Definition of Prices
FSS (Federal Supply Schedule) is a multiple
award, multi-year federal contract that is available for use by any Federal
Government agency. It satisfies all Federal contract laws and regulations.
Pricing is negotiated based on how vendors do business with their commercial
customers.
The FSS program also provides additional
opportunities for savings to the customers with negotiated quantity and tier
discounts.
For those products covered under Public Law
102-585, Veterans Health Care Act of 1992, pricing is either negotiated based on
vendor’s most favored commercial customer pricing or statutorily-required
pricing calculations. Vendors have an opportunity to establish FSS Big 4 prices
and FSS dual prices. Big 4 prices are only available to VA, Department of
Defense, Public Health Service (Indian Health Service), and U.S. Coast Guard
customers and are based on pricing calculations outlined under the Public Law.
Dual prices are negotiated for Other Government Agencies (OGAs) that comprise
the remaining authorized users of the FSS program. Dual prices are based on
most favored commercial customer pricing negotiations held with the vendors.
Blanket Purchase Agreements (BPAs) can also be
negotiated under the FSS program. BPAs provide for actual commitment from the
facilities in return for additional pricing concessions and value-added
services. The most commonly negotiated BPAs revolve around market share
agreements and performance agreements. BPAs can be negotiated to incorporate
all FSS customers or to target specific customers, e.g. VISNs.
VA National Contracts are requirement-type
contracts that offer additional pricing concessions in return for commitment to
potential vendors. The VA National Contract program results in pricing lower
than FSS and is used for VA’s standardization efforts. The VA National
Contracts program is a separate contract vehicle from the FSS contract program.
June 20, 2003