
Please Submit all Testimonials to INFO@STOPFSSI.ORG
Creative
Sales Solutions, Inc. has been a schedule 75 contract holder since March, 2001.
We have served the federal government with excellent service, products, and
compliant pricing for a decade. However, during this time we have also
experienced growing bi-partisanship and apathy when dealing with GSA ,
especially when the people in charge have no clue as to what it takes in time,
human resources, and capital to maintain compliance. I chalk this up to the fact
that either they don't understand free market enterprise, or they don't care. In
my opinion, it's probably BOTH.
Below
is our GSA 1st quarter sales for the last 4 years. Please note 2010 & 2011:
2008: $276,895.00
2009: $229,283.00
2010: $171,174.29 (-25%)
2011: $ 93,884.33
(-45%)
In Nov.2009, I was given a new CO, who promptly informed me
AFTER I had a " contactor assistance visit" the previous April, that
he had no documentation that I was a full catalog dealer, and that I wasn't
allowed to have my full-line catalog on GSA Advantage. I explained that I WAS a
full-line catalog dealer, that it had been approved in 2001. Again, he stated he
had no documentation of it. I countered that anything loaded in the SIP program
HAD to be approved by the CO, that contractors cannot simply and randomly load
any products they want on their GSA site and that surely he was aware of this.
We went through this song and dance (compiling a lot of expense and time) until
July 8th, 2010, when he finally approved my full catalog conversion. During this
time, we were not allowed to update pricing or products on our site, thus the
25% drop.
Now,
after enduring all of that, we face extinction due to the reckless and
uninformed in Washington. I have lost 45% of my business as a whole, and just in
the last month, laid off the best damn employee (10 years) any business owner
could ask for. Telling a Mid 30's mother of two small girls that you cannot
afford to keep her, and that she needs to get on unemployment( welfare) is the
hardest thing I've ever had to do. If the FSSI is allowed to continue, I cannot
foresee us staying in business past May. What do I do about my responsibilities
to my family? Especially my Father-in -law, who has Alzheimer's and I provide
the funding for his assisted living? What about my partner, who is responsible
for two children, one in college and one in grade school?
Very Truly Yours,
Brian W. Cassidy, President- Creative Sales Solutions, Inc.
=================================================
When Federal
Services Inc. received its GSA Schedule 75 in March of 2009 it was a SDVOSB.
Once FSI received it's GSA Sch. 75 MAS Contract, it
immediately applied for a AbilityOne distributorship and were awarded one.
In June of 2010, FSI was awarded the first every Newcomer
of the Year Award from the National Industries for the Blind.
Things were really looking up and two Vietnam Era Veterans
felt that finally the US Government was trying to help VOSB's.
WRONG!!!!!!!!
Along came the FSSI in October of 2010 and sales of office
products dropped by 87%.
This FSSI is a genuine" Made in the USA" Kick in
the Ass and Slap in the Face when two Veterans are told that the US government
is only going to allow and recognize one SDVOSB to be part of the FSSI BPA.
If this is true, then there should only be one Marker on
Normandy.
Sincerely,
Jim Matter
President
Federal Services, Inc.
=================================================
Adams Marketing has been a successful schedule 75 contract
holder for 27 years. We have
provided excellent pricing and service to the entire Federal Government customer
across the world. We have evolved
over the years to be EDI friendly and increased our ability to supply over
25,000 office supplies in an inexpensive and efficient manor. We have always been ranked in the top 10 of the, over 500,
schedule 75 contractors. Since
the forcing of the FSSI BPAs, we have had an immediate and exorbitant drop in
business in the past 6 months. We
have laid off 3 employees (one with a son in IRAQ) , given salary cuts to many
employees, and having to consider
more layoffs in the very near future.
Our customers are being diverted by the FSSI mandates from
the Agency head level. One customer
from the Census Bureau spent 3 days getting 2 forms, one at their level, and one
at the Dept. of Interior level, filled out and signed.
This was in order for them to purchase an item from Adams Marketing,
saving them $300.00 over what they could find it for on FSSI.
Placing the order with Adams Marketing took 3 minutes and we shipped it
out the next day. We
are getting many customers venting their frustration over the additional
paperwork and man-hours involved in getting the best value for their purchase.
Also, GSA has instructed
it's New York City, Global Supply purchasing agents to also go to the 15 FSSI
BPA holders, which in totally out of the realm of the micro-purchase cardholder
use noted in the BPA.
On page 11, of GSA's powerpoint presentation entitled,
" FSSI Office Supplies Executive Summary", in regard to the 24 month postponement of schedule 75 new
offers, it states "Schedule 75
sales, outside of FSSI BPA's, projected to decline as use of the FSSI BPAs
increases."
This has been an unbelievable attempt to put 500 small businesses out of
business, during the worst economic time of our lives.
And this is all done with no regard about the fate of the schedule
holders by OMB and GSA. After
meeting face to face with them in front of my Congressman Bobby Scott,
they admitted that they did not do any study as to the impact this FSSI
might have on small businesses across America and it is hard to believe the our
President is supporting this initiative.
=================================================
To echo the stories of the many small business owners that
have had to face the decline in sales due to the FFSI contracts, we have also
had to face the harsh reality this arrangement has had on the business.
We are grateful for our GSA contracts, a lot of time and resources went
into getting and maintaining these contracts.
We work hard to provide quality goods at reasonable prices, so you can
imagine how disheartening it is to see the rewards going to Office Depot,
whether they have the best pricing or not.
We want to stand with you and all the small business owners
to ensure that "cost cutting" programs are not just a way to cut the
small business owners out of the market all together.
Thank you,
Maureen O'Toole
Alpha Sum Business Machines
=================================================
CycleNet is one of those grass root American stories.
I was tired of the corporate grind in the late 90's and hitting the glass
ceiling, so I started CycleNet a small woman owned business.
The company started in my basement and has grown to a multi-million
dollar business employing eleven people. The
past years have not been easy. I
had to juggle raising my son by myself and meeting all of the financial needs of
a growing company. The GSA or
government portion of our business has been a key dependable portion of our
business. I wrote our original
schedule and submitted it for approval six years ago.
It took me five months to write and complete all of the paperwork working
in the evenings and on weekends. It
then took the government five months to approve.
We just had our GSA contract renewed last December for another five
years. What is ironic is that we
received an "exceptional " rating from our GSA auditor. Our GSA business was growing over 40% because our prices were
fair, our customer service exceptional, our delivery perfect to all locations
across the U.S. and dealing with the units in Iraq, Kuwait, Egypt, Djoubuti,
etc... Our business was founded on
"uncompromising integrity"; it
is present in all we do. We do not
lose customers or accounts. Our GSA
business has been down 95% since the first of the year through no fault of our
own. Our government clients tell us
that they have been mandated to purchase off of the FSSI even though they don't
want to. We are located in
Virginia, so we are close to many of the government agencies.
CycleNet is responsible for eleven families and their livelihoods.
We are a small company like the other companies on the GSA schedule that
supports their local communities, pays taxes on time, contributes to the
betterment of our communities and lead by example.
It is the American Way ! Has
this been forgotten in Washington? Please
let someone walk in my shoes and see what we have to contend with on a daily
basis. In order to compete in an
ever changing market the least we can ask for is a fair chance to succeed based
on merit.
Sincerely,
Sue
Susan M. Saxion
Cycle-Net Inc.
=================================================
We received the request for quote. It was all or nothing on
the office products and/or just for the toner. The products were limited to
products not on our contract so we could not provide a bid. There was nothing on
the RFQ that mentioned or listed all office products.
We only had our GSA contract for approx. two years and due
to the increase in sales last year, we started to interview for two new
positions with the company. Currently, sales are down significantly and we have
cancelled any plans on hiring. In addition, the owner is looking for employment
and doesn't know how long the company will be able to continue operating. Our
federal government customers have commented on the great prices and customer
service provided by our company.
The actions imposed by this FSSI/BPA are illegal. Based on
the Small Business Act we are not being treated fairly or equitably.
Thank you,
Andy Lempa
Vice President
Andrews Office Supplies, Inc.
GSA Contract#: GS-02F-0172V
Woman Owned Small Business
=================================================
I am a Service Disabled Veteran, rated by the VA at 90%.
When leaving the military I discovered that my 24 years of
"Experience and Skills" were not in demand and add in the disability
factor. After working through a
temp firm, I decided to start my own business in 1992.
Over the years I heard about the GSA and the contracts they offered, but
was discouraged from trying to get one, everyone said how impossible they were
to get. In 2006, I decided to go for it, downloaded
the paperwork and got started. I
was told it could take months to get it all processed, but I was willing to try.
By the time I had everything filled out and submitted; they had changed
the forms and I had to redo the entire packet.It was a major highlight to my
business life to be awarded that GSA contract on January 31, 2007.
There is a lot about the contract system that takes time and effort, from
the on-site inspections(nerve wracking to say the least) to the mandatory
contract modifications. I have
always followed the regulations, from researching every item I list( I now have
over 6,000 line items) to be sure were TAA compliant, percentage of recycled
content, etc. Over the past 19
years I have had many business ups and downs including taking out a very large
second mortgage on my home for the business. The GSA sales were really beginning
to help me see the light at the end of the tunnel.
Like anything else it has taken a while for the GSA customers to build
up, I understood and was in it for the long haul; knowing that the other
Schedule 75 contract holders were in the same situation.
Now comes the FSSI BPA. No
longer are things equal and fair. I
had been growing at a rate where I had begun to contemplate rehiring assistance.
At one time I was able to employ eight workers, but with the economy,
employee benefits and taxes, I've had to cut way back.
Now just as I was seeing things turn around, I am slapped in the face
with FSSI BPA. 'Customers' I had been able to count on ordering regularly ;
were now being told 'they had to purchase from FSSI BPA only' even though my
pricing was a better deal for them. I
have done everything required of me, getting certified as a "Service
Disabled Veteran Owned Small Business" by the VA, Center for Veterans
Excellence, going to the GSA Expo and all of the other 'little' things that have
cropped up. Not only has FSSI BPA
made my business go down, it has made my wife's and my blood pressures soar.
This has made our lives teeter between anger and depression.
My wife and I spend about 60 or 70 hours working each week, sometimes
more, seven days a week at the business. It
never seemed to be too much until we could no longer see the results of our
labors. Before FSSI BPA I was able
to see a steady trend up to more than 60% of my total sales from my government
sales, now I'm not even averaging one sale per day.
With the FSSI BPA injected into the equation, the mandated sales of
$25,000 per year looms large over my head, fortunately,fortunately for this year
I was able to make my quota before the FSSI BPA went into effect.
But what about my new year beginning in July, never before have I had to
worry about that. I went from growing and thriving to wondering how long I can
keep the doors open.
And just this week I get a call from a GSA rep; it's time
for my inspection again!
Dale L. Gettle
Owner
Deja'vu Laser Services
=================================================
MMG Technology Group Inc is a small, disadvantaged,
woman-owned business that relies heavily on our GSA relationship. MMG has a
total of (9) employees.
The FSSI has significantly impacted our overall business
with the Federal Government to the point we may end up laying off long-time
employees. MMG has had a very positive working relationship with GSA for (12)
years and our service and commitment to GSA has been excellent. Needless to say
our story is no different than any of the other Schedule 75 contract holders.
The FSSI process created by GSA is irresponsible and without merit. With the
exception of a few small and disadvantaged business the rest of the Schedule 75
contract holders have been hung out to dry.
MMG is currently is the process of turning the business
over to our children and needless to say this FSSI program has been devastating
to their long-term hopes of being able to carry this business forward as second
generation owners of our family business.
This FSSI program needs to be terminated so that all small
businesses have a chance to compete with our customers without them being told
by GSA that it's FSSI or nothing.
Thank you,
Larry Marietti
Vice President Operations/Co-Owner
MMG Technology Group, Inc.
=================================================
We are a
Viet-Nam small veteran-owned business and have serviced VA's and other
government institutions since 1991. Our
business has declined over 50% since this FSSI became in place.
The contact people I work with in the government VA's are calling me and
telling me they have been told they can no longer do business with us because of
the FSSI mandate.
We went to
considerable links and expense to get our GSA number and keep our prices very
competitive with the other vendors. In
fact, we had a lot of extra services that we gave to the VA's because we wanted
to support our veterans and keep their cost at a minimum; however, we are
rewarded with a "slap in the face" with this FSSI.
This is not fair competition and goes against every facet of our American
way - free enterprise and the right to compete.
It is very autocratic and undemocratic.
This is what happens when the "big" federal government think
they know best.
We are
discussing the possibility that we may have to close our business if something
is not done in the very near future to allow us the right to service our
government institutions.
Thank you,
Jackie Esnard/Vice President/Western Technologies
Jackie Esnard
Western Technologies
2401 Windy Ridge ~ Plano, TX 75025
=================================================
Pacific Ink, Inc. is a woman owned, small business that was
awarded a GSA Schedule in January 2004 to sell printer cartridges. Over the last
7 years we have worked hard on our GSA Schedule both marketing it and keeping it
in compliance and have bent over backwards keeping our government customers and
GSA happy. Since October 1, 2010 we
have experienced a critical drop in our GSA sales, which in real dollars comes
to a difference of $417,000. The
first quarter of 2011 has been the hardest to swallow as our sales are down 71%
over 1st quarter 2010. Because we
haven't changed anything with regards to our marketing efforts and our monthly
contact with all of our government customers we know that the reduction in sales
is due entirely to the FSSI BPA.
Our government business is very diversified which has
helped us weather past budget delays, organization wide BPA's, etc. but
approximately 32% of our government customers have contacted us to let us know
that they are saddened that they can no longer purchase from us because they are
mandated to buy from the FSSI BPA. Looking
at our customer list we estimate that closer to 60% can't order from us anymore
due to the organizations mandates on them to order from the FSSI BPA.
We also have had reports from several customers that are able to order
from us that they are having a hard time finding us on GSA Advantage the past
few months due to the new GSA Advantage website.
We have had a hard time locating our products as well due to the new site
and its favoritism to FSSI BPA companies.
Due to the dramatic decrease in sales we have had to layoff
2 people that served our government customers and 1 warehouse employee during
the last 3 months. We
have had a difficult time paying our vendors and covering our most basic
expenses of rent, medical insurance, etc.
We are fighting for our livelihood and the livelihood of our employees.
While we are doing this we have reports from our customers that have to
order from FSSI BPA but have not received their product for over 3 weeks, are
having a hard time getting a hold of anyone for customer service, and last but
not least, paid more than they would have for the product had they purchased it
from us. As a tax payer this is
very disheartening knowing that the government can buy it for less from Pacific
Ink, Inc. and several other small businesses, get better service, but are being
mandated to buy elsewhere due to a decision made by our government.
Sincerely,
Jaime Mautz
President
Pacific Ink, Inc.
GSA Contract#GS-02F-0073P
Pacific Ink, Inc
10531 4S Commons Drive, Suite 166-415
San Diego, CA 92127-9212
=================================================
Since this began I have lost 69% of my employees. I have
had a reduction in revenue of 47 %( the percentage grows larger everyday). I had
to reduce pay for all remaining employees. I have had to cancel all healthcare
coverage for all employees including myself. I don't ever recall receiving an
invite/solicitation for the FSSI. I went through the long ordeal of obtaining
our GSA contract back in 2006 and I have greatly appreciated the support of the
local base where I live up till 4Q09. As a veteran, it disheartens me that the
committee didn't look into what the FSSI was going to do with all of the
remaining vendors and their families. In October of 2009, the orders started to
die off. We were told by numerous cardholders that where they were not allowed
to purchase from local small business, they had to use advantage to enter
orders. I said ok, I am on advantage, still no orders. We are lucky if I receive
1 order a day.
I finally learned of the FSSI in Jan 2011 and had a meeting
with base contracting last month and they admitted to knowing about the FSSI and
I was told there was nothing they could do. We are on the verge of closing the doors. We all need to
fight this before it is too late.
Richard Finn, USAF Veteran
Midwest Office Supply
GSA Contract Holder
=================================================
We are a
Viet-Nam small veteran-owned business and have serviced VA's and other
government institutions since 1991. Our
business has declined over 50% since this FSSI became in place.
The contact people I work with in the government VA's are calling me and
telling me they have been told they can no longer do business with us because of
the FSSI mandate.
We went to
considerable links and expense to get our GSA number and keep our prices very
competitive with the other vendors. In
fact, we had a lot of extra services that we gave to the VA's because we wanted
to support our veterans and keep their cost at a minimum; however, we are
rewarded with a "slap in the face" with this FSSI.
This is not fair competition and goes against every facet of our American
way - free enterprise and the right to compete.
It is very autocratic and undemocratic.
This is what happens when the "big" federal government think
they know best.
We are
discussing the possibility that we may have to close our business if something
is not done in the very near future to allow us the right to service our
government institutions.
Thank you,
Jackie Esnard/Vice President/Western Technologies
Jackie Esnard
Western Technologies
============================
My business LCI Office Products, Inc. is AbilityOne vendor
and we never received a notification for it as well.
Kind regards,
Parvaneh Nobari@LCi Office Products, Inc.
On Mar 14, 2011, at 8:29 AM, "Rita Hall" <ritahall@onyx-electronics.com>
wrote:
It's my understanding the only ones informed were the
AbilityOne venders (approx 125). But would it have really mattered? Even if you
had an opportunity to participate, there would still be 15 vendors chosen and
500 kicked under the bus!
ONYX Electronics, Inc
Have a Blessed Day
Rita Hall
<><
Head of Government Sales
=================================================
Since this began I have lost 69% of my employees. I have
had a reduction in revenue of 47 %( the percentage grows larger everyday). I had
to reduce pay for all remaining employees. I have had to cancel all healthcare
coverage for all employees including myself. I don't ever recall receiving an
invite/solicitation for the FSSI. I went through the long ordeal of obtaining
our GSA contract back in 2006 and I have greatly appreciated the support of the
local base where I live up till 4Q09. As a veteran, it disheartens me that the
committee didn't look into what the FSSI was going to do with all of the
remaining vendors and their families. In October of 2009, the orders started to
die off. We were told by numerous cardholders that where they were not allowed
to purchase from local small business, they had to use advantage to enter
orders. I said ok, I am on advantage, still no orders. We are lucky if I receive
1 order a day.
I finally learned of the FSSI in Jan 2011 and had a meeting
with base contracting last month and they admitted to knowing about the FSSI and
I was told there was nothing they could do. We are on the verge of closing the doors. We all need to
fight this before it is too late.
Richard Finn, USAF Veteran
Midwest Office Supply
GSA Contract Holder
=================================================
Central
Florida Data Supply has had a GSA schedule under 75 200 for two years now.
We are a Woman-Owned Small Business with 8 employees. As a recent
graduate from the University of Central Florida, I was hired to head up the
Government side of the business in September of 2010. Just as things got
rolling, the FSSI was put into action, and we have ran into a brick wall. We
have seen our GSA Advantage orders almost come to a stop since FSSI. Bids on
E-buy are now being put out with FSSI restrictions on them. The GSA Advantage
search engine directs every search to FSSI BPA holders first, regardless of
price. These are all unfair practices that counter the sole purpose of having
GSA MAS contract that we worked so hard for.
One
of our sales representatives had been servicing a local VA office for two years.
Once FSSI was mandated, the $20,000 a month in orders suddenly disappeared.
Roughly a quarter of a million dollars in revenue lost, and this is only one
customer. On top of that, our contact/purchaser with the VA is very unhappy with
the switch. She has reached out to us asking to please find a way to get rid of
the FSSI. They are not pleased with pricing or customer service associated with
their newly assigned dealer. My sole responsibility here at Central Florida Data
Supply is our GSA contract. Therefore, if something is not done soon about FSSI,
it is likely that my position and one other sales rep will no longer be needed.
Thank you,
Justin Harvey
GSA Sales
Central Florida Data Supply, Inc.
=================================================
Thank you so much for trying to fight for our right so hard
and I hope to get somewhere with this huge problem we are facing and most of us
suffering tremendously. My business LCI OFFICE PRODUTS, INC. is a small, women
own and disadvantage business. After 4-years trying very hard and spending lot
of time and energy, finally on 2002 I became a GSA contractor.
Since then I tried my best to be a perfect government
contractor by giving the best pricing and the best service possible. Therefore
until today, we never received any kind of complain from anyone for our
misbehavior or mistaking in our invoices with higher prices! And through all
these years each time we had a GSA officer to audit us here, we received (EXCELENT,
OUTSTANDING REPORT) from them.
And now with FSSI issue which most of their pricing is
higher than on the other GSA contracts on the GSA Advantage, my business is down
80%. Next month I will go to hospital and I am going to be there at least
1-month for a major surgery and my spouse is out of business for 2-years with no
unemployment checks (It was his business) therefore I am providing for all
family in this disaster situation.
I am hoping that the people who organized this FSSI! They
will realize before we have close our businesses, how they are hurting all of
small business contractors and they will reconsider their unfair decision.
Kind regards and good luck to you& all of us.
Parvaneh Nobari @ LCI Office Products, INC.
=================================================
It took us years of effort to learn several regulations
that we would need to comply and to fill multi page application before we could
negotiate best prices for several thousand office supply items with Contracting
Officer of GSA. We have GSA Schedule since 2000. Believe me that it was an
expensive effort, both monetarily and precious time wise for a small business.
We are a Woman-owned, small disadvantage business, who
employed 15 employees and now down to 8 due to recession
and impact of FSSI BPA.
All our customers were extremely happy as we would provide
them with best possible customer service to meet their office supply needs.
All gone in a matter of few weeks as most of our customers have been
instructed to buy only through FSSI BPA. Our
prices for several items are better than those of FSSI BPA awardees.
Ever Since the FSSI BPA started to implement, we have lost
90% of Federal Business. Recently
due to loss of business we had to lay off 5 full time and 1 part time employees
who are now collecting unemployment and may eventually become dependent on
welfare. This is not a wise
decision be Our Government.
We have communicated our concern to our Congressman Chris
Gibson and both our Senators, Senator Gillibrand and Senator Schumer.
I hope that GSA will realize that how FSSI BPA has hurt so
many hard working small business. All of us put great effort in making sure that
we provide best service to GSA and stay in compliance, looks like all those
years of efforts are overlooked and GSA decided to pick and chose and reward few
businesses,
Sincerely,
Seema Nepal
S&B Computer and Office Products, Inc.
Woman-Owned Small Disadvantaged Business
=================================================
The numbers are not in yet, so I can't tell you exactly
what kind of loss we have suffered, but it is significant. I have worked
extremely hard for the past few years to service the government in the best
possible way, and was quite successful. It is unfortunate and unfair how this
course has changed and how other's now benefit!! My competition used to be other
dealers, now it's the government, who I worked so hard to please….…something
is definitely wrong here!
Thank you Tom for standing up for us "little"
people!!
Thank You and Have A Great Day
Joan Wunk
Gov't Sales Director
Complete Packaging & Shipping
=================================================
As ProSource Packaging, Inc. enters the final months of our
5 year Contract, our company received an Exceptional rating from our GSA
auditor. We are a Houston, TX based
Hispanic woman owned business, heavily leveraged due to the collapse of the
American economy since 2008. Our
Exceptional rating wasn't a surprise to us as we focus on quality, service, and
value to our customers. To further this effort we spent a large amount of money
and effort to become the only Office Equipment Supplier registered with the
International Standards Organization, ISO 9001:2008. Does the FSSI BPA recognize this business model?
No. Stupid is as stupid
does.
We had sales of approximately $2 million in fiscal year
2010 but I would guess that we would be lucky to achieve sales of $300,000 in
fiscal year 2011. Our sales in the
first quarter of 2011 were a miserable $55,000. In the past we would receive
GSAadvantage orders of 3 to 10 per day. We
are fortunate to receive 1 order per week due to the manipulation of the
GSAadvantage website.
Upon release of the FSSI BPA, we were forced to lay off one
employee. I see very dark days
ahead. I can't sleep at night.
I worry about becoming homeless. I
worry about bankruptcy. How many
Contracts will I be forced to break? Landlord, telecom, utility, insurance, the
list is long. I worry about my
employees. Suicidal thoughts
reoccur daily. Suicide.
Suicide. All because of this
Anti American, Anti Democratic, Anti Competitive, Price Fixing business model of
that thug, Daniel Gibson. 40
companies allowed to quote, must be Ability One and Schedule 75 in order to
participate. Thank you Daniel
Gibson for my release from this earthly life. Daniel Gibson, the "man who
has many friends at the GAO, I worked there for many years."
Daniel Gibson, he has somebody at the GAO watching his back, his many
friends…. Daniel Gibson the man
who should be indicted for official intimidation.
Paul Baumgarten
Sales Manager
ProSource Packaging, Inc.
=================================================
I do not have a downturn data specific to GSA because we
have not been able to gain any momentum behind our GSA sales since the award in
March of 2010. The assistance offered by GSA to obtain access to envelope rfp's
and market our schedule have been less than helpful. To date our GSA sales are
less than $5,000. We are currently in the midst of a GSA marketing campaign with
a cost over $2,500. The unfortunate timing of the FSSI BPA's makes it difficult
to forge ahead with such a hearty marketing project. We will continue to move
forward however, due to the energy and encouragement provided by your
initiatives.
Best regard,
Ella Leeper
President
Desert Paper and Envelope
=================================================
My company is in its 14th year of business.
I have been proud to have applied for and been granted the privilege of
selling supplies to my federal government, which is not (and should not be) a
simple and easily attainable position. As
such I have worked very hard to meet the very stringent standards for the
approval process and then also to continue to uphold them.
I am constantly told by my federal customers that our value is superior.
We maintain levels of high quality and low pricing so that we are the
best value to the taxpayers who fund these federal purchases.
Our nation deserves best value. As
a veteran I can appreciate that at least as well as anyone.
Being a veteran also affords me a nice ability to conduct business with
the government, since there are mandates that a small percentage of purchases
are made with special categories of vendors, like veterans.
I have paid dearly to hone my business to be competitive in this area,
running costly pricing analysis often, so I can adjust my prices if they need to
be lower. Despite being the best value, I have lost almost my entire revenue
from federal purchasing. Within the
last year, Blanket purchase Agreements (BPAs) have become mandatory in the
practices of my customers, forcing them to buy from sources that are not giving
them the best value and eliminating free enterprise from the field.
I do not understand the details. I
am told the government has maneuvered to get better deals.
From my perspective, I hear that the prices are no better, but I am not
doing that research. What I do know
is that over 500 competitive vendors are no longer engaged in competitive
business to win those purchases. Capitalism
and free enterprise seem to have died. The
best products at the best prices - that seems the American Way.
Putting that trade with only a dozen or so companies instead, with a
quick flick of the hand, has been devastating.
That competitive economic trade also fuels our local and nation
economies. I employ several other
people but we have shrunken. Our gross receivables in this recession are half what they
were a year ago - half because we have lost all of our federal business.
We have been treading carefully but seem headed down the drain.
I've laid off my office manager a few months ago.
Those of us left are underpaid and barely employed.
We are hoping for better. In
this state, it is demoralizing to hear that a small handful of companies like
Office Depot have claimed the near monopoly.
I wonder, is that responsible for their stock price nearly doubling in
value since late summer last year (2010)? Demoralizing,
unfair, illegal, and …. Perhaps even other words yet unproven, like corrupt.
People are out of jobs. And
toner cartridges are no cheaper for the taxpayer-funded purchasing, regardless.
I ask anyone to logically (and with evidence) justify this ugly
misadventure.
Sincerely,
Craig Hall
Owner & President
Eagle Technologies
=================================================
Lucille Maud Corporation has Schedule 75 since March of
2004.
We attended the Industry Day(s) in D.C. on both the
original FSSI and the subsequent re-compete.
It seemed unwinnable, although again, we spent hundreds of hours and
thousands of dollars and submitted our proposal.
(both times)
We have been audited by GSA many times, including not only
our Industrial Analyst for IFF compliance, but also out of D.C. in late 2009
from the United States of America, Office of Inspector General (OIG), for every
single order, for the history of our contract, (looking for COO compliance).
This took hundreds of man-hours, and two trips to D.C to the OIG.
We worked on the audit preparation and subsequent "squawk list"
of requested items for three (3) months.
Our sales are significantly down. Orders now trickle in a few at a time.
If there is anything you can do to help, let us know.
Regards,
Todd Ricker | Vice President of Operations
=================================================
Our company, SCS LLC, worked for close to a year to secure
a schedule 75 GSA contract, issued in 2008.
We have worked with narrow margins providing exceptional service and
value to multiple government agencies. Our
sales went from (2009 $50,000),
(2010 $150,000), (2011 ytd $10,000)
Now, no orders. All
our GSA orders have stopped from 12 or more agencies.
This shocked us as we have invested so much money and time into our GSA
systems, and were counting on this initiative to drive our 2011 growth.
I have formally addressed this with my C/O and have not
heard any response as of yet. During
a recent onsite midterm audit, a
GSA officer related that the GSA promotes small business more than large, and
want to help us grow our business. Due
to this sudden loss of business from GSA will be forced to lay off one full time
employee by April.
A GSA schedule is worthless if there is an exclusive GSA
BPA (FSSI) that locks most contract holders out of government agencies?
Our pricing and service is better than the big box stores and we can
compete if given a chance! What we would like to see is our congressman get involved and
review the mission objectives of the GSA, the consider the impact that the FSSI
has on small business like ours. I'll
be contacting our representatives with this issue immediately.
All our 31 employees appreciate your efforts!
Don Hester
_____________________________________________________________
Don Hester
Southern Cross Systems, LLC DBA Flex Imaging
=================================================
Loss of Revenue: $42,000/mo
loss of gross sales due to FSSI BPA (Dec 10, Jan 11, Feb 11), if continues will
be an annual loss of $504,000 this year.
Employees: We
are a very small business, 1 full time employee and 2 part time employees, Feb
11 had to lay off our full time employee due to the FSSI BPA
Sales have dropped 40% in our federal sector which is the
majority of our business
This has been an extreme determent on our small, woman
owned business and have had to recently lay off our only full time employee.
We have had a GSA Schedule 75 for 10 years have grown every year until
the FSSI BPA came along and set us on a fatal landslide.
We are struggling to stay in business and many of our federal customers
who purchased from us because of our free overnight service and price can no
longer purchase from us, even though the items that they are purchasing are
cheaper with us vs. the mandated FSSI BPA.
We feel that this BPA was put together with little research on the impact
on small businesses, is a restraint of trade, monopoly, and clearly against the
SBA and GSA's original procurement mission.
In appreciation for your concern,
Dixie Liening
Lazer Cartridges Plus
GS14F0035M
=================================================
We were awarded our 75 GSA Schedule in August of 2010. We
were never offered a chance to compete for FSSI. We were never informed of FSSI.
We were encouraged by GSA to spend the time and money to become a GSA Schedule
holder. Everything was great............ for a month. Effective Oct. 1st, 2010
many of our most loyal customers informed us they could no longer use our
company. They stated they were all forced to use FSSI vendors only. When I spoke
to our GSA point of contact we were told that we just have to deal with it, we
would not be allowed to compete for the FSSI, and there was no way they were
going to let the FSSI collapse.
Half of the agencies we deal with have switched to FSSI
Mandatory. Our sales are down close to 70% from last year.
VA, DHS, EPA, Labor, Commerce, Navy, Education, DHHS, all former clients
gone to mandatory FSSI.
We have been forced to lay off 1/3 of our workforce. If
things do not change we will be bankrupt and out of business in the near future.
We are losing money, our lives, our sanity, and everything we have worked for.
We soon will be added drain on the US tax payer.
Matt Donnelly
FedGov Supply
GSA Schedule #GS02F0213W
A Local, Woman Owned, Small Business!!!
=================================================
Since October 2010 we have had a critical drop in GSA
orders. We now receive only 1 GSA
order a day on average (2 orders a day would be considered lucky at this
point!). This dramatic reduction in
our business is directly related to the FSSI contracts. For many years our GSA sales have helped sustain our business
and provide growth opportunities, but our livelihood is now threatened.
We bend over backwards and jump through GSA's hoops each
year to ensure contract compliance, we endure the intimidating feel of annual
audits, and we take whatever else they throw at us. Years of effort, time and expense have essentially been
rendered useless! This is now a
very one-sided "partnership".
A sad sales tale:
·57% drop in GSA sales from Sept. 2010 to Oct. 2010
(impact of the FSSI program was immediate)
·46% drop in GSA sales from Oct. 2009 to Oct. 2010.
·Number of GSA orders continues to diminish (compared to
September of last year):
Oct. 2010 vs. Sept. 2010 Down 62% (this is when BPA's were
kick-started)
Nov. 2010 vs. Sept. 2010 Down 48%
Dec. 2010 vs. Sept. 2010 Down 54%
Jan. 2011 vs. Sept. 2010 Down 37%
Feb. 2011 vs. Sept. 2010 Down 59% (most likely reflects
changes made to search features on Advantage web site)
----------------------------------------------------------------------------
Michelle Kalkhoff
Computer Wholesale Products of America, Inc.
=================================================
Thank you for contacting me and adding me on your email
list, and for taking your precious time and resources working on the FSSI issue.
We have all been affected by and large negatively by the
FSSI directive. I was not sure if
you are familiar with NOPA, our national industry association, which is why I am
bringing this to you. During this
time NOPA has been working hard to build a significant message to the
legislators. NOPA employs an
extremely well known lobbyist in DC. As such, NOPA is employing a defined
strategy to battle FSSI. Have
you spoken with Chris Bates, the president of NOPA with regard to this?
I believe that you may find a tremendous common ground that can add many
more resources to our FSSI fight. There
have so many dealers affected by this and we need to find a unified industry
voice and a way to pull together on this. I
will copy Chris on my email to you in hopes that you can contact one another and
see if we can find an optimum
united approach to our FSSI problem. I
am always here to talk if you wish.
Thank You
Chip Jones
=================================================
American
Toner & Ink received it's GSA Schedule 75 MAS contract in April 2008 after
almost a year of preparations and going through the GSA contract application
process. We sell printing supplies such as ink, toner, ribbons, etc... In FY2010
we averaged over $20K/month in GSA sales. ($242K total for 2010) For the first
quarter of 2011 we are on pace to achieve $23K total GSA sales for 3months. This
constitutes an over 60% reduction in our GSA sales, and I fear it will get worse
as FSSI compliance within government agencies spreads. As such, ATI is
struggling financially and we are quickly trying to develop private sector sales
to offset this loss of revenue and keep us going. It is particularly
disheartening given the considerable investment in time and resources we spent
getting and maintaining our GSA contract only to have the rug pulled out from
under us after our investment. With our GSA contract award, I expected only a
seat at the table in a fair marketplace and knew we would have to earn our
business from there. With the exclusivity of the FSSI BPA's we have lost our
ability to compete based on value and performance as should be the case in any
fair market. We offer the same products available on FSSI BPA's at a lower cost
and therefore better value to the government in many cases, yet buyers are
encouraged to go elsewhere. How is this in the American taxpayers' best
interest, let alone the best interest of the hundreds of small businesses that
will be damaged or destroyed completely by this unilateral action? The fact that
Office Depot has seen the greatest gain due to FSSI implementation is further
proof that this program runs at the expense of small businesses like mine.
Corporate fat cats get richer, more people work for meager wages instead of
pursuing a dream, and small businesses and the communities around them suffer...
Is this truly the American way now? I sincerely hope someone that matters will
see the folly and smell the stench of corporate kickbacks in this program and do
something to save the hardworking small business like ours that truly made this
country a land of opportunity.
Sincerely,
Jeremy Meyer
American Toner & Ink
=================================================
My name is David Fox owner of Topsail Enterprises and I
can't understand what is going on
when the President is heard saying that small businesses are the life blood of
the country for jobs and it would really help our countrys economy if small
business did well.
my co. a small business has the hardest time getting
business with the government. There is no way to market to the buyers and all
the business that are bigger get better prices because they do more business
with their suppliers. To me it's a catch 22, and then this
fssi story happens and all of a sudden business really
slows down and there is nothing we
can do. The office supply business is really strange and
has a bad rap because many people can get into it easy and sell bad products(
compatible toners made wrong) Compatible toners are the life blood of my
business which by the way I have been in for
twenty years. And why is the government using so much HP
product, its not made in the
us. How can we stop the people in government from acting
like this.
why can't we work together to better the situation for all
of us not just one side or the other
I never heard about the Fssi until last week WHY, we all
should be able to be on the same playing field .WHAT IS GOING ON IN THIS WORLD.
David Fox
Topsail Enterprises
GS02F0057S
=================================================
We have seen purchases from GSA diminish considerably. We
used to write 20-25 orders per day and now are averaging 2-3. As we are a fairly
new contract holder (August 2010)we do not have much history to compare to. It
has not affected our staff as the vast majority of our business is not GSA. We
viewed earning a GSA contract as way to diversify our business and grow. We do
about 95% or our business via our internet sites. We sell to some other smaller
companies that are schedule 75 contract holders and we have seen their orders
drop off to next to nothing. One example, is California based company. Last year
they started buying from us and they were buying $30K per month. They would
receive the GSA orders via Advantage and send them to us to fulfill. Their
business is almost nothing. We went from receiving 12-15 orders per day to 4-5
per week.
GSA has clearly rigged the GSA Advantage website to favor
FSSI BPA holders. As our business is selling on the internet we understand price
comparison websites. The old GSA Advantage site was pretty comparable to sites
like Amazon, Google shopping, Nextag, etc. GSA buyers used Advantage in much the
same way they would use the internet to shop by price. Now product results from
searches bring up
BPA holders first and they bring up several results for the
same sku number because contractors have different descriptions. This did not
happen before. If a sku was entered in a search results came up and the buyer
could choose a source by socio-economic categories, price, etc.
This rigging of the search results to BPA holders is wrong. GSA always
wanted to encourage competition, which is why there are 516 contract holders on
the schedule. This combined with the mandating of use of FSSI BPA contracts is
what has dramatically changed the rules of engagement that GSA established a
long time ago. The bottom line is that by making the changes they have the
following is happening:
1.
Jobs in small businesses are being lost and I am sure some businesses
will fail that are not diversified enough outside GSA. This is completely
counter to what the Obama administration wants to promote (job growth) in
America.
2.
Big companies are being rewarded more business. This is very ironic in
that one of the BPA holders is Office Depot which is under federal
investigations by the U.S. Justice Dept. for alleged overcharging of government
agencies over the last several years. Depot has been found guilty and has paid
restitution plus legal fees to many public agencies already. The federal
government has yet to state their findings, but I would think it would make
sense to NOT award a BPA to a company that is under federal investigations. In
fact, I would expect it as a tax payer.
3.
Ultimately, the tax payer will suffer as limiting the choice to purchase
supplies from 15 BPA holders (that have been proven to have higher pricing in
70% of the skus in question) will cost the government more for the same
products. We hear GSA buyers mention all the time that they have to buy from a
BPA holder even though they know they are paying more. This is simply wrong.
What makes America great is the ability to buy freely in a competitive
marketplace. Limiting the people we tax payers pay to find the best deals
possible makes no sense. These buyers are trained to find the best deals they
can for their public agency and now they are being told to not do that and just
buy from a BPA holder without concern for price. Does not make a lot of sense
considering the financial woes of our country.
4.
Lastly, contract holders will find ways around the FSSI initiative.
Contract holders without BPAs will find ways to partner with those who have them
to be able to sell to public agencies that are mandated to use BPA contract
holders only. I have heard deals like this are already done. It may even open
the door for a company that is not a contract holder to partner with a BPA
holder to solicit business of a public agency, which is definitely not what GSA
wants to see happen.
FSSI is severely limiting small businesses from competing
for government business for the reasons I have mentioned. All we ask is an even
playing field with NO MANDATES to buy from BPA holders. It is fine with us if
buyers are told to look at BPA holders first and then if they can buy better
from a non-BPA holder to do so. Mandating is not the answer. We compete with the
biggest players in the office products industry on the internet every day. We
started our business in 2008 and have grown from zero to $5 million in sales and
have created jobs for 6 people in one of the worst economies in American
history. If we can do this in an open market competitive environment against $25
billion companies like Staples we can do the same for GSA. We just need the
rules to be the same as the open market. FSSI BPA mandating changes those rules
to a closed market which limits small businesses from growing by competing for
market share of federal government business.
Ron Weber
iBuyOfficeSupply.com
Plymouth, MN
=================================================
In reference to FSSI,here are my comments. I am classified
as a Veterans Small Business. I have been a schedule 75 GSA contractor for about
6 years. The Economy being so bad has caused me to live almost solely off of GSA
in my business.
Because of the issuance of FSSI my GSA business has gone
from about 20,000 a month to about
400.00 a month.
Due to the Benevolence of the dear Congressmen in
Washington DC I had to take out a
reverse Mortgage on my Home because I cannot pay my taxes to the local
politicians and my friends in Washington D.C..
The way FSSI has been set up for Office Depot and Staples I
will very shortly be a ward pf all Government
facilities,State and Federal.
This is without a doubt the beginning for Staples and
Office Depot of a very lucrative business scheme between them and some
government officials to give them the business that should have come to small
business but is now going solely and only to 2 of the largest office Supply
Companies
in our Grand and Glorius United States of America that is
now OWNED and controlled by LARGE business .
I say yes to you and your efforts with this matter.
I will be happy to participate in your endeavor to correct
this criminal action that has been approved by the Government of the United
States that was voted into office by all the people of this country who are
presently taking a ROYAL SCREWING from the pweople who owe their jobs to us at
the polls.
I am sure that much trouble is coming to them to repay them
for their wonderfull efforts pon all our behalfs.
Tom Constantino
TRC Office Supplies
P.S. By the way I see that business is booming in the
Washington DC area since Mr. Obama
has created so many $150,000 a year jobs for his poor
constituants.
How would our congressman like to get on to an income of
0.0 dollars a week like I am now receiving.
God Bless America. We need HIS help!
=================================================
I am Lujuanne Holland President of M3 Technologies, a
minority woman-owned small business enterprise currently on GSA Schedule 75. We
have been a contract schedule holder since 2003. We have spent a great deal of
time and money acquiring the GSA Schedule 75 and staying compliant. The FSSI BPA
has caused great financial strain to our business and my family. My husband who
works with me had to get a second job just to pay bills during the holiday
season things were so bad. I have children preparing to leave high school for
college how do you tell your child they cannot go to school to further their
education. If our sales continue to decline we will longer be able to operate
our business. Mr. Ubl thank you for time and care.
Lujuanne Holland
M3 Technologies
=================================================
We are a small minority (Native American) owned company
dealing with mainly Information Technologies.
We have been doing business with the federal government since 2004.
We have worked hard each and every day to maintain a client base and have
it grow at a healthy rate each year. We
have formed wonderful relationships with a lot of really great people whom we
have helped to save money and keep within their budget requirements.
Our clients love us because of the hard work and honest prices and great
service that they receive when they do business with Zee Technologies, Inc.
In the recent months, there has been an unfair blanket
purchase agreements within our federal government. Our government spends millions every year to keep our country
in operation. These purchase card
holders buy large amount of office supplies.
They have over the years fairly spread the wealth to many small
disadvantaged businesses around our country.
Now, they are being forced to purchase unfairly from 13 companies.
Our company has been devastated by the FSSI II which we
were never were aware of and never given the opportunity to quote.
We have lost over half of our clients overnight due to the mandatory
implementation of the BPA.
We work hard each day to provide for our five children.
Our company also employs others whose families depend on them.
Answer me this: Why
would you do this to our citizens and to the small businesses in America?
To quote our President, "Small businesses are the backbone of our
country." Please help us to get back on track. Please stop this unfair act and spread the wealth.
Sincerely,
Scott Zumbrum
Zee Technologies, Inc.
GSA Contract #GS-02F-0100U
8A Small Disadvantaged Native American Owned Business SBA#
302939 SB/DVBE 1057240 SBA Disadvantaged #P0635275