General Services Administration

Eliminate Large GSA Schedule Contracts

Eliminate large GSA schedule contracts. These contracts bypass acquisition regulations and oversight. Federal contractors establish GSA schedule rates, then keep these same rates for several years despite changes. This prevents the most up to date information from being proposed on government contracts. GSA schedule contracts typically contain high profit margins which would otherwise be reduced through normal acquisition means. This contract vehicle may make sense for small contracts where the costs of the acquisition process are comparable to the potential savings. GSA schedule contracts; however, are used on extremely large programs where the contractors benefit from high profit and reduced oversight from GSA.

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Idea No. 16877