GSA plans $2.5 billion payroll acquisition

NOTE: This article first appeared on FCW.com. 

The General Services Administration is giving vendors a heads-up on its promised payroll shared service offering, which will have a $2.5 billion ceiling value over a decade. GSA pays over 2.2 million federal employees every two weeks, making it one of the largest payrolls in the country. The agency's Office of Shared Solutions and Performance Improvement (OSSPI) and its Office of Government-wide Policy issued the pre-solicitation notice on May 17.

OSSPI was launched in January as an umbrella unit covering shared services.

GSA Administrator Emily Murphy has said the software-as-service payroll service is the agency's next step for shared services, which are a key part of the White House's management agenda.

"For GSA, it's not just can we put together another contract vehicle, it's how can we go out and help agencies," she said at a May 14 industry event.

She emphasized that her agency should also look to help agencies transition to shared services instead of having a jarring period of change. Murphy also said the payroll solicitation would look at ways to smooth existing contract close-outs for agencies that might use the service.

The GSA said in its statement that the shift of payroll to SaaS solution will free agencies to focus on core missions priorities and deploy more modern and secure management and payroll solutions.

Potential bidders must respond by June 1.

The acquisition will be conducted using a phased evaluation approach, GSA said. The responses to the pre solicitation will be used to select "viable competitors."

According to the notice, vendors that GSA determines are not viable providers will get letters explaining why they weren't included in the pool of potential bidders. Those that GSA deems eligible to bid will receive the formal solicitation in June.