Changes are coming in the way the General Services Administration purchases services. In April the Office of Federal Procurement Policy released a new strategy to use category management to reduce multiple award contracts, and contractors will begin seeing the results soon.
“Services are procured very differently than commodities. What I’m focused on, and what senior leaders across government are focused on, in particular senior procurement executives, are we really need to move how we’re buying services to a performance-based environment,” said Tiffany Hixson, assistant commissioner of the Office of Professional and Human Capital Services within the Federal Acquisition Services at GSA. “We’ve been on this journey for many years. It really needs to be rebooted, and we’re going to continue to push in terms of how we buy services to being performance based. Buying engineers by the pound is not an effective way to deliver mission capabilities.”
During Deltek’s Spending Spree event July 19, Hixson said procurement officials need to focus on the outcome they want from a particular contract action, not necessarily the price. While there are some subcategories of professional services where price can be a driver, more often than not, officials should be looking at the value of the capability delivered.READ MORE