1. Renewing and/or Exercising
Your GSA IT Schedule 70
Slide layout is the GSA logo in blue and white also with a background of the stars on the U.S. Flag.

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

3. ITS offers government access to the spectrum of IT products and services, and to strategic solutions that meet customer needs
ITS
“Great Government
through Technology”
Computer Systems & Hardware
Software & Applications
Satellite Services
Internet Services
Data Centers & Storage
Communication Networks & Services
Professional IT Services
Cybersecurity
Sustainability
Socioeconomic
Wireless &
Mobility
IT Offerings
Strategic
Solutions
Who are we and what do we do?
As you can see on the slide, we offer access to the entire spectrum of IT products, services and solutions
Our mission is “great government through technology”
At a time when many agencies are struggling with their acquisition workforce we want to be the acquisition solution for anything IT for government
So…to me, Great Government through Technology means that we empower government agencies to better execute their core mission by making it easier for them to acquire the latest in technology products, services and solutions in a cost-effective, timely manner. 3

4. ITS ITS delivers products and services through four main channels
Office of Infrastructure Optimization
Good for Government Programs
Network Services
Your one-stop shop for telecommunications solutions.
Governmentwide Acquisition Contracts
Comprehensive and flexible contracts that provide virtually any IT services
IT Schedule 70
Fair and reasonable prices for IT products and services
ITS
Assisted Acquisition Services
ITS helps government execute its core mission by making IT acquisitions:
Faster
Cheaper
Easier
ITS delivers products/services through 4 major channels
To deliver our mission of “great government through technology”, we have four service delivery channels. We will work with our customers to determine which contracts will meet their requirements
IT Schedule 70…where agencies can find great prices on commercial IT hardware, software, and services.
Network Services…where government can go to meet all of their connectivity needs. We have solutions that will provide the background for tomorrow’s technology.
And …our GWACs program; a comprehensive and flexible suite of multiple-award, indefinite delivery, indefinite quantity contracts that help agencies meet their technology requirements through a customized set of solutions.
We also have the OIO - where we develop and manage “good for government programs” such as SmartBUY.
Supporting this structure is Assisted Acquisition Services (AAS).
Using these delivery channels, ITS can help government acquire virtually anything IT, anywhere.
We have set up these contract vehicles to make acquisitions, faster (less risky), cheaper, and easier 4 4

5. 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

6. 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

7. 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!

8. The Evaluation Process
508 notes: “It Schedule 70 Overview. Seven pictures: Upper left – a naval destroyer, Lower Left- a federal building, Upper Center- network connections, Center Overlay- man signing a document, lower center- circuit board, upper right- a State Capital building, and lower right – a fire engine.”

9. 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

10. 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
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
IAW I-FSS-163 Option to Extend the Term of the Contract (Evergreen) (Apr 2000) GSA is indicating its intent to extend the referenced Multiple Award Schedule (MAS) contract through exercise of the contract option. Before the first option period (years 6-10) can be executed, the GSA Contracting Officer must make an affirmative determination that exercising the option period is the most advantageous method of fulfilling the Government's need, price, and that it is in the best interest of the Government.

11. 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

12. 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
Copy of audited annual report, an audited consolidated financial statement, or such other information which demonstrates your financial stability for the past 3 years. Clearly identify current assets, current accounts receivables, and current liabilities in each supporting document submitted.

13. 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

14. 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?

15. 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 22.18
Clause
Trade Agreement and Buy America clauses
FAR 25.4
Clauses ;

16. 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

17. 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?

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. IT Schedule 70 Helpline: (General Information)
Schedule 70 Resources
IT Schedule 70 Helpline: (General Information)
IT70
(M-F 8:00 am - 5:00 pm EST)
Publication number

26. Thank you for your interest and participation!
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:
ITS can help make all of your IT acquisitions faster, cheaper and easier
For more information contact:

27. Questions?
508 Notes: “Picture: audience clapping”