Leasing resolution likely

Industry and government officials are working toward a quick end to a 60-day moratorium imposed in late March by the General Services Administration on leasing of information technology products under the Federal Supply Service schedule.

GSA said it would suspend IT leasing under the FSS schedule for 60 days, beginning April 5. About $100 million in leasing is generated under the FSS IT Multiple Award Schedule each year. About $10 billion a year is spent through the schedule, according to GSA.

The GSA initiated the moratorium because it is concerned about high fees charged to agencies for early termination of leases, said Larry Allen, executive director of the Coalition for Government Procurement in Washington.

Concerns arose after the Navy awarded the Navy-Marine Corps Intranet contract and canceled some leases early, causing it to face greater charges than it had anticipated.

GSA spokeswoman Deborah Ruiz said the agency will work with customers that have major IT leasing projects "to ensure that they are able to maintain the focus on their mission. We will address each situation on a case-by-case basis. It is extremely important to us that any impact on customers is minimal, if at all."

GSA and industry representatives met April 5 to discuss new leasing terms. GSA is reviewing draft language and will be providing it to contractors shortly, Ruiz said.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here


  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Our databases track awards back to 2013. Read More

  • Navigating the trends and issues of 2016 Nick Wakeman

    In our latest WT Insider Report, we pull together our best advice, insights and reporting on the trends and issues that will shape the market in 2016 and beyond. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.