Category management is revolutionizing government contracting, but most available training primarily addresses the government’s needs and its impact on the buying process. For instance, Acquisition Gateway supports acquisition professionals and federal buyers by connecting them with essential resources, tools, and one another to enhance government-wide acquisition practices.
But what about the hundreds of thousands of small business contractors?
How will Category Management and BIC vehicles impact the selling process?
How should small business owners adapt? That’s the key question!
STAHL will focus on guiding all small businesses—not just STAHL certified firms—through the changes in Category Management and Best in Class (BIC) vehicles, with a particular emphasis on how these changes affect individual small business government contractors.
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About Category Management
Category Management encompasses 19 distinct categories, including nine specifically related to Department of Defense (DoD) purchases and ten covering common goods and services.
Each year, approximately two-thirds of federal spending, or around $300 billion, falls under the ‘common goods and services’ categories.
About BIC Contract Vehicles
What is Best in Class?
Best-in-Class (BIC) contract vehicles are transforming government contracting. BIC designations are awarded to acquisition solutions that meet specific criteria set by the Office of Management and Budget (OMB) and can be utilized across multiple agencies.
The broad adoption of Best-in-Class solutions aims to:
- Enhance the government’s collective purchasing power, enabling agencies to benefit from volume discounts.
- Improve efficiency by lowering administrative costs and reducing contract duplication.
- Increase the collection and sharing of government-wide purchasing data, leading to more informed business decisions.
‘Managed’ vs. ‘Unmanaged’ Contracts
Contract vehicles generally fall into one of two categories: ‘managed’ or ‘unmanaged’ contracts.
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‘Unmanaged’ Contracts
Unmanaged contract vehicles, known as Tier 0 vehicles, are those not aligned with category management principles and do not fit into the other three tiers. With over 400,000 contracts classified as Tier 0, this category represents a less regulated area of government contracting, often referred to as the ‘wild west.’ The professional services category alone contains approximately 185,000 contracts. Additionally, there are over 2,500 Multiple Award Contracts (MACs) and more than 1,700 active contract vehicles within the VA. This highlights the need for the government to streamline and enhance efficiency.
‘Managed’ Contracts
The other three tiers of contracts are classified as ‘managed,’ collectively known as Spend Under Management (SUM). These contracts adhere to established standards and guiding principles:
- Tier 1 Spend Under Management: These contracts are typically used within a single agency.
- Tier 2 Spend Under Management: These contracts can be utilized across multiple agencies but are not necessarily government-wide (GWACs).
- Tier 3 Spend Under Management: Also known as Best in Class (BIC), these contracts are GWACs and available for use by any agency.
For small businesses, engaging with BIC vehicles is crucial. Here’s how:
- Become a Prime Contractor: Qualify and secure a prime contractor position on these vehicles as soon as possible.
- Join as a Subcontractor: Get involved as a named subcontractor immediately, or even as an unnamed subcontractor.
To understand each of the 41 Best in Class Vehicles, watch the full webinar. Neil offers detailed insights on:
- Category Title
- BIC Title
- Contract Ceiling Amount or Expected Spend
- Lead Agency for the Contract Vehicle
- Expected Period of Performance End Dates (including option years)
- Number of Companies Awarded a Prime Contractor Position and the Count of Small Businesses
- Key Points of Contact (if available)
- Website URL
Each category is further divided into sub-categories and functional groupings to provide a comprehensive overview.