gsa schedule contracts for engineering firms -- how to decide whether to obtain one

GSA Schedule

Contracts for Engineering

Services

»Should your firm obtain one? July 5, 2013

Presented by:

Dave Alexander

(978) 369-1140 ~ [email protected]

www.LincolnStrategies.com

© 2013 Lincoln Strategies, LLC

mailto:[email protected]

http://www.lincolnstrategies.com/



Topics

Many engineering firms have GSA Schedule contracts.

These contracts have advantages and disadvantages for engineering firms.

Would a GSA Schedule contract make sense for your engineering firm?

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Topics




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Topics




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Contents

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A. GSA Schedule contracts: the basics

B. Many engineering firms have them

C. Key advantages and disadvantages

D. Should your engineering firm get one? Suggestions

to help you make a decision



A. What are GSA Schedule contracts?

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A. What are GSA Schedule contracts?

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1. Contract type

2. Relationships

3. Ceilings, length, geography

4. Users

5. Scope: what types of engineering services?

6. Schedules and SINs

7. Comparisons to contracts issued by GSA’s Public

Buildings Service



A: What are GSA Schedule contracts?

1. Task order contracts

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IDIQ Indefinite Delivery, Indefinite Quantity





The Contract specifies…

Scope of services.

Labor categories.

Authorized T&M rates by labor

category.

Authorized ODCs and

rates/prices.

Period (5-20 years).

Price escalation.

Terms and conditions.

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The Contract specifies…

Scope of services.

Labor categories.

Authorized T&M rates by labor

category.

Authorized ODCs and

rates/prices.

Period (5-20 years).

Price escalation.

Terms and conditions.

Each Task Order specifies…

Services, deliverables, timelines.

T&M rates or fixed price.

Terms and conditions—but cannot

supersede terms and conditions in

GSA Schedule Contract.

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2. Relationships

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Example of Federal

Agency Client

GSA

Contractor




2. Relationships

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Issue Task Order to GSA Contractor

Perform services; send invoices

Pay invoices (remit to Contractor)

Example of Federal

Agency Client

GSA

Contractor




2. Relationships

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Example of Federal

Agency Client

GSA

Contractor




2. Relationships

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Example of Federal

Agency Client

GSA

Contractor

Delegations? Approval of

choice of GSA Contractor?

Interagency $ transfers?




3. Ceilings, time limits, geographic limits

Ceilings?

• No limit on size or number of GSA Task Orders.

• No aggregate limits.

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Ceilings?



Time limits?

• 5 year Base Period.

• 3 successive 5-year Option Periods.

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Ceilings?



Time limits?

• 5 year Base Period.

• 3 successive 5-year Option Periods.

Geographic limits?

• Option of contractor.

• Domestic, overseas, or both.

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4. Who can use GSA Schedule contracts?

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All Fed. Gov’t. Agencies

Civilian, military.

All branches: Executive, Legislative, Judicial.

Mixed ownership corporations (e.g., Millennium Corp.).





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Civilian, military.



States, Municipalities

Two GSA Schedules (IT and Law Enforcement) are always available to states, municipalities.

All other GSA Schedules are available under limited circumstances (e.g., disaster recovery; certain public health missions).





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Civilian, military.



States, Municipalities

Two GSA Schedules (IT and Law Enforcement) are always available to states, municipalities.

All other GSA Schedules are available under certain circumstances (e.g., disaster recovery; certain public health missions).

Other Entities, under limited conditions, e.g.:

International orgs. and others eligible under Section 607 of the Foreign Assistance Act.

District of Columbia.

Other federal contractors, under cost-reimbursable contracts, and when specifically authorized.




5. Scope

What types of services can engineering firms

provide under GSA Schedule contracts?

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5. Scope

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Wide range of

services…

A few examples: Planning, requirements analyses

Design, prototyping

Test and evaluation

Integrated logistics support

Construction management

Energy efficiency consulting

Energy audits

Building commissioning

“Smart Building” consulting

Facilities maintenance & management

consulting

Environmental studies, remediation

Training




5. Scope

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…but the Brooks Act

imposes limits for

services associated

with real property.

Brooks Act: Services covered by the Brooks Act

cannot be performed under GSA

Schedule contracts.

In brief summary, Brooks Act

applies to engineering and

architectural services associated

with real property that, as defined

by State law, if applicable, can only

be performed by licensed

engineers and architects.

Also covers certain incidental

services (e.g., surveying associated

with the site of a building).




6. “Schedules” and “SINs”

There are more than 40 different GSA

“Schedules.”

Each Schedule contains a related grouping of

goods and services.

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Example

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GSA Schedule 871:

“Professional Engineering

Services”

This Schedule covers a

wide range of civil,

mechanical, electrical,

and chemical engineering

services.





Example

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GSA Schedule 871:


Services”





services.

This Schedule’s Scope of Work is

broken out into many “Special Item

Numbers” (SINs).





Example

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GSA Schedule 871:


Services”





services.

SIN 871-1: Strategic Planning for

Technology

Programs/Activities

SIN 871-2: Concept Dev.;

Requirements

Analysis

SIN 871-3: System Design,

Engineering &

Integration

SIN 871-4: Test & Evaluation

SIN 871-5: Integrated Logistics

Support

SIN 871-6: Acquisition and Life

Cycle Management

SIN 871-7: Construction

Management (CM)




7. Which GSA Schedules do engineering

firms typically obtain?

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871: Professional Engineering Services






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03FAC: Facilities Maint. & Mgmt. (includes

energy consulting)






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03FAC: Facilities Maint. & Mngmt. (includes energy)

874-V: Logistics Worldwide (LOGWORLD)






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899: Environmental Services.






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899: Environmental Svcs.

(Mission Oriented

Business Integrated

Services)

874: MOBIS


www.LincolnStrategies.com 32

Scope Items (SINs)—examples:

Civil, Mech., Elec., Chem.

Full range of engineering life cycle

Construction management


Does not include services subject

to the Brooks Act

GSA Schedule 871:

Professional Engineering

Services




Energy management program

support

Energy audits

Energy management & resource

efficiency planning

Water conservation


Facilities maintenance consulting

services

“Smart Buildings” systems

integration

Facilities management consulting

services

GSA Schedule 03FAC:

Facilities Maintenance &

Management Services




Planning, acquisition and

management of logistics systems

Expert advice, assistance,

guidance, management related to

logistics support

Operational support services

Training

GSA Schedule 874-V:

Logistics Worldwide

(LOGWORLD)




Studies, analyses (e.g., NEPA

related)

Remediation and reclamation

Materials and waste recycling and

disposal services

Environmental training

GIS services

Advisory services (e.g., hotlines)

Some exclusions (e.g., asbestos;

radioactive) GSA Schedule 899:

Environmental Services




Wide range of management

consulting services

Facilitation

Training

Program & project management

Often used for planning

In some sense, the “oldest” and

best known of the GSA Schedule

contracts

GSA Schedule 874:

Mission Oriented Business

Integrated Services




8. Different than contracts issued by

GSA’s Public Buildings Service

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GSA’s Public Buildings Service (PBS Contracts)

GSA’s Federal Acquisition Service (GSA Schedule Contracts)

Scope • A/E, construction, other services related to buildings.

• Many services subject to Brooks Act.

Hundreds of types of services; not limited to real property.

Does not include A/E services subject to Brooks Act (e.g., facility design).

Selection Process

• Some: SF 330; Qualifications-Based Selection.

• Others: Traditional RFPs; variations (e.g., 2-Phase).

• Deadlines for responses.

• All: RFPs; “Fair & Reasonable” pricing; technical acceptability.

• Firms do not compete against each other. • No deadlines (“Evergreen”).

# of Awards Varies; both single and multiple awards. Multiple awards (no limit).

Contract Term Varies; typically 1-5 years. 5-20 years.

Set-Asides Sometimes. Exceedingly rare.

Task Order or Definitive

Both. Task Order only.

Ceilings Almost always. Never.



B. Many engineering firms have GSA

Schedule contracts

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A few examples

Examples of firms

that hold GSA

Schedule contracts

Selected GSA Schedules

Professional

Engineering Services

Facilities Maintenance

& Management

Logistics Worldwide

(LOGWORLD)

Environmental

Services

Mission Oriented

Business Integrated

Services

AECOM ■ ■ ■ ■ ■

Arup ■

Carter & Burgess ■ ■ ■ ■

CDM ■ ■ ■

CH2M Hill ■ ■ ■ ■ ■

EMCOR ■

Fluor ■

Jacobs Engineering ■ ■ ■ ■ ■

Stantec ■

TRC Companies ■

Tetra Tech ■ ■ ■ ■ ■

URS ■ ■ ■ ■

Woolpert ■ ■ ■ ■

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C. Key Advantages and Disadvantages

of GSA Schedule contracts

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1. Key Advantages

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You will win a contract.

There is no limit on the number of contracts that GSA can issue.

Chances are exceedingly high that you will obtain a GSA Schedule

contract if you submit a responsive proposal with fair and reasonable

pricing.



1. Key Advantages

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The investment is relatively small.

The RFPs for GSA contracts are a bit complex, but each step is

reasonably easy to take.

There are strict page limits. GSA is not looking for a novel.

Pricing is generally based on fixed hourly rates. The instructions can be

hard to understand, but the required analyses are straightforward.



1. Key Advantages

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A GSA contract can help firms enter

the federal market for the first time.

Obtaining a GSA contract can be an excellent way to enter the federal

government market for the first time.

With a few exceptions, GSA RFPs do not require offerors to have any

previous government experience.

Specialized accounting systems and approved indirect rates are not

required. (Cost-plus contracting is not used.)



1. Key Advantages

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GSA contracts can help firms

diversify in the federal market.

If your firm is already active in the federal market and you are looking to

diversify within it, a GSA Schedule contract can be a useful tool.

Consider a case in which an engineering firm has expertise in

Engineering Areas A and B. The firm has a lot of federal government

clients for “A;” but all of the firm’s experience in “B” is with private sector

clients.

It can be hard for your firm to win a federal contract in Area “B” because

of your lack of federal “past performance” for that area.

Your firm can obtain a GSA Schedule contract for Area B even if none of

your prior experience in Area B is with federal government clients.



1. Key Advantages

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Your GSA Schedule contract can be

broad or narrow: it’s your choice.

Some firms find it strategically advantageous to offer only a narrow set of

services under their GSA contracts.

Other firms’ GSA contracts include many specialty areas and even hold

multiple GSA contracts. For example, AECOM currently holds 8 GSA

Schedule contracts.

Firms also can obtain a GSA “Consolidated” Schedule contract: a single

contract that includes scope of work areas from two or more GSA

Schedules. For example, Michael Baker Jr., Inc., holds such a contract,

and it covers Scope of Work items from 5 separate GSA Schedules.



1. Key Advantages

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Small firms are welcome.

GSA welcomes the participation of small firms.

The key is to ensure that the proposal demonstrates that the firm can

perform a reasonably broad range of services within each Special Item

Number (SIN) included in the proposal.



1. Key Advantages

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The customer base is huge.

Any federal government department or agency will be able to order

services under your GSA contract.

Under some circumstances, State and municipal government can order

services directly from firms with GSA contracts—for example for help in

recovering from natural disasters: The State of New Jersey will use GSA

Schedule contractors to support its response to Superstorm Sandy.



1. Key Advantages

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GSA contracts are preferred by many

federal buyers.

Many federal buyers prefer to use GSA Schedule contracts, because

doing so reduces paperwork burdens compared to most other options.

When using a GSA Schedule contract to “get” to a firm, a potential

federal client can obtain several benefits, including:

─ Rapid project startup.

─ No size limits on projects.

─ No middlemen—a federal agency does not have to transfer funding

to GSA in order to use a GSA Schedule contract.

─ Full credit towards its socioeconomic contracting goals if the agency

issues a task order to a qualifying firm (e.g., a veteran owned small

business firm).



2. Key Disadvantages

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x Certain types of engineering work is

out of bounds.

As noted earlier in this briefing package, architectural and engineering

design services associated with real property cannot be performed,

because that work is covered by the Brooks Act.

For example, under a GSA Schedule contract a firm can help federal

agencies plan how to retrofit buildings for greater energy efficiency,

perform construction management tasks during the construction phase,

or provide commissioning services for the new systems—but cannot

create stamped drawings during the design phase.




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x Administrative and compliance

burdens.

GSA Schedule contracts impose the typical administrative and

compliance burdens associated with virtually all federal contracts (e.g.,

Equal Opportunity reporting requirements).

GSA Schedule contracts also impose unique administration

requirements, e.g.:

─ Collection, tracking, and reporting of Industrial Funding Fee.

─ Administration of Economic Price Adjustment clause.




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x Unique price monitoring

requirements.

GSA contracts include the “Price Reductions Clause.”

Under this provision, if a firm offers additional discounts to certain

commercial customers, the firm might have to reduce its prices under its

GSA contract by a proportionate amount for the time in which the

commercial discounts are in place. (Hint: Properly structured, the pricing

section of a GSA proposal can help limit the overall impact of the Price

Reductions Clause.)




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x No guarantee of sales.

Many firms sell millions of dollars of work per year under their GSA

contracts, but others make few or no sales.

A firm’s success will depend on how much time and effort are devoted to

marketing and direct sales.

Note: There is a minimum guarantee in each GSA Schedule contract

($2,500), which generally is paid only if the government cancels the

contract due to the contractor’s continued lack of sales.



D. Should your engineering firm obtain

a GSA Schedule contract?

»Suggestions to help you make a decision.

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Do not inadvertently use a weak rationale.

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We need a GSA contract in order to do work with the

federal government, right?

Incorrect premise.

There are many other ways in which an

engineering firm can perform work for the

federal government, either as a prime

contractor or a subcontractor.




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Incorrect premise.





Our competitors have GSA contracts. If it makes sense

for them, it probably will make sense for us.

“Me too” fallacy.

What your competitors do might suggest

courses of action that you should consider

in light of your firm’s own circumstances.

But merely imitating your competitors’

moves is not a good strategy.




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Incorrect premise.





Our competitors have GSA contracts. If it makes sense

for them, it probably will make sense for us.

“Me too” fallacy.

What your competitors do might suggest

courses of action that you should consider

in light of your firm’s own circumstances.

But merely imitating your competitors’

moves is not a good strategy.

Let’s get a GSA contract and add it to our quiver. Even if we ultimately do not use it,

what’s the harm?

Let me count the ways.

Re-read the section of this briefing that

summarize administration and compliance.

Do not take on a GSA Schedule contract if

you are not prepared to incur significant

burdens.



Does your firm have a strong rationale for

obtaining a GSA Schedule contract?

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Which of our strategic or tactical goals might GSA Schedule Contracts help us achieve?

What are the pros and cons of GSA Schedule contracts for our firm?

On balance, is it likely that the net advantages of GSA Schedule contracts would be large enough to warrant obtaining one for our firm?



D. Should your engineering firm get a

GSA Schedule contract?

»Suggestions to help you make a decision.

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As you assess whether obtaining a GSA

Schedule contract makes sense for your

engineering firm, here is some

additional research you can do to help

inform your decision-making.



Review Statements of Work.

Review the SOWs of all GSA Schedule contracts that are of

potential interest to your firm. Cast a wide net.

You can find them at the “Schedules e-Library” portion of the

GSA web site:

www.gsaelibrary.gsa.gov

As an alternative, contact the author of this briefing package

for a list.

[email protected]

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http://www.gsaelibrary.gsa.gov/



Any matches?

Are there any Special Item Numbers (SINs) that cover the

types of services that are relevant to your firm’s federal

marketing goals?

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Get a snapshot of sales in the relevant

areas.

After you find specific SOW areas of potential interest to your

firm, see whether sales in these areas are robust.

The easiest way to examine overall sales in each GSA scope

area is to go to the “Schedules Sales Query” (SSQ) portion of

GSA’s website: http://ssq.gsa.gov.

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http://ssq.gsa.gov/


Research your competitors’ GSA

Schedule contracts.

Knowing how your competitors use their GSA contracts can be useful in:

– Assessing whether such a contract might be a good fit for your firm.

– Sizing up the competition.

For any firm with a GSA contract, the SSQ can tell you how much they’ve sold of each type of service under their GSA contracts.

The USASpending.gov website offers information on individual sales under a firm’s GSA contract (e.g., identifies the customer agency). But there are gaps in the data.

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http://www.usaspending.gov/


Review key contractual clauses.

Before you decide whether to pursue a GSA contract, ask

whether your firm could live with the various clauses that will

appear in the contract, such as the Price Reductions Clause.

You can find these clauses in GSA RFPs, and documents to

which they refer (some clauses are incorporated by

reference).

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Assess your ability to sell task orders.

Many firms obtain GSA Schedule contracts and never make

any sales under them.

Does your firm have the ability to sell task orders to federal

government agencies?

– Relationships, or the ability to develop and nurture them.

– Knowledge of how to make task order sales, or the willingness to invest

in gaining this knowledge.

– Willingness to invest resources in marketing the contract and making

direct sales.

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Confer with others.

Do you have—or can you develop—contacts in other firms

that have GSA Schedule contracts?

Confer with consultants, others, with knowledge of GSA

Schedule contracts.

Ask contacts in the federal government, e.g.:

– Current federal clients under other contract vehicles. Would they use a

GSA Schedule contract if you had one? Why or why not?

– Prospective federal clients. If a GSA Schedule contract were available,

would this significantly improve your odds of selling work to these

prospective clients?

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Questions, comments?

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Lincoln Strategies provides insightful, practical services to help

firms create and sustain competitive advantages in the federal

government market. Our clients include high value-added

professional services firms and manufacturers. We have helped

dozens of engineering firms obtain GSA Schedule contracts, and

have done the same for many other types of firms. We also

provide market research, strategic planning services, consulting,

and proposal support focused on the federal market.

For further information or if you have questions, please contact

the firm’s Principal, Dave Alexander.

Telephone: (978) 369-1140

E-mail: [email protected]

Web: www.LincolnStrategies.com


