherlini, Acting Administrator. "This helps us streamline the way we do business, save taxpayer dollars, and ensure the most efficient delivery of services to our customer agencies."

According to GSA, the number of companies trying to get onto the GSA’s Multiple Award Schedules has doubled and the number of modifications to existing contracts has tripled. The GSA plans to switch to a demand-based model for Multiple Award Schedules, which it said will save millions in taxpayer dollars. GSA added it will be looking at more than 19,000 contracts with private-sector firms to determine which industries are oversaturated and find out where duplication has created a “crowded and confusing” market.

"When contracting officers are bogged down managing thousands of contracts with little to no sales, they can't focus on adding innovative solutions to the schedules, improving pricing, and simplifying the buying experience for our customers. Modernizing the schedules will change that," said Steve Kempf, Commissioner of the GSA Federal Acquisition Service.

You can find out more about the GSA’s effort here.