If you’ve read some of my previous posts on the subject of GSA schedules, you should know two things: (1) I like GSA FSS contracts; and (2) I think some Federal agencies are making them harder to use.
GSA FSS contracts are GOOD things. They are one of many tools in the acquisition toolkit. They are designed to be a quick, efficient means to buy commercial items and services. (FAR 8.402(a): Federal Supply Schedule program is directed and managed by GSA and provides Federal agencies with a simplified process for obtaining commercial supplies and services at prices associated with volume buying.)
Over the years, Federal agencies have implemented guidance and regulations that have made using GSA schedules less attractive to government contracting personnel. Although the FAR says that ordering activities are not required to make a separate determination of fair and reasonable pricing, there is a DOD Class Deviation that requires DOD COs to do an additional price fair and reasonableness determination when using GSA.
Although the FAR says that FAR part 19 (Small Business Programs) does not apply to GSA, most Federal contracting offices are “highly encouraged” to consider small business set-asides when using GSA.
On 31 Jul 15, DPAP issued the “Proper Use of GSA FSS Contracts” memo. This memo states that DOD encourages the proper use of GSA FSS contracts and identifies two “improvement” areas: requesting discounts and determining and documenting price fair and reasonableness.
The attachment to the memo calls out specific requirements when DOD purchases from GSA:
• Include DFARS clauses
• Maximize competition
• Seek discounts
• Price fair and reasonableness determination (the memo specifically says “DOD ordering activities cannot rely on GSA’s price reasonableness determination alone”.)
• Ensure items/services are on the schedule
• CLIN structure for orders must follow the DFARS PGI format
• File must be documented that “proper” funds are being used for the order
• Ensure contract performance is monitored
In general, there is nothing inherently bad about requiring these additional measures when using GSA schedules. However, the underlying theme to this memo seems to be that you really can’t have confidence in the FAR Part 8 procedures and need to over-document your file if you are part of the DOD.
One can assume that these issues arose from the failure on the part of a government CO and a protest was filed and sustained.
I would caution contracting personnel to be prudent and GSA schedule holders to be vigilant when orders are issued under these new guidelines.
• Make sure any DFARS clauses added do not restrict or invalidate any of the FSS contract terms and conditions
• When offering discounts, be mindful of market pricing. Neither of the parties wants a price so low that the item cannot be correctly made or the service cannot be adequately performed.
• FAR 8.402(f) provides procedures whereby a schedule holder is allowed to quote “open market items” and the government may procure them under the schedule as long as all the proper procedures are followed.
Bottom line is that GSA schedules are still a viable tool in the Federal acquisition toolkit. Regardless of whether you are a buyer or seller in this arena, be aware of the many processes, rules, and guidelines that must be followed.