FAQs for Federal Agencies
FREQUENTLY ASKED QUESTIONS
For
FEDERAL AGENCIES
1. How do federal agencies use GSA Multiple Award Schedules?
2. What about FAR Section 803?
3. How do I place Task Orders through GSA?
4. Can I issue an RFQ electronically?
5. Can I issue Task Orders electronically?
6. Am I authorized to include FAR clauses on Schedule Task Orders?
7. Can I issue Schedule Task Orders with option periods?
8. Can I terminate a Schedule Task Order?
10. Can I include incentives at the Task Order level?
11. How do I handle Other Direct Costs (ODC) at the Task Order level?
12. Can I use the Schedule to fill short/surge or long term agency staffing shortfalls?
14. Is there any other reason why I shouldn't require specific labor categories under a Schedule task?
15. What does "limited duration" mean in some Special Item Number (SIN) descriptions?
16. Where do I look for guidance on writing a Performance Based Statement of Work?
17. What is the meaning of the maximum order threshold?
18. When should I seek a price reduction from a Schedule contractor?
19. How can I refine my search to a manageable list of contractors?
20. How do I establish a multi-agency BPA?
1. How do federal agencies use GSA Multiple Award Schedules?
Answer: Federal agencies distribute a Request for Quote (RFQ) to a minimum of three (3) schedule contractors (each agency has their own minimum quote requirements). Military agencies distribute RFQs per FAR Section 803. For more information on schedules and how to use them, review GSA's Ordering Procedures.
2. What about FAR Section 803?
Answer: The Department of Defense (DoD) has implemented new rules for ordering services over $150,000 for multiple award contracts. The rules are derived from Section 803 of the National Defense Authorization Act for 2002. Section 803 requires the Contracting Officer (CO) to contact as many Schedule holders as practical in order to ensure that at least three responses are received. The rule further states that the DoD Contracting Officer is in compliance with 803 when all schedule holders (that offer the required work) are contacted, thereby informing them of the opportunity for award. If three responses are not received, the DoD CO must determine if no additional qualified contractors could be identified despite reasonable efforts to do so. Good market research is the key to ensuring all practicable offerors have been extended a fair opportunity to participate in the acquisition. However, Section 803 does recognize the following exceptions to fair opportunity:
- Unusual urgency
- Only one source can respond due to unique or specialized nature of the work
- New work is logical follow-on under the same contract
- Must be placed to satisfy a minimum guarantee
3. How do I place Task Orders through GSA?
Answer: The majority of ordering offices place Task Orders directly with the best value GSA Multiple Award Schedule contractor and are responsible for administration of the Task Order. Contractors can submit invoices directly to the ordering office. Contractor payments are issued to the contractor in accordance with the Prompt Payment Act. Agencies can also elect to utilize fee for service contracting support offered by GSA's Assisted Acquisition Services (AAS). AAS can accept funding documents and competitively procure professional services from schedule contractors. Services might include preparing a Performance Based Statement of Work, conducting market research, developing/distributing a Request for Quotes (RFQ), evaluating quotes received and issuing/administering the schedule Task Order. Also, for more information see the Multiple Award Schedules Desk Reference.
4. Can I issue an RFQ electronically?
Answer: Yes, Federal agencies can use eBuy to prepare and distribute RFQs. Once an RFQ closes, the agency will be able to review quotes submitted by Schedule contractors. The actual award of a task order must be completed outside of e-buy unless the total dollar value of the task order is less than $2.5K.
5. Can I issue Task Orders electronically?
Answer: Yes, the Federal Acquisition Streamlining Act (FASA) of 1994 established the Federal Acquisition Computer Network (FACNET) which realigned the Federal acquisition process from one driven by paperwork into an expedited process based on electronic commerce/electronic data interchange (EC/EDI). GSA eBuy is an online Request for Quotes (RFQ) tool, which enables Federal buyers and Schedule Contractors to exchange RFQs and quotes electronically. You can also use eBuy to conduct market research by posting Sources Sought or Requests for Information. (Note: Schedule contractors not included in the original RFQ selection may also submit proposals in response to a posted RFQ.)
6. Am I authorized to include FAR clauses on Schedule Task Orders?
Answer: Yes, with the caveat that you cannot change the terms and conditions of the Schedule contract. You may download the Schedule Solicitation by clicking on the solicitation link located in the upper left hand corner of the Schedule web page.
7. Can I issue Schedule Task Orders with option periods?
Answer: Yes; however, please ensure that you indicate you will exercise your task order option pending confirmation that GSA has exercised the contractor’s option period. For example, you’ve awarded a task order with four one-year option periods and the best value contractor’s base period expires just prior to the second option period of your task order. This means that you will not be able to exercise your second option period until you confirm that GSA has exercised the contractor’s first option period.
8. Can I terminate a Schedule Task Order?
Answer: Yes, you may terminate for cause or convenience. Please refer to clause 52.212-4, Contract Terms and Conditions in the solicitation.
9. Since GSA has no direct access to an agency's Task Orders, what mechanisms does GSA have to ensure contractors are accurately reporting their Task Orders?
Answer: GSA has a staff of Industrial Operation Analysts (IOAs) who audit sales reported by Schedule contractors.
10. Can I include incentives at the Task Order level?
Answer: Yes, the solicitation specifically authorizes the use of incentives at the task order level. The text of clause I-FSS-60 PERFORMANCE INCENTIVES (APRIL 2000) (TAILORED) is provided below: (a) When using a performance-based statement of work, performance incentives may be agreed upon between the Contractor and the ordering office on individual fixed price orders or Blanket Purchase Agreements, for fixed price tasks, under this contract in accordance with this clause. (b) The ordering office must establish a maximum performance incentive price for these services and/or total solutions on individual orders or Blanket Purchase Agreements (BPA). (c) To the maximum extent practicable, ordering offices shall consider establishing incentives where performance is critical to the agency’s mission and incentives are likely to motivate the contractor. Incentives shall be based on objectively measurable tasks. (d) The above procedure does not apply to labor hour orders.
C.48 PERFORMANCE INCENTIVES (I-FSS-60) (APR 2000)
THIS CLAUSE IS APPLICABLE TO SERVICES
When using a performance based statement of work, performance incentives may be agreed upon between the Contractor and the ordering office on individual fixed price orders or Blanket Purchase Agreements, for fixed price tasks, under this contract in accordance with this clause.
The ordering office must establish a maximum performance incentives price for these services and/or total solutions on individual orders or Blanket Purchase Agreements.
To the maximum extent practicable, ordering offices shall consider establishing incentives where performance is critical to the agency’s mission and incentives are likely to motivate the contractor. Incentives shall be based on objectively measurable tasks.
The above procedures do not apply to Time and Material or labor hour orders.
11. How do I handle Other Direct Costs (ODC) at the Task Order level?
Answer: For administrative convenience, non-contract items may be added to the Blanket Purchase Agreement (BPA) or the individual task order if the items are clearly labeled as such, applicable acquisition regulations have been followed, and price reasonableness has been determined for the items. The solicitation offers specific instruction as relates to transportation and per diem costs billed by the contractor: costs incurred for transportation and per diem (lodging, meals and incidental expenses) will be billed in accordance with the regulatory implementation of Public Law 99-234, FAR 31.205-46 Travel Costs, and the contractor’s cost accounting system. These costs are directly reimbursable by the ordering agency, in writing, for reimbursement of transportation and per diem expenses, prior to acceptance of the order. This notification shall include a “not to exceed” estimate of these proposed costs. Any applicable indirect costs associated with the transportation and per diem expenses will be charged at a rate negotiated prior to the using agency’s delivery order. Contractors shall be reimbursed only for incurred costs at or below the “not to exceed.” (b) Costs for transportation, lodging, meals, and incidental expenses incurred by contractor personnel on official company business are allowable subject to limitations contained in FAR 31.205-46, Travel Costs. (c) Reimbursements for costs that are not specified in this solicitation, or in any contract or task order resulting from this solicitation, are not allowed. It is GSA Policy NOT to allow a charge of profit or fee on reimbursable items. Travel in performance of a task order will only be reimbursable to the extent authorized by the ordering agency.
12. Can I use the Schedule to fill short/surge and/or long-term agency staffing shortfalls?
Answer: No. Short term requirements may be filled utilizing Schedule 736, Temporary Administrative and Professional Services. Long term staffing shortfalls filled by contractor personnel are typically considered personal services. Personal services cannot be procured under the Schedules Program.
13. Can I order labor categories under the Schedule just as I would under the Temporary Administrative and Professional Services (TAPS) Schedule? Can I require contractors to provide specific labor categories as part of my Statement of Work?
Answer: GSA encourages customers to describe their needs and desired outcomes in a performance-based statement of work rather than to require labor categories that you think are needed to perform the work. This performance-based approach gives contractors the ability to tailor their solution to your unique situation and to select the labor categories that they feel will best achieve the desired outcome. There are many labor categories awarded under Special Item Numbers (SINs) that, in and of themselves, do not perform a specific Schedule related assignment but may be utilized in a project as part of the overall effort. Thus, it is important that you focus on the outcome you require rather than the labor categories that will be performing the work.
14. Is there any other reason why I shouldn't require specific labor categories under a Schedule task?
Yes, when you require specific labor categories and/or labor hours without fully describing the outcome/results required, you may invite the appearance of requiring personal services. Personal services are generally prohibited by law and federal acquisition regulations. In essence, you may give the appearance that you are "buying bodies" instead of professional services. If you require work to be performed at a government facility and the contractor personnel will be working closely with, or blended with, government personnel, it is critical that you do not create an employer-employee relationship between the government and the contractor personnel. Please refer to FAR Part 37.104, which describes the criteria that constitute personal services.
15. What does "limited duration" mean in some Special Item Number (SIN) descriptions?
Answer: The tasks being accomplished, needs to be of a specific nature and of a limited duration. The effort needs to be limited to a defined task with a specific start and end to the task. No SIN should be used to provide for an ongoing requirement for an indefinite time period. Personal services, as defined in FAR Part 37.104, are prohibited under the Schedules program.
16. Where do I look for guidance on writing a performance-based Statement of Work?
Answer: For Performance Based Contracting regulations, samples, tutorials and guidance, you can go to www.gsa.gov/acquisitionpolicy and look for Acquisition Major Initiatives and then on the link for Performance-Based Acquisition.
Statement of Work (SOW) examples:
Please visit: Statements of Work
Also please visit: Services Ordering Solutions: Avoiding MAS Confusion for tips on how to place orders using GSA Schedules.
17. What is the meaning of "maximum order threshold?"
Answer: GSA asserts that labor hour pricing up to this threshold is fair and reasonable. However, when the estimated value of your task order exceeds the Maximum Order Threshold (MOT) you are required to pursue additional price discounts based on the volume of your order. Please note: This is not a GSA enforced limit on the value of your task order per Federal Acquisition Regulation 52.216-19 Order Limitations. (See I-FSS-125 Requirements Exceeding the Maximum Order (SEP 1999). Each Special Item Number (SIN) has its own MOT and in the case of MOBIS, PES, Language, LogWorld, Consolidated and Environmental SINs the MOT is one million dollars.
For each individual purchase of property or services in excess of the simplified acquisition threshold (SAT), currently $150K, the agencies must seek information from more than three schedule holders. Previously it was tied to the Maximum Order Threshold (MOT) of the GSA Schedule Special Item Number (SIN) and could be anywhere from $25,000 to $1 million. Agencies with requirements for products or services in excess of the SAT must now issue a Request for Quotations (RFQ) to as many Schedule holders as practical to ensure at least three quotes are received, or post it on GSA’s eBuy system. If three quotes are not received then justifications must be done to proceed with award unless the RFQ was posted on GSA’s eBuy system.
18. When should I seek a price reduction from a Schedule contractor?
Answer: Agencies are encouraged to seek additional savings when the scope and/or anticipated dollar value of your order exceeds the maximum order threshold or when establishing a BPA for larger dollar acquisitions. Please refer to Federal Acquisition Regulation clauses 52.216-19 Order Limitations and I-FSS-125 Requirements Exceeding the Maximum Order (SEP 1999).
19. How can I refine my search to a manageable list of contractors?
Answer: Go to GSA Advantage! and select the service that fits your requirement. Try the following steps to refine your search results: 1.) Type in keyword(s) in the box under "Refine” by keyword" 2.) Click on "Refine" 3.) On the next page, you can refine your search again by searching within results with a keyword, then click on "Refine". We recommend that you continue to search within results until you get to a more manageable list of contractors. You can also prepare a Sources Sought or Request for Information (RFI) notice to solicit responses from Schedule contractors. You can post such a notice on the FedBizOpps website or on eBuy. The RFI option is especially useful when you require industry comment on a draft Statement of Work.
20. How do I establish a multi-agency BPA?
Answer:
a. Can one agency proactively establish a BPA that covers multiple agencies? For instance, could our customer at NAVSUP establish a BPA and make it available to the whole Navy, or would it require that other contracting elements of the Navy determine specific requirements and participate in the establishment of the BPA as a multi-agency BPA upfront?
Yes, an agency can establish a BPA that can cover multiple agencies. At the time of the BPA being established, the CO needs to identify who can award TO/DOs (ordering authority) against a BPA. The agency CO that established the BPA must
also take into account the amount of ordering by the other agencies when developing the estimated value of the BPA.
b. Does establishing a multi-agency BPA put any special administrative burden or obligation upon the agency that establishes it, and would this be a deterrent to an agency establishing a multi-agency BPA? For instance, in the example above would our customer at NAVSUP be stepping up to shouldering some kind of additional, undesirable burden if they were to make the BPA available to the Navy as a whole?
The extra burden of administration would be that the CO that established the BPA would need to track the use of the BPA to determine when the estimated value threshold has been met. Meaning, they would need a way to track any other delivery orders that other COs award off of the BPA.
Estimated amounts associated with the value of a BPA:
Realizing that an agency declares an estimated value for a BPA when it is first established, are there any limitations or rules regarding when the agency must adjust that limit, any hard ceilings in place that the agency needs to be mindful of, how difficult is it to establish the limit upwards if the BPA is being utilized more aggressively than the agency first anticipated, etc.?
The FAR calls out an estimated value and not a ceiling price. The FAR calls out that when the estimated value had been reached, that this is a trigger where the CO "shall" seek additional discounts from the BPA holder. We always recommend that the agency estimates the value of the BPA at a higher value than expected.
Training opportunities
If your agency is looking for training on the Schedules program there are two types you can get, and all of it is free. For general training on GSA eBuy and/or GSA Advantage, you should contact the Customer Service Director (CSD) in your State. You can find the CSD by going to this website and clicking on your State.
If you want more in-depth training on how to use GSA Schedules for Professional Services, then you should contact either Bradley D. Powers or Daniel Briest to arrange a training session. It works best to do the training in conjunction with an acquisition training conference or an annual meeting with program managers and/or contracting officers that you might schedule, or we can come to your location as needed. The training is CLP certified. We are more than willing to tailor the training around your contracting office’s specific needs.
Bradley D. Powers, 253-931-7171 email: bradley.powers@gsa.gov
Daniel Briest, 253-931-7553, email: daniel.briest@gsa.gov
We also encourage you to go to a blog site with even more answers to questions contracting officer have on using the GSA Schedules. Go to Services Ordering Solutions: Avoid MAS Confusion.
