changing government market

The Federal Strategic Sourcing Initiative (FSSI) was established by the Office of Management and Budget in 2005 and reinforced in 2012. From the Navy Spiral BPA, the Air Force’s IDIQ, the GSA PBS FIT IDIQ, to – perhaps the most significant – GSA FAS’s own Strategic Sourcing effort as part of their Category Management program, it is clear that FSSI is changing the Federal contract furniture market. The market is evolving from project based GSA schedule sales via dealers to collectivized furniture purchases thru new, large strategically sourced vehicles. In addition, GSA may be attempting limit the ability of dealers to act as the prime by “getting control” of Packaged Office.

The logical result is that there will be natural contraction of federal manufacturers as only the most proactive and successful will be able to obtain a sufficient number of new strategically sourced vehicles. This proactive stance is especially important to mid-sized manufacturers to avoid being squeezed out. In general, these new vehicles necessitate the manufacturer not only to act as prime, but responsible to find, win and manage these vehicles.

The government will still be buying furniture, but how and from whom will change.

 

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