GSA has announced plans to cut costs related to its Multiple Award Schedules and make them more efficient. It said it would stop adding new contractors for outdated products such as typewriters, photographic equipment, trophies and commemorative or promotional items.
There are some 8,000 obsolete contracts by the agency’s count, each costing at least $3,000 a year to administer. Reducing these contracts and preventing the addition of more of them can save over $24 million a year, GSA said.
“By stopping the proliferation of low performance contracts and cutting products or services that are no longer mission-critical to the government, GSA will reduce waste and save millions of taxpayer dollars annually,” said acting administrator Dan Tangherlini.
In recent years, the number of companies trying to get onto GSA’s Multiple Award Schedules has doubled and the number of modifications to existing contracts has tripled but GSA projects that more than 50 percent of the contracts awarded in 2011 will have low or no sales.
