Ordering Procedures for Services Requiring a Statement of Work (SOW)

Ordering activities shall use the procedures in Federal Acquisition Regulation (FAR) 8.405-2 when ordering Schedule contract services priced at hourly rates. The applicable services will be identified in Schedule publications and contractors' Schedule pricelists.

Note: Ordering activities shall use the procedures in FAR 8.405-1, Ordering Procedures for Supplies, and Services Not Requiring a Statement of Work (SOW), when ordering Schedule contract supplies (products) and fixed-price services for a specific task, where a Statement of Work is not required—e.g., installation, maintenance, and repair.

When ordering supplies or services exceeding $100,000 using Department of Defense (DoD) funds, ordering activities shall follow the Defense Federal Acquisition Regulation Supplement (DFARS). The DFARS has been amended to implement Section 803 of the National Defense Authorization Act for Fiscal Year 2002 (Public Law 107-107) for the acquisition of services, and to establish similar policy for the acquisition of supplies. DoD offices and non-DoD activities placing orders on behalf of DoD, including orders under Blanket Purchase Agreements (BPAs), should refer to DFARS 208.405-70 for additional information regarding ordering procedures and documentation requirements.

When ordering services requiring a Statement of Work, ordering activities shall—

Prepare a Request for Quotation (RFQ) that includes:


  • A Statement of Work.

To the maximum extent practicable, agency requirements shall be performance-based statements.

All SOWs shall include the work to be performed, the location of the work, the period of performance, the deliverable schedule, the applicable performance standards, and any special requirements (e.g., security clearances, travel, and special knowledge).

  • The evaluation criteria (e.g., project plan for performing the task, price, experience, and past performance).

A firm-fixed price order shall be requested, unless the ordering activity makes a determination that it is not possible at the time of placing the order to estimate accurately the extent or duration of the work or to anticipate cost with any reasonable degree of confidence. When such a determination is made, a labor-hour or time-and-materials quotation may be requested. The firm-fixed price of the order should also include any travel costs or other direct charges related to performance of the services ordered, unless the order provides for reimbursement of travel costs at the rates provided in the Federal Travel or Joint Travel Regulations. A ceiling price must be established for labor-hour and time-and-materials orders.

Ordering activities may consider socioeconomic status when identifying contractors for consideration or competition for award of an order or a Blanket Purchase Agreement (BPA). At a minimum, ordering activities should consider, if available, at least one small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, women-owned small business, or small disadvantaged business Schedule contractor. GSA Advantage!® and GSA eLibrary (formerly Schedules e-Library) contain information on small business representations of Schedule contractors.

  • A requirement for pricing information that ties the offered prices to the Schedule contract prices and seeks additional price reductions where appropriate.

Transmit the RFQ to GSA Schedule Contractors


The RFQ may be posted to e-Buy, GSA's electronic RFQ system.

  • Orders at, or below, the micro-purchase threshold.

The ordering activity may place orders with any GSA Schedule contractor that can meet the agency's needs. The ordering activity should attempt to distribute orders among Schedule contractors.

  • Orders exceeding the micro-purchase threshold, but not exceeding the maximum order threshold.

The ordering activity shall provide the RFQ (including the SOW and evaluation criteria) to at least three Schedule contractors that offer services that meet the agency's needs.

The ordering activity should request that contractors submit firm-fixed prices to perform the services identified in the SOW.

Note: Each Schedule contract has a maximum order threshold, which will vary by special item number. The maximum order threshold represents the point where, given the dollar value of the potential order, the ordering activity shall seek a price reduction.

  • Orders exceeding the maximum order threshold or when establishing a BPA.

In addition to meeting the requirements, above, for orders exceeding the micro-purchase threshold, but not exceeding the maximum order threshold, the ordering activity shall—

Provide the RFQ (including the SOW and evaluation criteria) to an appropriate number of additional Schedule contractors that offer services that will meet the needs of the ordering activity. When determining the appropriate number of additional Schedule contractors, the ordering activity may consider the complexity, scope, and estimated value of the requirement, and the market search results.

Seek price reductions.

  • Distribution of the RFQ.

The ordering activity shall provide the RFQ (including the SOW and the evaluation criteria) to any Schedule contractor that requests a copy.

Evaluate Responses and Place the Order or Establish the BPA


The ordering activity shall evaluate all responses received using the evaluation criteria in the RFQ.

GSA has already determined that the hourly rates for services contained in the Schedule contractor's pricelist are fair and reasonable. However, the ordering activity is responsible for considering the level of effort and the mix of labor proposed to perform a specific task being ordered, and for determining that the total firm-fixed price or ceiling price is fair and reasonable.

The ordering activity should then place the order, or establish the BPA, with the Schedule contractor that represents the best value (see FAR 8.404(d)).

After award, the ordering activity should provide timely notification to unsuccessful offerors. If an unsuccessful offeror requests information on an award that was based on factors other than price alone, a brief explanation of the basis for the award shall be provided.

Documentation


At a minimum, the ordering activity shall document: 

  • The Schedule contracts considered, noting the contractor from which the service was purchased;
  • A description of the service purchased;
  • The amount paid;
  • If applicable, the circumstances and rationale for restricting consideration of Schedule contractors to fewer than required in these ordering procedures (see FAR 8.405-6);
  • The evaluation methodology used in selecting the contractor to receive the order;
  • The rationale for any tradeoffs in making the selection;
  • The fair and reasonable price determination; and
  • If applicable, the rationale for using other than a firm-fixed price order or a performance-based order. 
REMEMBER! Ordering activities placing GSA Schedule contract orders (particularly if governmentwide commercial purchase cards are used), should advise Schedule contractors that they are authorized Schedule users and cite the appropriate GSA Schedule contract number on each ordering document, in order to ensure that they receive Schedule contract services at Schedule contract prices. All services ordered shall be within the scope of the GSA Schedule contract.
Last Reviewed 12/23/2008