VA Federal Supply Schedule Frequently Asked Questions — General

1. What is the VA Federal Supply Schedule Program?
   
   
2. What is a Multiple Award Schedule contract?
   
   
3. What agencies are eligible to purchase against FSS contracts?
   
   
4. What is the relationship between the General Services Administration and the VA Federal Supply Schedule Service?
   
   
5. What FSS programs does the VA administer?
   
   
6. What is "FOB Destination" and what impact does this have on pricing?
   
   
7. What is the Trade Agreements Act?
   
   
8. Am I allowed to sell foreign made products to the Government?
   
   
9. Am I allowed to offer products that are manufactured in multiple countries?
   
   
10. Can I sell products overseas under the FSS programs?
    
    
11. What is a "best value" determination?
    
    
12. How do I know if a sale should be reported?
    
    

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1.  What is the VA Federal Supply Schedule Program?

The Department of Veterans Affairs (VA) National Acquisition Center (NAC) Federal Supply Schedule (FSS) Program supports the healthcare requirements of the VA and other federal government agencies (OGA).  In 1981, the VA launched the VA managed FSS program under delegated authority by GSA (see FAR 8.402(a)) for multiple award contracts for medical equipment, supply, pharmaceutical, and service Schedule programs.

With annual sales to VA and OGA customers totaling $10 billion, the VA FSS program manages nine Schedule programs and nearly 1,700 contracts.  Like GSA Schedule contracts, the VA Schedules are indefinite delivery/indefinite quantity type contracts awarded to pre-approved vendors using full and open competition.  Additionally, the FSS program negotiates pricing based on a commercial “most-favored-customer” pricing concept, includes state-of-the-art product/service offerings, and provides national/worldwide coverage.

The VA Schedules program helps our customers realize advanced cost savings, flexibility, choice, and reduced acquisition lead times when purchasing healthcare products and services.  Our vendors enjoy the convenience of selling to the government through a streamline acquisition vehicle and enhanced business growth opportunities.

Want to know more?  Discover the VA Schedules Program through the VA FSS Web Portal.

Our Vision:  To be the foremost source for quality healthcare products and services.

Our Mission:  To provide world class healthcare products and services through performance excellence that is demonstrated by contractual competence, timeliness, innovations, and results-driven solutions while assuring accountability to our Federal customers and taxpayers.

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2.  What is a Multiple Award Schedule contract?

Awarded to all responsible companies that submit a proposal, multiple award schedule (MAS) contracts are the primary vehicle for Federal agencies to acquire commercial items.  MAS contracts leverage the Government’s volume buying power to achieve the best possible negotiated terms, conditions, and pricing.

VA FSS contracts are indefinite delivery/indefinite quantity (IDIQ) (for full definition of IDIQ contracts see the FSS Acronyms & Definitions web page) contracts awarded to responsible companies that offer commercial medical services or supplies at fair and reasonable prices and established terms and conditions.  Eligible ordering activities can place orders directly with Schedule contractors for delivery worldwide.

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3.  What agencies are eligible to purchase against FSS contracts?

GSA Order ADM 4800.2F, Eligibility to Use GSA Sources of Supply and Services, provides detailed information regarding those agencies, activities, and organizations that are eligible to use GSA Schedule contracts.

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4.  What is the relationship between the General Services Administration and the VA Federal Supply Schedule Service?

The General Service Administration (GSA) has overall responsibility for the management of the Federal Government’s Federal Supply Schedule (FSS) programs for supplies and services through the Federal Property and Administrative Services Act of 1949.  This act established GSA’s FSS as a central organization to provide an economic and efficient system for the procurement, supply, and disposal of surplus property, and performance of related functions.  GSA delegated the responsibility of managing FSS programs related to medical products and services to the Department of Veterans Affairs (VA).

Through this delegation, the VA National Acquisition Center (NAC) has managed the FSS programs for all medical related products under FSC classes 65 and 66.  In 2001, the VA/FSS programs were expanded to include services under FSS programs 621 I (Professional and Allied Healthcare Staffing Services), and 621 II (Reference Laboratory Services) was added shortly thereafter.

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5.  What FSS programs does the VA administer?

The VA FSS Service manages nine (9) multiple award schedule programs:

Schedule Number	Schedule Title	Special Item Number
65IB	Drugs, Pharmaceuticals, & Hematology Related Products	65IB Special Item Numbers
65IIA	Medical Equipment & Supplies	65IIA Special Item Numbers
65IIC	Dental Equipment & Supplies	65IIC Special Item Numbers
65IIF	Patient Mobility Devices	65IIF Special Item Numbers
65VA	X-Ray Equipment & Supplies	65VA Special Item Numbers
65VII	Invitro Diagnostics, Reagents, Test Kits, & Test Sets	65VII Special Item Numbers
66III	Cost-Per-Test, Clinical Laboratory Analyzers	66III Special Item Numbers
621I	Professional & Allied Healthcare Staffing Services	621I Special Item Numbers
621II	Medical Laboratory Testing & Analysis Services	621II Special Item Numbers

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6.  What is "FOB Destination" and what impact does this have on pricing?

FOB (free on board) is used in conjunction with a physical point to determine:  1) the responsibility and basis for payment of freight charges and 2) the point where the title for goods passes to the buyer or consignee.

FOB Destination is where the seller or consignee delivers the goods on the seller’s or consignor’s conveyance at destination.  Additionally, the seller or consignor is responsible for the cost of shipping and risk of loss.

NOTE:  The Government shall not be liable for any delivery, storage, demurrage, accessorial, or other charges involved before the actual delivery.

All VA FSS commodity contracts are FOB Destination in accordance with clause 52.247-34, FOB Destination - Nov 1991, Variation May 1995.

This clause requires that each firm provide FOB Destination shipping to the 48 contiguous states and Washington DC with a minimum point of exportation to Alaska, Hawaii, and Puerto Rico.  Shipment to Alaska, Hawaii, and Puerto Rico is subject to negotiation.

For additional details, review this clause in your solicitation.

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7.  What is the Trade Agreements Act?

The Trade Agreements Act is applicable to all Schedules.  Under the terms of this act ONLY US-made or designated country end products shall be awarded to responsible VA FSS contractors.

It is your responsibility to verify that all of your offered products are from the US or a designated country.  When an item consists of components from various countries and the components are assembled in an additional country, the test to determine country of origin is “substantial transformation” (see FAR 25.001(c)(2)). Offerors requiring a determination on substantial transformation can go to the US Customers and Border Protection Office of Regulations and Rulings.

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8.  Am I allowed to sell foreign made products to the Government?

Yes, however, all products offered under the VA FSS Program must be compliant with the Trade Agreements Act.  Under the terms of this act ONLY US-made or designated country end products may be offered the VA FSS Program.

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9.  Am I allowed to offer products that are manufactured in multiple countries?

Yes, however, the final end product must be US-made or a designated country end product.

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10.  Can I sell products overseas under the FSS programs?

Yes, you can sell FSS contract products to Government facilities located overseas; however, a company representative must be stationed in the geographic area(s) you want to cover.

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11.  What is a "best value" determination?

Schedule buyers award task/delivery orders to FSS contractors based upon a “best value” determination.  Best Value is the “expected outcome of an acquisition that, in the Government’s estimation, provides the greatest overall benefit in response to the requirement.”

Factors that are considered when making a best value determination include (but are not limited to):

• Price
• Special features of the service or supply required for effective performance
• Past performance records
• Quality of the proposed solutions and cost differences
• Trade-in considerations
• Warranty
• Delivery terms
• Expertise of the offeror
• Socioeconomic status

Best value determinations can result in improved mission performance and lower procurement costs, while encouraging Schedule contractors to provide their best services and supplies to the Government.

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12.  How do I know if a sale should be reported?

If the task or delivery order references the FSS contract number, then the entire order should be reported as an FSS sale (this includes sales made under prime vendor, direct-to-patient, and consignment programs).  Non-FSS line items must be annotated as “open market” or “not under contract” and the sales value of these items should be excluded from reported FSS sales.  Additionally, if the product or service falls within the description of the SINs on your contract and the customer is an eligible ordering activity, the order is considered a Schedule sale, although, in some cases, the ordering activity may indicate open market exceptions to this.  You must have a tracking system and methodology in place that allows you to differentiate between Schedule and non-Schedule sales.  Contractors are reminded that proper and timely sales reporting is a contract requirement.

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