The Next 20 Years: Strategic Considerations for GSA Schedule Holders

The Next 20 Years:
Strategic Considerations
for GSA Schedule Holders
Presented by: Jennifer Aubel and Vanessa Payne
http://blogs.aronsonllc.com/fedpoint/

1© 2017 | www.aronsonllc.com | www.aronsonllc.com/blogs |
Polling Question
When will your GSA Schedule contract expire?
a) Within the next 12 months
b) Within the next 24 months
c) Within the next 3 years
d) Within the next 4-5 years
e) In more than 5 years

Agenda
• Introduction
• GSA Policy Changes Impacting New Offers
• Disposition of Existing Schedule Contract
• Best Practices for Preparing the New Offer

Introduction

A Little Historical Context
• Change from mandatory “requirements contracts” to IDIQ-type
• Federal Acquisition Streamlining Act (FASA)
• Price Reductions Clause, spot discounts
1994
• Industrial Funding Fee (IFF)
• Removal of maximum order limitation
• Transfer of IT Schedule to FSS
1995
• Clinger-Cohen Act (no cost or pricing data / CAS coverage)
• Contractor Teaming Arrangements1996
• Continuous Open Seasons
• Schedule orders count against annual small business
accomplishments
1997
• Worldwide coverage
• Governmentwide purchase cards
• Special ordering procedures for services
1998
• Evergreen contracting – 20-year maximum contract period
• GSAAdvantage! participation becomes mandatory2000

When Does Your GSA Contract Expire?
Contract #
Ends
Year Awarded Contract #
Ends
Year Awarded Contract #
Ends
Year Awarded
-XXXXH 1998 -XXXXQ Skipped -XXXXZ Skipped
-XXXXI Skipped -XXXXR 2005 -XXXAA 2013
-XXXXJ 1999 -XXXXS 2006 -XXXBA 2014
-XXXXK 2000 -XXXXT 2007 -XXXCA 2015
-XXXXL 2001 -XXXXU 2008 -XXXDA 2016
-XXXXM 2002 -XXXXV 2009 -XXXEA Skipped
-XXXXN 2003 -XXXXW 2010 -XXXFA Skipped
-XXXXO Skipped -XXXXX 2011 -XXXGA 2017
-XXXXP 2004 -XXXXY 2012 New Method 2018+

GSA Policy Changes
Impacting New Offers

Continuous Contract Initiative
• Allows existing contractors to submit a new offer
against the same Schedule at any time
• Upon award, legacy contract is “frozen” and may only
be used to support existing orders / BPAs
• All future business must be placed on new contract

Continuous Contract Initiative
• Legacy contract still subject to price reductions clause
→ GSA has been inconsistent regarding whether
price increases are allowed on legacy
contract…make sure any order’s escalation is
covered!

Streamlined Offers
• Available to existing contract holders who meet certain
eligibility criteria
• Significantly reduces administrative and technical
proposal requirements

Streamlined Offers – Contractor Eligibility
1. Has existing contract under Schedule and submitting
offer for all or some currently-awarded SINs
2. Annual contract sales average at least $25K over past
five years
3. Demonstrated pattern of satisfactory past performance

Transactional Data Reporting (TDR)
• New pricing program being piloted on eight Schedules
• Participation in TDR pilot program is now optional for
new offers, options, and adding SINs
Schedule SINs
58I, Professional AV ALL
72, Furnishings ALL
03FAC, Facilities ALL
51V, Hardware Superstore ALL
75, Office Supplies ALL
73, Food Service ALL
70, Information Technology 132-8, -32, -33, -34, -54, 55
PSS, Professional Services Professional Engineering

• Eliminates the requirements for commercial sales
practices (CSP) disclosures and basis of award
discount relationship monitoring
• Contract pricing based on comparison to order-level
pricing charged to GSA customer agencies, not
commercial customers
• Participating contractors must report itemized, order-
level GSA sales data on monthly basis

• TDR pricing data will be released sequentially as follows:
1. GSA Schedule acquisition personnel
2. Federal ordering activities
3. Public extract
• GSA expects to release TDR data to the first group once
the Formatted Product Tool is fully integrated and
available internally
• Format and level of redaction for public extract is
undecided at this time

Competitive Pricing Initiative
• GSA now uses several tools to compare contract
ceiling prices across all Schedule holders
• These include Formatted Product Tool (FPT), XSB
Price Point, and Contract-Awarded Labor Category
(CALC) database

• Transactional data will also be used to reduce price
variance among similar products and services

→ Whether for a modification or an offer, don’t
wait for GSA to come up with its own,
potentially negative, market research –
provide favorable rate comparisons with
your proposal

Disposition of Legacy
Schedule Contract

Legacy Contract Orders
• In 2016, GSA changed Indefinite Quantity clause in
Schedule solicitations to FAR 52.216-22
• Allows orders, including options, to extend for up to 60
months beyond contract end date
→ Remember that GSA contract pricing will be
frozen as of the end date of the GSA
contract with no future price escalations.

Blanket Purchase Agreements (BPA)
• Blanket Purchase Agreements (BPAs) are NOT
contracts, they rely on the underlying contract
• BPAs cannot extend beyond expiration or cancellation
date of underlying Schedule contract
• Contractors cannot bid on BPAs with periods of
performance going past the Schedule’s expiration date

Managing Upcoming GSA Opportunities
• Depending on Schedule type, getting new contract
awarded can easily take 9-12 months (or more)
• Keep in mind you may not be able to increase legacy
contract rates to cover escalation

Should you modify legacy contract first?
• Benefits of streamlined offer generally warrant making
changes to existing contract prior to new offer
→ Don’t count on being able to negotiate
substantially higher rates on new offer,
escalate now if you can

After new contract is awarded…
• Don’t forget that the price reduction clause still applies
to legacy contract
• Do not accept new orders against legacy contract
• Close out legacy contract in sales reporting system
(72A or TDR) upon final payment

Preparing Your New Offer

Important Questions to Consider
• How much time do I have left on my current contract?
• Does my current contract’s period of performance
support known future opportunities?
• Do I want to participate in TDR?
• Do I qualify to submit a streamlined offer?

Important Questions to Consider
• What does and does not work about my current
contract?
• Does the scope of current contract support future
company and customer needs?
• How long has it been since I increased my contract and
commercial rates?
• Are my rates competitive?

• Existing contract expires in
<24 months
• Recently validated CSP for
option or mod
• Planning to bid on multi-
year BPA
• Existing contract’s scope is
fine, as-is
• Current contract badly out-
of-date
• Have not completed
competitive rate analysis
• Not meeting minimum sales
requirement
• Just trying to replace poorly-
negotiated contract
Might it be the “Right Time” to submit?
YES NO

The Offer Process Now
• All GSA Schedule offers must be submitted via GSA’s
eOffer electronic contracting system
• Proposal requirements have become much more
extensive in past 10 years
→ Make sure your digital certificate is up-to-
date

Continuous Contracts – Special Requirements
• Indicate offer is for continuous contracts
• Provide list of active submitted quotes, established
BPAs, and awarded orders
• For each of these, provide:
1. Ordering activity name and point of contact,
2. RFQ / BPA / order number,
3. Expected or awarded dollar value, and
4. Period of performance (including options)

Continuous Contracts – Special Requirements
• Negotiate cancellation date for legacy contract to
coincide with final day of ordering period for last active
order/BPA
• Agree not to use legacy contract for new business
opportunities

Streamlined vs. Standard Offers – Administrative Proposal
Requirement Streamlined Standard
Readiness Assessment NO Yes
Pathways to Success NO Yes
Previous cancellations, rejections, and pending offers* Yes Yes
Financial Statements NO Yes
System for Award Management Yes Yes
Agent Authorization Letter* Yes Yes
Small Business Subcontracting Plan* Yes Yes
*May not apply to all offerors

Streamlined vs. Standard Offers – Technical Proposal
Requirement Streamlined Standard
Factor 1 – Corporate Experience NO Yes
Factor 2 – Past Performance Optional Yes
Factor 3 – Quality Control Yes Yes
Factor 4 – Project Experience NO Yes

Streamlined vs. Standard Offers – Pricing Proposal
• Pricing proposal requirements are identical for both
types of offer

Streamlined Offers
• Expect to be asked to provide
information that’s not required by
the solicitation
• Some Contracting Officers
interpret requirements to mean
new offer has to be exactly the
same as legacy contract

TDR vs. CSP Offers – Pricing Proposal
Requirement TDR CSP
Price Proposal Template Yes1 Yes
Commercial Sales Practices (CSP-1) NO Yes
Commercial Pricelist / Market Rates Yes Yes
Supporting pricing documentation NO Yes
Mechanism for future price adjustments Yes Yes
Detailed price narrative NO Yes
Service Contract Act (SCA) / Service Contract Labor Standards* Yes Yes
*May not apply to all offers
1Excludes Most Favored Customer (MFC) disclosure fields

Transactional Data Reporting
• Many unknowns remain about
how TDR will work in “real life”
• TDR database not yet available
to GSA COs
• Negotiation approaches under
TDR not consistent

Transactional Data Reporting
• Be prepared to provide pricing
comparisons to justify proposed rates
• Beware the CSP in sheep’s clothing

Questions?

Jennifer Aubel is a principal consultant in Aronson LLC’s Government Contract
Services Group. She is responsible for leading clients successfully through the
GSA lifecycle -- from obtaining a new GSA Schedule contract through
managing ongoing contracts. She works closely with clients to custom-tailor
GSA Schedule solutions that meet current and future organizational needs by
developing scope and pricing strategies, maintaining contract compliance,
providing audit support, and improving the profitability and versatility of the GSA
Schedule contract. Additionally, Jennifer frequently speaks on GSA Schedule
topics at both Aronson and industry-sponsored events and is an active member
of the National Contract Management Association.
Jennifer has more than 20 years’ experience in the federal contracting market,
working for both contractors and as a consultant to GSA Schedule contract
holders. Prior to working with Aronson, she managed a multi-million dollar GSA
program as well as a team that developed and delivered specialized training on
the GSA Schedules program to small businesses across the country. Jennifer
graduated summa cum laude from the University of Maryland University
College with a bachelor’s degree in Legal Studies.
Principal Consultant, Government Contract Services Group
301.231.6253
jaubel@aronsonllc.com
Jennifer Aubel

Vanessa Payne is a managing consultant in Aronson LLC's Government
Contract Solutions Group. With more than 15 years of full life-cycle government
contracts and consulting experience, her expertise includes GSA contract
management, subcontract administration, contractor task order proposals, and
"Big Four" management consulting in the areas of process improvement,
business process reengineering, cost accounting, survey development and
analysis, workflow mapping, and facilitation services. She currently specializes
in GSA Schedule contract preparation, renewals, and providing ongoing
contract management, administration, and compliance support with a special
interest in organizational procedure and policy review, improvement, and
standardization.
Vanessa has been a guest speaker on GSA Schedule and social media topics
for Aronson and other industry organizations, and she is a co-founder and
frequent contributor to Aronson's Fed Point blog. She received her master's
degree in organizational development and strategic human resources as well
as a graduate certificate in skilled facilitation from Johns Hopkins University,
and she completed her bachelor's degree in communications at the University
of Pennsylvania.
Managing Consultant, Government Contract Services Group
240.364.2663
vpayne@aronsonllc.com
Vanessa E. Payne

301.231.6253
Contact Jennifer Aubel / Aronson LLC
jaubel@aronsonllc.com
https://www.linkedin.com/in/jnaubel
https://twitter.com/jnaubel

240.364.2663
Contact Vanessa Payne / Aronson LLC
vpayne@aronsonllc.com
https://www.linkedin.com/in/vanessaepayne
https://twitter.com/Aronsonllc

About Aronson LLC
Aronson LLC provides a comprehensive platform of assurance,
tax, and consulting solutions to today’s most active industry
sectors. For more than 55 years, we have purposefully
expanded our service offerings and deepened our industry
specialties to better serve the needs of our clients, people, and
community. From startup to exit, we help our clients maximize
opportunity, minimize risk, and unlock their full potential.

About Aronson LLC
• 250+ professionals located in Rockville, MD
• 80+ professionals dedicated to supporting government
contractors
• Aronson helps clients rethink the way their approach to
business through innovative, industry-specific services:
– Audit, Assurance and Tax
– Deltek Systems and Outsourcing
– Financial and Contract Compliance
– GSA Schedules
• www.aronsonllc.com/blogs/fedpoint/ – News and trends and
insight for today’s savvy government contractor

Awards / Accolades / Affiliations
The Gazette of Politics & Business Exceptional 53 Business Award
In 2012, Aronson received the PB53 award for the third year in a row. The program
acknowledges the top businesses and organizations in Maryland based on criteria that
includes the company’s annual revenue, employee growth, noteworthy product or service
innovations, community service efforts and more.
Accounting Today Top Firm
In 2013, Aronson was once again named to Accounting Today’s list of the top 100 firms in
the country. Accounting Today is a leading provider of online business news for the tax and
accounting community.
Washington Business Journal Top 25
Aronson is ranked #12 on the Washington Business Journal’s Top 25 Accounting Firms in
the DC Metropolitan area.
INSIDE Public Accounting Top 100
Once again, Aronson has earned a spot in the top 100 of this prestigious list, released by
INSIDE Public Accounting. This is the longest running, most comprehensive and accurate
independent analysis focusing on management and operations of America’s large local,
regional and national firms.
Washington Business Journal Best Places to Work
Aronson has been recognized five times as one of the Metro area’s “Best Places to Work.”
The award recognizes a company’s achievements in creating a positive work environment
that attracts and retains employees through a combination of employee satisfaction, working
conditions and company culture.
Montgomery County Chamber Corporate Social Responsibility Award
In 2010, Aronson was honored to receive the MCCC’s Corporate Social Responsibility Award
based on the depth and breadth of the company’s energetic commitment to support young people,
in the areas of education, housing and health.

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