FSS Ordering Procedures over SAT

Federal Supply Schedule (FSS) Ordering Procedures Over the SAT

by Kim Yates

On the one hand, Federal Supply Schedule (FSS) ordering procedures are easy, as demonstrated by the shortness of the FAR subchapter 8.4. ?On the other hand, although FSS ordering procedures are easy – they are not necessarily simple, as demonstrated by the length of GSA FSS Deskbook and the various trainings and multitude of articles on the subject. Therefore, this is the second blog regarding Ordering procedures for orders under FSSs with ten (10) bite-size information nuggets. Much of this will be verbatim from the FAR but in an easy-to-understand sequence.

This blog will cover the basic Ordering Procedures for orders over the simplified acquisition threshold for supplies and services not requiring a statement of work (FAR 8.405-1) and for supplies and services requiring a statement of work (FAR 8.405-2).

1.First, know that FAR 13 Simplified Acquisition Procedures, FAR 14 Sealed Bidding, FAR 15 Contracting by Negotiation and FAR 19 Small Business Programs do not apply to FSS orders.

2. FAR 8.4 states that each order for supplies or services over the SAT shall be placed on a competitive basis (unless this requirement is waived…when an order contains brand-name specifications, the contracting officer shall post the RFQ on e-Buy along with the justification or documentation.) ??Here’s the thing – under FAR 8.4, “competitive basis” means one of the following:?

The ordering activity contracting officer (OCO) shall post the RFQ on e-Buy to afford all schedule contractors offering the required supplies or services under the appropriate multiple award schedule(s) an opportunity to submit a quote;

OR?- the CO “shall provide the RFQ to as many schedule contractors as practicable, consistent with market research appropriate to the circumstances, to reasonably ensure that quotes will be received from at least three contractors that can fulfill the requirements. When fewer than three quotes are received from schedule contractors that can fulfill the requirement, the CO shall prepare a written determination explaining that no additional contractors capable of fulfilling the requirement could be identified despite reasonable efforts to do so. The determination must clearly explain efforts made to obtain quotes from at least three schedule contractors.”

In other words, the OCO may post the RFQ for all contractors with the chosen SIN OR they may choose to send the RFQ via email or EBuy to at least three (but probably more in order to receive three quotes) under that SIN. So, isn’t it a good idea for OCOs to know that your business can provide their good or service in case they opt to send the RFQ to only a handful of contractors?

Also, note that the FAR also states that the OCO “shall provide the RFQ (including the statement of work and the evaluation criteria) to any schedule contractor who requests a copy of it.”

(Since FAR 19 does not apply to FSS Orders, the OCO does not have to set orders aside for small business, but he/she may if they chose to.)

3. The OCO shall provide an RFQ that includes a description of the supplies to be delivered or the services to be performed and the basis upon which the selection will be made.

4. The OCO shall ensure that all quotes received are fairly considered and award is made in accordance with the basis for selection in the RFQ.

5.?The OCO must always consider price - but as per FAR 8, in addition to price (see?paragraph 7), when determining best value, the ordering activity may consider, among other factors, the following:?past performance, special features of the supply or service required for effective program performance, trade-in considerations, probable life of the item selected as compared with that of a comparable item, warranty considerations, maintenance availability. environmental and energy efficiency considerations, delivery terms.

It’s important to note here that past performance does not have to be a stated technical factor under FAR 8.

6.?The ordering activity shall evaluate all responses received using the evaluation criteria provided to the schedule contractors.

7. ??With regard to Pricing – the verbatim FAR language is –“Supplies offered on the schedule are listed at fixed prices. Services offered on the schedule are priced either at hourly rates, or at a fixed price for performance of a specific task (e.g.,?installation, maintenance, and repair). GSA has already determined the prices of supplies and fixed-price services, and rates for services offered at hourly rates, under schedule contracts to be fair and reasonable. Therefore, ordering activities are not required to make a separate determination of fair and reasonable pricing, except for a price evaluation as required by?8.405-2(d) (see below*). By placing an order… the ordering activity has concluded that the order represents the best value and results in the lowest overall cost alternative (considering price, special features, administrative costs, etc.) to meet the Government’s needs.”

END

*This sentence is very often misunderstood and/or taken out of context by contractors, consultants and even government OCOs because they neglect to read 8.405-2(d). Because, although the published labor rates and prices for a supply have been deemed fair and reasonable by the FSS CO, - a price evaluation is always required by the OCO in order to ensure that the mix of labor and the amount of hours for each labor category results in a reasonable cost and is the best value, which is delineated under the Evaluation Section (paragraph 8.)

8.With regard to evaluation, 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 price is reasonable.?Place the order with the schedule contractor that represents the best value. (“Best value” means the expected outcome of an acquisition that, in the Government’s estimation, provides the greatest overall benefit in response to the requirement.)

9. Although GSA has already negotiated fair and reasonable pricing, ordering activities may seek additional discounts before placing an order – but they have to request a discount for a BPA (BPAs are not discussed in this blog.)

10. After award, ordering activities 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 decision shall be provided. (Not a debriefing.)