While covering DLA’s continued work on their e-commerce portal, ECAT, we also discussed the online procurement portals created and hosted by GSA, like AutoChoice  and eBuy. Now, after a new legislative mandate, GSA has started a new initiative to utilize commercial e-commerce portals for federal procurement. Just last week, GSA announced the completion of “Phase I” of the new initiative: the implementation plan.

As we discussed in 2017, the National Defense Authorization Act (NDAA) has been used as a vehicle to push through procurement-related legislation ranging from small business subcontracting limitations, to DOD cybersecurity initiatives, to SBA reporting requirements. This year’s NDAA was no different, with a major modernization push, known as the Modernizing Government Technology Act (MGT Act). Along with the MGT Act, the FY18 NDAA also includes a new provision for GSA: “Procurement Through Commercial e-Commerce Portals.” The provision states that GSA will be required to create and implement a plan to procure commercial items through commercial e-commerce portals, culminating in contracts with multiple e-commerce portal providers for government-wide use.

The provision then creates a timeline for the process which GSA is required to follow, starting from the day the NDAA was signed into law:

• Phase I (ends 90 days after the NDAA is enacted): GSA will first have to create an implementation plan and schedule for the new program, as well as make recommendations for legislative changes required to properly carry out the program.
• Phase II (ends 1 year after the publishing of the implementation plan): Phase II requires GSA consultation with affected Federal agencies, as well as with potential e-commerce portal providers. GSA should conduct market analysis to understand: technical considerations, possible products suitable for purchase through the e-commerce portals, security risks and the necessary protections; and the impact on other procurement programs, including small business set-asides.
• Phase III (ends 2 years after the publishing of the implementation plan): GSA will produce implementation guidance which includes program oversight requirements and supplier/product screening requirements.
• Next phases: Phases after the first 3 will include agency stakeholder participation in the actual implementation of the program, “which may include the award of contracts to multiple commercial e-commerce portal providers.”

Phase I complete

On March 16th, GSA announced the publication of the implementation plan. Importantly, after engaging with industry stakeholders and Federal agencies, GSA described four legislative changes it deems necessary for a successful e-commerce effort: 

• To increase the micro-purchase threshold to $25,000 to facilitate simple comparison shopping for purchases made under this program;
• To empower GSA to develop modernized competition requirements for the program;
• To authorize GSA to take advantage of contractual arrangements that maximize efficiency for buyers, portal providers, and sellers; and
• To clarify and broaden the definition of ‘commercial e-commerce portals’ to take advantage of both current and future business models.

Now that the implementation plan has been completed (see the full report here), GSA will continue onto Phase II where it will conduct further market research and analysis “while also identifying opportunities for an initial rollout for the end of FY19.”

EZGovOpps will continue to monitor this major procurement initiative as it moves through the process. In the meantime, for a closer look at other GSA procurement vehicles, sign up for a free trial with EZGovOpps. Seeking a teaming partner or subcontracting opportunities? As the premiere market intelligence platform, EZGovOpps can provide the information needed to finds teaming partners, follow procurement trends, produce personalized forecasts, and provide custom analyst-updates for a complete understanding of the Federal contracting market today.

Don’t forget to view our full GovCon News section for more intel.