In recent months, the U.S. General Services Administration (GSA) has been transforming how government entities purchase technology products through its OneGov strategy. Initially, the plan was to diminish the role of value-added resellers (VARs) and increase direct engagements with technology manufacturers. However, after almost a year of implementation, the OneGov strategy has taken an unexpected turn.
Resellers, once thought to be relegated to the sidelines, are still an essential part of GSA’s procurement model. The new approach has redefined how resellers, original equipment manufacturers (OEMs), and the GSA work together to create a more dynamic and effective procurement ecosystem. In this blog post, we’ll explore how the GSA’s OneGov strategy is evolving and what it means for government procurement.
The GSA OneGov Strategy: A Quick Overview
The OneGov strategy was introduced as a means to streamline federal procurement processes and provide government buyers with direct access to discounted technology products. The goal was to eliminate intermediaries, such as resellers, and instead engage directly with technology manufacturers for a more efficient purchasing experience.
Initially, the GSA hoped that by working directly with technology manufacturers, it could reduce costs and increase the speed of procurement. OEMs could provide the products directly, cutting out the middleman. This was seen as a way to foster transparency and speed up the purchasing process, which often faces delays due to the complexity of government contracts.
The Role of Resellers: Still a Key Part of the Ecosystem
Despite the early rhetoric suggesting that resellers would be phased out in favor of direct relationships with OEMs, the reality is much more nuanced. Resellers continue to play a critical role in the OneGov strategy but in a new capacity. According to GSA officials and industry leaders at the ACT-IAC Imagine Nation Conference, resellers are now viewed as partners rather than mere intermediaries.
The OneGov strategy has evolved into a more flexible model, where resellers may either be the prime contractor or a partner to an OEM. While this shift allows for increased collaboration and partnership between GSA, OEMs, and resellers, it raises important questions about how responsibilities will be shared in the new procurement dynamic.
The Changing Role of OEMs and Resellers
During the panel discussion at the ACT-IAC conference, GSA officials emphasized the importance of maintaining strong relationships with resellers. Larry Hale, the acting assistant commissioner of the Office of IT Category in the Federal Acquisition Service (FAS), acknowledged that GSA’s progress with the OneGov strategy would not have been possible without the active cooperation of resellers. Resellers have been instrumental in helping GSA negotiate and secure agreements with OEMs, especially considering that many OEMs do not hold GSA schedules themselves.
While the OneGov strategy began with the hope of bypassing resellers, the reality is that GSA still needs their expertise. This evolving approach recognizes the valuable role that resellers play in delivering products and services, especially in terms of integration, customization, and post-sale support. Resellers, especially small businesses, are seen as critical players in ensuring that the broader ecosystem remains healthy and functional.
A New Procurement Model: Who’s Responsible for What?
The collaboration between GSA, OEMs, and resellers creates a more segmented accountability model. As explained by Lee Fisher, vice president of public sector at DocuSign, each party has specific responsibilities in the new OneGov procurement strategy.
OEMs are primarily responsible for ensuring the integrity of their products, including software functionality, cybersecurity, uptime, and compliance with government standards. In essence, OEMs are accountable for the performance and integrity of the product they sell to the government.
On the other hand, resellers are expected to take on roles such as integration with other technologies, customization, and post-sale support. They might also help with requirements gathering, ensuring that the final product meets the specific needs of the agency or department. This shift represents a more collaborative approach to procurement, where everyone involved has a clear role in delivering value to the government buyer.
Cisco’s Commitment to Partner Relationships
Cisco, a global leader in technology, has long relied on partnerships with resellers to extend its reach and improve customer service. Although Cisco does not yet have a OneGov agreement in place, the company is actively negotiating with the GSA. Carl De Groot, Cisco’s vice president of federal sales, noted that while the company is exploring opportunities to take on a prime contractor role under the OneGov strategy, it will not abandon its long-standing partner relationships.
For Cisco, partnerships have been a key factor in its success over the past 40 years. While the OneGov strategy may lead to a shift in how responsibilities are distributed, Cisco remains committed to its reseller network. As De Groot explained, the decision to transition into a prime contractor role is not just about financial considerations; it’s about managing risk and maintaining the integrity of the company’s brand across the federal government.
The Future of Government Procurement: OneGov as the First Choice
The OneGov strategy is still in its early stages, and GSA continues to negotiate new agreements with OEMs. As of now, GSA has signed more than a dozen OneGov agreements, primarily with software companies. These agreements offer steep discounts and broader access to products, which has made the OneGov strategy an attractive option for government buyers.
However, for OneGov to become the first choice for agencies when purchasing technology products, a cultural shift is necessary. Contracting officers across the government need to be open to using OneGov agreements instead of simply extending options on existing contracts or competing for new ones. This requires a change in mindset and a willingness to embrace new procurement models.
Larry Hale noted that GSA is working to encourage contracting officers and acquisition professionals to step out of their comfort zones and consider OneGov as a viable alternative. By doing so, GSA hopes to foster a more agile and responsive procurement process that better meets the needs of government agencies.
Conclusion: The Shift Toward a More Collaborative Procurement Ecosystem
The OneGov strategy has evolved significantly since its introduction, and it continues to reshape how the federal government purchases technology products. While the early intention was to reduce the role of resellers, the reality is that resellers still play a crucial role in the OneGov strategy—just in a different capacity. Resellers, OEMs, and GSA are now working together in a more collaborative and fluid relationship, where each party has a defined role to play.
As GSA continues to refine the OneGov strategy, it is clear that this new procurement model will offer a more flexible and dynamic approach to government purchasing. By leveraging the strengths of both resellers and OEMs, GSA hopes to create a procurement process that is more efficient, cost-effective, and responsive to the needs of federal agencies.
In the future, OneGov may become the go-to model for government procurement, but for that to happen, a cultural shift among contracting officers is necessary. As GSA works to implement this change, the relationship between resellers, OEMs, and the government will only become more critical in ensuring the success of the OneGov strategy.
Key Takeaways:
- The OneGov strategy aims to streamline federal procurement by increasing direct engagement with OEMs, reducing the role of resellers.
- However, resellers are still a critical part of the OneGov strategy, now taking on roles such as integration, post-sale support, and customization.
- OEMs are responsible for ensuring the integrity of their products, while resellers handle integration and support.
- Cisco and other OEMs are committed to working with resellers, despite the possibility of taking on prime contractor roles.
- The OneGov strategy requires a cultural shift in government procurement to become the first-choice purchasing model for agencies.
