GSA's Procurement Power Grab: Small Business Survival Guide

🚨 Something seismic is happening in federal procurement! The General Services Administration (GSA) has just finalized a major expansion of its consolidated procurement authority, making it the government's central buyer for commonly used goods and services. Backed by new laws, executive orders, and upcoming Federal Acquisition Regulation (FAR) changes, this is a wholesale restructuring of how the federal government buys.

In this episode, we'll break down GSA's unprecedented suite of authorities and what it means for you, the small and medium-sized federal contractor. This "One Government" acquisition model is designed to drive efficiency and savings by reducing duplicative contracts and leveraging collective buying power.

Here’s what you need to know:

• Mandatory Use of GSA Vehicles: Agencies will now be required to use existing GSA-run contracts for common purchases, such as GSA’s Multiple Award Schedules (MAS) and Best-in-Class (BIC) vehicles, instead of creating their own. This means if you're not on a GSA contract, your access to opportunities could shrink significantly.
• Massive Threshold Increases: By 2031, the Simplified Acquisition Threshold (SAT) will rise to $10 million for commercial items, and the Micro-Purchase Threshold (MPT) to $100,000. While this opens the door for streamlined awards, it also raises the stakes for competition.
• Fewer Stand-Alone Contracts: Expect a marked reduction in agency-specific RFPs for standard services and products. Most requirements will transition to task orders under mega-contracts like OASIS+ and Polaris.
• A New Competition Landscape: These changes favor larger, more resourced firms, but GSA is implementing safeguards and on-ramps for small business participation.

We'll dive into the real risks and legitimate concerns for small businesses, including potential reductions in prime contract opportunities, higher entry barriers on large vehicles, decreased visibility of opportunities, and increased competition with larger firms. Small business advocates, like Lisa Shea Mundt, are blunt, stating "Contract consolidation is bad for small business. It was bad before, and it will be bad again".

But we'll also reveal the critical opportunities for those who adapt:

• Easier On-Ramps and Small Business Set-Asides within consolidated vehicles.
• Lower Administrative Burdens due to relaxed reporting rules and higher Cost Accounting Standards (CAS) thresholds.
• A shift to "Best Value" evaluation over "lowest price wins," benefiting innovative or high-quality solutions.
• Increased access to simplified acquisitions for mid-value procurements.
• New avenues through Commercial Solutions Opening (CSO) authority and Small Business Innovation Research (SBIR) programs for tech-forward firms.
• Significant opportunities for subcontracting and teaming with larger primes.

This isn't just policy talk; it's already in motion. The FAR class deviation mandating GSA vehicle use is anticipated by Fall 2025, and major statutory changes are expected via the FY 2026 NDAA by the end of 2025.

Don't be left on the sidelines. Tune in to understand how to secure your place on key GSA contract vehicles, develop smart teaming strategies, emphasize your innovation, streamline your compliance, and leverage new programs designed to help you thrive in this evolving federal marketplace. The question isn't if consolidation is coming, but whether you'll be part of the new system.