Schedule 70: Proposed Retirement SINs 132-4 and 132-9

Introduction GSA's Office of IT Schedule 70 Contract Operations strives to be current with industry trends and adhere to Government Information Technology (IT) directives; as such GSA will be retiring the following SINs: 132-4 Daily/Short Term Rental, and 132-9 Purchase of Used or Refurbished Equipment. SIN retirement will be effective with the implementation of the Multiple Award Schedule (MAS) Consolidated Solicitation, which is scheduled for October 1, 2019. Information about MAS reform is available at GSA Federal Marketplace Strategy. Justification for Retirement SIN 132-4 Daily/Short Term Rental The rental industry demand has been undercut by declining prices of computers and peripheral equipment making it less expensive to purchase rather than rent equipment. Furthermore, the Federal Government continues to move to cloud computing. In September 2018 The Office of Management and Budget (OMB) proposed a new Federal Cloud Computing Strategy (Cloud Smart) to increase cloud adoption across the Federal landscape. The 2017 Report to the President on Federal IT Modernization recommended - a modern Federal IT architecture where agencies are able to maximize secure use of cloud computing; and - enable agencies to move from protection of their network perimeters and managing legacy physical deployments toward protection of Federal data and cloud-optimized deployments. With the transition to cloud computing, the need for daily/short term rental equipment will decline. Consequently, GSA has determined that it is in the best interest of the Government to retire SIN 132-4. SIN 132-9 Purchase of Used or Refurbished Equipment To mitigate supply chain vulnerabilities, GSA has determined that it is in the best interest of the Government to retire SIN 132-9. Additionally, SIN 132-9 retirement will reduce exposure to non-Trade Agreements Act (TAA) compliant items, and outdated IT equipment that does not comply with current standards. This determination is based on the authorities listed below. On May 15, 2019, an Executive Order on Securing the Information and Communications Technology and Services Supply Chain was issued. Pursuant to the Executive Order any acquisition, importation, transfer, installation, dealing in, or use of any information and communications technology or service (transaction) by any person, or with respect to any property, subject to the jurisdiction of the United States is prohibited, if the transaction involves information and communications technology or services designed, developed, manufactured, or supplied, by persons owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary. On April 3, 2019 Presidential Memorandum - Memorandum on Combating Trafficking in Counterfeit and Pirated Goods was released. The Memorandum cites the following statistic: - A recent Government Accountability Office report examined four categories of frequently counterfeited goods, and, based on a small sample of these goods purchased through various online third-party marketplaces, found that more than 40 percent were counterfeit. The Memorandum also directed the Federal Government to expand and enhance existing efforts to deter online trafficking in counterfeit and pirated goods through third-party intermediaries. In 48 CFR - 252.239-7017, Supply chain risk is defined as the risk that an adversary may sabotage, maliciously introduce unwanted function, or otherwise subvert the design, integrity, manufacturing, production, distribution, installation, operation, or maintenance of a covered system so as to surveil, deny, disrupt, or otherwise degrade the function, use, or operation of such system (see 10 U.S.C. 2339a). Summary of Changes SIN 132-4 Daily/Short Term Rental: SIN retirement effective with the MAS Consolidated Solicitation implementation. New offers for this SIN will not be accepted. Modifications to add this SIN to an awarded contract will not be accepted. Full retirement of the SIN is estimated to be mid-2024. SIN 132-9 Purchase of Used or Refurbished Equipment: SIN retirement effective with the MAS Consolidated Solicitation implementation.New offers for this SIN will not be accepted. Modifications to add this SIN to an awarded contract will not be accepted. Full retirement of the SIN is estimated to be mid-2024. Implementation of SIN Retirement for Awarded Contracts Outlined here is the strategy for retiring SIN 132-4 and/or 132-9 on awarded contracts. GSA will be notifying impacted Contractors individually. The notification will specify the SIN or contract end date. Option Periods: For Contracts that only have SINs 132-4 or 132-9: Remaining option periods will not be exercised. Contract period of performance end date will equal the base or current option period end date. For Contracts that have other SINs in addition to SINs 132-4 and/or 132-9: GSA will initiate a delete SIN modification for SINs 132-4 and/or 132-9. The SIN end date will equal the base or current option period end date. At the Government's discretion, the contract option will be exercised for the remaining SINs. Streamlined Offers for Follow-On Contracts (Contracts close to fulfilling 20 year period of performance.) For Contracts that only have SINs 132-4 or 132-9: Analysis has determined there are no contracts that meet this criteria. For Contracts that have other SINs in addition to SINs 132-4 and/or 132-9: To allow streamlined offers without SINs 132-4 and/or 132-9 to be submitted after the MAS Consolidated Solicitation implementation, GSA will initiate a delete SIN modification for SINs 132-4 and/or 132-9. The SIN end date will equal the current option period end date. Questions for Industry and Ordering Agencies GSA would like to obtain feedback from industry and Ordering Agencies ( Federal, State, Local, Regional and Tribal Agencies) regarding proposed retirement of SINs 132-4 and 132-9. Please provide any specific concerns about the proposed retirement of SINs 132-4 and 132-9. Please provide feedback on the SIN retirement strategy for awarded contracts. Proposed Changes to Critical Information Specific to Schedule 70 The changes below will be incorporated and effective with implementation of the MAS Consolidated Solicitation, which is scheduled for October 1, 2019. [***** New offers for SINs 132-4 and 132-9 will not be accepted. Modifications to add this SIN to an awarded contract will not be accepted. Full retirement of the SIN is estimated to be mid-2024. Ordering Activities will not be able to place orders against these SINs upon full retirement.*****] Deadline for Responses Your response must be provided no later than 07/24/2019 Response packages should be sent by email to stacy.lowe@gsa.gov. Please include a subject line of: IT Schedule 70 RFI Response: Proposed SIN 132-4 and 132-9 Retirement