A SPECIAL REPORT THE GSA SCHEDULE SYSTEM UNDER PRESIDENT BARACK OBAMA With a change in presidents, especially when the political party of the new president is different from the party of the outgoing incumbent, questions arise about how government agencies will view and work with existing and potential government contractors. With incoming President Barack Obama, these questions exist, particularly in the GSA contract arena. Most GSA preparation companies feel as if Obama s policies will not bring significant changes to the GSA contract program, either positive or negative. Obama will try to bring new efficiencies to GSA s acquisition centers, but this will not be a priority, given Obama s more pressing issues such as the global economy, healthcare and the ongoing conflicts in Western Asia. The most overriding consideration is that the federal government is a business, one that depends heavily on its contractors to provide the goods and services the federal infrastructure, both in terms of facilities and people, requires. No matter who is president, the government, as a business, cannot close its doors; the government still needs the GSA schedule program. While some money will be shifted from some programs to other programs, the basic need for government contractors remains. During his campaign, Obama pledged to remove 100,000 government contractors in an effort to make the government more efficient. This is one pledge he might not be able to keep. 15,000 people left key parts of the government in the past year and at least that many will leave in 2009. The government does not have the resources to replace all of those people with full-time employees and there is only so much that the government can ask of those who do not leave. It is inevitable that the government will still need its contractors. Another factor in favor of the GSA schedule program is the need for efficiency. Without GSAAdvantage, a government agency might take nine months to complete the acquisition cycle. With the GSA schedule program, that administrative time is reduced to a few weeks. This is one reason why more agencies require having a GSA contract in order to do business them. There is talk that GSA will offer a new schedule for green technologies. Companies that offer green products and services should watch for the launch of this new schedule. There is no word when GSA will release such a schedule, so if you have products that qualify, there is very likely a current schedule where you can place them right now and not wait to get your own GSA contract. The Facilities (03FAC) schedule already has several green SINs under the subcategory of Energy Management, Water Conservation and Support Services. Ask GSAProposal.com to walk through those SINs if you do this kind of work. Obama will resurrect Earned Value Management (EVM) standards for government contracts. Companies that know and can employ EVM standards could have a distinct advantage in keeping existing contracts and being in a position to win more work once the government reenacts EVM standards. Learn more about EVM at http://www.earnedvaluemanagement.com. Copyright 2008 GSAProposal.com
With this in mind, let s take a look at the various major agencies and see what effect Obama s agenda will have on them. The italicized text came from reports from news analysis online. Note: Just because you do not see a schedule named here does not mean there won t be any work in the unnamed schedules. DEFENSE Obama's promise to get U.S. troops out of Iraq in the first 16 months of his presidency helped launch his candidacy. He says he will shift forces and resources to Afghanistan. But, overall, the Pentagon under Obama may not look much different than it does today. Obama wants to increase the size of the Army, Marine Corps and special operations forces, efforts already under way. He has called for greater emphasis on counterinsurgency missions a move the military recognized as critical in the early years of the Iraq war, and began to implement. This would indicate little if any change in selling defense-related goods and services. Obama does want to reduce acquisition costs and this would favor SIN 874-6, Acquisition Services, in the MOBIS schedule. This is very likely true in other agencies, as well, so companies that have acquisition services experience might want to procure a MOBIS contract. STATE Obama will inherit foreign policy challenges involving Iran, North Korea, Russia, China, the Middle East, Afghanistan and Pakistan. He has said he would place a premium on diplomacy over the use of force to solve disputes, and he pledged to maintain a robust diplomatic corps and foreign aid programs. However, the current financial crisis could curtail some overseas development programs the Bush administration has championed, and there could be a shift in the department's emphasis. Obama's stated willingness to talk with leaders like those in Iran, Syria and North Korea, may result in increased diplomatic activity in areas where the Bush administration initially resisted engagement, including dealing with the Israeli-Palestinian conflict. Companies that offer translation services, Schedule 738 II, will find themselves with work. JUSTICE The Justice Department will re-examine all surveillance, interrogation and detainee policies to see if any should be overturned or changed. Obama advisers say he may review the department's newly approved guidelines that could let the FBI investigate Americans in national security cases without evidence of a crime, based in part on their ethnicity or religion. He has called for hiring 50,000 new police officers nationwide. The administration is likely to urge Congress to pass the Matthew Shepard Act, which expands federal hate crime laws to include protections for people targeted because of their gender, sexual orientation or disabilities and then require vigorous Justice Department enforcement. We doubt that much will change regarding standard federal law enforcement surveillance. Schedule 84 holders will find much work in security services and, to a slightly lesser degree, with surveillance hardware. ENERGY Copyright 2008 GSAProposal.com 2
The Energy Department is likely to shift its focus dramatically toward development of alternative energy, increasing support for research into cellulosic ethanol, wind turbines, solar technology and more fuel-efficient cars. The department is likely to press for tougher efficiency standards for appliances and buildings. Obama has said he wants to spend $15 billion a year to spur alternative energy and more efficient use of energy. Economic and budgetary problems, however, may make those spending levels difficult. The Professional Engineering Services (PES) schedule has requirements for what is effectively R&D work in the areas of civil, electrical, chemical and mechanical engineering. PES schedule-holders could get work in using engineering to participate in alternative energy programs. Schedule 66, Scientific Equipment and Services, may also come into play. And, as mentioned earlier, the Facilities schedule now has a range of energy management SINs. TREASURY Obama's most immediate economic problem will be dealing with the nation's financial crisis and deciding how to implement the $700 billion rescue program Congress passed last month. He is expected to move quickly to get a team in place to work with outgoing Treasury Secretary Henry Paulson. Obama supports a second stimulus bill to boost the economy. He would spend more on government infrastructure projects to create jobs, and he would give more aid to states that are must cut services. Obama wants to temporarily suspend rules that impose tax penalties on early withdrawals from 401(k) retirement plans to allow cash-strapped families to tap these funds. Government agencies may very well require the services of holders of the Financial and Business Solutions (FABS) schedule. ENVIRONMENTAL PROTECTION AGENCY Obama has promised to listen to the EPA's scientific experts and "reverse the Bush administration's attempt to chip away at our nation's clean air and water standards." If you have or want a Schedule 899, Environmental Services, this could be a gold rush. If your company has experience in environmental services and technology and you do not have an 899 contract, you re missing out on significant work. TRANSPORTATION Obama has consistently called for spending more on the nation's crumbling highways, bridges and tunnels. Besides transportation spending in a proposed stimulus bill, Obama has endorsed a $60 billion National Infrastructure Reinvestment Bank. Another top priority will be passage of a bill reauthorizing the Federal Aviation Administration and moving forward on modernizing the nation's air traffic system, which relies on World War II-era technology. Relations between air traffic controllers and the FAA have are likely to be much more harmonious in an Obama administration. The outlook for Amtrak could also brighten. Obama has pledged support for Amtrak and called for developing high-speed rail networks across the country to conserve energy and boost the economy. Amtrak has an important ally in vice president-elect Joe Biden, one of the railroad's most enthusiastic supporters in the Senate. Copyright 2008 GSAProposal.com 3
The LOGWORLD schedule includes the movement and warehousing of goods. If your company is in this line of work, a LOGWORLD contract could be the right schedule for you. LABOR Organized labor will renew its bid to enact the Employee Free Choice Act. Under the EFCA which passed the House but failed in the Senate unions could increase their membership by having employees sign cards, instead of going through secret-ballot elections to organize workplaces. Under Obama, the National Labor Relations Board may try to reverse several decisions, including those that let companies classify workers as supervisors and thus exempt them from union coverage; require companies to post instructions on how to get rid of newly formed unions; and prohibit union organizers from using company e-mail systems. Obama's Labor Department also can be expected to push for increased power for the Occupational Safety and Health Administration and the Mine Safety and Health Administration, including more job-site inspections and increased penalties for safety violations. We see some potentially significant work for companies holding schedule 738 X, the Human Resources and EEO Services schedule. HOMELAND SECURITY Obama has said he would add more personnel, infrastructure and technology to the border regions and crack down on employers who hire illegal immigrants, which is what the Bush administration is currently doing. Here is where security goods, including surveillance equipment, and services will reap a generous harvest. INTELLIGENCE: Obama wants an overhaul of the human side of spying, and wants to give fixed terms to the national intelligence director's office to buffer it from sudden changes in partisan leadership. He has expressed concerns with the size and scope of the office, created four years ago to oversee and knit together the nation's 16 intelligence agencies. The office has grown dramatically since then. Top officials have asked that intelligence structures_ the offices and roles now laid out in laws, after multiple post-9/11 reforms remain stable. We don t see much shrinkage here. Obama might want to overhaul the intelligence agencies, but they will still need the goods and services of Schedule 84 holders. VETERANS AFFAIRS Obama wants to expand VA health care for veterans. Congress voted in 1996 to do that, but the agency has exercised its authority to suspend enrollments as needed. Obama has said that led to 1 million veterans being turned away, and he has promised to reverse the policy. He also said he would improve screening and treatment for mental health conditions and traumatic brain injury; expand the number of housing vouchers and start a program to help veterans at risk of being homeless; add more rural veterans centers; create an electronic system to transfer medical records from the military; and improve preventative health options. Copyright 2008 GSAProposal.com 4
The medical schedules, including medical services and equipment, will get a lot of work. If your company offers medical goods or services, you should get the most appropriate schedule for you. We will update this report, as required. V. 3.0 Copyright 2008 GSAProposal.com 5