Success with Multiple Award Schedule (MAS) Contracts

Success with Multiple Award Schedule (MAS) Contracts

Success with Multiple Award Schedule (MAS) Contracts

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

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)

Which GSA Schedule is Right For Us?

Services Schedules

Professional Services Schedule Advertising & Integrated Media

Services Consolidated Products and

Services Schedule (Consolidated Schedule)

Environmental Services Financial & Business Solutions Language Services Logistics Worldwide MOBIS Professional Engineering Services

Domestic Delivery Services Facilities Maintenance &

Management Govt. Wide Employee

Relocation

HR Mgmt & EEO Services Information Technology Laboratory Services Office, Imaging & Document

Man. Professional

Medical/Healthcare Security Solutions Schedule Temporary Administrative

and Professional Staffing Services

Product Schedules Cover Literally Almost Any Type of Product Imaginable

GSA Schedule Sales FY12-15

Schedule FY-12 FY-13 FY-14 FY-15IT Equipment, Software, & Services 70 $15,699,804,063 $14,659,296,038 $14,265,746,254 $14,591,998,879Consolidated Schedule CORP $5,099,720,295 $5,350,239,163 $5,562,230,915 $5,869,952,394Management Consulting 874 $3,232,804,853 $2,923,665,282 $2,354,663,768 $2,288,798,075Professional Engineering Services 871 $2,006,493,673 $1,902,986,334 $1,701,961,852 $1,550,580,933Total Solutions for Law Enforcement 84 $2,473,722,292 $2,023,153,687 $1,440,218,344 $1,380,071,745Furniture 71 $1,251,088,778 $1,038,344,599 $918,631,952 $895,631,449Financial & Business Solutions 520 $552,324,527 $664,403,508 $683,796,466 $694,887,380Hardware Superstore 51 V $681,493,892 $609,368,182 $627,605,182 $659,481,363The Office, Imaging & Document Solution 36 $685,310,779 $724,070,232 $675,799,902 $636,265,498Scientific Equipment and Services 66 $815,410,353 $669,590,930 $631,288,368 $619,911,195Office Products/Supplies & Services 75 $711,683,915 $617,761,379 $592,546,780 $518,403,586Facilities Maintenance & Management 03FAC $460,438,866 $486,278,939 $497,610,806 $515,915,929Transportation, Delivery & Relocation Solutions 48 $578,921,570 $580,229,209 $536,407,435 $488,829,373Building & Building Materials 56 $481,974,752 $410,873,003 $351,547,578 $275,900,983Human Resources and EEO Services 738 X $206,636,307 $232,700,090 $264,911,569 $273,369,508Travel Service Solutions 599 $213,486,496 $316,409,184 $226,372,235 $220,845,387Automotive Superstore 23 V $222,837,513 $219,995,156 $165,447,304 $193,309,793Food Service, Hospitality, Cleaning & Supplies 73 $233,430,580 $217,336,000 $208,842,137 $180,798,038Environmental Services 899 $266,144,450 $247,769,981 $197,374,403 $155,691,692Sports, Promo, Outdoor Rec, Trophies & Signs 78 $291,926,958 $213,138,204 $155,515,224 $152,946,384

Total Sales $37,909,672,245 $35,272,665,287 $32,975,899,639 $32,999,814,317

Major Schedule Sales By Fiscal Year

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”

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

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

What’s the Plan?

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

http://www.fedbizopps.gov/

http://www.gsaelibrary.gsa.gov/

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

Global Services’ Process

Week 1? Week 2 Week 3Data 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.



~ Week 6 ~ Week 9+ ~ Week 12+Financial Review Admin. Review Negotiations

Pass / Reject Compliant?? Accurate?? Price Justification

WAIT

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.

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

Who is my Most Favored Customer?

Hourly Rate

$150Prime A

$125Prime B

0

200

$105Subcontractor A

$100Subcontractor B

Program Manager

MFC vs. GSA

Established Discount Relationship (10%)

0

150

$90Awarded GSA (Ceiling) Rate

$85Spot Discount

$100Non-GSA/Commercial Floor

Hourly Rate

Program Manager

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)


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


$100Non-GSA/Commercial Floor

Established Discount Relationship (10%)

0

150

$90Awarded GSA (Ceiling) Rate

Hourly Rate

$85.50 New GSA Ceiling Rate

New Discount Relationship (10%)

5%

$95 New Commercial Rate5%

Program Manager


~ Week 14+ ~ Week 15+ ~ Week 16+FPR Award Final Paperwork SALES


~ Week 6 ~ Week 9+ ~ Week 12+Financial Review Admin. Review Negotiations

Pass / Reject Compliant?? Accurate?? Price Justification

WAIT

GSA Schedule Maintenance and Administration

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

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)

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

https://tdr.gsa.gov/portal/faqs.html

https://tdr.gsa.gov/portal/factsheet.html

Additions/Deletions of Services/Products

Additions Will Require:– Pricing Justification - Historical Sales Data or Cost-buildup

Supported by DCAA Approved 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

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.

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

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.

Final Questions?

BROUGHT TO YOU BY

Taylor Dean, CPADirector, Services for Government Contractors

Gross, Mendelson & Associates

[email protected]

703.537.0576

www.gma-cpa.com