Understanding

the GSA Schedule

Process

Chuck Schadl, CCAS

Georgia Tech Procurement

Assistance Center

August 16, 2013

Resources Available on

Class Website

2

Located at:

www.gtpac.org/gsa-schedule-resources

• All presentation materials

• Resource materials

• Upcoming GSA events

gtpac.org

Our Mission

EI2 aims to increase the competitiveness of enterprises in Georgia through application of science, technology and innovation. Details at http://innovate.gatech.edu

3

gtpac.org

Georgia Tech Procurement

Assistance Center (GTPAC)

• Part of Georgia Tech’s Enterprise Innovation

Institute

• GTPAC assists Georgia companies with all

aspects of government contracting – federal,

state and local

• To best take advantage of all of GTPAC’s

services at no cost, first attend our “Introduction

to Government Contracting” class

4 gtpac.org

What is the General Services

Administration?

• Government’s “landlord”

– 8,600 properties

• Federal acquisition and procurement

force

• Sets policy for procurement, property

management, and IT resources

5 gtpac.org

GSA Acquisition Centers

6

Automotive Center,

Services

Acquisition

Furniture

Office Supplies &

Paper Products

General Products

(National Disaster Support)

Hardware &

Appliances

Management Services

IT Commodities

gtpac.org

GSA Organization

• Federal Acquisition Service (replaced the Federal Technology Service and the Federal Supply Service)

• Public Buildings Service (PBS)

• Various Staff Offices

• Eleven Regional Offices – Boston, New York, Philadelphia, Atlanta,

Chicago, Kansas City, Fort Worth, Denver, San Francisco, Auburn (WA), and Washington, DC

7 gtpac.org

GSA in the News …

• Be sure to check the “Tag Cloud”

on the GTPAC website –

www.gtpac.org – to see the latest

news developments involving

GSA.

8 gtpac.org

Another Great Resource

gtpac.org 9

www.contractingacademy.gatech.edu

GSA Facts

• Catalyst for $30-60 billion in federal spending – more than one-fourth of the government's total procurement

annually

• Manages federal assets valued at $500 billion – Including over 8,600 government-owned or leased buildings, an

interagency fleet of 170,000 vehicles, and a wide range of technology programs

• Less than 5 percent of GSA’s total budget is provided through Congressional appropriations – Most of GSA's operating costs are recovered through the services

it provides

– GSA Schedules Program provides major revenues because a fee of 0.75% of the contract amount is paid by the seller (0.50% on Schedules administered by the VA)

10 gtpac.org

Government Purchasing

“Vehicles”

• Government credit cards

• Fair and open competition

• Governmentwide acquisition contracts

(GWACs)

• Job order/task order contracting

• GSA Schedules

• Technology “Schedule-like” contracts by

several other federal agencies

11 gtpac.org

GSA’s “Federal Competitors”

with Schedule-Like Contracts

• DHS

– EAGLE (Enterprise Acquisition Gateway for

Leading Edge Solutions)

– First Source

– Enterprise Solutions

• NASA

– SEWP (Solutions for Enterprise-Wide

Procurement)

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GSA Schedules

Definitions and Terminology:

• Long-term government-wide contracts with commercial firms

• IDIQ – Indefinite Delivery, Indefinite Quantity

• Also known as …

• Federal Supply Schedules (FSS), Multiple Award Schedules (MAS), and simply “Schedule contracts” or “Schedules”

13 gtpac.org

Objective of GSA Schedules

Program

• To provide Federal agencies and other

customers with a simplified process for

obtaining commonly used commercial

services and products at prices associated

with volume buying

• There are 31 GSA Schedules (categories

of goods/services), plus 9 other Schedule

contracts administered by the VA

14 gtpac.org

Why Federal Agencies

Buy from Schedules

• GSA pre-determines prices as fair and reasonable

• Detailed specs are not required

• Comply with all applicable laws and regulations

• Administrative time is reduced

• Wide selection of state-of-the-art commercial supplies and services offered

• On-line ordering (GSA Advantage®) 15

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What Makes Schedules

Attractive to Vendors

• Simplified access to thousands of

ordering units

• Contract stability (e.g., 5-year base

contract, with three 5-year options)

• Ability to win based on best value

• Can form teaming arrangements with

other Schedule holders

• Less costly to compete

… more 16 gtpac.org

What Makes Schedules

Attractive to Vendors – cont’d

• Online transactions and on-line bidding

• Credit card ordering and payment

• May accept or reject orders >

minimum order threshold or <

maximum order threshold

• Marketing support

• Single contract to execute

17 gtpac.org

Schedules Available to

State & Local Gov’ts

• Cooperative Purchasing – Schedule 70; IT

under Consolidated Schedule 00CORP; and

contracts awarded under Schedule 84, Total

Solutions for Law Enforcement

• Disaster Recovery – All products and services

available under any GSA Schedule used for

recovery from a disaster or a terrorist attack.

• 1122 Program – Law enforcement equipment

for counter-drug activities

18 gtpac.org

Your Reference Library

• GSA Acquisition Manual (GSAM) (incorporates the

GSA Acquisition Regulations (GSAR)) – http://acquisition.gov/gsam/gsam.html

• Federal Acquisition Regulations (FAR) – http://acquisition.gov/far/index.html

• Defense Federal Acquisition Regulation Supplement (DFARS) (for Schedule orders exceeding $100,000

in Department of Defense funds) – http://www.acq.osd.mil/dpap/dars/dfars/index.htm

• Federal Forms - http://www.gsa.gov/Portal/gsa/ep/formslibrary.do?formType=ALL

19 gtpac.org

Explanation of

Terms

GSA Advantage! ®

• Online shopping/ordering system

• Over 10 million supplies and services

• Allows buyers to send order directly to

Schedule contractor

• GSA Advantage! ®

is for services/products

not requiring a statement of work (SOW)

21 gtpac.org

e-Buy

• For services that require a SOW,

e-Buy is used to solicit quotations from

GSA Schedule contractors

• Online RFQ tool

• Solicits supplies and services offered by

Schedule contractors who are on GSA

Advantage!®

22 gtpac.org

Blanket Purchase Agreements

• Established with a GSA Schedule

contractor to fill repetitive needs for

supplies or services (FAR 8.405-3)

• Can be set up for use by an agency’s field

offices across the nation

• Multi-agency BPAs also permitted

23 gtpac.org

Credit Card Payment

• GSA Schedule contractors are required to

accept government P-cards for payments up

to the micro-purchase threshold ($3,000)

• Encouraged to accept P-card for dollar

amounts above micro-purchase threshold

• Ordering activities may consider P-card

acceptance when deciding which contractor

represents the best value

24 gtpac.org

Contractor Teaming

Arrangement (CTA)

• An arrangement between two or more

GSA Schedule contractors

• Orders placed under a CTA are

subject to the terms and conditions of

each team member's GSA Schedule

contract

• Note: GSA Schedule contractors may

bring on subcontractors that are not

Schedule contract holders 25

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Special Note about Architect-

Engineer (A/E) Services

• Schedules Program not used to acquire services that are subject to the procedures of FAR 36.6, Architect-Engineer Services

• The 1972 Brooks Architect-Engineer Act (P.L. 92-582) established federal policy for selection of A/E services

• Selection process known as Qualifications-Based Selection (QBS)

• A/E contracts are negotiated on the basis of experience and qualifications at a fair and reasonable price

26

more ...

gtpac.org

... But Some A/E Services Are

Covered by Schedules

• O3FAC – Ancillary Repair and

Alterations

• 871 - Construction Management,

Chemical Engineering, Civil

Engineering, Electrical Engineering,

Mechanical Engineering

• Millennia – Software Engineering

• SatCom – Satellite Engineering Design

•

27 gtpac.org

Another Special Note:

Medical Supplies & Services

• GSA has delegated authority to the

Department of Veterans Affairs (VA) to

procure medical supplies under the VA

Federal Supply Schedules Program

(9 Schedules)

• Covers 1 million commercial medical

equipment, supplies, pharmaceuticals, and

services

• For VA Schedules, the Industrial Funding

Fee is 0.50% rather than 0.75% 28 gtpac.org

Steps to Winning

a Schedule Contract

gtpac.org 29

“Getting on a Schedule”

• To become a GSA Schedule contractor, you first submit an offer/proposal in response to the applicable Schedule solicitation

• Search for solicitations in GSA eLibrary at: http://www.gsaelibrary.gsa.gov/ElibMain/scheduleList.do

• Download solicitations from FedBizOpps: https://www.fbo.gov

30 gtpac.org

The Time It Takes

• Typically, a proponent spends 30-180 days preparing a

proposal

• GSA can take up to 12 months or more to review a

proposal and make a contract award.

– Quote from Schedule 56 solicitation: “The GSA Schedule

program has recently experienced a tremendous increase in new

offers. Due to the large number of new offers currently in process,

it could take up to 12 months before your offer is evaluated.

GSA's practice is to evaluate offers in the order in which they are

received. However, GSA may give priority to processing certain

offers when circumstances dictate, such as when a federal

agency Contracting Officer specifically requests an expedited

offer review in order to meet a pending requirement that will be

procured under the MAS program, or when there a need for GSA

to bring strategically critical new products or services to market in

order to meet federal customer needs.” 31

gtpac.org

Tip: Digital Certificate

• All proposals are now submitted

electronically via a web application called

eOffer

• To submit your GSA Schedule proposal

electronically, you will need a Digital

Certificate

• Check class website for advice on this

process

• Fee is $119, good for 2 years

32

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Each Schedule Has

Subcategories - Special Item

Numbers (SINs)

Example: Schedule 874, Management, Organization, and Business Improvement Services (MOBIS), has nine SINs:

– 874-1, Consulting Services

– 874-2, Facilitation Services

– 874-3, Survey Services

– 874-4, Training Services

– 874-5, Support Products

– 874-6, Privatization Support Services and Documentation

– 874-7, Program Integration and Project Management

– 874-8, Alternative Dispute Resolution (ADR) Services

– 874-99, New Services

33

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Process Begins with GSA

Solicitation (SOL)

• Each Schedule SOL describes each SIN, along with estimate of annual sales for each SIN

• Includes applicable terms and conditions

• Instructs you on what you need to do to submit an acceptable offer

34

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Next: Offeror Responds

(that’s You)

• Must comply with the requirements established in the solicitation

– Representations and certifications

– Proposed contract pricing

– Information on commercial sales practices, including information on best discounts and/or concessions offered to commercial customers

– Subcontracting plan, unless the Offeror is a small business

– Other required information

35

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GSA Then Reviews Your Offer

and Prepares for Negotiations

GSA’s evaluation considers:

• Seller’s responsibility

• Proposal’s responsiveness

• Price reasonableness

• Estimated sales necessary to justify a

Schedule contract award (at least $25K

in first two years) 36

gtpac.org

Next: GSA and Offeror Negotiate

• GSA may initiate negotiations to obtain more acceptable prices and/or resolve other issues related to an offeror’s proposal

• Negotiations may cover a variety of other contract terms and conditions

• If an acceptable agreement can be reached, the GSA Contracting Officer will award a Schedule contract; if not, the offer will be rejected

37 gtpac.org

GSA Awards a Schedule

Contract when …

• Schedule contract meets all the requirements of law and regulation

• Seller is determined “responsible”

• Pricing determined to be “fair and reasonable”

• Agreement reached on all terms and conditions

• Necessary signatures obtained

• Contract file properly documented

38 gtpac.org

Notable Schedule

Contract Terms

• Submit Schedule price lists, obtain approval, and distribute Schedule price lists

• Submit the information required to participate in GSA Advantage!

• Report quarterly Schedule sales within 30 days of the close of each calendar quarter

• Pay an Industrial Funding Fee (IFF) of 0.75% on reported sales (0.50% on VA Schedules)

• Complete all applicable administrative requirements (e.g., subcontracting plan reporting)

39 gtpac.org

Getting Ready

6 Steps You Must Take ...

Plus 3 Reality Checks

1. Have the Fundamentals in Place

• Obtain a DUNS number from D&B and

EIN/TIN from the IRS

• Research your federal product/service

codes and NAICS

• Determine your small biz status

• Register in SAM; update annually

• Register in ORCA

41

If you have trouble with these tasks,

take or re-take our “Intro” class. gtpac.org

Reality Check #1

• GSA reports that a major problem with

Schedule proposals is that the

proponent selects the wrong NAICS

code

• NAICS code selection is a fundamental

42 gtpac.org

2. Find a Schedule that

Applies to You …

43 gtpac.org

3. Locate Your Schedule,

Download It, and Read It

44

gtpac.org

4. Register for Vendor

Notification Service

• Use the “Vendor Notification” link on the

“FedBizOpps Vendors” page to register for

new or refreshed Schedule solicitations, from

FedBizOpps

• After subscribing, you’ll receive by e-mail:

– Presolicitation notices and modifications

– Notices of solicitations and amendments

– General procurement announcements

45 gtpac.org

5. GSA Requirement

• You must take an online, self-paced

training course, “Pathways to

Success"

• You can access this class at

https://gsafas.secure.force.com/MAS

TrainingHome

• You’ll need to include proof in your

proposal that you took this course

46 gtpac.org

Reality Check #2

• “Pathways to Success” on steroids is

here! - https://vsc.gsa.gov/RA

• GSA has implemented a “vendor

readiness assessment”

• It’s a new vendor requirement –

mandatory before submitting a

Schedule proposal to GSA

47 gtpac.org

6. Other “Must Haves”

• Two years’ worth of financial

statements/tax returns showing profit

• Invoices, establishing sales and pricing

• Published commercial rates, including any

discounts you offer

• Tip: Order a basic D&B report (about $40)

just to make sure it’s positive, with no

questionable financial items that may

cause GSA concern

48

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Reality Check #3

As of January 2012, GSA reports ...

49

60% of GSA Schedule contractors are

not in compliance with the minimum

sales clause!

gtpac.org

But I Digress ...

50 gtpac.org

Three GSA Resources that Have

Nothing To Do with Schedule

Contracts

(... but which might have everything to do with

winning a government contract)

• Contracting Forecasts

www.gsa.gov/smbusforecast

• Directory of Prime Contractors with

Subcontracting Plans

www.gsa.gov/subdirectory

51

• Public Building Service

www.gsa.gov/pbs

gtpac.org

52 gtpac.org

53 gtpac.org

54 gtpac.org

Reviewing the

Contents of a

GSA Schedule

Solicitation

Solicitation Format

Schedule solicitations are

prepared using FAR 12.303: • Cover page

• Continuation SF 1449 information form

• Contract clauses

• Contract documents, exhibits, and

attachments

56 gtpac.org

Solicitation Cover Page

• Schedule solicitation cover page is really

more than a cover page

• May be several pages long and include:

– Services/products covered by the

solicitation

– Payment

– Pricing

– Point of contact for information

– “Refresh” information

57 gtpac.org

Contract Clauses

• Terms and conditions will become part of the final contract

• No shortcut to reading to assure complete understanding of contract requirements

• Typically: – Contract Terms and Conditions – Commercial

Items, FAR 52.212-4

– Contract Terms and Conditions Required to Implement Statutes or Executive Orders – Commercial Items, FAR 52.212-5

• Additional clauses to implement particular law or executive order

58 gtpac.org

Contract Documents, Exhibits

and Attachments

Typically:

– Products and Services will specify the respective Commercial Sales Practices formats with instructions

– Small Business Subcontracting Plan Outline (applies only to large businesses)

59 gtpac.org

Understanding

the Requirements

of Preparing a

Schedule

Proposal

“Reps and Certs” Highlights

• Schedule “reps & certs” virtually identical

to ORCA (Online Representations and

Certifications Application (now a part of

SAM)

• Make sure your reps & certs are

complete before completing your

Schedule

• Fairly straightforward, but there are a

couple tricky elements, for example ...

61 gtpac.org

Representations Required

to Implement

Executive Order 11246

• You must indicate whether: – You have or have not participated in a contract

subject to the Equal Opportunity clause, FAR 52.222-26

– And whether you have or have not filed all required compliance reports

– If you indicate that you have not participated in a contract subject to FAR 52.222-26, you should also indicate that you have filed all required compliance reports. (Gov’t Logic: Since no reports were required, all required reports were filed.)

62 gtpac.org

Past Performance Information

Required

• Solicitation requires you to provide

commercial sales information for each

special item number (SIN), group of SINs,

or Sub-SIN

• Required information includes dollar value

of sales to general public for previous 12-

month period or offeror’s last fiscal year

more ...

63 gtpac.org

Starting the Performance

Evaluation Process

• You will need to specify a minimum of 4 references; you will be asked for 15-20 – 4 completed references must be obtained

– Some Schedules require clients in past year

• You must pay $185 to Open Ratings, Inc.

• Open Ratings’ goal: obtain at least 4 completed surveys within 2 weeks

• Once Past Performance Evaluation report is generated (20-35 days), references no longer can respond to survey

• One copy of the report is sent to you and another copy is sent to the GSA

• Valid for 6 months 64 gtpac.org

65 gtpac.org

Commercial

Sales Practices

Information

Information Other than Cost or

Pricing Data

You must:

– Submit information in the commercial sales practices format required by the solicitation

(FAR 52.215-20)

67 gtpac.org

Commercial Sales Practices

Format (CSP-1)

– Identify SIN(s) covered

– Provide information on sales to the general public at established catalog price or market price over past 12 months

– Show projected annual Schedule sales for each SIN ($25,000 minimum over first 2 yrs.)

– Compare discounts and concessions offered with any offered elsewhere

– Explain any deviations from your discount and concession policies that ever result in better prices

– Additional information if you are a dealer/reseller (details on each manufacturer’s services / products

68

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69 gtpac.org

Subcontracting Plans

Requirement to Provide a

Subcontracting Plan

• You must submit an acceptable

subcontracting plan prior to receiving a contract award, unless: – You are a small business, or

– Total orders under the Schedule contract are not expected to exceed $500,000, or

– There is sufficient evidence that no subcontracting opportunities exist, or

– The Schedule contract will be performed entirely outside of any State, territory, or possession of the United States, the District of Columbia, and the Commonwealth of Puerto Rico.

71 gtpac.org

Small Business Subcontracting

Plan Outline (Model)

• There is a GSA-produced model subcontracting plan

• This model may be included in the solicitation

• Want a copy? Check class web site!

• Tip: Small businesses looking for subcontracting opportunities gain insights by reviewing Subcontracting Plan Outline because ...

72 gtpac.org

GSA’s Subcontracting Goals

73

• Used internally by GSA

• Not mandatory for Schedules,

but used as general targets:

39% - Small Businesses

5% - WOSB

6% - SDB

5% - 8(a)

3% - SDVOSB

2% - Veteran-Owned

3% - HUBZone gtpac.org

How GSA Will Review

Your Schedule Submittal

GSA’s Technical Evaluation

• Conduct initial proposal review

(responsiveness to terms of SOL)

• Evaluate your firm’s responsibility

• Evaluate any required subcontracting

plan

75 gtpac.org

Initial Proposal Review

• GSA will reject a proposal if it:

– Does not fall within the scope of the

solicitation

– Fails to comply with key solicitation

requirements

– Was not timely

• Rejections are to include an explanation

of why the proposal is being rejected ...

76 gtpac.org

Avoid Rejection: Use the

Checklist Included in

Solicitations

• If you don’t …

You’ll get to feel the love!

77 gtpac.org

What Are “Responsible

Contractor” Standards ?

• Adequate financial resources to perform contract, or ability to obtain them

• Ability to comply with the required or proposed delivery or performance schedule

• Satisfactory performance record

• Satisfactory record of integrity and business ethics

• Necessary organization, experience, accounting and operational controls, and technical skills, or ability to obtain them

• Necessary production, construction, and technical equipment and facilities, or the ability to obtain them

• Qualified and eligible to receive an award under applicable laws and regulations (FAR 9.104)

78 gtpac.org

Requests for Additional

Proposal Information

• GSA may request additional, corrected, or

updated information anytime during the

evaluation process

• The Contracting Officer will designate a date

by which the information is required

• Failure to respond by due date will result in

proposal rejection

• Tip: If you need more time, ask for a time

extension – it will almost always be granted

79 gtpac.org

Price Analysis

of a Schedule

Proposal

Price Analysis for

Services and Products

• GSA Contracting Officer is to:

– Verify price info is consistently presented

– Verify that the commercial sales practice

(CSP) information is adequate

– Analyze price reasonableness considering your commercial pricing, prices available from other Schedule contractors, and any price history

81 gtpac.org

How GSA Analyzes Price

Reasonableness Based on

Commercial Pricing

• Identify written discount policies or standard

commercial practices that result in lower pricing for commercial customers

• Identify deviations from written discount policies or standard commercial practices that result in lower pricing for commercial customers

• Identify differences between Schedule and commercial customer requirements that may merit different pricing

• Consider relevance of comparisons between proposed prices and any offeror prices for agents or sales representatives, charities, educational institutions, child-care centers, or other government contracts

82 gtpac.org

GSA Also Analyzes Price

Reasonableness Considering

Other Schedule Pricing

• GSA compares your proposed pricing with

the prices currently available from other

Schedule contractors. Contracting Officers

often use GSA Advantage! to identify

contractors selling services or products

similar to those proposed by you

– you should too!

83 gtpac.org

… and GSA Analyzes Price

Reasonableness Based on

Historical Pricing

• GSA analyzes the reasonableness of your

proposed pricing considering information

from historical (e.g., current or previous)

contracts when the validity of the

comparison and the reasonableness of the

historical contract price can be established

84 gtpac.org

GSA Considers Additional Factors

for Pricing Schedule Contracts

for Services

• Compare labor rates for wage categories with available market information

• Analyze the reasonableness of proposed labor rates considering; – applicable Service Contract Act (SCA) wage determinations

(FAR 22.1001)

– indirect costs

– profit

• Consider the effect of special labor requirements (e.g., security requirements) on labor rates

• Analyze prices using cost information other than cost or pricing data

85 gtpac.org

Contract

Negotiation

Process

Typical Government

“Negotiation” Topics

• Price

• Industrial funding fee (IFF) verification

• Maximum order (MO) threshold

• Price reduction requirements

• Economic price adjustment (EPA) when service/product pricing based on published prices

• EPA for services when service pricing is not based on catalog/published prices

• Delivery time

• Governmentwide commercial purchase card acceptance

• Other 87

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Non-Negotiable Topic:

Industrial Funding Fee

• You must pay an IFF based on your Schedule sales

• The IFF percentage paid by the contractor is not negotiable and must remain at the percentage set by FSS policy – The IFF is 0.75 percent of the Schedule contract

selling price, excluding separately priced travel (0.50% for VA medical)

• The IFF must be reflected in the prices charged to gov’t “ordering activities” – The IFF cost is added to the discounted price

offered to the government 88

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4 Ways to Calculate the IFF

1. Divide the original unit price by one (1) minus the IFF rate (e.g., 1 – 0.0075 = 0.9925) to establish the contract price. For example, if the original price of $198.50 is divided by .9925 , the selling price will be $200. If the contractor makes a sale at the $200 price, the contractor will pay a $1.50 IFF. Then $200 minus $1.50 will equal $198.50, which is the original fair and reasonable price calculated based on the firm’s commercial practice.

2. Multiply the original unit price by 1.007557 to establish the contract price. One divided by one (1) minus the IFF rate (1 – 0.0075 = 0.9925) is equal to 1.007557 (with a small rounding error), so the result from multiplying by 1.007557 is equal to the result from dividing the selling price by one (1) minus the IFF rate.

3. Adjust the discount used to calculate the selling price by subtracting 0.75 percent and then adding 0.75 percent of the original discount. For example, if the original discount is 5.0 percent, subtract 0.75 percent from the 5.0 percent (5.0% - .75% = 4.25%); calculate .75 percent of 5.0 percent (.0075 * .05 = .000375 or .0375 percent); add the results of the two calculations (4.25% + .0375% = 4.2875%). The adjusted discount rate is 4.2875 percent. The parties normally agree on a rounded discount rate (e.g., 4.3 percent or 4.29 percent).

4. Adjust only the base discount as shown above when multiple discounts may or may not apply to a particular acquisition. Never adjust a prompt payment discount.

89 gtpac.org

Remember!

• The IFF percentage remitted by the

contractor is not negotiable and must

remain at the percentage set by FSS

policy (0.75%)

• The IFF must be reflected in the prices

charged and cannot be shown as a

separate item in Schedule catalogs and

price lists

• Remember: VA Medical Schedule IFF is

0.50% 90 gtpac.org

Warning: GSA May Unilaterally

Your Change Price

• The Government may reduce the price of the contract if it is determined after award because the contractor failed to: – Provide information required by the

solicitation/contract or as requested

– Submit information that was current, accurate, and complete

– Disclose changes in the contractor’s commercial price lists, discounts or discounting policies, which occurred after the original submission and prior to 14 calendar days before the completion of negotiations (GSAR 552.215-72)

91 gtpac.org

Negotiation Topic:

Economic Price Adjustments

• Solicitation will generally include the Economic Price Adjustment – FSS Multiple Award Schedule Contracts clause, GSAR 552.216-70 (Alternate 1).

• If escalation rates or market indicators are used for an Economic Price Adjustment (EPA), they must be stated in contract

• Typically allowed 4 adjustments in a 5-year period, more possible

92 gtpac.org

Negotiation Topic: Delivery Time

• Contractor delivery, after receipt of an order, should be expeditious – GSA will take into consideration your normal

commercial practice for similar quantities of the same services or products

• Negotiation also may address accelerated delivery times – In emergency situations, Schedule contractors

may be expected to ship products within 24 to 72 hours after order receipt

– Large equipment should be shipped within the minimum time practicable in urgent situations

93 gtpac.org

Non-Negotiable Topic:

Purchase Card (P-card)

Acceptance

• Schedule contractors must accept P-cards for all acquisitions that do not exceed the micro-purchase threshold ($3,000)

• Acceptance of credit cards, at any dollar value, can be “best value” factor

94 gtpac.org

How Negotiations

May Take Place

• Telephone discussions – Especially common when GSA is merely

confirming information

• Written discussions when complete documentation of the information requested and received is important

• Face-to-face discussions when issues are relatively complex and the dollar value justifies the cost involved

95

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Tip: Ask for Negotiation Agenda

Find out:

• Topics to be addressed and the order in

which the topics will be considered

• Any information expected to be at hand

• A general time schedule for the negotiation

sessions

• Location(s) of the negotiation session(s)

• Names, titles and roles of Government

participants in the negotiations

96 gtpac.org

Tips: Negotiating with GSA

• You do not have to “give in”

• You don’t have to offer a "prompt payment discount"

• If you are offering your best price and it is equal to or better than that of your best customer or group of customers, then you do not need to do better

• Make sure the 0.75 percent Industrial Funding Fee (IFF) is in your GSA price

• Be sure of the shipping points and FOB points when negotiating (if the proposal calls for FOB Destination, then you have to pay freight)

• If your standard policy has been to not to give quantity discounts, decline this request

• Watch out for provisions providing for on-site warranty repair anywhere in the country

• Generally provide domestic delivery only, not international

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Final Proposal Revision

• At the close of discussions and/or negotiations, the GSA Contracting Officer will request a written final proposal revision to document understandings reached during negotiations

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4 Key Award

Requirements

1. Schedule Price List

• You will be expected to prepare, print, and distribute a paper Schedule price list following the requirements set forth in I-FSS-600 and the Submission and Distribution of Authorized FSS Schedule Price Lists clause (GSAR 552.238-71)

• No later than 30 days after contract award and prior to distribution to Schedule users, you are to submit two paper copies of the price list to the Contracting Officer for review and approval: – Cover page

– Product/service pricing information

• After Contracting Officer approval, you must distribute the price list as required by the contract

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2. Cover Page Requirement

• Remember, cover “page” is a misnomer; be sure to include:

– The required title identifying the document as a “General Services Administration, Federal Supply Service, Authorized Federal Supply Schedule Price List”

– A required statement about the availability of GSA Advantage! for customer information or ordering

– Title of the Schedule

– An overview of services/products covered by contract

– The applicable contract number

– A required statement about the availability of ordering information at http://fss.gsa.gov

more … 101 gtpac.org

Cover Page – cont’d

– The contract period

– Contractor information (e.g., name, address, and telephone number)

– A table of awarded special item numbers (SINs) with appropriate cross-references to item descriptions and awarded prices

– Identification of the lowest priced model number and lowest unit price for that model for each SIN awarded under the contract

– A description of commercial job titles, responsibility, experience requirements, and education requirements for those types of employees or subcontractors who will perform services based on hourly rates

– The maximum order threshold

– Discount information

– Other items of customer information essential to Schedule users

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3. Product / Service Pricing

Information

• Prepare the Schedule price list by either:

– Using the commercial catalog, price list, schedule, or other document, showing accepted discounts, and obliterating all items, terms, and conditions not accepted by the Government by lining out those items or by a stamping across the face of the item the words “Not Under Contract" or “Excluded;" or

– Composing a price list, which includes only those items, terms and conditions, and net prices accepted by the Government. The price list must be based upon the commercial price list less discounts accepted by the Government. The cover page of an specially-composed price list must include the notation "Prices shown herein are net (discount deducted).”

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4. Avoid Red Flags

Provide all of the information the SOL requires …

... and in the required format !

• No inappropriate price list information – No products, services, or terms and conditions other than

those accepted/awarded by the Government

– Nothing is included in the contract price list that conflicts with the terms and conditions of the Schedules contract

– Only material needed by ordering offices for placing orders is included in the contract price list

– No advertising or promotional material references to services or products not covered by the contract is included

• Complete accuracy – The contract price list cover page must identify the lowest

priced model number and lowest unit price for that model for each SIN awarded in the contract

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gtpac.org

Familiarize Yourself

Now

with How to Market

a Schedule Contract

(What It Takes to Activate Your

“Hunting License”)

Marketing Resources

on the Web

• Managing a Schedules Contract http://www.gsa.gov/portal/content/202845

• Vendor Support Center (VSC) http://vsc.gsa.gov

• Steps to Success https://vsc.gsa.gov/stepstosuccess.pdf

• GSA Advantage!

https://www.gsaadvantage.gov/advantage/main/home.do

• Marketing Tips http://www.gsa.gov/portal/content/104147

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Particular Sections of

Interest

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Participating on GSA Advantage!

• You will be required to register with

GSA Advantage! no later than six

months after your Schedule contract

award

• You may either upload its file

submissions electronically using

electronic data interchange (EDI) or

using the Schedule Input Program

(SIP) software provided by GSA

• https://www.gsaadvantage.gov/advgsa/

advantage/main/start_page.do

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Marketing Tips to Remember

• “FSS Logo Downloads” provides a link to GSA logos that you can use in advertising, business cards, etc.

• “MarkeTips Advertising Specs and Guidelines” provides a link to a media kit for advertising in MarkeTips magazine. – GSA's MarkeTips Magazine has a mailing list of

100,000 Government buyers

– Advertising space in MarkeTips is free of charge and is offered on a first-come first-served basis for two advertisements per year per GSA contract.

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Familiarize Yourself

with e-Buy

• www.ebuy.gsa.gov

• Tap into a new large customer base for

your products and services

• Increase sales

• Access all RFQ/RFPs placed under

categories for which you hold contracts

• Receive email notices of RFQ/RFP

opportunities

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Want the Complete

e-Buy Tutorial?

• Go to

https://www.ebuy.gsa.gov/

advantage/ebuy/main/ebuy

_tutorial.do;jsessionid=5B

ED5DED68E719FA6193121

D8BD4012F.B0

• Or check class web site 117

gtpac.org

Using the Schedules

e-Library to Identify Both

Partners and Competitors

• Identify Schedule contractors with

contracts under each of the SINs

identified

– For example, you could identify other

contractors with contracts under a particular

SIN and obtain a contractor’s Schedule

contract number

• Updated daily

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Use the “Schedule Sales Query”

Feature

• Access the sales reports filed by Schedule contractors: – All Schedules by fiscal year

– All Schedules by all available fiscal years

– SIN & Schedule totals by fiscal year

– All contract sales by Schedule by fiscal year

– Schedule sales grand total by quarter by fiscal year

– Total for all quarters by contractor by fiscal year

– Total by quarter & SIN by contract number and fiscal year

– Total for each quarter for a specific SIN by fiscal year

– Total by quarter & contract for a specific contractor and fiscal year

– Total by contractor for a specific Schedule and fiscal year

– All sales by fiscal year for a specific SIN number

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120

Last Updated: July 1, 2013

gtpac.org

Why Is FedBizOpps Important

to a Schedule Contractor?

• Contracting Officers must publish a synopsis of each requirement exceeding $25,000

• One exceptions is an order under an existing contract, such as a Schedule contract

• A Contracting Officer may synopsize a requirement not realizing that the services or products are available under the Schedules Program. If a Schedule contractor identifies such a requirement, and advises the Contracting Officer, the Contracting officer may convert the open market acquisition to a Schedule acquisition.

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Organizing

Yourself

to Submit a

Proposal in

Response to

a GSA Schedule

123

Format

12 Point Font

Contractor Narrative Should be

Single Spaced

One Copy

Sequenced in Accordance with

Check List

Follow the Instructions!

gtpac.org

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What a Completed

Proposal Should Contain

Cover Page

Offeror Checklist

Signed SF1449 (Complete Blocks

12,17a, 30a, 30b, & 30c)

Section I: Admin. Requirement

Section II: Experience Executive Summary, Corporate

Experience, and Past Performance

Section III: Price Proposal

gtpac.org

GSA Schedules Helpdesk

• 800-488-3111

• Answer questions about

requirements of Schedule

solicitations

• Which products and services are

offered through which Schedules

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New Resources

• GSA Schedules Blog

http://interact.gsa.gov/groups/multiple-

award-schedules

• GSA Schedules on Facebook

http://www.facebook.com/GSASchedules

• GSA Schedules on Twitter

http://twitter.com/#!/usgsaschedules

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Remember!

• Before embarking on preparing a

GSA Schedule, you must do your

research and ...

• Be prepared to devote serious time

and resources to marketing your

Schedule contract

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Summary:

Your Starting Points

• Look at the whole list of 31 Schedules (plus 9 administered by the VA)

• Search for details inside particular Schedules by conducting a key word search at www.gsaelibrary.gsa.gov/ElibMain/ElibHome

• Check GSA forecasts at: www.gsa.gov/smbusforecast

• Check for possible subcontracting opportunities at www.gsa.gov/subdirectory

• Look at spending reports on individual Schedules at http://ssq.gsa.gov

• Study the Schedule contracts of your competitors (who are also your potential teaming partners) through searches in GSA’s eLibrary at http://www.gsaelibrary.gsa.gov

128 gtpac.org

Understanding

the GSA Schedule

Process

Thanks for attending!

Chuck Schadl, CCAS

Georgia Tech Procurement Assistance Center

Understanding

the GSA Schedule

Process

Thanks for attending!

Chuck Schadl, CCAS

Georgia Tech

Procurement Assistance Center