DHS rescinds two agreements, transferring tasks to GSA.
The Department of Homeland Security (DHS) has announced the cancellation of its Program Management, Administrative, Clerical, and Technical Services III (PACTS III) and FirstSource III contracts, marking a significant shift in the federal contracting landscape.
The decision, primarily driven by the Trump administration's emphasis on routing most civilian contracting through the General Services Administration (GSA), aims to consolidate procurement efforts under GSA's umbrella. This move is expected to improve efficiency and oversight.
The cancellation of the contracts follows a thorough analysis of active contract awards and solicitations, which led to the conclusion that these vehicles do not fit the consolidated acquisition approach. Both contracts, PACTS III with an $8.4 billion ceiling and FirstSource III with a $10 billion ceiling, faced numerous challenges, including frequent bid protests and the need for contract restructuring.
FirstSource III, a small business IT and software contract, underwent several pauses due to protests and was never fully realized. Similarly, PACTS III, aimed at professional services, faced pre-award protests and stalled progress.
By moving work to GSA-led contracts such as OASIS+, DHS aims to leverage existing governmentwide contract vehicles, which offer consolidated, streamlined procurement processes seen as more aligned with current federal acquisition policies.
This strategic shift by DHS reflects a compliance with executive orders promoting acquisition consolidation under GSA. It also aims to reduce procurement complexity caused by protests and contract pauses, and optimize IT and professional services acquisitions through governmentwide solutions like OASIS+ rather than multiple separate DHS contracts.
Experts suggest that this move could set a precedent for other agencies to follow DHS's lead. Robert Turner, president of rTurner Consulting, recommends small businesses to submit GSA schedule offers and prepare for OASIS+ on-ramps and Phase II domains. Jacob Bertram, a principal consultant with Lohfeld Consulting, expects more agencies to consolidate their acquisitions and use best-in-class contracts like OASIS+, Alliant, and SEWP instead.
Vendors are advised to prepare by diversifying their contract portfolio and positioning themselves on major GWACs or schedules to compete if agencies consolidate their acquisitions. The GSA is preparing to open an on-ramp to OASIS+ by releasing a request for information on June 17, and feedback on the RFI is due by July 8.
[1] Federal News Network, DHS cancels PACTS III contract vehicle, 19 May 2021, [2] Nextgov, GSA's OASIS+ Is the Future of DHS IT Contracting, 19 May 2021, [4] Federal Times, DHS cancels PACTS III and FirstSource III contracts, 19 May 2021,
The federal workforce may be impacted as DHS plans to consolidate procurement efforts, shifting the business of professional services from PACTS III to GSA's streamlined contracts like OASIS+. This workforce reimagined approach aims to optimize finance by reducing procurement complexity and improving efficiency.
