We have previously talked about NASA’s SEWP (Solutions for Enterprise-Wide Procurement) being back with its sixth iteration. We have resources and a free compliance matrix available for you to delve into. Now, we feel it is time for another update as this RFP is shaping up to be a game-changer. SEWP VI is not just another contract; it’s a significant leap forward, offering unprecedented opportunities for contractors. With no cap on awards, the playing field has widened, opening doors for many to secure prime positions.
In this blog, we’ll explore the SEWP VI draft in detail and offer guidance on navigating the upcoming RFP.
NASA SEWP VI
This latest version stands out for its enhanced focus on IT services. This marks a strategic shift from its traditional emphasis on IT products. Deltek’s Vice President of Research, Carrie Webster, sheds light on a pivotal change in this interview. She underscores SEWP’s transition towards a more service-oriented approach. This shift is particularly timely given current trends in government contracting. There’s a growing preference for leveraging existing contracts over initiating new ones. This makes SEWP VI a critical tool in the government’s procurement arsenal.
But there’s more. SEWP VI’s ‘no cap on awards’ policy breaks new ground, allowing more contractors to secure prime positions. This policy is a game-changer, especially in a landscape where opportunities for prime contracts can be fiercely competitive. It signals a more inclusive approach, inviting a diverse array of contractors to participate and contribute to government projects. As we edge closer to the release of the final RFP, anticipated in Spring 2024, excitement is building. With award announcements likely around October 2024, the buzz in the GovCon community is palpable.
Concerns Over NASA’s SEWP VI Small Business Strategy
However, the SEWP VI isn’t without its concerns, particularly for small businesses. Industry experts worry the new small business size standard might sideline many small businesses. Lawmakers Roger Williams and Nick LaLota (chairman and a member of the Small Business Committee) echo this concern. They’ve raised questions about the potential limitations imposed by this new standard.
“The committee is concerned that the revenue-based size standard proposed for use in SEWP VI limits small business’ ability to service task orders without compromising their size status,”
Williams and LaLota note that SEWP V successfully included small businesses, with these entities winning about 80% of contract dollars. The shift in SEWP VI to a revenue-based overall contract NAICS code is a significant change. They argue that this could potentially restrict small businesses from accessing task orders and fully participating in the program. This concern goes beyond just maintaining the status quo. It’s about ensuring the continued vibrancy and diversity of the small business community in government contracting. The lawmakers have requested a detailed explanation from NASA regarding the decision to use NAICS code 541512. Additionally, they seek to understand the limitations related to the nonmanufacturer rule as it applies to NAICS code 541519.
Despite NASA’s assurance of dedicating a significant portion of SEWP VI to small businesses, the fear is real. Experts like Stephanie Geiger, the CEO and founder of the Geiger Consulting Group, a federal marketing and communications expert, and Eric Crusius, a partner with Holland and Knight, have issued a warning. If the current size standard remains, it could lead to a shrinking small business presence in government contracting. The fear surrounding the new size standard is significant. It could lead to a scenario where small businesses, especially those with fewer employees, find themselves competing with much larger contractors. This concern isn’t just about numbers. It’s about maintaining the diversity and dynamism that small businesses bring to governmental acquisition contracts.
We are eagerly anticipating the final RFP of SEWP VI in Spring 2024, followed by award announcements. SEWP VI brings both opportunities and challenges that will significantly impact the future of government contracting. This period calls for active engagement from contractors, attentiveness from lawmakers, and collaborative discussions among all parties. The true measure of SEWP VI’s success will lie in its ability to drive innovation. Additionally, it should create a diverse and inclusive contracting environment. This would benefit businesses of all sizes in their contributions to government projects.
VisibleThread aim to keep you updated on any new changes in the SEWP VI RFP. In the meantime, you can download our free compliance matrix. This will give you a headstart on preparing for the release of the final RFP.
