The General Services Administration (GSA) issued a request for information (RFI) on Thursday for input on how to improve the federal procurement process, specifically as it relates to the acquisition of IT hardware and software through value-added resellers (VARs).
The RFI comes after GSA’s Federal Acquisition Service (FAS) conducted an analysis of leading VARs across its key IT procurement channels.
In a cover letter accompanying the RFI, FAS Commissioner Josh Gruenbaum said that the agency’s initial analysis indicated “significant variance in the value-added services offered and the corresponding markup percentages applied to Original Equipment Manufacturer (OEM) prices passed on to the federal government.”
Gruenbaum said the RFI is meant to help the government better understand the reseller marketplace and increase transparency in markups.
MeriTalk previously reported that FAS reached out to 10 large VARs in May 2025 for a detailed breakdown of their open contracts, aiming to develop “taxpayer-friendly pricing” for the government.
“Industry partners are indispensable allies in our mission,” GSA Administrator Ed Forst said in a Jan. 22 press release on the RFI. “By working collaboratively with GSA on this request, they’ll directly contribute to achieving our goals: enhancing the procurement process, maximizing efficiency, and ultimately, saving taxpayer dollars.”
Broadly defined, VARs doing business with the federal government resell third-party technology services – including hardware, software, and cloud services – to government agencies. They add value beyond those original products through services such as integration, customization, training and support, security and compliance, and procurement support.
The benefits of buying from VARs include the ability to buy integrated and tested solutions instead of separate components from original equipment manufacturers (OEMs), faster procurement and deployment times, and greater specialization.
However, those services don’t come for free. Gruenbaum said FAS is looking to “confirm that markups applied to OEM pricing result in fair and reasonable pricing.”
“We value the knowledge of our industry partners as we seek opportunities to streamline the federal procurement lifecycle/ecosystem, eliminating duplication and achieving cost efficiencies,” Gruenbaum said in the Jan. 22 release. “We want to learn directly from Value Added Resellers about the value they add to the government within the supply chain.”
Specifically, the RFI asks whether there is a widely accepted commercial definition for a value-added reseller. FAS also wants resellers to indicate the typical range of markups they apply to IT hardware products in the commercial market.
The agency also requests insight into what factors drive markup variations, how backend incentives and rebates passed from OEMs to resellers impact pricing, and what specific value-added services or capabilities drive higher markups.
Depending on the RFI responses, GSA said that it may consider “establishing additional controls to ensure the government receives fair and reasonable pricing when markups exceed a certain percentage threshold.”
Responses to the RFI are due by Feb. 9.