GSA plans Schedule cuts; nearly 600 contract holders, 31 categories to be eliminated

GSA will remove up to 577 vendors from its Multiple Award Schedules (MAS) program within the next six months, a significant step aimed at enhancing efficiency and performance. As reported by Federal News Network, these removals target companies without sales or who have encountered compliance and performance issues.

Additionally, GSA intends to discontinue thirty-one categories, formerly known as SINs, including eleven within professional services and seven in office management, many of which generate under $25,000 annually. These actions are projected to save more than $15 million each year.

Josh Gruenbaum, Commissioner of GSA's Federal Acquisition Service (FAS), emphasized that these adjustments will streamline procurement and deliver competitive pricing and quality services for agency customers. The last time Schedule contractors were aggressively culled was during Schedule consolidation efforts initiated in 2018.

Previously, attempts to streamline schedules, such as the 2014 removal of 1,000 IT service vendors, achieved limited success due to industry pushback and political sensitivities. Despite similar challenges anticipated now, former GSA Commissioner Alan Thomas described the current initiative as a necessary "business housecleaning" to eliminate inactive contracts.

GSA has clarified that industry partners may face contract termination unless contracting officers explicitly justify renewals based on performance and compliance evaluations. A pilot review program initiated last year has already shown positive outcomes, with compliance improvements observed in twenty-five out of thirty reviewed vendors.