1. Independent Office Products and Furniture Dealers Association (IOPFDA)

2. Recap & Overview of NDAA Section 846’s Ecommerce Marketplace
Presented by:
Mike tucker & Paul miller

3. Board Orientation
Background
Amazon lobbied Congress to consolidate existing internet portals and contracts with a government wide Amazon Ecommerce portal.
Congressman Thornberry from Texas submits rider to National Defense Authorization Act (NDAA) to make this law.
NOPA and other industry groups express significant concerns.
House and Senate compromise bill calls for a phased in plan with industry input and review and oversight from GSA and OMB.

4. Original HASC Proposal
Considered granting “one or more” marketplace contract without
competition
Prohibited GSA (or any Government agency) from running the
marketplace
Enforced marketplace requirements that VERY few companies could
satisfy
Relieved DOD purchasers from most competition obligations
Prohibited federal buyers from opposing marketplace TS&Cs

5. H Proposal vs. H/S Compromise
Online marketplace provider selected without competition
Online purchases considered “competitive” as long as multiple vendors offer product
Inhibited who could become an online marketplace
Utilizes current procurement laws to ecommerce portals unless explicitly excluded
Online purchases must meet current competition conditions
Lessens restriction to becoming an ecommerce portal

6. Ecommerce Portals
GSA’s definition of an ecommerce portal is a “commercial solution providing for the purchase of commercial products aggregated, distributed, sold, or manufactured via an online portal”
Directs GSA to “consider” portals that
Are “widely used in the private sector”
“Have or can be configured to have” regularly revised supplier and product choices, as well as a collection of product and supplier reviews
Unlike original House wording, new wording makes a spectrum of commercial entities accessible

7. Ecommerce Portal Program VERY Broad
Board Orientation
Ecommerce Portal Program VERY Broad
Ecommerce portals will accommodate purchases up to the SAT
Program must entertain government-wide purchasing
Related legislation expands concept of commercial items
Once commercial, inferred as still commercial
DOD can’t hold FAR 15 competition for purchases made through FAR 12 procurements
DOD must launch an audit of current contract vehicles
DAU is charged with creating a new CO training program directed at commercial purchases

8. H Proposal vs. H/S Compromise
Quick, non-competitive selection of 1 to 2 current online marketplaces
Phased-in approach to plan, schedule, evaluate, and develop new program

9. GSA/OMB Implementation Timeline
Develop implementation plan
Establish a schedule
Complete market research
Consult with agencies, suppliers, portal providers
Determine data security concerns
Analyze impact of fees
Establish guidance for use of portals
Create protocols for oversight
90 Days
12 Months
24 Months
After Plan

10. H Proposal vs. H/S Compromise
Products sold through marketplace must be screened to meet regulatory requirements
Products sold through marketplace must be screened to meet regulatory requirements

11. Potential Regulatory Requirements
Country of Origin
Data Security
Trade Agreements Act
Small Business
Buy American Act
Socio-Economic
Berry Amendment
Environmental

12. H Proposal vs. H/S Compromise
Ecommerce portal providers prohibited from using data for their own purposes
Online marketplace
Providers prohibited from disseminating data to third parties

13. Questions Regarding Portal Selection
Will GSA conduct conventional direct competition? OR
Will GSA conduct a schedule-like “everyone who meets the requirements receives a contract” competition?

14. Recommendations of NOPA & Industry Partners
“Encourage” GSA to “resist the urge to make changes to the existing features, terms and conditions, and business models of available ecommerce portals…”
AND
“Pursuant to a diligent review of existing law and regulation,… direct [GSA] to be judicious in requesting exceptions.”

15. Next Steps: So where does this leave us?
Work with GSA Implementation team
Educate GSA on current Industry best practices and how the current system fosters competition, compliance, ease of ordering and data
Get feedback from industry partners on possible solutions
Work for inclusion in tasks force/working groups
Make sure GSA understands impact of having to sell through
another’s existing marketplace
Regular communication with industry partners

16. Thank you.
Mike Tucker & Paul Miller