GSA seeks industry input on improving reseller market value
The General Services Administration is seeking input from the technology reseller community on how the agency can improve the federal procurement process, particularly regarding value-added resellers (VARs).
The GSA issued a request for information Thursday, stating that it hopes to receive cost-reduction strategies for products resold to the government rather than those purchased directly from vendors. VARs, a type of government reseller, purchase infrastructure or software from original equipment manufacturers (OEMs) and enhance them with certain features or services before reselling to the government.
An analysis of major VARs found significant differences in the services offered and markup percentages applied to the vendor pricing, according to the RFI. The market research will help determine whether the agency needs additional controls to ensure the government receives fair and reasonable pricing when markups exceed a specified percentage threshold, per the document.
“The RFI seeks to gain a clearer understanding of the value added by resellers, and the resulting impact of these services on pricing and the ability to meet the government’s requirements,” GSA wrote in a press release Thursday.
Josh Gruenbaum, the federal acquisition service commissioner at GSA, said the agency wants to hear directly from VARs about the “value they add to the government within the supply chain.”
The information received in the RFI will also help contracting officers, allowing them to more accurately evaluate proposed pricing and ensure fair and reasonable costs for these types of products, GSA said.
The effort comes amid the agency’s OneGov initiative, which focuses on streamlining the federal procurement process by working directly with vendors to reduce costs and avoid duplicative actions. Still, many of the OneGov deals to date still involve a reseller in some capacity, and GSA officials indicated in recent months that resellers will likely still play a role, just in a different capacity.
Responses are due Feb. 9.
