Multiple award schedule (MAS) contracts are something every government contractor should have on their radar screen. Getting on these schedules, however, takes significant time, effort and a solid understanding of specific MAS vehicles.
In this seminar, we offered tips for government contractors who want to grow their business through MAS contracts.
The seminar covers:
- Common MAS contracting schedules
- How to evaluate whether you should be on a MAS schedule
- Steps for successfully applying for MAS contracts
- How to modify your prices once you're on a schedule
- MAS compliance requirements
... and more
4. What is a GSA Schedule?
A GSA Schedule Is a Contract Vehicle That Has Been
Awarded by GSA That Can Be Used by All Federal
Agencies to Order Goods and Services
It Mirrors Commercial Buying Practices
Past Performance Based Contract
Facilitates Government Procurement
– Over 10,000,000 Commercial Items and a Multitude of Services
Can Be Purchased From Over 17,000 Companies Worldwide
5. GSA Schedules Overview
Govt. Wide Acquisition Contract (GWAC) with optional
Worldwide Scope
Open Season Solicitations
5 Year Period of Performance (Three 5 Year Renewals)*
No Selling Caps
No FedBizOpps Posting Requirements
3 Requests For Quotations (RFQs) then Best Value
Award
Pricing is Already Determined “Fair and Reasonable”
Federal Spot Discounting Permissible With No
Repercussions
0.75% Industrial Funding Fee (IFF)
Quarterly Reporting Only (GSA is not involved in orders)
9. Advantages for Government
Millions of State-of-the-Art Commercial Products and
Services
Orders Can Be Placed by Any Government
Employee With Purchase Authority
Built-In Time and Money-Saving Tools For the
Agency
− Teaming Arrangements
− Blanket Purchase Agreements
− Pricing is “Fair and Reasonable”
10. Advantages for Industry
Priority Source of Supply Under FAR Part 8
Direct Customer Relationship (GSA is not involved in
the order process)
– Best Value Decision
– Customization Possible
Limited Competition
Small and Large Business Participation
Speed
11. Just How Fast?
It Takes an Average of 13-15 Days to Issue a
GSA Schedule Order
VERSUS
This Compares to an Average 268 Days to Put
a Contract in Place with Full and Open
Competition
13. Getting Started…
Download the Appropriate Solicitation
– www.fedbizopps.gov
– http://www.gsaelibrary.gsa.gov
Determine Appropriate Special Item Number(s) (SIN)
Analyze RFP (150+ Pages)
Determine Eligibility to Prime GSA Schedule
Allocate Resources for the GSA Schedule Proposal
Process
14. Past Performance Requirements
Minimum Technical Requirement:
– Two years in business running revenue
– Relevant Project Experience:
– Must have completed two projects per Special Item Number within
the last two years or ongoing
– Tasks must be of a similar complexity to the work solicited under
each SIN
Minimum Pricing Requirement:
– A pricing structure consistent with your commercial practices &
supporting documentation for EACH proposed service/product
Be sure to check the current solicitation for the specific
requirements for each SIN
15. Global Services’ Process
Week 1? Week 2 Week 3
Data Collection Prop. Development Review & Submit WAIT
•Representations & Certifications; Labor Category Descriptions; Pricing;
Supplemental Information; Technical Proposal; Resumes.
NOTICE: The GSA Multiple Award Schedule (MAS) program has
experienced a significant and sustained increase in new offers over the
past several years. Due to the large number of new offers currently in
process, it may take up to 12 months or longer before an offer is
evaluated. Historically, GSA's practice was to evaluate offers in the order
in which they were received. GSA now processes offers in the manner
that is determined to be most effective, considering strategic or tactical
priorities, customer requirements, available personnel resources,
complexity and/or quality of the offers received, and other factors of
relevance to the MAS program.
17. GSA’s Pricing Goal
Offeror acknowledges GSA’s pricing goal is to obtain
equal to or better than the offeror’s Most Favored
Customer pricing under the same or similar terms
and conditions. Pricing that is not determined by the
Government to be highly competitive will not be
determined to be fair and reasonable and will not be
accepted.
18. MFC vs. BOA
Most Favored Customer
– Who receives your best pricing/best concessions?
– A Customer or a Class of Customer?
Basis of Award
– Set at the time of award
– Used to track your GSA discount relationship
– Not always the same as MFC
19. Who is my Most Favored
Customer?
Hourly
Rate
$150
Prime A
$125
Prime B
0
200
$105
Subcontractor A
$100
Subcontractor B
Program Manager
20. MFC vs. GSA
Established Discount Relationship (10%)
0
150
$90
Awarded GSA (Ceiling) Rate
$85
Spot Discount
$100
Non-GSA/Commercial Floor
Hourly
Rate
Program Manager
21. Price Reduction Clause
All MAS contracts remain subject to contract clauses
GSAR 552.238-75, “Price Reductions”; and 552.215-72,
“Price Adjustment -- Failure to Provide Accurate
Information:
Before award of a contract, the Contracting Officer and
the Contractor will agree upon the customer (or
category of customers) which will be the basis of award,
and the Government’s price or discount relationship to
the identified customer (or category of customers)
22. Price Reduction Clause
This relationship shall be maintained throughout the
contract period. Any change in the Contractor’s
commercial pricing or discount arrangement applicable
to the identified customer (or category of customers)
which disturbs this relationship shall constitute a price
reduction
The Contractor shall notify the Contracting Officer of any
price reduction subject to this clause as soon as
possible, but not later than 15 calendar days after its
effective date
23. Price Reduction Clause
$100
Non-GSA/Commercial Floor
Established Discount
Relationship (10%)
0
150
$90
Awarded GSA (Ceiling) Rate
Hourly
Rate
$85.50 New GSA Ceiling
Rate
New Discount
Relationship (10%)
5%
$95 New Commercial Rate
5%
Program Manager
26. Schedule Maintenance
Quarterly Reporting and Remittance of the IFF
Additions/Deletions of Services/Products
Price Adjustments (After Initial 12 Months)
GSA Mandated Amendments/Mass Modifications
Reseller or Manufacturer Updates & Price Changes
27. Reporting and Payment of the IFF
Reporting to Be Done Quarterly Via VSC Web Site.
This Information Was Provided to You Upon Contract
Award. Http://VSC.GSA.Gov
Payment of IFF to Be Made Within 30 Days of End of
Calendar Quarter
Reporting/Payment to Follow Your Standard
Accounting Practices
Implement Systems to Assign Task Orders as GSA
or Non-GSA (Annual GSA Audit)
Track by Each Special Item Number (SIN)
28. Transactional Data Reporting
Transactional Data Reporting (TDR) Rule
– Produces market intelligence that GSA and its partner agencies
can use to make smarter acquisition decisions and save even
more taxpayer dollars
– Removes burdensome tracking and reporting supplier
requirements from the price reduction clause (PRC) and
commercial sales practices (CSP)
For More Information
– FAQ: https://tdr.gsa.gov/portal/faqs.html
– TDR Fact Sheet: https://tdr.gsa.gov/portal/factsheet.html
29. Additions/Deletions of
Services/Products
Additions Will Require:
– Pricing Justification - Historical Sales Data or Cost-buildup
Supported by DCAAApproved Rates, Commercial Pricelist
Deletions Can Be Done at Any Time By Simple Request
You Will Not Be Allowed to Delete a Service/Product
and Then Later Add the Same Service/Product Back at
a Higher Rate. Once You Submit Pricing Data to GSA
Your Hands Are Largely Tied
30. Trade Agreement Act
Can be found in FAR 52.225-5
Only U.S.-made or designated country end products
can be offered using your schedule contract
Items from non-designated countries must undergo
substantial transformation into a new and different
article of commerce with a name, character, or use
distinct from that of the article or articles from which it
was transformed.
31. Price Adjustments
Prices Must Be Held for Twelve Months From Date of
Award for Most Schedules
Thereafter Adjustable 3 Times Each 12 Month Per
Contract up to Max of 4 or 10%
Price Adjustments Based on 3 Possibilities:
− Increase in Commercial Pricelist
− A Market Price Indicator Negotiated Prior to Contract Award
− Pre-negotiated Set Escalation Factor
You Can Always Lower Your Price
32. Reseller/Manufacturer Changes
As a Reseller Anytime a Manufacturer Changes
Prices You Must Update Your GSA Schedule. In
Some Cases If the Manufacturer Increases Pricing
Substantially, You May Have to Pull the Product off
Your Schedule If You Can Not Negotiate a Price
Increase With GSA (or If You Are Within Your First
12 Months After Award.)
Outdated Pricing Is Cause for Contract Termination
by GSA.
35. BROUGHT TO YOU BY
Taylor Dean, CPA
Director, Services for Government Contractors
Gross, Mendelson & Associates
TDean@gma-cpa.com
703.537.0576
www.gma-cpa.com