GSA’s Commercial Platforms Are Thriving, And Needing Improvement

According to fedbizaccess.com, the GSA Schedule program is the premier acquisition vehicle in government, with approximately $50 billion a year in spending or 10 percent of overall federal procurement spending.

In 2018, the National Defense Authorization Act directed the General Services Administration (GSA) and the Office of Management and Budget to create an online e-commerce program, now known as the Commercial Platforms program. This initiative aims to modernize how federal agencies purchase off-the-shelf products through online marketplaces. The goal is to enhance competition, speed up procurement, facilitate market research, and ensure reasonable prices for commercial goods.

Implementation and Phases:

GSA has executed the program in stages, with contracts awarded for the initial proof of concept phase in June 2020. The program allows companies hosting e-commerce websites (platform providers) and third-party suppliers to directly sell their products to federal buyers on e-commerce platforms. This approach aligns with GSA’s priorities of promoting competition while minimizing administrative costs and complexity while maintaining a user experience similar to commercial platforms.

GAO Review and Objectives:

The 2018 National Defense Authorization Act also required the Government Accountability Office (GAO) to assess the Commercial Platforms program. This report, the third review, focuses on three aspects: the program’s implementation status, third-party supplier involvement, and benefits and challenges identified by GSA and participating agencies.

Implementation Status:

To understand the program’s progress since the last review in 2021, GAO analyzed program documents, GSA’s implementation reports, and assessment of program metrics. Data from fiscal years 2021 and 2022 were examined to determine spending patterns, product types, platform distribution, and major spending agencies. The data’s reliability was confirmed through calculations and interviews with GSA officials.

Third-Party Supplier Participation:

Information about third-party supplier participation was collected from GSA officials, including supplier characteristics and sales attribution percentages. Discussions with third-party supplier organizations and representatives helped identify limitations they might face in the Commercial Platforms program. This included interviews with organizations representing AbilityOne program participants.

Benefits and Challenges:

GAO interviewed eight participating agencies to ascertain the benefits and challenges of using the program. These agencies were selected from the 25 in the program, representing various sizes and spending levels. The agencies interviewed included Bonneville Power Administration, Department of Defense’s Defense Health Agency and U.S. Special Operations Command, Environmental Protection Agency, Pension Benefit Guaranty Corporation, Small Business Administration, Department of Agriculture, and Department of Veterans Affairs.

Audit Details:

This performance audit was conducted from June 2022 to July 2023 in line with government auditing standards. The audit gathered sufficient evidence to provide a reasonable foundation for findings and conclusions based on the objectives. The obtained evidence supports the findings and conclusions in accordance with the audit’s objectives.

  • Read the entire report here

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