Understanding the GSA Schedule Process - Georgia Tech ...

Understanding
the GSA Schedule
Process
04 Jun 2013
10 EST till noon
Joe Beaulieu, CCAS
GT Procurement Assist Ctr
www.gtpac.org
www.gtpac.org
1

Admin stuff
www.gtpac.org
• Q & A as we go along
• Use the G2W question
section
• Explore ALL handout
websites
• Feedback form
2

Resources Available on
GSA Class Website
Located at:
www.gtpac.org/gsa-scheduleresources
www.gtpac.org
• All old presentation materials
• Resource materials
• Upcoming GSA events
3

Our Missions
• EI2 (the Enterprise Innovation Institute) aims to
increase the competitiveness of enterprises in
Georgia through application of science, technology
and innovation. Details at
http://innovate.gatech.edu
• GTPAC teaches Georgia based companies about
all aspects of government contracting – federal,
state and local. Details at http://www.gtpac.org
GTPAC assists with all aspects of Govt
contracting at no cost
• Contractingacademy.gatech.edu
www.gtpac.org
joe.beaulieu@innovate.gatech.edu
4

GA Manufacturing Extension
Partnership (GaMEP)
GaMEP provides expertise and connections to Georgia
manufacturers in:
• Strategic Business Development
• Innovation Management
• Product Development
• Lean / Process Improvement
• Quality Management
• Sustainability
• Energy Management
• Technology Adoption
Your connection to manufacturing excellence: www.gamep.org
GaMEP is a proud sponsor of the Georgia Tech Procurement Assistance Center (GTPAC)
www.gtpac.org
joe.beaulieu@innovate.gatech.edu
5

6,000 miles
www.gtpac.org
6

What is the General
Services Administration
• Government’s “landlord” – 8,600
properties
www.gtpac.org
• Federal acquisition and
procurement force
• Sets policy for procurement,
property mgmt., and IT resources
7

GSA 7 Acquisition Centers
Management Services
Office Supplies &
Paper Products
Furniture
www.gtpac.org
Hardware &
Appliances
Automotive Center,
Services
Acquisition
General Products
(National Disaster Support)
IT Commodities
8

GSA Organization
www.gtpac.org
• 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
9

GSA in the News …
www.gtpac.org
• Be sure to check the
“Tag Cloud” on the GTPAC
website – www.gtpac.org –
to see the latest news
developments involving
GSA.
10

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
www.gtpac.org
• 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)
11

www.gtpac.org
Government Purchasing
“Vehicles”
• Government credit cards
• Fair and open competition
• Government wide acquisition
contracts (GWACs)
• Job order/task order contracting
• GSA Schedules
• Technology “Schedule-like”
contracts by several other federal
agencies
12

GSA’s “Federal
Competitors” with
Schedule-Like Contracts
www.gtpac.org
• DHS
– EAGLE (Enterprise Acquisition
Gateway for Leading Edge Solutions)
– First Source
– Enterprise Solutions
• NASA: SEWP (Solutions for
Enterprise-Wide Procurement)
• DoD: eMall
13

www.gtpac.org
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”
14

2,500 miles
www.gtpac.org
15

Objective of GSA
Schedules Program
www.gtpac.org
• 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
16

Why Federal Agencies Buy
from Schedules
www.gtpac.org
• 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 ® )
17

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)
www.gtpac.org
• Ability to win based on best value
• Can form teaming arrangements
with other Schedule holders
• Less costly to compete
… more 18

What Makes Schedules
Attractive to Vendors – cont’d
• Online transactions and on-line
bidding
• Credit card ordering and payment
www.gtpac.org
• May accept or reject orders
> minimum order threshold or
< maximum order threshold
• Marketing support
• Single contract to execute
19

Schedules Available to
State & Local Gov’ts
www.gtpac.org
• 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
20

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
www.gtpac.org
$100,000 in Department of Defense funds)
– http://www.acq.osd.mil/dpap/dars/dfars/index.htm
• Federal Forms
– GSA Forms Library
21

Explanation of
Terms
www.gtpac.org
22

GSA Advantage! ®
www.gtpac.org
• 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)
23

e-Buy
www.gtpac.org
• For services that require a
statement of work (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! ® 24

Blanket Purchase
Agreements
www.gtpac.org
• 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
25

Credit Card Payment
www.gtpac.org
• 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
26

Contractor Teaming
Arrangement (CTA)
www.gtpac.org
• 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
27

A Note about Architect-
Engineer (A/E) Services
www.gtpac.org
• 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
more ...
28

... But Some A/E Services
Are Covered by Schedules
www.gtpac.org
• O3FAC – Ancillary Repair and
Alterations
• 871 - Construction Management,
Chemical Engineering,
Civil Engineering,
Electrical Engineering,
Mechanical Engineering
• Millennia – Software Engineering
• SatCom – Satellite Engineering
Design
29

A Note about Medical
Supplies and Services
www.gtpac.org
• 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, the Industrial Funding Fee
is 0.50% rather than 0.75% 30

700 miles
www.gtpac.org
31

“Getting on Schedule”
www.gtpac.org
• To become a GSA Schedule
contractor, you first submit an
offer/proposal in response to the
applicable Schedule solicitation
• Search for sol in GSA eLibrary
– http://www.gsaelibrary.gsa.gov/ElibM
ain/scheduleList.do
• Download solicitations from
FedBizOpps:
– https://www.fbo.gov
32

Turn Around Time
www.gtpac.org
• Typically, a proponent (aka: a vendor) 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.”
33

Tip: Digital Certificate
www.gtpac.org
• 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
• TIP: make/keep a copy of all your
GSA stuff: i.e. everything
34

Each Schedule Has
Subcategories - Special
Item Numbers (SINs)
www.gtpac.org
• 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
35

Process Begins with GSA
Solicitation (SOL)
www.gtpac.org
• Each Schedule SOL describes each
SIN, along with estimate of annual
sales for each SIN
• Includes applicable terms and
conditions
• Instructs prospective vendors (you)
on what you need to do to submit an
acceptable offer
36

Next: Offeror Responds
www.gtpac.org
(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
37

GSA Then Reviews Your
Offer and Prepares for
Negotiations
www.gtpac.org
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)
38

GSA and Offeror (that’s
www.gtpac.org
you) 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
• TIP: Expect negotiations
39

GSA Awards a Schedule
Contract when …
www.gtpac.org
• 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
40

www.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)
• Complete all applicable administrative
requirements (e.g., subcontracting plan
reporting)
• The GSA eLibrary is an indispensable tool for
research
41

250 miles
www.gtpac.org
42

Getting Ready
6 Steps You
Must Take
... Plus 3
Reality Checks
www.gtpac.org
43

www.gtpac.org
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 fully in SAM; update
annually (ORCA now in SAM)
If you have trouble with these tasks,
take or re-take our “Intro” class.
44

Reality Check #1
• GSA reports that a major problem
with Schedule proposals is that the
proponent selects the wrong
NAICS code
• NAICS code review and selection
is a fundamental
www.gtpac.org
45

2. Find a Schedule that
Applies to You …
www.gtpac.org
46

3. Locate Your Schedule,
Download It, and READ It,
3 times!!!!
www.gtpac.org
Services Acquisition
Management Center
Services
IT Acquisition
Center
Language Solutions Center Services (FABS)
Financial and Business
Schedule 520 738 II
General *Accepts Purpose
Mission Oriented
eOffer
Business
Commercial
Integrated Services
Information
(MOBIS)
Advertising & Integrated
Marketing
Technology
Schedule 874
*Accepts eOffer Solutions
(AIMS) Equipment,
Environmental Schedule Software, 541 Services
and
*Accepts Schedule eOffer 899
Services
Energy Services
Schedule 70
Schedule 871 II
*Accepts eOffer
Professional Logistics Worldwide Engineering
Services (LOGWORLD) (PES)
Schedule 871 874 V
*Accepts eOffer
Consolidated Schedule
Schedule 00CORP
Solicitation
Solicitation Number
Solicitation
Number
Number
Point of Contact
Point of Contact:
FCXB-F4-020002-B (703) 605-2820
TFTP-GC-017382-B (800) Jacqueline Point 241-7246 of Austin Contact:
jacqueline.austin@gsa.gov
language@gsa.gov
FCIS-JB-980001-B (703) 605-2700
TFTP-MC-000874-B (800) 241-7246
IT mobis@gsa.gov Customer Service
it.center@gsa.gov
FCXA-M2-030001-B (703) 605-2827
Janis Freeman
janis.freeman@gsa.gov
TFTP-EW-990899-B (800) 241-7246
environmental@gsa.gov
TFTP-EJ-000871-B (800) 241-7246
energy@gsa.gov
TFTP-MB-008745-B FCXB-B2-990001-B (703) (800) 605-2841 241-7246
Andrew logworld@gsa.gov
Carbone
andrew.carbone@gsa.gov
47
FCO-00-CORP-0000C (800) 241-7246
consolidated@gsa.gov

4. Register for Vendor
Notification Service
www.gtpac.org
• 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
48

5. GSA Requirement
www.gtpac.org
• 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
49

Reality Check #2
www.gtpac.org
• “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
50

6. Other “Must Haves”
www.gtpac.org
• 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
51

Reality Check #3
As of January 2012, GSA reports ...
60% of GSA Schedule contractors
are not in compliance with the
www.gtpac.org
minimum sales clause!
52

20,000 feet
www.gtpac.org
53

Reviewing the
Contents of a
GSA Schedule
Solicitation
www.gtpac.org
54

Solicitation Format
www.gtpac.org
Schedule solicitations are prepared using
FAR 12.303:
• Cover page
• Continuation SF 1449 information form
• Contract clauses
• Contract documents, exhibits, and
attachments
• About 100 pages
55

Cover Page
• Schedule solicitation cover page is
really more than a cover page
• May be several pages long and include:
www.gtpac.org
– Services/products covered by the
solicitation
– Payment
– Pricing
– Point of contact for information
– “Refresh” information
– NAICS code info
56

www.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
• Boilerplate 57

Contract Documents,
Exhibits and Attachments
• Typically:
– Products and Services will specify
the respective Commercial Sales
Practices formats with instructions
www.gtpac.org
– Small Business Subcontracting Plan
Outline (Model)
58

Understanding
the Requirements
of Preparing a
Schedule
Proposal
www.gtpac.org
59

“Reps and Certs”
Highlights
www.gtpac.org
• Schedule “reps & certs” virtually
identical to ORCA (Online
Representations and Certifications
Application – https://www.sam.gov )
• Execute SAM 100% before
completing your Schedule
• Fairly straightforward, but a couple
tricky elements, for example ...
60

Representations Required
to Implement Executive
Order 11246
www.gtpac.org
• 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.)
61

Past Performance
Information Required
www.gtpac.org
• 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 ...
62

Starting the Performance
Evaluation Process
www.gtpac.org
• 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
63

www.gtpac.org
64

Commercial
Sales Practices
Information
www.gtpac.org
65

Information Other than
Cost or Pricing Data
• You must:
– Submit information in the
commercial sales practices
format required by the solicitation
www.gtpac.org
(FAR 52.215-20)
66

Commercial Sales
Practices Format (CSP-1)
www.gtpac.org
– 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
67

www.gtpac.org
68

Subcontracting
Plans
www.gtpac.org
69

Requirement to Provide a
Subcontracting Plan
www.gtpac.org
• 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.
70

www.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 website!
• Tip: Small businesses looking for
subcontracting opportunities gain
insights by reviewing Subcontracting
Plan Outline because ...
71

www.gtpac.org
GSA’s Subcontracting
Goals
• Used internally by GSA
• Not mandatory for Schedules
• General targets & goals:
39% - Small Businesses
5% - WOSB/EDWOSB
6% - SDB
5% - 8(a)
3% - SDVOSB
2% - VOSB
3% - HUBZone
72

How GSA
Reviews
Your Schedule
Submittal
www.gtpac.org
73

GSA’s Technical
Evaluation
www.gtpac.org
• Conduct initial proposal review
(responsiveness to terms of SOL)
• Evaluate your firm’s responsibility
• Evaluate any required
subcontracting plan
74

Initial Proposal Review
www.gtpac.org
• 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 ...
75

Avoid Rejection: Use the
Checklist Included in
Solicitations
• If you don’t …
You’ll get to feel the love!
www.gtpac.org
76

www.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)
77

Requests for Additional
Proposal Information
www.gtpac.org
• 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
78

Price Analysis
of a Schedule
Proposal
www.gtpac.org
79

Price Analysis for Services
and Products
• GSA Contracting Officer is to:
www.gtpac.org
– 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
80

How GSA Analyzes Price
Reasonableness Based on
Commercial Pricing
www.gtpac.org
• 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
81

GSA Also Analyzes Price
Reasonableness
Considering Other
Schedule Pricing
www.gtpac.org
• 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!
82

… and GSA Analyzes Price
Reasonableness Based on
Historical Pricing
www.gtpac.org
• 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
83

www.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
84

Contract
Negotiation
Process
www.gtpac.org
85

Typical Government
“Negotiation” Topics
www.gtpac.org
• 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
• Government wide commercial purchase
card acceptance
• Other 86

www.gtpac.org
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
87

www.gtpac.org
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.
88

Remember!
www.gtpac.org
• The IFF percentage remitted by the
contractor is not negotiable and
must remain at the percentage set
by FSS policy of 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
• VA Medical Schedule IFF is 0.50%
89

Warning: GSA May
Unilaterally Change Price
www.gtpac.org
• 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)
90

Negotiation Topic:
Economic Price
Adjustments
www.gtpac.org
• 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
• May lower prices anytime, not raise them
• Typically allowed 4 adjustments in a
5-year period, more possible
91

Negotiation Topic:
Delivery Time
www.gtpac.org
• 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
92

Non-Negotiable Topic:
Purchase Card (P-card)
Acceptance
www.gtpac.org
• 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
93

How Negotiations May
www.gtpac.org
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
• TIP: Get everything in writing!!!
94

Tip: Ask for Negotiation
Agenda
www.gtpac.org
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
95

www.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 or 0.50 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
96

Final Proposal Revision
www.gtpac.org
• 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
97

5,000 feet
www.gtpac.org
98

4 Key Award
Requirements
www.gtpac.org
99

1. Schedule Price List
www.gtpac.org
• 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
• TIP: Use the GSA eLibrary to find samples
100

2. Cover Page Requirement
www.gtpac.org
• 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

Cover Page – cont’d
www.gtpac.org
– 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
102

3. Product / Service
Pricing Information
www.gtpac.org
• 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).”
103

4. Avoid Red Flags
Provide all of the information the SOL requires
... and in the required format !
www.gtpac.org
• 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
104

Familiarize
Yourself Now with
How to Market
a Schedule
Contract
(What It Takes
to Activate Your
“Hunting License”)
www.gtpac.org
105

Marketing Resources
on the Web
www.gtpac.org
• 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
• Marketing Tips
http://www.gsa.gov/portal/content/104147
106

Participating in GSA
Advantage!
www.gtpac.org
• 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/a
dvantage/main/start_page.do
107

www.gtpac.org
108

Marketing Tips to
Remember
www.gtpac.org
• “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 firstserved
basis for two advertisements per
year per GSA contract.
109

Using e-Buy
www.gtpac.org
• 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
110

Want the Complete e-Buy
Tutorial
• Go to
https://www.ebuy.gsa.gov/advan
tage/ebuy/main/ebuy_tutorial.do
www.gtpac.org
• Or check class website
111

Using the Schedules
e-Library to Identify
Partners, Competitors
www.gtpac.org
• 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
112

Use the Schedule Sales
Query Feature
www.gtpac.org
• 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
113

www.gtpac.org
114

Why Is FedBizOpps
Important to a Schedule
Contractor
www.gtpac.org
• 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.
115

1,000 feet
www.gtpac.org
116

Organizing
Yourself
to Submit a
Proposal in
Response to
a GSA Schedule
www.gtpac.org
117

Format
• 12 Point Font
• Contractor Narrative Should be
Single Spaced
• One Copy
• Sequenced in Accordance with
Check List
www.gtpac.org
118

What a Completed
Proposal Should
Contain
www.gtpac.org
• 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
119

GSA Schedules Helpdesk
www.gtpac.org
• 800-488-3111
• Answer questions about
requirements of Schedule
solicitations
• Which products and services are
offered through which Schedules
120

New Resources
www.gtpac.org
• GSA Schedules Blog
http://interact.gsa.gov/groups/multipl
e-award-schedules
• GSA Schedules on Facebook
http://www.facebook.com/GSASche
dules
• GSA Schedules on Twitter
http://twitter.com/#!/usgsaschedules
121

Remember!
www.gtpac.org
• Before embarking on preparing a
GSA Schedule, you must do your
research and ...
• Be prepared to devote serious BIG
time and seriously BIG resources
to
– Preparing your schedule contract
– Negotiating your schedule contract
– Marketing your schedule contract
122

Summary:
Your Starting Points
www.gtpac.org
• 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
123

Understanding the GSA
Schedule Process
• Questions
• Send me your feedback sheet.
• joe.beaulieu@innovate.gatech.edu
www.gtpac.org
• www.gtpac.org
• Georgia Tech Procurement Asst. Center
124

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