• Blog
  • January 21, 2021

Biden’s Procurement Agenda for Government Contractors

by Maeghan Gale

  • Government Contracting
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Ins and Outs for Federal Contractors in 2021

Happy New Year to all of you!  Can we punt January of this year back to 2020 and reset 2021 with February?  The inauguration and transition in the White House will bring about seismic policy shifts in procurement policy and budget allocations.  Here are my In and Out predictions for the government contracting community.

IN

  • Higher amount of set-aside’s for disadvantaged businesses with more enforcement – increase 15
  • More audits of disadvantaged and service-disabled businesses to ensure ownership compliance with the SBA regulations
  • Elimination of Executive Orders on Discrimination Training and Non Displacement of Qualified Workers
  • Unpriced GSA Schedules
  • Buy American RFP Requirements without waivers and an increase in the amount of domestic product required for compliance
  • Single requirement RFPS
  • Increased Audits for Contract Compliance
  • Use of the Defense Production Act to rebuild US supply chains
  • Resources allocated to examine possible collusive bidding
  • Increased Contracts and Budget at HHS and CDC

 

OUT

  • Unenforceable lower goals of 5%
  • Lax Enforcement of set-aside rules
  • Politically motived Executive Orders
  • Schedule Pricing Out and Task Order Pricing In
  • Outsourcing overseas and waivers of BAA and TAA
  • Bundled procurements
  • No enforcement
  • Limited Use of the Defense Production Act
  • Unfunded task force on collusive bidding
  • Reduced Funding for Healthcare

 

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GSA was already on the path of moving away from big picture pricing at the schedule level to task order pricing.  This has been applauded by industry as a move in the right direction.  GSA Schedule regulations currently require contractors to engage in often proacted and arduous negotiations for “fair and reasonable” hourly rates with contracting officers.  These rates then become a ceiling but not a floor as contractors bid much lower rates to win delivery and task order awards.

To read more about the Biden transition plans, click on this link.

https://buildbackbetter.gov/priorities/