Attention SDVOSBs and Veteran Business Owners:

VetLikeMe News Alert

What is His Motive?
VA Chief of Acquisition Spills Guts Regarding
“Veteran’s First” Sham

In this episode of the Twilight Zone, we have a very special guest on the set who you’ll meet further down the column. In an astounding display of bureaucratic stupidity or marvelous cunning, Jan Frye, Deputy Assistant Secretary of Acquisition and Logistics phoned Wayne Gatewood, a fierce advocate for veterans—with a weight on his chest than needed to be re-leased. Wayne, take it away:

“Yesterday I had a conversation with Mr. Jan Frye, VA’s Chief of Acquisitions. Mr. Frye talked with me about the workings of the VA FSS Program and what he believes to be the importance of the FSS in relation to procurement methodology and the importance of the VA Supply Fund to OAL Operations. At the following Link, please read about the VA FSS Schedule: http://www.fss.va.gov At the following Link, please read about the VA Supply Fund: http://www.va.gov/oal/about/finance.asp.

Mr. Frye also let me know that Secretary Shinseki stands by the VA FSS Schedule as the go-to procurement methodology and it was Secretary Shinseki’s personal decision to not go Vets First! (I am attempting to get a past Press Release from VA PA Office that is supposed to contain the Secretary’s words relative to this matter). Please read the below two paragraphs from the Office of Acquisition and Logistics (OAL) webpage – “About Us.”

“The complex functions required to support the diverse programs of VA are reflected in the mission and organization of OAL. In addition to its primary role of supporting VA’s pro-grams, OAL has a Government-wide role in the supply management of medical supplies and non-perishable subsistence.”

“All OAL operations are funded through the self-sustaining VA Supply Fund which is managed by OAL. The operating costs are recovered through a variety of cost recovery mechanisms that are designed to pass the costs of services provided along to the beneficiaries of such service.”

The VA’s Supply Fund offsets the operating costs of OAL, such as the VA Acquisitions Academy, Denver Acquisitions and Logistics Center, National Contract Service, National Acquisition Center, and the staff that operates these activities. The fund also pays for bonus’ and other items. How does it work? VA gets .05 % of every dollar of every FSS Schedule contract that is let. Given the VA purchases billions of dollars in products, supplies, medicine, services, etc., per year, with much of that through FSS, the FSS program brings in millions of dollars to the Supply Fund. In addition to the money that comes back to the Supply Fund to support OAL, Mr. Frye also told me that VA believes that FSS provides the best cost and the most reliable and timely source of services and supplies to support our millions of Veterans. (But, since there are no cost comparisons with SDVOSBs for certain products and supplies I ask, ―how can that claim be supported”?)*

A GAO Report on the Supply Fund along with an “anonymously prepared Analysis of the VA FSS and the Supply Fund”, are also attached. I have looked over the Analysis but can-not confirm its validity or support its claims. Nonetheless, it appears to be very thorough.

So there you have it folks….FSS Priority…so says Secretary Shinseki! If you want to comment on this matter, send me an e-mail and I will place it in the News for Mr. Frye and staff to read. For me personally, nothing changes until the Law changes and until that happens, it re-mains Vets First as required by PL 109-461. Also, for any and all purchases under the small purchase threshold (to include the “griddle” Aldevra was trying to sell to VA when VA went FSS), by Law, has to be purchased from a small business! So says the Law, so says SBA….. Small purchases are for small business only and not VA FSS to large business.

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