Integrated Technology Services Integrated Technology Services U.S. General Services Administration May, 2010 Renewing and/or Exercising Your GSA IT Schedule 70 Renewing and/or Exercising Your GSA IT Schedule 70 Gregory Roseman Center for IT Schedule Program Gregory Roseman Center for IT Schedule Program

Integrated Technology Services 2 Agenda Great 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

Integrated Technology Services 33 ITS “Great Government through Technology” Computer Systems & Hardware Software & Applications Satellite Services Internet Services Data Centers & Storage Communication Networks & Services Professional IT Services Cybersecurity SustainabilitySocioeconomic Wireless & Mobility IT Offerings Strategic Solutions ITS offers government access to the spectrum of IT products and services, and to strategic solutions that meet customer needs

Integrated Technology Services 4 ITS helps government execute its core mission by making IT acquisitions:  Faster  Cheaper  Easier ITS delivers products and services through four main channels

Integrated Technology Services Goals for the Options  Treat the option as an unilateral modification, not a new offer  Follow FAR , 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

Integrated Technology Services Purpose 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

Integrated Technology Services Essential 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!

Integrated Technology Services The Evaluation Process

Integrated Technology Services 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

Integrated Technology Services Notification  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  2 nd 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

Integrated Technology Services Contractor'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

Integrated Technology Services Past 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

Integrated Technology Services Responsibility Determination  Research Excluded Parties List   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

Integrated Technology Services Small 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?

Integrated Technology Services Other Requirements  Review company’s reporting in the Electronic Subcontracting Reporting System (eSRS)   Submitted Individual Subcontract Reports (ISR) and Summary Subcontract Reports (SSR)  E-Verify  FAR  Clause   Trade Agreement and Buy America clauses  FAR 25.4  Clauses ;

Integrated Technology Services Other Requirements Con’t…  E-PEAT  FAR 23.7  Clause   Comply with the Veterans Employment Reporting Requirements (VETS 100)   Company’s CCR and Online Representations & Certifications Application (ORCA) are up to date  

Integrated Technology Services Review 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?

Integrated Technology Services Modification 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

Integrated Technology Services Price Increases/Decreases  Contract prices may be increased in accordance with Economic Price Adjustment Clause  Clause 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 ;  Contract prices may be decreased any time during the contract period  Addition or deletion of products/services  Clause  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

Integrated Technology Services Fair 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

Integrated Technology Services 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

Integrated Technology Services Audit 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

Integrated Technology Services Evergreen 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

Integrated Technology Services Exercising 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

Integrated Technology Services Schedule 70 Resources Customer Support Line: (General Information) (M-F 8:00 am - 4:30 pm EST) Multiple Award Schedules Desk Reference Federal Acquisition Regulation IT Schedule 70 peId=17112&channelId=-24754

Integrated Technology Services 26 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: For more information contact:

Integrated Technology Services Questions?