What's Happening?
The Federal Aviation Administration (FAA) has announced the opening of the proposal window for a $4.1 billion recompete contract aimed at acquiring commercial IT products. This initiative, known as SAVES (Strategic Sourcing for the Acquisition of Various Supplies and Equipment), is set to last for ten years and will award seats to up to eight companies. Notably, six of these positions are reserved for small businesses, while the remaining two are unrestricted awards. The FAA's solicitation notice, released on August 7, specifies that proposals must be submitted by September 18 via email. SAVES will serve as the Transportation Department's mandatory vehicle for standardized purchasing of IT hardware, software, and cloud computing services. This iteration of SAVES combines hardware and software requirements into a single contract, differing from the previous setup of separate contracts. Incumbents on the current software contract include CDW-Government and MicroTech, while the hardware contract includes CDW-G, Iron Bow Technologies, Red River Technology, and Sirius Federal.
Why It's Important?
The recompete of the SAVES contract is significant for the IT industry, particularly for small businesses, as it provides substantial opportunities for growth and participation in federal procurement. By reserving six positions for small businesses, the FAA is promoting inclusivity and supporting the development of smaller enterprises within the IT sector. This move could lead to increased competition and innovation, as small businesses bring diverse solutions to the table. Additionally, the consolidation of hardware and software requirements into a single contract may streamline procurement processes, potentially reducing costs and improving efficiency for the Transportation Department. The impact on incumbents and new entrants alike will be closely watched, as the contract's expiration on January 1 approaches.
What's Next?
As the proposal deadline of September 18 approaches, interested companies will be preparing their submissions to secure a position on the SAVES contract. The FAA's decision to combine hardware and software requirements may prompt incumbents to reassess their strategies to maintain their roles. Small businesses, in particular, will be strategizing to leverage this opportunity to expand their federal footprint. The outcome of this recompete could influence future procurement strategies within the Transportation Department, potentially setting a precedent for other federal agencies. Stakeholders will be monitoring the selection process closely, anticipating the impact on market dynamics and the potential for new partnerships.
