GSA Ups Spending Limit for STARS Governmentwide Contract to $22B

The 8(a) Streamlined Technology Application Resource for Services II governmentwide contract, which offers a variety of IT solutions to federal agencies, is getting a significant increase in ceiling.

The General Services Administration announced a $7 billion increase in ceiling size for the popular small business contract to $22 billion. 

“The 8(a) STARS II GWAC has exceeded all of our expectations. We’ve raised the contract’s ceiling more than once to accommodate demand,” said GSA Acting Assistant Commissioner, Office of Information Technology Category, Laura Stanton, in a statement. “As we move into this contract’s fourth generation we can say for certain that this program is a huge success. A significant number of prior 8(a) STARS program participants have grown their businesses so much that we now see them thriving with the big companies on GSA’s Alliant 2 GWAC.”

STARS II allows more than 50 agencies to purchase a variety of customized IT services and IT-services-based solutions from 787 small businesses. GSA Administrator Emily Murphy said the ceiling raise was partially attributed to agencies’ needs amid the coronavirus pandemic.

“As agency demand for IT products and services has increased during the COVID-19 pandemic, GSA is proud that STARS II will remain available to help agencies deliver world class IT services,” Murphy said.

The increase in STARS II funding follows GSA’s June 22 presolicitation notice for the next version of the vehicle STARS III. So far, GSA has said STARS III is expected to have a $50 billion ceiling, with a request proposal expected this summer.