Successful MAS Contracting A Beginner's Field Guide

Successful MAS Contracting A Beginner's Field Guide
Welcome to the New Contractor Orientation Seminar. We know you have invested considerable time and resources to establish a relationship with GSA, and we want to help you make the most of it. Our goal is to provide you with the knowledge and tools that you need to become and remain a successful contractor.

Benefits of Your MAS Contract
Mirrors commercial buying practices Complies with all of the rules and regulations to assist customers in procuring products and services the right way Provides a fast, easy, and effective contracting vehicle to do business with Federal Agencies and other eligible customers, allowing you to firmly establish your presence in the federal marketplace The Multiple Award Schedules program is the premier Government acquisition program in place today. Mirroring commercial buying practices, the program is designed to help customer agencies comply with all of the rules and regulations to buy products and services the right way. Your contract provides you with a contracting vehicle to sell your contract products and services to federal agencies and other GSA eligible customers. That being said, there are over 17,000 contracts in place and more being added every day, so the competition for sales is fierce. That’s why you need to be extremely knowledgeable about what it takes to manage your contract, while continually looking for business opportunities. Our aim is to provide you with the information and tools that you need to navigate your road to success.

How to be a Successful Contractor
Chapter 1 – Introduction Chapter 2 – Getting Started Chapter 3 – Sales Chapter 4 – Business Development Resources Chapter 5 – Modifications Chapter 6 – Contractor Relationships Chapter 7 – Other Responsibilities Chapter 8 – Hot Topics This seminar is organized into chapters to make it easier for you to follow along. We’ll cover the majority of things that we think are critical to your success as a contractor. Although business development, which is covered in Chapter 4, is important, understanding and complying with the performance requirements of your contract is vital to your continued participation in the Schedules program. Terms and Conditions are not as exciting as growing your business, but they are a necessity for doing business with the Government. Let’s get started.

Chapter 1 Introduction Definitions of Success
Federal Acquisition Service (FAS) Personnel Contractor Assistance Visits (CAVs) MAS Contractor Report Card In Chapter 1, we’ll identify the different meanings of success, Federal Acquisition Service, or FAS, Personnel, Contractor Assistance Visits, usually referred to as CAVs, and the MAS contractor Report Card.

Success Success through the customer’s eyes On time, on budget
Success through the Contractor’s eyes Making sales, developing business Success through GSA’s eyes Right product or service, delivered on time, at or below contract price, complying with Terms and Conditions Let’s talk about “success.” To the customer, success occurs when quality products and services are delivered on time and at, or under budget, and their needs are satisfied. To the contractor, success is about making sales and growing as a business. To GSA, success occurs when the right product and service has been offered, delivered on time, and procured at or below contract price. GSA’s definition of success also includes full compliance with all contract terms and conditions. Prior to submitting your offer to GSA, you should have developed some kind of compliance plan to make sure that you had the necessary systems and processes in place to monitor the many Terms and Conditions in your contract. If you didn’t do that, you need to start thinking about constructing a plan today—hopefully this webinar will assist you. Again, GSA is here to help you become a successful contractor. Let’s introduce you to the people who will help you make that a reality.

FAS Personnel Procurement Contracting Officer (PCO)
Awards your contract Handles day-to-day contracting issues Administrative Contracting Officer (ACO) Tracks Industrial Funding Fee (IFF) payments Oversees Quarterly Sales Reporting Assists with other compliance issues ACO Locator: Industrial Operations Analyst (IOA) Conducts Contractor Assistance Visits (CAV) Monitors overall contract compliance Provides general business development resources By now, you should all be familiar with your Procurement Contracting Officer, usually referred to as a PCO. Your PCO awarded your Schedule contract and is responsible for executing subsequent modification requests, unless this duty is delegated to an Administrative Contracting Officer, usually referred to as an ACO. Your ACO was assigned after you were awarded your contract. Your ACO is responsible for managing the remittance of the Industrial Funding Fee, monitoring timely reporting of your Schedule sales, administering any Mass Modifications that you may receive, and preparing your report card. For some contracts, your ACO will also administer your subcontracting plan if you are a large business. If you’re not sure who your ACO is, you can find out using the ACO locator tool. The IOA will monitor your overall contract compliance, identify MAS contractor responsibilities, and provide business development resources.

CAV Contractor Assistance Visit (CAV) Performed by your IOA Objectives
Explain the Terms and Conditions of your contract Assist with your questions or concerns Identify potential problems Gather contractor performance data Test sales tracking system and processes Frequency Generally two (2) times during each five (5) year contract term There are a number of objectives associated with the Contractor Assistance Visit. One of these objectives is to ensure that you understand the Terms and Conditions of your GSA Schedule contract. The CAV also provides you with the opportunity to ask questions or seek clarifications on any confusing issues. If you are having problems, we want to identify and correct them as soon as possible. In addition, the CAV also provides an IOA with the opportunity to review a contractor’s systems and processes. Some information, or performance data, gathered by the IOA during the visit will be used by your ACO to determine the rating that you receive on your report card. We’ll discuss the report card next. You can plan to be visited by an IOA at least twice during each contract term. One visit will occur between 24 and 36 months into the contract term and another will occur 6 to 12 months before the expiration of the contract term. Although this is the norm, there are some circumstances that may require additional visits.

CAV Participants Your Company MAS Contract Administrator
Other relevant personnel responsible for contractual functions (e.g. sales, marketing, order tracking, IFF remittance, etc.) GSA Industrial Operations Analyst (IOA) Determining who should be present during a CAV is dependant upon your business model and who is responsible for the various requirements of your contract. Optimally, try to have your designated contract administrator present, as well as other personnel who are responsible for the identification, creation, and submission of your sales data. If the IOA has sales or marketing information to disseminate, it may be a good idea to have your sales and/or marketing persons available as well. If you have products on your contract, you should have someone present who has knowledge of the country of origin of your products. You should also have someone present who has knowledge about any environmental attributes for the products and services on your contract. It’s to your benefit that the IOA is able to perform a comprehensive visit while at your location. This can be accomplished by making sure that your subject matter experts are close at hand. Your visit will also run more smoothly if you have information pertinent to your contract readily available for review. Your IOA will let you know what will be covered and how the visit will be conducted in advance of the actual visit. As mentioned, the contractor performance data collected during the CAV is used in large part to generate your report card. Let’s take a look at a sample report card, explore its purpose, and how it works.

MAS Contractor Report Card
A rating of your current level of compliance with MAS Terms and Conditions – think of it as a “snapshot” in time Objectives To keep you informed on your level of compliance with your MAS contract Terms and Conditions Frequency Generally two (2) during each five (5) year contract term The contractor report card is a critical component of your MAS contract because it evaluates you in a number of areas that are vital to successful contract performance. It is generated by your ACO and it is in large part based on the results of the CAV. You should generally receive two report cards during the five-year base period of your contract. The mid-term report card will be issued sometime after you have had your contract for 24 months. Then a second and final report card will be issued prior to the expiration of your contract’s base period. If option periods are exercised, this cycle will also occur in subsequent option periods. It is important to note that your report card is not to be used as past performance documentation – this is due to the fact that only previous customers can rate your performance against a task order or delivery order.

Contractor Report Card
The CAV report and report card are just two of the many factors used by your PCO to determine whether or not to exercise option periods Keep in mind that the MAS contractor report card is an educational tool, not a punitive measure The CAV and report card should be important to you because they are two of the many factors used by your PCO in determining whether or not to exercise a contract extension and it identifies areas where you may need improvement. Please keep in mind that your report card is only utilized as an informative, educational tool and it is not to be used as a punitive measure.

Report card example Question Categories Category 1 - Critical Category 2 - Mandatory Category 3 - Above and Beyond Ratings Exceptional Very Good Satisfactory Marginal Serious Concerns Exist You are urged to view and print a copy of the contractor report card by clicking on the link identified on this slide. Understanding the elements you will be measured against will help you develop a solid compliance plan. The report card questions are all classified into three categories. Category 1 questions are deemed critical and are essential to the continued success of the Schedules program. Category 2 questions are mandatory and reflect a contractor’s compliance with some important contract requirements. Category 3 questions are “above and beyond” elements and distinguish “Exceptional” contractors from “Very Good” contractors. There are currently five report card ratings - Exceptional, Very Good, Satisfactory, Marginal, and Serious Concerns Exist. The number of positive responses for each category determines the report card’s overall rating. A breakdown of the requirements needed for each report card rating can be found on the sample report card provided through the link on this slide.

1 Category One Question 2 Category Two Question Also, please note the pencil and notepad icons that appear throughout this presentation. This icon will indicate topics included on the contractor report card and under which category they reside. 3 Category Three Question

Chapter 2 Getting Started Price Lists Getting on GSA Advantage!®
Immediately following contract award, you need to be concerned with two things: generating and distributing your authorized Schedule price list and loading your price list into GSA Advantage!. In Chapter 2, we’ll cover a number of areas related to your authorized pricelist, the contractual requirement to have your pricelist on GSA Advantage!, and how to break into the Federal market place.

Price Lists You are required to prepare, print, and distribute a paper price list by either… Using your commercial price list, showing negotiated discounts, and removing all items, terms, and conditions not accepted by the Government; or Using a price list specifically designed for your contract, including those items, Terms, and Conditions accepted by the Government Always use your current PCO approved price list GSA is in tune with what our customer’s need, and you can provide the solution - that’s why we value our partnership with you. To show ordering agencies what you have to offer, you need an authorized contract pricelist. Your authorized pricelist is a document in a specified format that lists the products, services, and prices you have been awarded. Your pricelist also identifies the terms and conditions of your contract. It’s important to recognize that your pricelist is what potential customers rely on when doing market research. Your approved MAS price list can basically be broken down into two parts – your Terms and Conditions, and your approved pricing. Since each piece identifies different information, it is important that your MAS price list includes both components – otherwise potential customers could be missing critical contract ordering information. Always be sure that you are using your latest approved price list. Using your current approved price list is an element on the report card, but it’s equally important to represent all of your latest information so that potential customers can find you and see what you have to offer under your MAS contract. 1

Price Lists Update and distribute with each applicable approved modification Update billing/invoicing system to include new products, labor categories, and pricing Keep copies of all versions throughout your contract term for at least three years after contract expiration When your price list changes, make sure to distribute your new price list to your PCO. Lastly, as a backup, be sure to keep copies of all of versions of your pricelist for at least 3 years after your contract expires. Let’s take a look at some of the elements that make up a price list.

Price List Format Point-of-Contact information Contract items awarded and associated pricing Labor categories and descriptions Geographic coverage (delivery area) Prompt payment terms Discounts from the list prices or statement of net prices Reference clause I-FSS-600 for all format requirements The price list clause, or some variation of the clause depending on your Schedule, includes the standard format for authorized contract price lists. We’ll go over some of the required elements here, but you should note that specific price list formats can vary from Schedule to Schedule. Therefore, you should refer to the clause in your contract to determine the correct format for your price list. Some of the items required in your price list are contact information, awarded products or services and associated pricing, labor categories and associated descriptions, geographic coverage, prompt payment terms, and any negotiated discounts. Once your pricelist is complete, you have the responsibility to distribute it. Let’s go over where your price list needs to be sent and when.

Distributing Your Price List
Provide two copies to your PCO 30 days after the date of contract award 15 days following a modification, making sure to re-date your price list Send one copy to the National Customer Service Center, Bldg. No. 4, 1500 E. Bannister Road, Kansas City, MO 64131 Send to any customer (including your IOA) upon request Within 30 days of contract award, send two copies of your pricelist to your PCO. If your pricelist is updated as a result of a modification, please re-date the price list, and send it to your PCO within 15 days. In addition, send one copy to our Customer Service Center. You should always have extra copies on-hand or posted on your website in case of customer requests. Now that we’ve talked about the contractual requirements associated with your pricelist, let’s talk briefly about how you can use it as a marketing tool.

Distributing Your Price List
Make sure your price list conveys Expertise/strengths Uniqueness Convenient ways to contact you Print and widely distribute No mailing list is provided by GSA Familiarize yourself with peak buying times Make sure that your pricelist contains all the required elements, but don’t ignore your selling points. Display your expertise and strengths and what makes you stand out from your competitors. Convey to your customers that you are interested in their business, and provide convenient ways to contact you or your representatives. GSA does not maintain customer mailing lists, but that doesn’t preclude you from mailing your pricelist to potential customers. Effective marketing is a must with all contracts. To make the best use of your resources, you should do some market research to identify your potential customers. Conserve your resources by targeting your particular customer segment. In making decisions about when to distribute your pricelist, you will want to familiarize yourself with the peak buying times for your products and services. In addition to distributing your pricelist in hard copy, you also need to display your price list electronically in GSA Advantage!. This is required by your contract but again, it’s also a great marketing tool because GSA Advantage! is our premier online shopping site.

Electronic Contract Price List
You are required to upload your price list to GSA Advantage!® no later than six months after award Keep your GSA Advantage!® information up-to-date Electronic files must be complete, correct, readable and virus-free You are responsible for keeping all electronic catalog data up to date…remember, you want potential customers to find you 2 Even though your contract allows you up to six months to load your information into GSA Advantage!, you want to do it sooner so that your potential customers can find you when they’re conducting their market research. Your Advantage! price list must be updated any time that you add or delete items, exercise the Economic Price Adjustment clause to increase or decrease your pricing, or do anything else that affects your MAS Terms and Conditions. Keeping your pricing listed in your paper price list and electronic price list up-to-date and identical will ensure that you receive a positive rating on this element of your report card and will help you to represent yourself well to your customers. Don’t forget to identify any applicable environmental indicators if you are providing “green” products and services. Also, remember that it’s your responsibility to keep your price list information current on Advantage!. This requires that you may have to upload your file more than once in the event that your price list information changes. Note that when your PCO approves a modification through the paper process or through eMod, the change is not automatically reflected in Advantage!. Potential customers can also access your price list through GSA eLibrary. GSA eLibrary is a website that identifies the information for all active MAS contractors including, but not limited to, their schedule, awarded Special Item Numbers (SINs), and Terms and Conditions. SINs are basically the subcategories available under each schedule that identify what products or services can be provided. We will discuss the eLibrary website more thoroughly later in this presentation. Let’s take a look at how you go about getting your price list on the website.

Getting on GSA Advantage!®
Register! At Two Methods to Submit Catalog Data: Schedules Input Program (SIP) Electronic Data Interchange (EDI) – “Getting on GSA Advantage!® ” All vendors must register with the GSA Vendor Support Center online at vsc.gsa.gov – please note that there is no WWW at the beginning of the web address. If you use the Schedule Input Program, or SIP, to upload your pricelist, the program will prompt you for registration information. The VSC will provide you with a password that is required on all price list submissions. This password is used to protect your data. Once you have your password, you have to decide which method to use to submit catalog data. There are two ways to load your contract file into GSA Advantage!. You can use SIP or Electronic Data Interchange, known as EDI. We’ll go over both methods in more detail, but be sure to check out all of the resources available to help you with both methods on the Vendor Support Center website under the tab “Getting on Advantage!”.

Getting on GSA Advantage!® - SIP
SIP is the GSA-provided software program that you can use to upload your GSA hard copy price list file Download the SIP program instructions at the Vendor Support Center by clicking on the tab “Getting on GSA Advantage!®” and then click on the tab “Vendor Startup Kit” and the following links: Download the SIP program by clicking on SIP -Down Load Software Learn to use SIP correctly by taking advantage of SIP Training Do not delete the SIP program or fail to transfer it to your new hard drive—you’ll have to start from scratch Direct technical questions to the Vendor Support Center Help Desk (877) or The SIP program will allow you to input and transmit all your contract data for inclusion on GSA Advantage! To upload your price list using the SIP program, you will need to download the software. The SIP software is found at the Vendor Support Center website, under the tab “Getting on Advantage”. A note of caution: Once your file is uploaded, do not delete the SIP program from your system. Similarly, if you get a new hard drive, be sure to transfer the SIP program from your old hard drive. Deleting the SIP program will result in you having to start from scratch. Should you need SIP technical assistance or have questions about the SIP program, contact the Vendor Support Center Help Desk at (877) or

Getting on GSA Advantage!® - EDI
EDI is the computer-to-computer exchange of business information using a public standard Methods Commercial off-the-shelf packages Value Added Networks (VANs) 3rd party consultants If you are interested in learning more about EDI, check out the tabs under “Getting on GSA Advantage!®” or call the EDI Help Desk at Electronic Data Interchange or EDI, is the computer-to-computer exchange of business information using a public standard. You have several different options when it comes to using EDI to submit your catalog file. In addition to commercial off-the-shelf packages, there are also Value Added Networks and third parties who can assist you. These services use various software packages, so you must work directly with them to coordinate file submission. If you are interested in learning more about EDI, call our EDI Help Desk. You can also find more information on EDI on the Vendor Support Center website under the main tab, “Getting on Advantage”.

Chapter 3 Sales Eligible Users Cooperative Purchasing
Definition of a “Schedule Sale” Government Purchase Card Sales Tracking System and Reporting Industrial Funding Fee Chapter 3 is all about sales. First we’ll look at who’s eligible to use GSA Schedule contracts—in other words, who you can sell to. Then we’ll look at some indicators of when a sale is considered to be a Schedule sale and when and how to accept the government purchase card. We’ll also talk generally about sales tracking systems. Finally, we’ll discuss reporting sales and the Industrial Funding Fee.

Eligible Users GSA Order ADM4800.2F
Provides detailed information regarding those agencies, activities, and organizations that have been determined to be eligible to use GSA Schedule contracts Eligible users include: Executive & Other Federal Agencies Mixed-Ownership Government Corporations The District of Columbia State and Local Governments using IT Schedule 70 and Law Enforcement Schedule 84 “Cost Reimbursement” contractors The GSA Order titled, Eligibility to Use GSA Sources of Supply and Services, provides detailed information regarding those agencies, activities, and organizations that have been determined to be eligible to use GSA Schedule contracts. When you think about who is eligible to use GSA sources of supplies and services, the obvious executive agencies come to mind…the Department of Defense, Department of Agriculture. But did you know that the Washington Metropolitan Area Transit Authority and the World Health Organization are also eligible users? At the time of award, if you have signed the optional Cooperative Purchasing agreement clause, State and Local governments may use the IT Schedule 70 and law enforcement Schedule 84 to make purchases. The cooperative purchasing agreement will be explained in a later slide. Ultimately, any public company could become an eligible user if given the appropriate purchasing power from a federal agency. That situation is called cost reimbursement contracting and it occurs when an eligible federal customer provides a letter of authorization to a company allowing them to utilize the MAS contracts on their behalf. Keep in mind that even though the cost reimbursable contractors are not federal agencies, they are utilizing your MAS contract and therefore those sales should be in accordance to your MAS Terms, Conditions, and reporting requirements. One final note – there is no definitive listing of all eligible MAS customers, because the list is not static. In fact, the government is constantly approving policies that expand the reach of the MAS program in effort to provide best value solutions for federal customers and those working on behalf of the government. Therefore it is in your best interest to proactively seek out and research new programs as they become available.

Eligible Users Other Considerations
You are obligated to accept orders that are below the Maximum Order threshold from all executive agencies Maximum Order threshold refers to the dollar value of an order that signals to ordering activities that additional discounts or more favorable terms should be sought—it is not a ceiling You are not obligated to sell to those outside the Executive Branch, but be sure to - Return purchase orders within 5 days Return credit card orders within 24 hours There are some things to consider when accepting orders. The Maximum Order threshold clause often causes confusion. The Maximum Order threshold is identified in each Schedule contract. You are obligated to accept orders below the Maximum Order threshold from all executive agencies. You can accept orders over this dollar level, but be aware that agencies will expect a price break for large volume buys. This threshold is not a ceiling. You are not obligated to sell to those agencies outside of the executive branch; however, you are encouraged to do so. If you receive orders and need to refuse them, then return the order within 5 days. If the order was placed using a purchase card, return the order within 24 hours. Although rare, there may be some instances that require you turn down orders. For instance, you may not have the resources to meet the customer’s requirements or there may be a potential conflict of interest. If you are a Schedule 70 or Schedule 84 contractor and have chosen to participate in cooperative purchasing, there is another class of customer that is considered eligible to procure products and services from you—state and local governments.

Cooperative & Disaster Recovery Purchasing
Cooperative Purchasing authorizes sales of IT Schedule 70 and Security Solutions Schedule 84 products and services to be made available to state and local governments Disaster Recover Purchasing authorizes sales of all products and services to state and local governments for use in Disaster Recovery Includes all 50 states, counties, cities, municipalities, towns, townships, tribal governments, and public authorities Contractor participation is established at time of award or through a contract modification Sales to state and local governments must be tracked separately for reporting purposes For more info, visit or Cooperative purchasing was initiated through the e-Gov Act of 2002, authorizing sales of Information Technology Schedule 70 products and services to state and local governments. Recently the Security Solutions Schedule 84 was allowed to participate in the program. The Act also allows for state and local government entities to purchase from Consolidated Schedule contracts containing IT and Security Solutions SINs. Disaster Recovery Purchasing, initiated through the John Warner National Defense Authorization Act of 2007, authorizes sales of all GSA Schedule products and services to state and local governments for use in preparation or recovery from a Presidentially declared major disaster, terrorism or nuclear, biological, chemical, or radiological attack. As a contract holder, you are not automatically permitted to accept purchase or task orders against your Schedule contract from state and local governments unless your participation was established at time of contract award or subsequent modification. If your participation was not established at time of award and you wish to participate, a contract modification is necessary. You should contact your PCO for more information. Contractors participating in Cooperative Purchasing or Disaster Recovery Purchasing are identified on eLibrary with icons that indicate that they are authorized to accept purchase or task orders from state and local governments. These two icons are located on the top right-hand corner of this slide. Please ensure that your sales tracking system is able to identify and segregate Schedule sales from other federal government and state and local government sales for reporting purposes. Remember that state and local sales under your Schedule contract are still subject to the Industrial Funding Fee. For more information on either of these programs, please visit the GSA website.

Indicators of a Schedule Sale
The customer pays with the government purchase card for items on your contract The pricing is at or below the contract price There is no indication of any other procurement vehicle being used The GSA contract number is stated on the purchase or task order The ordering information and terms are the same as your GSA contract The customer made contact with you through GSA Advantage!® or eBuy Once you know who is eligible to procure products and services using your Schedule contract, you need to be aware of what constitutes a Schedule sale. Being able to accurately identify MAS orders is the keystone to becoming a successful MAS contractor. Sales tracking, quarterly reporting, pricing, and procurement Terms and Conditions are just a few of the areas that are directly dependent on whether an order is being placed against your MAS contract or being procured by some other means. Ultimately it is your responsibility to know when your MAS contract is being utilized. Generally, if an order is placed by an eligible user, fits within Schedule parameters, and is not identified as “other than” a Schedule sale by the ordering activity, it is considered to be a Schedule sale for all intents and purposes. The clearest sign that a purchase order is a Schedule sale is when your GSA contract number is referenced on the purchase order or task order. Here are some other examples: The contract number is not on the order, but the ordering information and terms are the same as those on your Schedule contract; the customer made contact with you through GSA Advantage! or e-Buy; the customer pays with the government purchase card; the pricing is at or below the contract price; or there is no indication of any other procurement vehicle being used. If you have any questions regarding whether an order or potential order is a Schedule sale, please feel free to contact your Ordering Activity Buyer or your GSA PCO, ACO, or IOA.

What is not a Schedule Sale
Ask your customer whether or not they are using your GSA Schedule contract to place the order, and document the conversation and/or for your files A sale is not reportable when contracts are clearly awarded using the procedures outlined in FAR Parts: 12 - Other Agency Commercial Acquisitions 13 - Simplified Acquisitions or FAR Part 13 on the order 14 - Sealed Bid 15 - Negotiated Bid So that begs the question - what is not a Schedule sale? Basically, if the procurement in question follows any of the FAR parts listed in this slide, the order is considered unrepeatable, or a non-MAS order. The smartest thing to do to avoid any misunderstanding is to ask your customer whether or not they are using your GSA Schedule contract to place the order, and document the conversation for your files. Again if you have any questions regarding whether an order or potential order is a Schedule sale, please feel free to contact your Ordering Activity Buyer or the GSA PCO, ACO, or IOA.

Government Purchase Card
Contractors are required to accept the card for all purchases up to the micropurchase threshold (currently $3000) Contractors are encouraged to accept the card for purchases above the micropurchase threshold Benefits of accepting the card over $3000 It’s the preferred payment method of customers You’ll get paid…fast Avoidance of costs associated with invoicing What to do in order to start accepting the card If you already accept VISA or MasterCard, you’re set If not, you need to set up a merchant account Contact your bank or other financial institution for more information on setting up a merchant account 2 3 Previously we mentioned the government purchase card. Let’s explore that next. It is a contract requirement that you accept the government purchase card for all purchases up to $ Accepting the card over the $3000 threshold is strongly encouraged, and it is also an element of your report card. Let’s look at some of the benefits of accepting the card. The main benefit of accepting the purchase card is simple—it’s how customers want to pay! You also have a greater assurance that you’ll get paid… and fast! In addition, accepting the purchase card cuts down on your invoicing costs. If you currently accept VISA or MasterCard, there’s nothing more to do. If not, you’ll need to arrange to set up a merchant account. For more information on how to set up a merchant account that’s right for you, please contact your bank or other financial institution. Once you’re set up, you need to know how to recognize when the government credit card is being used.

Credit Card Account Numbering System
Purchase cards may be either VISA or MasterCard VISA cards will begin with either 4486, 4614 or 4716 MasterCard cards will begin with 5565 or 5568 Cards may be issued by US Bank, Citibank, or J.P. Morgan Chase. Cards will have two different designs More information Although correct card usage is ultimately the responsibility of the ordering activity, this account numbering system and card design will assist you in identifying whether or not a customer is paying with a purchase card and whether or not the appropriate purchase card is being used. A government VISA card will begin with either 4486, 4614, or 4716, and a government MasterCard will begin with 5565 or Remember that government purchases are generally tax exempt. Click on the “More Information” link to access downloadable background designs for the GSA SmartPay 2 credit cards, a helpful brochure for learning how to accept the credit cards, and a guide that identifies how to recognize the GSA SmartPay 2 credit cards. It should be noted here that any negotiated prompt payment discounts do not apply to purchases made with the SmartPay 2 credit card. We will discuss prompt payment discounts further in a few slides.

Sales Tracking System 1 Identifies, tracks, and reports GSA sales accurately and completely Reports all transactions within the proper period Retrieves data easily Separates Schedule sales from other federal sales and commercial sales Remember that developing an acceptable sales tracking system is ultimately your responsibility Automation is not required but may be necessary - complexity usually depends on the number of sales transactions Now that we’ve talked about what constitutes a Schedule sale and payment by government purchase card, the next logical step is sales tracking. Proper recognition and reporting of all of your Schedule sales is critical to your performance, and a good sales tracking system will make both of these tasks easier. There is no “correct” sales tracking system; however, you should have a system in place that ensures that there are no missed or unidentified transactions, inaccurately valued or dated transactions, and that the information can be quickly retrieved by your IOA or ACO. One of the most important characteristics of your system is its ability to isolate your GSA Schedule sales from other federal and commercial sales. An automated sales tracking system is not a contractual requirement. Consider your commercial and federal sales volume in determining how complex your system needs to be. Ultimately, we want you to use a system that works for you, but it must be adequate to identify, track, and report GSA sales accurately and completely.

Invoicing and Prompt Payment Discounts
Negotiated prompt payment discount terms in Schedules contracts are binding on the Contractor for all orders placed under the contract with one exception… Payments made using the Governmentwide commercial purchase card All invoices must include the terms of any discount for prompt payment Note! Be sure to include your contract number on all MAS invoices. Be familiar with contract clause which identifies additional invoicing requirements 2 If you negotiated prompt payment discount terms, please be aware that the discounts apply to all orders placed under the GSA Schedule contract. The one exception to this rule is for payments made using a government credit card, which are not eligible for any negotiated prompt payment discounts. If you did not negotiate prompt payment discount terms at time of award, you can still offer discounts on individual invoices, and the discounts are only binding for the particular invoice on which the discount is offered. In both cases, it is required that all invoices include the terms of any discount for prompt payment. Including information on each invoice ensures that the Government obtains the discount offered if payment is made within the discount period specified. Remember that there are other items that an invoice must contain including your company name and contract number. Please review this clause to make sure that you are in compliance when submitting invoices for payment.

Sales Reporting All Schedule sales must be reported in U.S. dollars and rounded to the nearest whole dollar Only GSA contract items and services should be reported Non-contract items, travel, and Other Direct Costs (ODCs) should not be reported as GSA contract sales Sales must be reported on a quarterly basis January 1 to March 31 April 1 to June 30 July 1 to September 30 October 1 to December 31 Sales reports must be submitted in U.S. dollars and rounded to the nearest whole dollar. Remember to only report sales on products and/or services that are on your Schedule contract. Open market items, travel, and Other Direct Costs can all be part of a delivery or task order placed using your contract, but you should not report these as GSA sales UNLESS they are included in your GSA Schedule contract. You are required to report your sales on a quarterly basis.

Sales Reporting 2 Sales reports must be submitted within 30 days after the quarter ends Even if you have no sales for the quarter, you must still file a $0 sales report Sales are reported by Special Item Number (SIN) The 72a reporting system is online at See a demonstration of the system Register your contract Report your sales Make sales adjustments Make note of the last day of each quarter. This may make it easier to keep track of when your 72A, or sales report, is due. Sales reports need to be submitted within 30 days after the end of each quarter. It’s a good idea to report your sales as quickly as possible. If you put it off, it’s easy to forget. Timeliness of your sales reporting is reflected in your report card. If no sales occur under your contract for the quarter, you are still responsible for filing the sales report by entering zeros for each SIN. Also, keep in mind that you will be asked to report your sales under each SIN separately, so incorporating that capability into your tracking system now will make reporting under multiple SINs easier once the reporting window opens. This also includes any special programs you have incorporated into your MAS contract such as Cooperative Purchasing and Disaster Recovery. Those programs have specific SINs and therefore those sales need to be separated and reported under the appropriate SIN. You must report your sales online. The 72A Quarterly Reporting System can be accessed at the Vendor Support Center website under the main tab “Reporting Sales”. The website contains a wealth of information about sales reporting. You can view a demonstration of how the reporting process works. You’ll find that reporting sales is easy and only takes a few minutes, but don’t forget to register your contract first. Doing so allows you to access the reporting system. Explore the website for more information, including answers to frequently asked questions.

Industrial Funding Fee (IFF)
The IFF of 0.75% is included in your awarded pricing The contract prices that you bill a customer must include the IFF The IFF is paid by your MAS customers for utilizing your MAS contract, but it is remitted by you on a quarterly basis After you’ve reported your sales for the quarter, your Industrial Funding Fee, known as the IFF, payment is automatically calculated for you. Since the remittance of the IFF is due within 30 days following the end of the quarter, just like your sales report, it’s efficient to do them both at the same time. Currently, the IFF is 0.75%. Federal customers who use the Schedule program pay the fee, which is already included in your awarded contract prices. You simply serve as the collection agent. Even though the ordering activity pays the fee when they purchase your products and services, you are responsible for submitting the IFF to GSA on a quarterly basis.

Remitting the IFF 2 Payment must be received within 30 calendar days after the quarter ends (not necessarily the last day of the month) GSA encourages contractors to pay the IFF via credit card or electronic check because this will be a requirement in the near future Electronically “Pay Now” to pay immediately after reporting sales, or return at a later date to “Pay Later” Visit more information 3 Just like the timeliness of your sales reports, remitting the IFF on time is also a significant performance factor monitored on the report card. Remember that the IFF is due within 30 days after the end of the quarter. Note that this is not necessarily the last day of the month. Whether or not a contractor is using GSA’s electronic payment system, or ePay, is a report card element. GSA encourages contractor’s to pay the required IFF via ePay. All payments are routed through the Department of Treasury’s secure payment portal, There are two electronic payment mechanisms available to remit the IFF using ePay—payment by credit card and payment by electronic check, otherwise known as direct debit. Paying the IFF online eliminates the expense and inconvenience of processing paper checks; the delays and uncertainty of mail deliveries; and the post-payment stress of incorrect payment amounts or incorrect allocation of payments to the contract and report period. It’s also easy because you may remit the IFF immediately following the submission of your sales report on the same website. You may also use the option “Pay Later” to pay electronically at a later date, but remember that paying later does not relieve your from the 30 calendar day requirement. Let’s take a look at the two ways that you can pay online.

Remitting the IFF Methods of payment –
Make your IFF payment using any major credit card $99, is the maximum Choosing to pay by credit card will allow you to make your IFF payment using any major credit card. The only limitation to this option is that payments may not exceed $99, When you pay by credit card, your payment is deducted immediately and will be reflected in GSA’s records in 3 to 5 days. Please note that neither GSA nor the Department of Treasury will retain your credit card number or other personal information.

Remitting the IFF Methods of payment –
Make your IFF payment using your checking or savings account No dollar limits apply The second electronic payment option is payment by online check. This is sometimes referred to as direct debit and no dollar limits apply. You supply your bank’s routing number and the account number, and the money is transferred to GSA. This process generally takes 3 to 5 days. As with the credit card option, neither GSA nor the Department of Treasury will retain your bank account number or other personal information. Please note that paying your IFF electronically, either by EFT or credit card, will become mandatory in the near future. It may prove to be beneficial to set-up your processes now so that you are ready when the transition occurs.

Chapter 4 Business Development Resources eTools
Researching Past Purchases Past Performance Subcontracting Opportunities Additional Procurement Opportunities Government Contacts GSA Logo Other GSA Resources Just as you market your commercial business, you need to market your business to government customers as well. Effective marketing is one of the key ingredients to your success. Let’s look at some of the resources that are available to help you get on your way.

Schedules eLibrary Online source for the most up to date MAS contract SIN and Schedule information Market research tool Potential customers can find you You can research your competition and find potential team partners or subcontractors Keep your information current Address: Update CCR Phone Number: Update GSA Advantage!® file Web address and address: Update GSA Advantage!® file By being a GSA Schedule contractor, your company name and contact information is included on the GSA Schedules eLibrary website. On this site, both contractors and customers can perform market research. As a contractor, you can use e-Library to research your competitors. You can also use this site to find potential partners for contractor team arrangements or subcontractors. You should review your eLibrary listing regularly to make sure that your contact information is correct and that all of your Schedule contracts and/or SINs are represented. Also make sure that any link to your company website is included and correct. The contact information in eLibrary is pulled from a number of sources. Let’s look at the website to see where you can go for more direction on how to correct or update your information.

Customers and contractors can perform searches at Schedules eLibrary by several criteria including keyword, contract number, and contractor. Information about specific Government programs such as Cooperative Purchasing and Disaster Recovery Purchasing can also be found at Schedules eLibrary.

When you have placed your contract number in the search block your contract information and basic profile will appear. You should review this page for accuracy. Should you find a mistake, click on the link indicated “vendors how to change the company information” and follow the directions indicated on that page.

GSA Advantage!® Online shopping and ordering system
Government can use GSA Advantage!® to: Search for items/services/suppliers Perform market research Compare features, prices, and delivery Place orders Contractors can use GSA Advantage!® to: Research competition Sell to the federal marketplace GSA Advantage!® is the online shopping and ordering system that provides buyers access to thousands of contractors and million of products and services. We have already talked about the requirement for you to load your authorized pricelist in GSA Advantage!®. Here’s why it’s so important to do so. Like eLibrary, customers use GSA Advantage!® to perform market research and to compare contractors’ offerings. Customers can also place orders using GSA Advantage!®, although orders placed through this site are primarily for products. GSA Advantage!® also allows you to research your competition and fulfill orders placed by customers.

Users can perform searches by keywords, part numbers, manufacturers, contractor, and contract number. Searches by special programs such as Wildland Fire products and environmental oriented products are also available. Users also have the capability of performing searches by special programs such as Environmental, Disaster Relief, or Cooperative Purchasing products.

GSA Advantage!® Provide a link to your company’s website
Pique the customer’s interest Utilize images (photos, logos, etc.) List applicable environmental indicators Write detailed product descriptions Use generic terms that customers can understand When you are registered on GSA Advantage!®, you are providing thousands of potential buyers access to your products and services. When you create your electronic pricelist, be sure to provide a link to your company’s website. It may be a good idea to create a new link on your website dedicated entirely to your GSA Schedule contract. It’s also a good idea to use photos and graphics to represent the products and services that you’re offering. The number one customer complaint about GSA Advantage!® in our surveys is the lack of pictures. Be specific in describing your offerings to set yourself apart from the competition, but be careful to use generic terminology that your potential customers may use in their searches. Like e-Library, you should review your GSA Advantage!® presence regularly to make sure all of your product and/or service information is correct and that any links included in your GSA Advantage!® file take the customers to the right place. Remember, many federal customers use GSA Advantage!® as a research tool to identify potential sources. Keeping your GSA Advantage!® information current and attractive is more than just a contractual requirement, it’s good marketing!

This screen shot is an example of one of the many ways that you can search on GSA Advantage!®. This search could easily be narrowed down further with the use of keywords. Please note that this contractor has accepted the Disaster Recovery modification and has included pictures of their products to distinguish itself from the competition. Searches such as this could be helpful in seeing what your competition is offering, or for identifying potential MAS contractors to team with.

eBuy Online Request for Q uotation (RFQ) tool
Allows for maximum contractor participation and competition Easy and efficient Results in best value purchase decisions Once you have your products or services on GSA Advantage!®, you become a player in eBuy. eBuy is designed to facilitate the request for and submission of quotes or proposals for commercial products, services, and solutions offered through GSA Schedules. Using the eBuy system, customers may prepare and post a RFQ for specific products and services for a specified period of time. Customers can also use eBuy to post a Request for Information. Once posted, contractors may review the request and post a response, but remember you must be in GSA Advantage!® to use GSA eBuy. eBuy is easy and efficient and allows the customer to make a best value determination when doing electronic procurement.

eBuy Benefits Large customer base
Access to RFQs/RFPs issued under your awarded SINs notifications Access to “real” customer points of contact So what are the benefits of eBuy? You can submit quotes to any of the RFQs that are posted under your Schedule and SIN even if you don’t specifically receive an asking you to respond. In addition to being able to view these postings on your own, you can also elect to receive notices of all opportunities for which you are qualified. One of the hidden benefits of actively reviewing eBuy is that you will get relevant, recent points of contact at federal agencies. Even if you are not able to meet the specific needs of the RFQ or the timing isn’t right, you will get contact information on federal buyers looking for products or services in your business area. If you are not already doing so, you should become familiar with eBuy. Start reviewing the postings. The eBuy site includes a good tutorial on how eBuy is used.

To enter the site, you need to enter your contract number and SIP password. Also note that you should be logging into system under the “MAS or GWAC Contractors” heading. Please consider taking the eBuy online training by clicking on the link.

eTools Additional Information
eLibrary Select “Help” GSA Advantage!® Select “Tutorial” eBuy Select “eBuy Training” More information (tutorials, statistics, etc.) Go to GSA.gov and search GSA - Power Up eTools, then click on GSA - Power Up eTools For more information concerning all three eTools, refer to the specific eTools’ websites and then click on the tutorials, training, or help sites located on the home pages.

Government Buyers Can:
eTools Summary System Description MAS Contractors Can: Government Buyers Can: eBuy Electronic RFQ/RFP system Tap into large customer base, access to RFQs/RFPs Request info, find sources, prepare RFQs/RFPs GSA eLibrary Provides latest contract award information (GSA and VA schedules) Perform market research GSA Advantage!® Online shopping and ordering system Research competition, sell to the Federal marketplace Search for items, services, suppliers, perform market research, place orders, and compare features, prices, and delivery Here is a summery of the three e-tools we just discussed that you can use for business development. Each website has its own advantages, therefore it is beneficial to understand how to utilize each separately and in unison. You are encouraged to use the chart identified on this slide as a quick reference guide.

Researching Past Purchases
Schedule Sales Query Research your competitors Research the amount of sales per Schedule and SIN Researching past Government purchases can help you determine your competitors in the Government market and to find potential customers for your products and services. The Schedule Sales Query allows you to research the amount of sales reported under your competitors’ GSA Schedule contracts, your Schedule, and your SINs.

Federal Procurement Data Systems (FPDS) Detailed information on all federal contract actions over $25,000 Identifies who bought what, from whom, for how much, when, and where Research your competitors Research purchases by targeted customers The Federal Procurement Data System, also known as FPDS, is the central repository of statistical information on federal contracting. The system contains detailed information on contract actions over $25,000 and summary data on procurements of less than $25,000. Over 4 million transactions accounting for over $500 billion were reported to FPDS in fiscal year The FPDS system can identify who bought what, from whom, for how much, when and where.

USA Spending Research your competitors Identifies who bought what, from whom, for how much, when, and where Easy to navigate The Federal Funding Accountability and Transparency Act of 2006 required that a single searchable website be created so that the spending of tax dollars could become more visible to the public. This is a site that combines data from FPDS and the Federal Assistance Award Data System (FAADS). FAADS provides information about federal financial assistance such as grants, loans, insurance, and direct subsidies. Just like FPDS you will be able to identify who bought what, from whom, for how much, when and where.

Past Performance Whether you are selling products or services, your potential federal customers want (and at times are required) to review your federal past performance history If you already have federal customers – GREAT! Be sure to identify those past procurements to future potential federal customers If you find yourself without a strong federal past performance resume (or do not have one at all) keep the following things in mind A common frustration for new MAS contractors is understanding how federal agencies procure their goods and services. Federal procurement is dictated by the Federal Acquisition Regulation, or FAR. The regulation provides a blue print on the terms and conditions must be followed when spending federal tax dollars. The more knowledge you have regarding federal procurement regulation and requirements, the better prepared you will be when responding to federal solicitations. Whether you are selling products or services, your potential federal customers will want, or even be required, to review your federal past performance. Think about it this way. If you possessed several hundred thousand dollars to build your dream home you wouldn’t just hire any builder – you would first do some research on what builders are available. Preferably you would want to find a builder that has many years of experience manufacturing houses with multiple testimonials from satisfied past customers. The federal government likes to work in the same manner. Federal purchasing officials will do their research before obligating tax payer’s money toward a procurement – therefore a strong past performance resume could mean the difference between winning a bid and losing a bid.

Past Performance Performing as a subcontractor or as a member of a Contractor Team Arrangement (CTA) can give you experience working with federal customers Utilize socio-economic attributes as a means to stand apart from competitors Try starting small - Successfully completing smaller procurements will not only help strengthen your past performance resume, but over time they could escalate into more significant procurements You can look for subcontracting opportunities where you assist the prime contractor in completing a federal procurement. While the work completed as a subcontractor is not normally reportable under the MAS contract, the experience of working on a federal procurement should provide a better understanding of how federal agencies do business. Teaming with other MAS contract holders can also open the door to larger procurement opportunities that would normally be outside of your contractual reach. Contractor Team Arrangements, or C-T-As will be discussed at greater length in chapter 6. Also be sure that you are identifying all of your socio-economic attributes to potential customers. This will help you stand out and be unique in a crowded federal market place. When looking for MAS procurement opportunities consider starting small. Successfully completing smaller procurements will not only help strengthen your past performance resume, but over time they could escalate into more significant procurements. To put it in baseball terms – you don’t need to swing for the fences when a single will be sufficient.

Opportunities for Small Businesses
Every agency has goals for awarding orders to small businesses and some programs have “set-asides” Large businesses have Subcontracting Plans Subcontractor work to prime contractors are not generally reportable sales under your GSA contract Additional small business assistance Regional Office of Small Business Utilization Centers Commercial Market Reps with the SBA In addition to using the marketing resources outlined in Chapter 4 to find opportunities to serve as a prime contractor, small businesses have access to some special resources to help them find opportunities to serve as a subcontractor. Every agency has established goals for awarding contracts and orders directly to small businesses and subcontracting goals for several large business prime contractors. Some small business programs have set-asides under which certain contracts are reserved for competition among small businesses. Large companies who have contracts with GSA for goods or services worth $550,000 or more are required to have Subcontracting Plans. The subcontracting plans state goals in terms of dollar values and percentages of work to be subcontracted with various types of small business socio-economic groups. Sales to prime contractors are not generally reportable sales under your GSA contract except when prime contractors have been authorized by a Federal Agency to purchase from the GSA Schedule. Assistance for small businesses is available through GSA headquarters, Regional Small Business Centers and Commercial Market Reps with the Small Business Administration.

Finding Subcontracting Opportunities
Additional Subcontracting Resources GSA eLibrary GSA Advantage!® Federal Procurement Data System (FPDS) Business Partner Network GSA iGuide – Small Business Subcontracting Subcontracting Directories SBA’s SUBNet Directory and Search Engine GSA’s Subcontracting Directory As a small business, finding subcontracting opportunities is a good first step to entering the federal marketplace and building your past performance resume. GSA eLibrary and GSA Advantage!® are two GSA websites where you can find large businesses. Both websites allow you to search using a number of different variables, but the most valuable will be to search by Schedule, SIN and business size. Look at each contractor that has a socio-economic code “o”, which means other than large or small business. FPDS is especially useful to small businesses. In addition to identifying the type of products and services bought by federal agencies, this site also identifies prime contractors who receive the majority of the federal contracts in each state. On the Business Partner Network website, there is a link to the CCR Dynamic Small Business Search. It is a search engine for contracting officers, a marketing tool for small firms, and a “link” to procurement opportunities involving primes. Large businesses and small businesses can both use topics and websites at the GSA iGuide to locate different socio economic small businesses and large businesses to satisfy small business subcontracting requirements. SBA’s SUB-Net is another valuable resource. Prime contractors use SUB-Net to post subcontracting opportunities. Small businesses can review this website to identify opportunities in their area of expertise. GSA’s Subcontracting Directory is a listing of large companies who have contracts with GSA for goods or services worth $550,000 or more and have subcontracting plans. Each listing includes the company’s name, the products or services for which it subcontracts, its address, and the name and telephone number of the firm’s small business liaison.

Additional Procurement Opportunities
FedBizOpps (FBO) Single source for federal government procurement opportunities DLA Internet Bid Board System (DIBBS) Allows detailed RFQ searches Procurement Technical Assistance Centers (PTAC) Local resource available at no or nominal cost Bid Matching Service helps you find opportunities Federal Acquisition Jumpstation Your link to a host of federal acquisition opportunities Federal Business Opportunities or FedBizOpps has been designated as the single source for federal government procurement opportunities that exceed $25,000. By signing up to automatically receive procurement information by solicitation number, select organizations, and product or service classification, you can react more quickly to procurement opportunities. The DLA Internet Bid Board System, a DoD site, allows prospective government contractors to perform comprehensive and detailed searches against Request for Quotation and award documents. Flexible search options permit the user to identify RFQs and awards using a variety of search criteria including solicitation, Purchase Request Number and National Stock Number. Users may also search DIBBS by providing keywords, data ranges, and Federal Supply Class. At little or no cost, Procurement Technical Assistance Centers, known as PTACs, provide a wide range of assistance covering every phase of government contracting including marketing. Ask your local PTAC personnel about PTAC’s Bid Matching Service. The Federal Acquisition Jump Station website is designed to provide the business community a central starting point to quickly access federal procurement documents. At the websites linked from this page, you can retrieve acquisition forecasts, announcements of upcoming and current solicitations and small business assistance information.

Government Contacts Federal Yellow Book Mailing List
Contact info for over 40,000 officials in the Executive Branch List of Military Installations Contact info for Military Installations Worldwide List of Valid Contracting Offices - FPDS Agencies and Contracting Offices The Federal Yellow Book is a directory of the Executive Branch of the Federal Government within the Washington DC metro area. Quarterly editions, available on CD-ROM, keep you current with personnel and organizational changes and provide you with contact information for more than 40,000 federal officials. There is a subscription fee for this source. The Armed Forces Network is a great tool for exploring potential military customers. A huge opportunity for business exists on military installations. The trick is being able to locate the right program office or procurement official. A good place to start is with the Armed Forces Network’s list of military installations. The list of contracting offices reporting to FPDS includes the agency name, contracting office, and contracting office address for all contracting offices reporting procurement actions to FPDS.

GSA “Logo” Identifiers
You are encouraged to place the GSA identifier (logo) on your web site for those supplies or services covered by your contract Visit GSA Logo As a GSA Schedule contractor, you are encouraged to add GSA logos to your Schedule literature and website to help federal customers identify you as a GSA Schedule contract holder. The GSA logos are available for download. Just remember, you may not use the logo to represent that your product or service is preferred by the government.

Other GSA Resources GSA Training Events and Expos GSA iGuide
iGuide Business Development Site Office of Small Business Utilization (OSBU) Forecast of contracting opportunities Training and Publications National calendar of events GSA hosts, exhibits, sponsors, and coordinates conferences and expos during the year. You may wish to attend some of these, so be sure to take a look and check back periodically. The GSA iGuide is also a valuable resource to new contractors. The GSA iGuide was developed to provide new GSA contractors with additional resources regarding administrative and business development topics. Visit the GSA iGuide Business Development Site for more business development information. GSA’s Office of Small Business Utilization, known as OSBU, advocates for small, minority, veteran, HUBZone, and women business owners. Its mission is to promote increased access to GSA’s nationwide procurement opportunities. Their website is a portal for small businesses, providing links to contracting opportunities, training, small business publications, conferences, tradeshows, and other events.

Chapter 5 Modifications Common Types Submission eMod
Rapid Action Modifications (RAM) Mass Modifications Economic Price Adjustments Basis of Award In Chapter 5, we’ll talk about modifications to your contract. Modifications are an important part of contract performance because they are the means by which you keep your contract current. Keeping your contract current increases your marketability and allows you to capitalize on the marketing resources that we discussed in the last chapter. There are a number of ways that you can request a modification to your contract from your PCO. There are also circumstances when GSA initiates a modification and requests your acceptance. After a general discussion of modifications, we’ll look at some of the most frequent types.

Modifications Definition
Any unilateral or bilateral change to the MAS contract Purpose To keep your contract current Common Types Price Adjustments Adding/Deleting Products and Services Change of Ownership/Name Administrative A modification is any change made to your MAS contract. Modifications fall into two categories, unilateral or bilateral. A unilateral modification is issued by the government, carries only one signature, and generally directs the contractor to accomplish a specific action. A bilateral modification carries two signatures—the contractor’s and the government’s—and represents a mutual agreement of the parties to a course of action or change in the performance requirements. Your GSA contract will prove to be more valuable to you if you take good care of it. That’s why it’s so important to keep your contract up-to-date with the help of modifications. You should work with your PCO to adjust your prices in accordance with the terms and conditions of your contract; maintain the overall health of your contract by removing obsolete items or labor categories and adding new ones; make sure your customers and GSA know what your legal name is; and update your contact information so that you can be reached! We’ll talk about each of these action in turn, but first let’s look at how you submit a modification request.

Contractor Initiated Modifications
Methods of submitting modifications eMod (preferred method) Central Intake Desk (CID) Note - GSA Advantage!® is not a substitute for eMod or the CID There are three ways to request a modification—through eMod, by , or by mail. You can initiate a contract modification request through GSA’s eMod system. This method is available for all Schedules and is the preferred method by GSA. Specifics regarding GSA’s eMod system will be explored in a minute. and hardcopy are the two remaining methods for requesting modifications. Submitting hardcopy requests using old fashion ground mail might be an option, but keep in mind that processing times will be longer than the electronic modification request methods. All and ground mail modification requests should be submitted to each Schedule’s Central Intake Desk, which is a specific point of contact or location created to standardize modification processes for all Schedules. You may also visit the Vendor Support Center for more information regarding the CID. Please note that submitting an update to your GSA Advantage! ® file is not a substitute for submitting a modification to your Procurement Contracting Officer. Now that we know the three methods of requesting a contract modification, lets take a look at what information needs to be included in modification requests.

Modification Request Include: Schedule number and contract number
What you’re requesting Rationale for request Commercial Sales Practices Format Documentation to support request Any additional information as required by applicable contract Clauses or PCO Reference: Clause of your contract To expedite processing time, you need to ensure that your modification requests are complete. In addition, it’s always a good idea to speak with your PCO. Some solicitations also include formal checklists which help a contractor navigate the submission process. Here are just a few of the items that you may need to address when submitting your modification request. Be sure to identify yourself; clearly identify what you’re requesting; provide rationale for your request; submit a new Commercial Sales Practices Format if applicable; and submit any necessary documentation to support your request. Additional documentation could include copies of your commercial pricelist, product literature, or labor category descriptions.

Changing Products or Services
3 Be proactive in proposing to add and delete items from your contract Reasons to Add New commercial products or services Customer request Increasing marketability Reasons to Delete Products or services have become obsolete Reducing the breadth or depth of contract coverage to simplify management of contract Adding new products or services to your contract is a great way to expand your offerings to ordering activities, thereby increasing your marketability. During a Contractor Assistance Visit, an IOA might notice that you’ve been offering a variety of products and services that are not covered by your contract to government agencies through open-market procurements. It should be easy to modify your contract to add these items if the products and services fall within the scope of your Schedule contract. It may also be the case that an ordering activity, who is interesting in using the Schedule program, requests that you add certain products and services to your contract in order to meet a requirement. Although deleting products and services sounds like a bad thing, doing so may actually improve your marketability—especially if a product or service that you currently have on your Schedule contract is now obsolete. You want to avoid having old technology on your contract. Sometimes, managing your contract can be burdensome when you offer too many products or services. Take an inventory of what your core strengths are, and make good business decisions about what you want to offer the government. Adding and deleting products or services to your contract is an important performance element, so be sure to remain proactive in monitoring your offerings.

Change of Ownership or Name
Novation Agreement Transfer of all of the contractor’s assets, or transfer of the portion of assets involved in performing the contract Notify PCO and ACO within 30 days Required documentation can be found in FAR Part 42.12 Change-of-Name Agreement Only change in company’s legal name Both parties rights and obligations are unaffected 2 2 During the CAV, and in the course of monitoring your performance, your IOA will note if your company has undergone a change of name or has been purchased by another company and whether the proper procedures have been followed. Because this is reflected in your report card, let’s go over each. If you have a change of ownership or name, the government may recognize a third party as the successor in interest to your Schedule contract if all of your assets are transferred or the portion of assets involved in performing your contract are transferred. This transfer of assets is called a novation and you are required to notify your PCO immediately if you experience a change of ownership. If only a company name change has occurred, and the government’s and contractor’s rights and obligations remain unaffected, then only a change-of-name agreement is necessary. This process is much simpler than a novation, but you still need to notify your PCO immediately so that a modification can be executed to reflect your new business name.

Administrative Information
Correct Administrative Information Address Phone Number Contact for Contract Administration DUNS 2 Although it seems minor, keeping your administrative information up-to-date is vital to your success as a contractor. If your phone number, , or Contact for Contract Administration are incorrect, interested ordering activities will be unable to reach you. Similarly, if this information isn’t updated in CCR, you may not receive payment for work that you’ve already performed! Other times, GSA has important information to convey to you that you don’t want to miss. Request a modification from your PCO when any of your administrative information changes, and don’t forget to update all of the online resources to reflect the changes. Put your ACO on copy or forward him/her a copy of your request to update administrative information.

eMod eMod is an online contract modification request tool
3 eMod is an online contract modification request tool Request is electronically transferred to contracting office Modification is signed electronically Required for certain Schedules, but available to all Schedules The types of modification that can be executed using eMod are: Add or delete products/services Add or delete SIN(s) Price reductions Economic Price Adjustments Administrative & technical changes eMod is a web-based application that allows contractors to electronically prepare and submit modifications. The purpose of eMod is to streamline and expedite the modification process and to create an electronic modification file. Currently, eMod is available for all Schedules and the required method of modification submission for Schedules 03FAC, 66, & 874V, and will be required for other Schedules in the future. Please contact your PCO for more information regarding eMod requirements. Currently, eMod can be used to add or delete products and services, add or delete SIN(s), request a price reduction, request an economic price adjustment, request administrative changes, or request technical changes. Technical changes can include a change in geographic coverage, part number changes, product description changes, or service description changes.

Using eMod eMod access available at http://eoffer.gsa.gov
Users need a digital certificate Digital Signature Trust Operational Research Consultants eMod training Digital Certificate Training You can access eMod by going to the eOffer homepage. All contractors who utilize eMod must have a valid digital certificate for secure online transactions and electronic signatures. The cert must be a "Business Certificate" which is a Level 3 certificate necessary for government contracting. You may be eligible to receive a certificate at no cost. Check out the eoffer website for more information. After you’ve obtained your certificate, you can take eMod training to better familiarize yourself with the process. Now that we’ve talked about how you can request modifications, let’s explore one way that GSA initiates modifications.

Rapid Action Modifications (RAM)
The following changes are eligible for a RAM Administrative Modifications Contract administrator Phone number Fax number Web URL address Authorized negotiator Authorized dealer Deletion Modifications Labor category Products Special Item Numbers (SINs) Authorized dealer The newest addition to the eMod system is the implementation of Rapid Action Modifications, or RAM. Specific types of administrative and deletion modifications will now have the opportunity to be approved more quickly and with higher efficiency. RAM modifications will be unilateral on the part of Government. What that means for you is that after you submit certain types of modifications using the eMod system, you will be notified that your modification has been approved or rejected. If your modification is approved by your PCO, the modification process is complete because RAM modifications do not require you to sign the SF-30 with a digital signature. You will, however, still need your digital certificate to log into the eMod system in order to verify your identity and authority to perform actions on behalf of the contract.

Mass Modifications Mass Modifications
An electronic method used to issue uniform modifications to large segments of the MAS contractor community Commonly used to keep existing contractors’ Terms and Conditions up-to-date You are notified via that a modification is available for action at the Vendor Support Center Be sure to read and understand what you’re agreeing to Mass Modifications are government-initiated modifications that occur when a uniform change occurs Schedule-wide. A prime example is when refreshes to the terms and conditions of a solicitation occur. Mass Mods allow acquisition centers to access large segments of the contractor population with ease. When a Mass Mod is issued, you’re notified via . The contains a unique PIN that allows you to access and accept the modification and a direct hyperlink to a portion of the Vendor Support Center website, where the Mass Modification can be found. The website contains detailed information on the background, purpose and implications of each modification. At the conclusion, you will be asked to enter your PIN and other verification information to accept or decline the modification. Upon execution, a confirmation containing a printable SF30 is sent to you. A copy is also sent to your PCO and ACO. Unlike modifications that you initiate, which are administered by your PCO, government initiated modifications are administered by your ACO.

Mass Mods and Contracts Online
Contractors who accept a modification (s) to update the terms and conditions of their contract will receive a symbol on their Schedule eLibrary record an example: This symbol allows ordering activities greater visibility of the up-to-date terms and conditions of a contract GSA wants to ensure that your contract Terms and Conditions are current. This is important because ordering activities conducting market research need to be assured that a contractor’s Terms and Conditions are accurate and complete. The Contracts Online symbol next to your contract record in eLibrary is the electronic initiative that accomplishes this goal. Contractors who accept applicable Mass Mods will receive a unique symbol, currently a gold star, on their Schedules eLibrary contract record. By clicking on the “View Contract Clauses” icon, ordering activities can view all of the standard Terms and Conditions of your contract without additional research steps. Now that we’ve covered the generalities associated with modifications, we’ll review some of the most frequent types. Although these topics are covered in the modification chapter, they are contractually significant. In fact, all of the topics are elements of your report card.

Economic Price Adjustments
Mechanism that permits the raising or lowering of prices over the life of the contract Method established at time of award Be familiar with your method to ensure that you are complying with the Economic Price Adjustment clause ( ) in your contract 1 The Economic Price Adjustment clause in your contract permits you to raise or lower your contract prices. Your prices are either based on a discount relationship, a Basis of Award customer, a commercial catalog, or a market indicator. This is determined at time of award and establishes the method by which you can adjust your prices over the life of your contract. Make sure that you know which method applies to you, and comply with the applicable clause language. Doing so is a category 1 critical element of your report card, so it’s important to understand how economic price adjustments work. If you are unsure how your company determined your Basis of Award, contact your PCO as soon as possible.

Economic Price Adjustments
Increases Commercial Pricelist Prices fixed for first 12 months No more than 3 increases/year Percentage ceiling Requires a modification request to implement Escalation Rate Negotiated at time of award Set increase once a year Does not require a modification to implement Market Indicator Increases dependent on indicator performance How you escalate your prices depends on what was negotiated and incorporated into your contract at time of award. For example, if your rates are based on a commercial pricelist, and that pricelist was used as the basis of your contract award, then you can seek an economic price adjustment for increases resulting from a reissue or other modification of your commercial pricelist. However, there are usually some stipulations, such as the following: You can only request price increases to be effective on or after the first 12 months of your contract. No more than three increases can be requested during each subsequent year, and the aggregate of those increases during any 12 month period may not exceed a certain percentage. This percentage differs by Schedule, so please refer to your contract or contact your PCO. Remember to also check your Economic Price Adjustment clause, and make sure that you submit all of the required documentation to support your request. Remember, a request for price increases is always subject to negotiation. Not all awarded prices are based on a commercial pricelist. Sometimes, a fixed or variable escalation rate is incorporated into the contract. If your prices are based on an escalation rate, then you are permitted to increase your prices on an annual basis without requesting a modification, keeping in mind that prices must remain fixed during the first 12 months of your contract. Something similar but not quite identical to a fixed escalation rate is a market indicator, where any requested price adjustment is based on a percentage change in the designated market indicator negotiated at time of award. The same stipulations that are present when your prices are based on a commercial pricelist apply here as well, meaning that a modification request is necessary.

Basis of Award Customer(s)
Commercial Sales Practices (CSP) Format Used for schedule contract negotiations and relates to the terms and conditions offered to your commercial customers. Explanation of Information Required in CSP Format Basis of Award (BOA) Established at time of award Some contracts have different language describing BOA Price Reductions Clause BOA relationship must be maintained throughout the life of the contract All organizations seeking to obtain a GSA Schedule Contract provide commercial sales information as part of their response to the solicitation. CSP format, or Commercial Sales Practices format, includes information that relates to the terms and conditions offered to your commercial non-federal customers. GSA and potential contractors use this information to start pricing negotiations for the future schedule contract. The Basis of Award (BOA) customer relationship results from the final negotiations. GSA and all schedule contractors agree to a basis of award customer relationship when the GSA schedule contract is finalized. This BOA pricing relationship is usually explained on the Standard Form 1449 in the first pages of your signed GSA contract. Some contracts refer to the basis of award relationship as the pricing relationship tied to the price reductions clause of the contract. Other contracts may use some other similar language to explain the BOA relationship. Please review your specific GSA contract to ensure you are aware of the BOA relationship or in your contract. Also, review the Price Reductions Clause in your contract. The Price Reductions Clause requires contractors to maintain the BOA pricing relationship throughout the life of the contract.

Basis of Award Example “The basis of award customer relationship for this contract with is as follows: The basis of award customer (XYZ Company) receives a 10% discount from the commercial pricelist. GSA contract customers receive the same 10% or better discount throughout the life of the contract. This pricing relationship needs to be maintained throughout the life of the contract in accordance with Price Reductions Clause ” Review your contract to understand your specific BOA relationship and the Price Reductions Clause Here is a specific example of a Basis of Award relationship in a GSA contract. A contractor with the BOA relationship shown in this example would disrupt the BOA customer relationship if XYZ Company was extended a 20% discount and none of the exceptions described in the price reductions clause applied to the situation. The price reductions clause explains the steps the contractor needs to perform now that the BOA relationship has been disrupted. There are exceptions to the price reductions clause that might apply to this situation and therefore not disrupt the BOA pricing relationship. Referred to the price reductions clause in your contract to review these exceptions. Again, the language used to describe the BOA relationship in your contract is going to be different than the example shown. The example used on this slide is used to generically illustrate the relationship between the BOA relationship and the price reductions clause. Your specific BOA relationship might have different pricing relationships for specific products or services. Your contract also might name several customers or a specific customer classification such as all national accounts as the BOA customer. This is why is it vital to review your contract to understand the specific BOA relationship in your contract.

Monitoring Basis of Award Pricing
Contractors should have a system or process in place to monitor the discount relationship The IOA will be verifying the contractor is aware of their Basis of Award Customer and has a system or procedures in place to ensure the discount relationship is maintained 1 GSA highly recommends having a system or process in place to monitor the BOA discount relationship in the contract to ensure our customers are being charged the correct contract pricing throughout the contract. During the CAV, your IOA will verify that you understand your Basis of Award relationship and the Price Reductions clause, and that you have a system in place to maintain the discount relationship between the BOA customer(s) identified in your contract and the discount to your GSA contract customers. Again, refer to the BOA relationship and price reductions clause in your contract for further information.

Spot Discounts to Contract Customers
One-time discounts from your contract prices can be given to a GSA contract customer are referred to as “spot discounts” Do not need to be offered to all Schedule contract customers If discounts are offered continuously, lower prices may be negotiated when option periods are exercised To be more competitive, you can offer one-time, spot discounts from established Schedule contract prices. You can give the ordering federal agency a discount without passing that discount on to all GSA Schedule users. However, if you can afford to repeatedly offer discounts to your customers, this may indicate to GSA that we need to renegotiate your contract prices for subsequent option periods.

Chapter 6 Contractor Relationships Contractor Team Arrangements
Blanket Purchase Agreements Authorized Dealers External relationships refer to formal Schedule contractor associations with other Schedule contractors or ordering activities. We’ll explore two such associations: Contractor Team Arrangements and blanket purchase agreements.

Contractor Team Arrangements (CTA)
Definition Two or more Schedule contractors joining forces to provide a total solution to a customer For more information, visit Let’s assume that a potential customer has approached you with a quotation or proposal that requires products or services that are not covered under your contract, or that are you are unable to provide the total solution that the customer is seeking. In the past you may have decided not to submit a quote or proposal. Contractor team arrangements, also known as CTA, could be an alternative. A contractor team arrangement (CTA) is simply two or more Schedule contract holders joining together in order to provide the customer with a total one stop solution. Contractor Team arrangements can apply to several services or product lines within the same Schedule, or can be combined across two or more GSA Schedules. Under GSA Federal Supply Schedule Contractor Team Arrangements, each team member has a GSA Schedule contract. Each team member uses their own awarded prices for services and products already on their respective GSA Schedule contracts. Contractor Team arrangements should not be confused with subcontracting for a prime contractor. For example, each team member under a CTA must have a GSA Schedule contract, however, with a prime/subcontract arrangement, only the prime has to have a GSA Schedule contract. Another difference between a CTA and a prime/sub occurs when reporting sales and remitting the IFF. When Contractor Team Arrangements are used, each Schedule contractor reports their portion of sales and remits their portion of the IFF. When Prime Contractor/Subcontractor arrangements are used, the prime reports the entire sale and remits the IFF. Also, keep in mind that subcontractors do not have a direct role with the government customer, they are simply performing work on the primer contractors behalf. To find a detailed explanation of the differences between Contractor Team Arrangements and traditional subcontracting, review the FAQs at

Contractor Team Arrangements (CTA)
Benefits Ability to combine individual capabilities All team members have ownership over their portion of the order Expands your marketability Helps you stay within the Scope of your contract Share of risks and rewards How do I find a potential team member GSA eLibrary GSA Advantage!® Let’s assume that you’re considering a contractor team arrangement. Let’s discuss the benefits: Contractor Team arrangements provide the customer a total one stop solution by combining contractors’ complementary capabilities, while at the same time retaining the ability to focus on your own core areas of expertise. Unlike Subcontracting, all team members have ownership over the purchase order. Contractor team arrangements also give you a competitive edge, expand and enhance your visibility and allow you to share the risks and rewards with your fellow team members. GSA eLibrary and GSA Advantage!® are both excellent resources for finding team members.

Contractor Team Arrangement (CTA) Considerations
Written Contractor Team Arrangement Document should include… Team members’ roles and responsibilities Contract numbers Products/services and pricing Customer service and warranty issues Payment information Ordering Agency notification Notify the customer Sales Reports and IFF Remittance Each team member is responsible for reporting their sales and remitting their respective portion of the IFF 3 Once you have identified your team partner, it’s a good idea to establish a written contractor team arrangement document that clearly identifies each team member and their roles and responsibilities. Your Contractor Team Arrangement Document should include items, such as, each team member’s name, address, points of contact, contract numbers, products/services and prices, administrative costs, and invoicing and payment information. Take note that it’s vital to clearly convey in your written document how warranty and customer service issues will be resolved. These areas are covered during your CAV, and your success is reflected in your report card, but more importantly, each team member is held accountable under the terms and conditions of its contract for any problems that may occur. GSA also recommends notifying your customer about the GSA Team Arrangement. When submitting a response to an RFQ, submitting the contractor team arrangement document as part of the response is a best practice aiding both contractors and agency customers. The Sales Reports and remittance of the Industrial Funding Fee is always a source of confusion where Contractor Team Arrangements are concerned; however, the guidance is relatively simple. Each team member is responsible for reporting its GSA Schedule sales and remitting the appropriate IFF. Next, we’ll look at a different type of contractor relationship—an arrangement that is set up with an ordering activity to make things simpler for both parties.

Blanket Purchase Agreements (BPA)
Definition “Charge accounts” to fill recurring needs for supplies and services Benefits Simplifies the filling of recurring needs for supplies or services Leverages customer’s buying power by taking advantage of quantity discounts Saves administrative time Reduces paperwork For more information, visit Every GSA Schedule contract has a section within it that discusses the use of Blanket Purchase Agreements or BPAs. BPAs are effectively charge accounts that are established by ordering activities with one or more Schedule contract holders. A BPA is used when a government customer needs or anticipates the need to make repeat purchases and wishes to avoid issuing a new RFQ every time the need arises. It allows the customer to consider long term volume sales, while permitting the negotiation of additional discounts. A BPA saves you and the government customer administration costs and reduces the paperwork involved in issuing individual orders. In some situations multiple BPAs are awarded for similar products or services – when an opportunity arises, those BPA holders are allowed to compete against each other for the procurement. Next, we’ll go over some of the things that need to be considered when accepting a BPA, but use this website for a wealth of additional information and to view the most frequently asked questions.

Blanket Purchase Agreements (BPA)
A Schedule BPA should not exceed base period of the contract Contractors are encouraged to provide additional discounts—this is a best practice that helps to distinguish outstanding contractors When issued against a Schedule, the sales and IFF are reportable Open market items can only be listed when certain criteria are met as provided by FAR 8.402(f) Agencies are encouraged to seek out small business participation when establishing BPAs 3 We’ll take each point separately. Generally, a Schedule BPA should not exceed five years but can be longer if justified. A Schedule contractor can also be awarded a BPA that extends beyond the current term of its GSA Schedule contract, so long as there are option periods in the GSA Schedule contract that, if exercised, will cover the BPA's period of performance. Due to the nature of the agreement, you are encouraged to offer the customer additional discounts from your contract prices. In the event that you do have a BPA in place, whether or not you are offering the customer additional discounts will be reflected in your report card. When a BPA is issued against the GSA Schedule contract, all sales against the BPA are considered reportable and subject to the IFF. Products and services not covered under your contract generally cannot be listed in a BPA.

Participating Dealers
2 Must be listed in your price list Terms and Conditions and in GSA Advantage!® To ensure that ordering agencies are aware Must comply with Clause —Contractor Billing Responsibilities Ensures that sales are accurately tracked and reported Must agree in writing to comply with your contract terms and conditions 1 An authorized dealer is a reseller or distributor who you allow to represent your GSA contract and price list to the federal government or other eligible users. In other words, a participating dealer is an entity who sells your product using your GSA Schedule terms and conditions and pricing. Your contract requires that if these authorized dealers perform independent billing from you, and they are authorized to use your contract, you must identify them as authorized dealers and have them listed in your price list. Your contract also requires that you have a means to capture eligible sales from the dealers and that you accurately report those sales and remit the IFF. If you have dealers, please ensure that there is a written agreement in place that states that your dealers agree to comply with the terms and conditions of your contract.

Chapter 7 Other Responsibilities Minimum Sales Requirement
Business Partner Network Central Contractor Registration Online Representations and Certifications Subcontracting Reporting Bankruptcy Warranties Delivery Section 508 We’ve covered a lot of information so far, but there are some other responsibilities that you have as a GSA Schedule contract holder. Let’s explore some of those now.

Minimum Sales Requirement
1 All Schedules contractors are required to generate $25,000 in sales within the first two years of their contracts and to maintain $25,000 in sales per year thereafter These sales requirements apply on a 12 month basis - requirements cannot be met by taking an average of sales over a specified period of time The Government may elect to cancel your contract if you do not meet the minimum sales requirements Your MAS contract requires you to generate at least $25,000 in sales within the first 24 months of your contract term and to maintain $25,000 in sales every year thereafter. Averages are not taken when considering whether or not you’ve met the sales requirement, and the Government may cancel your contract unless reported sales are at the levels specified above.

Business Partner Network (BPN)
BPN provides views into key data bases across Federal Agencies. These databases are: Central Contractor Registration (CCR) All federal agencies use CCR Required registration Online Representations and Certifications Application (ORCA) Mandates that Reps and Certs are updated electronically on an annual basis CCR and ORCA website address: The Business Partner Network (BPN) is a single source for vendor data for the Federal Government. It is a portal that provides views into several key databases across Federal Agencies. The Office of Management and Budget has mandated that all federal agencies use the Central Contractor Registration (CCR) for vendor registration. For that reason, it is a contract requirement that you be registered and keep your registration active throughout the life of your contract. Either the ACO or IOA will verify this registration and will document your compliance on the report card. Remember that besides being an element of the report card, keeping your information up-to-date in CCR ensures that customers can find you, and you can get paid. If you’re a small business, you can also use CCR as a marketing development and research tool. If you’re interested in being a subcontractor, you can also seek out large businesses. Online Representation and Certifications Application, known as ORCA, essentially replaces the paper-based Representations and Certifications. You are required to submit your company’s representations and certifications electronically via the Business Partner Network. Since electronic representations and certifications are effective for one year from date of submission to ORCA, there is a requirement for contractors to complete representations and certifications on an annual basis. As an example, any contract awarded as a small business, which has experienced a novation, merger or acquisition resulting in a change to its business size classification must represent its business size within 30 days after the novation, merger or acquisition. The recertification must be completed in ORCA and CCR. Notify your PCO via or in writing after validating your small business size is correct in ORCA and CCR or after you update your business size representation in ORCA or CCR.

Subcontracting Plans and Reports
1 Large businesses have a responsibility to adhere to the Subcontracting Plan they negotiated into their contract and must make a “good faith effort” to meet or exceed subcontracting goals Large businesses must submit their subcontracting reports to the Electronic Subcontracting Reporting System (eSRS) website Summary Subcontracting Report (SSR) Submitted annually no later than 10/30 Individual Subcontracting Report (ISR) Submitted biannually – no later than 04/30 and 10/30 Types of qualified businesses Small (including Alaskan Native Corporations (ANC) and Indian tribes) Disadvantaged (including ANC and Indian tribes) Woman-owned HUBZone Veteran-owned Service disabled veteran-owned Refer to Large businesses, as determined by the parameters set forth in your Schedule contract, are required by law to establish goals for awarding subcontracts to qualified small businesses. Subcontracts awarded to Alaskan Native Corporations (ANC) and Indian Tribes are two new categories added to the small business subcontracting group. As a large business, you have the responsibility to submit subcontracting reports to GSA. This is done electronically on the Electronic Subcontracting Reporting System, called eSRS. Check to see what kind of report you need to submit based on the type of subcontracting plan that you have. This will determine when the report is due. Please note that hard copy subcontracting reports are no longer accepted and check out the eSRS website for more information. Please note that subcontracting goals are not a requirement for small businesses.

Bankruptcy If you have entered into bankruptcy proceedings… 3
Notify the PCO in writing within five days of the initiation of the proceedings Reference for more information Although not the most pleasant of topics, bankruptcy can happen. In the unfortunate event that you enter bankruptcy proceedings, you have certain contractual responsibilities, most important of which is to notify your PCO in writing within five days of the initiation of the proceedings. After the CAV is conducted, your ACO will inquire about your solvency, specifically whether or not you are currently in bankruptcy proceedings. Reference the bankruptcy clause in your contract for more information, including what elements need to be included in your written notification.

Warranties Be familiar with the warranty terms in your contract
Comply with all requirements If your commercial warranty was incorporated into your contract, comply with its provisions Warranty claims - handle promptly and efficiently 2 During the CAV, the IOA will review your process for honoring any warranty terms that may be indentified in your MAS contract.

Delivery History Be familiar with any delivery clauses in your contract and delivery terms on individual orders Comply with the delivery time outlined in the clause(s) or any other delivery terms that were negotiated at time of award Timely delivery preserves your reputation as a reliable contractor 2 Also be familiar with any delivery terms and conditions contained in your contract as well as in purchase or task orders issued by a customer. During the CAV, the IOA will take a representative sample of orders shipped and determine the percentage that were shipped on time based upon the delivery terms of your contract. Service orders will be reviewed for compliance to originally established milestone dates. Being reliable isn’t only about getting a good rating on a report card question. Being reliable and understanding your responsibilities as a product or service provider to the federal government will preserve your reputation, lead to increased business opportunities, and will ultimately result in your success.

Section 508 Part of the 1998 amendments to the Rehabilitation Act of 1973 requires that all electronic and information technology (EIT) developed, procured, maintained, or used by the Federal government be accessible to people with disabilities If you’re selling EIT products or services to federal customers, they must comply with Section 508 Technical standards Register with the Buy Accessible Data Center, a tool that assists customers with market research to find vendor-provided accessibility information about EIT products and services In 1998, Congress amended the Rehabilitation Act to require Federal Agencies and the US Postal Service to make their Electronic and Information Technology accessible to persons with disabilities. The law applies to all Federal agencies and the U.S. Postal Service when they develop, procure, maintain, or use EIT. If you offer EIT products on your Schedule contract, they must be 508 compliant when procured by all Federal Agencies and the USPS. The Buy Accessible Data Center helps federal customers to do market research on vendors who offer 508 compliant EIT products and services. For that reason, you should register with the Center and include information about your company and the accessibility of your products and services. This is a great way to target potential customers!

Chapter 8 Hot Topics Trade Agreements Scope Environmental Products
Scope of contract and trade agreements have always been key issues as well as contractual requirements, but recently, both topics have come to the forefront of government contracting. Because their importance cannot be overstated, this chapter is dedicated almost exclusively to explaining each. This chapter also addresses the increasingly critical topic of offering environmentally friendly products to the government.

Trade Agreements Act (TAA)
The TAA implements various international trade agreements and other trade initiatives TAA is applicable to all Schedule contracts (including services) Trade Agreements clause (FAR ) is included in contracts via the standard commercial items clause (FAR (b)) Trade Agreements Certificate (FAR (g)(4)) Contractors must only provide U.S.-made or designated country end products Refer to FAR , Definitions for a complete list of designated countries 1 The Trade Agreements Act, referred to in short as the TAA, is the overarching statute implementing a number of trade agreements and other trade initiatives. It is in the government’s best interest to encourage other countries to engage in trade agreements to expand opportunities for the commerce of the U.S. in international trade. Doing so promotes the health of both the U.S. and global economies. The TAA is applicable to all Schedule contracts. The Trade Agreements clause is contained in your contract. If you offer products, you had to fill out the TA Certificate as well. By virtue of having the clause in your contract and filling out the Trade Agreements certificate if applicable, you have agreed to provide the government with only U.S-made or designated country end products. Designated countries include those listed by the TAA clause. It is important to point out that this list of countries is not static—countries can change depending upon newly instituted trade agreements or abolishment of others.

What is a Compliant TAA End Product
Wholly the growth, product, or manufacturer of U.S. or Designated Countries SUPPLY When dealing with supplies, an article needs to be either-- 1) Wholly the growth, product, or manufacture of the subject country; or 2) In the case of an article that consists in whole or in part of materials from another country, has been substantially transformed in the subject country into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed. Remember, you are responsible for making the determination as to whether or not an items has been substantially transformed – not GSA. If consists of materials from another country, has been substantially transformed

TAA – Your Responsibilities
Products vs. Services For contractors providing products - all items must be manufactured in the U.S. or a designated country For contractors providing services - the country of origin is considered to be the country where the company is established Review your price list and GSA Advantage!® file for accuracy and any possible noncompliant items Notify your PCO if noncompliance is uncovered Ensure that you have a control system and/or process in place to track the country of origin of all products—it is not required, but it is a good idea To insure there is no confusion determining TAA compliance for products and services lets look at each separately. All MAS contractors that provide products need to verify those approved items are manufactured in the U.S. or a designated country. All MAS contractors providing services need to be sure the country where their company has been established is the U.S. or a designated country. Review your price list and your GSA Advantage! file to see if all of your items are in compliance with the TAA. In addition, make sure that the country of origin listed in GSA Advantage! is an accurate representation of where the item is manufactured. Notify your PCO if you identify any noncompliant items so that they can be removed from your price list immediately. Having a system in place to monitor country of origin is not a contractual requirement; however, compliance with the TAA is. Therefore, we recommend having some sort of a system or process in place to track the origin of your products to protect yourself, GSA, and the federal community. Compliance with the TAA is a report card element, but more importantly, compliance will minimize the risk that you and your company face any serious, negative consequences. Your IOA may ask for country of origin documentation, including any processes or procedures that you have in place, to determine whether or not you are able to demonstrate compliance with the TAA. Please be prepared to present this information during the CAV. Maintaining constant compliance with the TAA is a serious matter and numerous companies have lost millions of dollars due to TAA compliance issues. Therefore please do not take TAA compliance or the possibly of serious consequences lightly. Please remember that it is your ultimate responsibility to remain in compliance with the TAA over the life of your contract.

Scope What is “scope” “Does the work being performed or the products being provided fall within the descriptions of the Special Item Numbers (SINs) that I was awarded, and is the service or product authorized under my contract?” Why it is important You must only sell those products and services awarded under your contract To maintain the integrity of the Schedules program To protect you from any unintended consequences 1 Scope of contract is an equally important issue. When thinking about scope, the most important question to ask is: “Does the work being performed or the products being provided fall within the descriptions of the Special Item Numbers that were awarded to me?” If the answer is “yes”, then you are probably within the scope of your Schedule contract. If you have questions as to whether or not an order includes products and services that are outside of the scope of your contract, contact your PCO before accepting the order. We have a strong commitment to you and to our ordering activities that GSA contracting vehicles are being used properly.

Scope Only sell products and services that fall within Schedule/SIN descriptions If products and services are being sold, and they are not on your Schedule contract, do not represent them as such Only sell products and services that fall within the SIN descriptions and the Scope of Work outlined in your contract. Please be sure that non-contract items are identified as such on all task orders. Do not purposely or inadvertently represent non-contract items as being Schedule contract items. Non-contract items should be procured using open market procedures. For that reason, you are doing a disservice to your federal customers when you violate the scope of your MAS contract because critical procurement requirements are not being satisfied.

Staying Within Scope There are possible avenues to take to ensure that you are accepting and performing work that is within the scope of your contract Obtaining additional MAS contracts Contractor Team Arrangements Modifications (Additions/Deletions) There are a number of alternatives that are available to you so that you can remain competitive while still complying with the terms and conditions of your contract. One option is to submit a proposal to obtain one or more Schedule contracts, assuming that there are Schedules available that cover the products and services that you want to offer. A couple of other alternatives are participating in Contractor Team Arrangements or requesting a modification to add or remove products and services from your contract. We discussed Contractor Team Arrangements and modifications in previous chapters.

Environmental Products
It has become everyone's responsibility to improve our decisions regarding the environmental impact of the products we purchase – this also applies to government procurement The environmentally friendly products and services available through the MAS contracts helps the government achieve their environmental goals It has become everyone’s responsibility to improve our decisions regarding the environmental impact of the goods and services we purchase. This is especially true for government acquisitions because those agencies are utilizing tax dollars for their procurements. For that reason, federal agencies have been encouraged (and at times required) to procure environmentally friendly products when they are available. The environmentally friendly products and services available through the MAS contracts assist those federal agencies achieve their environmental goals.

Environmental Products
Contractors self-certify that products listed on GSA Advantage!® and their contract price list meet the criteria for an environmentally friendly product Energy Star and EPEAT compliant products are automatically designated as such in GSA Advantage!® Contractors are responsible for demonstrating the environmental product attributes listed in GSA Advantage!® are correct (with the exemption of Energy Star and EPEAT products) Further information regarding GSA’s environmental program can be found on the GSA Advantage!® environmental website MAS contractors self-certify that the products listed on GSA Advantage! and in their approved contract price list meet the criteria for an environmentally friendly product. Currently there are two environmental attributes that GSA Advantage! automatically identifies when uploaded into the system – Energy Star and EPEAT. Contractors will be responsible for demonstrating that the environmental attributes they apply to their product listings on GSA Advantage are correct. More information can be found by visiting the GSA Advantage.gov website, and then clicking on the Environmental link listed under “special programs.”

Environmental Products and the CAV
1 Be able to demonstrate to the IOA that the products offered meet the criteria designated by GSA as environmentally friendly products The documentation may include but is not limited to: Certification from the manufacturer of the product Government documentation showing testing/acceptance Other methods of demonstrating compliance with your self-certified environmental attributes In order to receive a positive response for this report card question, contractors need to identify their environmental products and be able to demonstrate to the IOA that the environmental indicators are accurate. This may require greater oversight of suppliers and more detailed product reports. The documentation may include, but is not limited to, certification from the manufacturer of the product, Government documentation showing testing/acceptance or something similar.

Recap of Topics To recap, we’ve talked about
Price lists and GSA Advantage!® Sales tracking and quarterly reporting Business development tools Contract modifications Contractor Team Arrangements, BPAs, and Subcontracting Scope of contract, Trade Agreements Act, and Environmental Products To recap, we’ve talked about price lists and GSA Advantage!, sales tracking and quarterly reporting, business development tools, contract modifications, contractor relationships, scope of contract, Trade Agreements Act, and Environmental Products.

You’re on the Road to Success
The Vendor Support Center (VSC) website is your portal for a wealth of information The iGuide An interactive electronic reference tool Consolidates administrative and marketing information and websites Supplement to the New Contractor Orientation Available on the VSC under “Publications” During this presentation, we’ve covered a lot of information. We realize that it’s a lot to comprehend in one sitting, but hopefully what we’ve covered gives you substantial insight into what you need to know to be a successful GSA business partner. Remember that the VSC and iGuide offer you a wealth of information to help you manage your contract.

Next Steps Satisfaction Survey
Take a minute to help GSA improve its services to you Electronic Copy We encourage you to download a copy of this presentation for future reference or training Please take a minute to complete a short survey. The survey asks a series of questions concerning your satisfaction with the New Contractor Orientation. We’re interested in whether or not you found the information presented in the orientation valuable, other subjects that you’d like to see covered, and any other thoughts that you’d like to share. Filling out the survey only takes a few minutes. Your feedback will help GSA to improve its services to you. Also, we encourage you to download a copy of this presentation for future reference or training opportunities. If you have any questions, always feel free to contact us. Thank you for taking the time to learn about what it takes to be a successful contractor.

Presenter Contact Information Jack Tekus Master Industrial Operations Analyst Western Operations Center Office: Zach Smith Supervisor Industrial Operations Analyst Midwest Operations Center Office:

Successful MAS Contracting A Beginner's Field Guide

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Successful MAS Contracting A Beginner's Field Guide

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