integrated technology services integrated technology services u.s. general services administration...

Integrated Technology ServicesIntegrated Technology Services

U.S. General Services Administration

May, 2010May, 2010

Renewing and/or Exercising Renewing and/or Exercising Your GSA IT Schedule 70Your GSA IT Schedule 70

Gregory RosemanGregory RosemanCenter for IT Schedule ProgramCenter for IT Schedule Program

Integrated Technology Services

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AgendaGreat Government Through Technology

ITS Portfolio Delivery Channels

Goals for the Option

Evergreen

Purpose of Exercising Option

Essentials to Consider

Evaluation Process

Evergreen Clause

Responsiveness

Compliance

Modifications

Fair and Reasonable

Exercising the Option

Questions


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ITS“Great Government

through Technology”

Cybersecurity Sustainability Socioeconomic Wireless &Mobility

IT Offerings

StrategicSolutions

ITS offers government access to the spectrum of IT ITS offers government access to the spectrum of IT products and services, and to strategic solutions that products and services, and to strategic solutions that meet customer needsmeet customer needs


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ITS helps government execute its core mission by making IT acquisitions:

Faster

Cheaper

Easier

Assisted Acquisition Services

ITS delivers products and services through four main ITS delivers products and services through four main channelschannels


Goals for the OptionsGoals for the Options

Treat the option as an unilateral modification, not a new offer

Follow FAR 17.207, 517.2, and clause I-FSS-163

Determine if advantageous to the Government considering the following factors:

Price Performance Small Business Subcontracting goals GSA Advantage! Pricelist is current Other non-price factors


Purpose of Exercising OptionPurpose of Exercising Option Government’s need for the products/services still exists

Substantially reduces solicitation/offer preparation costs

Continue to provide ordering activities access to quality contractors Provides ordering activities with quicker access to new products/services consistent with

the commercial marketplace (i.e., new technology)

Facilitate longer term contractual relationships with those Schedule contractors that have quality performance

Contractor’s performance is acceptable Provides uninterrupted contract coverage


Essential to Consider for the Evergreen OptionEssential to Consider for the Evergreen Option

Performance is in compliance with current contract terms and conditions Schedule contractor is responsive and responsible

Contractor’s meeting small business subcontracting goals Goals for the next contract period are sufficient Compare to small business subcontracting goals established by GSA

Prices are fair and reasonable

Schedule contractor’s electronic catalog was kept current, has been approved, and posted on GSA Advantage!


The Evaluation ProcessThe Evaluation Process


Evergreen Option clause (I‑FSS‑163)Evergreen Option clause (I‑FSS‑163)

Evaluate proposed option in accordance with contract clause I-FSS-163 Option to Extend the Term of the Contract (Evergreen) (Apr 2000)

An Evergreen contract has 5-year base period with three separate 5-year option periods

Evergreen Option may be an unilateral modification Government makes the unilateral decision to exercise the contract option

All three option periods cannot be exercised at one time The Government may require continued performance of the contract for an additional 5 year period


NotificationNotification Notify the Schedule contractor at least 210 days prior to contract expiration date

Notification can occur earlier if an OIG audit is required– Vendor shall receive Auditor’s Information Request letter for the GSA contracting officer

2nd notification letter with worksheet of contract items that must be up to date for option to be exercised

– At least 120 days prior to end of contract date

Government may exercise the option by providing a written notice to the Contractor within 30 days prior to the expiration of the contract or option

Notify the contractor if not exercising the Evergreen option Send written notification to the contractor


Contractor's ResponseContractor's Response Provides cover letter signed by an authorized company official, which

includes the following:

Verification of Most Favored Customer– Basis of award changed?

Updated CSP and Letters of Supply (for manufacturers and distributors) Annual reports or financial statements Updated employee’s compensation plan (IT Professional Services only) Small Business Subcontracting Plan

– Large Businesses Statement of compliance regarding Report of Sales (72A) and the Industrial

Funding Fee (IFF) Points of Contacts (POCs) for options and contract administration Continued acceptance of the Government-wide purchase card for orders over

the micro-purchase threshold Clarification of commercial pricing and discounting policy

– GSA proposed pricelist and GSA current pricelist– Schedule contractor’s commercial price list


Past PerformancePast Performance Analyzes past performance via the Administrative Report Card, other IOA and ACO

reports, or other available information

Contractor Report Card Demonstrates how well Schedule contractors manage and comply with contractual requirements

– GSA manages the Contractor Report Card process

Contractor Assistance Visit (CAV) reports Provides additional information not included in the report card

– GSA manages the CAV reporting process

Consider input from ordering activities and other databases


Responsibility DeterminationResponsibility Determination

Research Excluded Parties List www.epls.gov

Equal Employment Opportunity Request EEO clearance on Schedule contracts exceeding $10 Million

Financial Responsibility Determination Provide the most current, completed, audited consolidated financial

statements– Specifically balance sheets and income statements, or information that

demonstrates the company’s financial capacity


Small Business SubcontractingSmall Business Subcontracting Certify Business Size

Clause I-FSS-95 Re-representation Of Size Status For Option Periods (JAN 2008) Verify the Primary NAICS code of the Schedule contractor

– Small or large business

Large businesses are required to submit a Small Business Subcontracting Plan Small Business Subcontracting Plan is needed if Schedule contractor is large Made “best faith effort” to meet previously negotiated small business subcontracting

goals

The contract specialist will determine: Has the contractor met his goals for subcontracting to small, small disadvantaged,

and women owned businesses? What efforts have/will be made to ensure the participation of small, small

disadvantaged, and women owned business concerns in accordance with the contractor’s plan?

Does the contractor require its large subcontractors comply with the “flow down” provision of its small business subcontracting plan?

Does the plan meet GSA’s small business subcontracting goals?


Other RequirementsOther Requirements Review company’s reporting in the Electronic Subcontracting Reporting System (eSRS)

http://www.esrs.gov Submitted Individual Subcontract Reports (ISR) and Summary Subcontract Reports (SSR)

E-Verify FAR 22.18 Clause 52-222-54 http://www.dhs.gov/E-Verify

Trade Agreement and Buy America clauses FAR 25.4 Clauses 52.225-5; 52.225-13


Other Requirements Con’t…Other Requirements Con’t… E-PEAT

FAR 23.7 Clause 52.223-16 http://www.epeat.net

Comply with the Veterans Employment Reporting Requirements (VETS 100) http://vets100.vets.dol.gov

Company’s CCR and Online Representations & Certifications Application (ORCA) are up to date

http://orca.bpn.gov www.ccr.gov


Review of Schedule SalesReview of Schedule Sales

Compliance with I-FSS-639 CONTRACT SALES CRITERIA (MAR 2002) Options will not be exercised if sales did not exceed $25,000 within the first 24 months Maintain a minimum of $25,000 in sales for each succeeding year Cancellation due to low or no sales is a business decision of the contracting officer

Overall trend in sales under Schedule contract Increased, decreased, or remained constant

Compliance with IFF and sales reporting Full submission and payments, Outstanding payments, Timely payments

– Corrective action?


Modification Requests During Option EvaluationModification Requests During Option Evaluation

Modifications to exercise the option will be separate and unilateral Other modifications shall not be included

Mass Modification Is the Schedule contract terms and conditions up to date Were all mass modifications accepted and incorporated into Schedule contract?

– Exceptions

To expedite option process, ensure changes to contract pricing, terms or conditions, or other changes occur prior to or after exercising the option


Price Increases/DecreasesPrice Increases/Decreases Contract prices may be increased in accordance with Economic Price Adjustment Clause

Clause 552.216-70 or I-FSS-969 Economic price increases shall not be executed on the unilateral modification to exercise the option

Price decreases will be handled in accordance with Price Reduction clause Clause 552.238-75; 552-243-72 Contract prices may be decreased any time during the contract period

Addition or deletion of products/services Clause 552.243-72

Ensure changes to contract pricing, terms or conditions occur prior to or after exercising the option Shall not be executed on the unilateral modification to exercise the option

– A separate modification


Fair and Reasonableness DeterminationFair and Reasonableness Determination Contract Specialist completed market analysis and price analysis

Conduct market analysis to assist in determining that the proposed option pricing is fair and reasonable

Compare contractor’s current commercial pricing to its proposed option pricing– Compare contractor’s MFC pricing to its proposed option pricing

Review trade publications, newspapers and periodicals for articles on industry changes and pricing in order to compare to proposed option pricing

Review websites on the Internet, including state and local websites, and compare commercial pricing to proposed option pricing

Review pricing for similar or identical products posted on GSA Advantage! and compare to proposed option pricing

Contact several retail and wholesale companies to check pricing for same or similar products, to compare to proposed option pricing


Fair and Reasonableness Determination Con’t…Fair and Reasonableness Determination Con’t… Obtain updated CSP data from the contractor

Obtain a contractor statement that the basis of award customer/MFC customer– No changes in the awarded pricing or MFC– Prices are fair and reasonable– Products/Services on contract are in scope

A change has occurred to the contractor’s Most Favored Customer (MFC) and commercial pricing practices Basis of award changed? Renegotiate to establish new MFC/Basis of Award customer New CSP and pricing, and terms and conditions

– Exceptions to Schedule terms and conditions?

Determines prices are fair and reasonable Pricing information provided has not changed Negotiations has resulted in new pricing

– Awarded prices fair and reasonable to the Government Do not award an option if the price can not be justified


Audit AssistanceAudit Assistance

Contract Specialist can obtain appropriate audit assistance Vendor shall receive Auditor’s Information Request letter for the GSA contracting officer

Office of Inspector General (OIG) provides audit assistance in the determination that option pricing is fair and reasonable

Audit assistance may be obtained if the estimated dollar value for the 5 year option period is greater than ($25 million)

OIG also nominates, with concurrence of the acquisition activity, Schedule contracts for auditing

Audits should not prevent an option exercise Once audit is complete, contract specialist shall consider recommendations


Evergreen Option may not be ExercisedEvergreen Option may not be Exercised

Contractor's performance has not been acceptable Various reasons, such as untimely IFF reporting, performance, quality issues,

etc.

Small Business Subcontracting goals have not been met Company did not make good faith effort

Current commercial practices have dramatically change Pricing practices has dramatically changed from initial contract award

– e.g. Merging contracts due to a Novation Agreement (different pricing practices) Government would be better served with a new contract

Contractor has not kept his GSA Advantage! electronic catalog up to date Schedule pricing has not kept up with the current market changes Continuation of published schedule pricing is disadvantageous


Exercising the OptionExercising the Option

Contract Specialist documents contractor is responsive in regards to performance, compliance, pricing, IFF, GSA Advantage!, etc.

Option may be exercised within 30 days of Contract Expiration

Contract Specialist determines exercising option is in the best interest of the Government Issue a unilateral modification

– Standard Form 30 shall be signed by a contracting officer– Option exercised the next 5-year option period

Schedule contractor shall update its GSA Advantage! File


Schedule 70 Resources

Customer Support Line: (General Information)703-605-2700

(M-F 8:00 am - 4:30 pm EST)

email: [email protected]

Multiple Award Schedules Desk Reference

www.gsa.gov/cmls

Federal Acquisition Regulation

www.arnet.gov

IT Schedule 70

http://www.gsa.gov/Portal/gsa/ep/channelView.do?

pageTypeId=17112&channelId=-24754


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Thank you for your interest and participation!

ITS can help make all of

your IT acquisitions

faster, cheaper and

easier

• Treat the Evergreen Option as an unilateral modification, not a new offer

• To expedite option process, ensure changes to contract occur prior to or after exercising the option

• Active effort by contractor and GSA to keep contract current and up-to-date prior to exercising option

Please remember:

• [email protected] more

information contact:


Questions?

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