ISSA members who conduct business with the federal government can listen to the archived “FSSI virtual town hall” meeting on the Federal Strategic Sourcing Initiative (FSSI).
The speaker list included:
- Bill Balek, Director of Legislative Affairs - ISSA
- Billy Jenkins, Chairmen American Legion Small Business Taskforce & Vice President Skyline Ultd Inc.
- Todd Mulvenny, CEO, American Sanitary Products
There were additional comments from listeners involved in the JanSan industry.
Impact on Jan/San Sector
If implemented as planned, ISSA expects implementation of FSSI in the Jan/San sector to have a substantial adverse economic impact on association members that currently do business with the federal government. ISSA is working with members of the House Small Business Subcommittee on Contracting and Workforce to try and forge a legislative remedy that would mitigate the adverse economic impact FSSI will have on the Jan/San community.
In the meantime, GSA recently announced that it expects to release the final draft of its RFQ that will implement FSSI in the Jan/San sector by late July or early August.
The draft RFQ is posted online at: https://interact.gsa.gov/sites/default/files/RFQ%20JANSAN%20Draft_0.pdf
Under the FSSI, GSA is working with Office of Management and Budget (OMB) and all Federal Government Agencies to create new government-wide strategic sourcing programs for commonly purchased products and services. At the moment, GSA is focused on implementing FSSI in the Jan/San sector.
If implemented as outlined in the draft RFQ, FSSI will have an unreasonably burdensome economic impact on the janitorial supply community, including current GSA schedule holders.
Stated briefly, the draft RFQ seeks to award blanket purchase agreements (BPAs) to only 15 vendors, a sharp reduction from the current estimated one thousand or so vendors. More importantly, it is GSA’s goal to channel all possible federal spending through these same 15 BPA awardees.
This process will result in hundreds of current GSA jan/san schedule holders being locked out of doing business with the federal government for all practical purposes. A similar process was followed when GSA implemented FSSI in the office products sector, which resulted in major economic upheaval and displacement in that industry sector, according to Sam Bornstein, a professor of accounting and taxation at Kean University in Union, N.J., and a partner with the firm Bornstein and Song CPAs and Consultants, has been studying the impact of strategic sourcing on small businesses. ISSA expects similar economic upheaval in the Jan/San sector as a result of implementing FSSI in this manner.
House Small Business Committee Hearings on FSSI
The House Small Business Subcommittee on Contracting and Workforce held a hearing on June 13 at which the focus was the impact of FSSI on the small business community. ISSA submitted written testimony in conjunction with that hearing that emphasized the devastating impact FSSI will have on the many small businesses in the janitorial supply industry that currently do business with the federal government.
ISSA is working with members of that Subcommittee to explore legislative solutions that would mitigate the impact of the FSSI in the janitorial supply community. ISSA will report on potential legislative remedies as we move forward with our discussions with members of the Subcommittee.