By Wayne Simpson, CFCM, CSCM, Centre Consultant
Some U.S. Department of Veterans Affairs (VA) Federal Supply Schedule Contractors, and prospective contractors are questioning the value of the VA FSS Program. Changes to VA’s Acquisition Regulations (VAAR) since the unanimous U.S. Supreme Court (SCOTUS) decision in the matter of Kingdomware Technologies, Inc. vs. the United States (Kingdomware) and the VA Strategic Acquisition Center’s (SAC) use of open market procurement strategies in its failed attempts at establishing VA’s Med/Surg Prime Vendor Program is causing some to re-think the value of continuing or participating in VA’s FSS Program.
Below is a synopsis of the reported VA FSS Sales for each of the nine VA schedules, shown in descending order by dollar value. Charts for each schedule which also show the totals amounts for “Other Government Agency Sales” (OGA) and Sales of “State and Local Governments”, in addition to VA’s Sales, are available for review and download by clicking here.
VA’s Total Reported FSS Sales in Fiscal Year (FY) 2017 are in excess of $14 Billion, up from over $13.9 Billion in FY 2016.
VA FSS 65 I B—Drugs, Pharmaceuticals, and Hematology Related Products
- By far the VA’s largest schedule by dollar value, accounting for nearly 79% of all reported sales.
- Reported sales increased from $10.865 Billion in FY 2016 to nearly $11.070 Billion in FY 2017. Sales for VA, OGA, and State and Local Governments all experienced increases.
VA FSS 65 II A—Medical Equipment and Supplies
- Has experienced decreased sales every year since FY 2015, and the trend continued in FY 2017.
- Total sales decreased from $1.672 Billion in FY 2016 to $1.633 Billion in FY 2017.
- Notwithstanding the VA SAC’s open market procurements, VA spending under FSS 65 II A increased from $1.337 Billion in FY 2016 to $1.356 Billion in FY 2017.
- This is VA’s second largest schedule by sales volume and the one most impacted by VA’s Med/Surg Prime Vendor Program.
VA FSS 621 I—Professional and Allied Healthcare Staffing Services
- Sales decreased in FY 2017 to $433.3 Million, down from $445.1 Million in FY 2016.
VA FSS 66 III—Cost-Per-Test Medical Analyzer
- Sales increased in FY 2017 to $304.1 Million; an increase from $298.1 Million in FY 2016.
VA FSS 65 II F—Patient Mobility Services
- Sales increased in FY 2017 to $204 Million, an increase from $184.2 Million in FY 2016.
VA FSS 65 V II—Invitro Diagnostics, Reagents, Test Kits and Test Sets
- Sales increased to $141.9 Million, up from $137.8 Million in FY 2016.
VA FSS 621 II—Medical Laboratory Testing and Analysis Services
- Sales Increased to $132.2 Million, up from $125.7 Million in FY 2016.
VA FSS 65 II C—Dental Equipment and Supplies
- Sales decreased to $101.4 Million, down from $128.1 Million in FY 2016.
VA FSS 65 V A—X-Ray Equipment and Supplies
- Sales increased in FY 2017 to $5.01 Million, up from $4.4 in FY 2016
So are VA FSS contracts still a viable option for contractors in the VA marketplace? The answer will likely depend on which VA FSS is applicable to your company’s products or services, and the vagaries of VA’s SAC and its quest for a new and ensuring solution to the Next Generation Med/Surg Prime Vendor Program—“Med/Surg Prime Vendor 2.0.”
Centre Law & Consulting has seasoned acquisition professionals ready to assist you in applying for or administering a VA FSS Contract, including Subcontracting Plans/Programs. Best wishes to you for every continued success in the Federal Marketplace!
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