Small firms fare well in GSA office supply contract

Small businesses won 85 percent of awards in the General Services Administration's most recent initiative to provide agencies with options for buying office supplies.

Of 13 blanket purchase agreements awarded, 11 went to 8(a) certified small businesses and women- or veteran-owned businesses. Blanket purchase agreements function somewhat like charge accounts, allowing agencies to award larger contracts less often instead of having to hold competitions for each small supply order. This speeds up acquisition and saves money.

The program to provide office supplies is part of the strategic sourcing initiative, established in 2005 by the Office of Management and Budget to improve agencies' purchasing techniques through analysis of buying patterns and use of the results to design more efficient contracts. GSA and the Treasury Department are leading the effort, which prompted early concerns that small businesses could get shut out of resulting contracts.

The blanket purchase agreements for office supplies, awarded Aug. 8, will allow the winners to compete for agencies' business for one year with two options to renew. In 2006, federal office supply sales totaled $322 million.

"These awards not only enable the federal government to realize significant savings but also provide opportunities for small businesses to be full participants in the federal procurement world," said Lurita Doan, administrator of GSA, in a statement. "Under the [agreements], companies will use their best commercial practices to provide further cost reductions and are required to submit management and detailed transaction reports."

Doan is a former small business owner and has emphasized the benefits of acquisition through small companies.

"We're thrilled GSA has issued the award and so many small businesses are receiving the award, but the proof will be in the pudding; it's just a vehicle right now," said Guy Timberlake, chief executive of the American Small Business Coalition. He said the award's impact on small companies will depend on how well the vehicle is marketed and how it is used by agencies. One of the winners, George W. Allen Co., is a member of the coalition.

Other winners of award are: Metro Office Products, Adams Marketing, Corporate Express, Veterans Imaging Products, Future Solutions Inc., Stephens Office Supply, Staples, Impac Office Supplies, SITA Business Systems Inc., IS Group Inc., Imaging Systems and Miller's Office Products. Staples and Corporate Express are the two large business winners.

GSA last month was criticized for planning to cut office supplies from a separate program with high levels of small business participation. Eighty percent of office supply purchases through the Global Supply Stock program are directed to small businesses.

Last month, lawmakers from both chambers of Congress sent a letter asking that GSA delay the elimination of office supplies from that program until Congress and the Government Accountability Office have a chance to review any potentially detrimental effects on small businesses. The letter was signed by the chairs and ranking members of the House and Senate committees overseeing small business.