A recent report by Bloomberg Government highlights a major shift in federal IT procurement: billions of dollars in work are moving from IT value-added resellers (ITVARs) and integrators to original equipment manufacturers (OEMs) under new Department of Defense acquisition strategies.
In the article, PilieroMazza Partner Isaias “Cy” Alba cautions that this trend could carry significant consequences for pricing, competition, and long-term government value.
“Increased use of direct acquisition from OEMs shows a misunderstanding by the government of the role of IT VARs,” Alba told Bloomberg Government. “Instead of having competition where many VARs take on cost and pricing risks to win competitive contracts, these OEMs will act as a monopoly to raise prices for the government.”
Excerpt taken from the article “Billion-Dollar IT Work Flows from Resellers Back to Tech Firm” by Paul Murphy for Bloomberg Government. Visit this link to view the full article.
About Cy Alba
Cy is a partner in PilieroMazza’s Government Contracts Group. He counsels clients in a broad range of government contracting matters before government agencies and federal courts that include overall regulatory compliance with numerous regulatory schemes, including FAR and DFARS requirements. Cy also represents companies of all sizes with compliant corporate structuring, mergers and acquisitions, and small business rules and regulations. He handles the prosecution and defense of small business size and status protests and appeals, as well as bid protests and claims and appeals before administrative agencies and federal courts. Read more here.
