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Month: March 2018

Final Rule released for Common Commercial Terms

GSA Final Rule Defines Common Commercial Terms

On February 22, GSA issued a Final Rule addressing common terms that are inconsistent with Federal Law. The rule aims to streamline agreements over CSAs, EULAs, Terms of Sale, and similar sets of terms and conditions. The rule reverses several controversial provisions from an earlier Proposed Rule and class deviation by reverting the order of precedence and eliminating the requirement to provide full text of all provisions.

The rule also formalizes the longstanding stance that certain terms and conditions cannot be enforced by law via a paragraph addition to GSAR 552.212-4. The paragraph identifies 15 common commercial terms, which are viewed as non-negotiable and required by federal law. It prohibits automatic  renewals, and provides that disputes are governed by federal law. The change allows GSA to ignore these clauses during negotiations, thereby reducing time and expenses. Among the included terms are:

  • commercial supplier agreements
  • unenforceability of unauthorized obligations
  • solicitation provisions and contract clauses for the acquisition of commercial items

GSA responded well to industry complaints about the proposed rule, modifying or reversing the most egregious propositions.

For more information see the National Law Review.

Proposed Schedule 736 Enhancements

GSA Region 2 FAS Intends to Upgrade and Re-organize Schedule 736

Proposed modifications to Schedule 736 aim to make the schedule more customer-friendly and make Wage Grade Occupations and Professional Labor Categories more visible. According to the plan, there will be two primary SINs: 736-1 for Wage Grade Occupations and 736-5 for Professional Labor Categories. SIN 736-99 will remain unchanged.

The new categorization only applies to pending and not-yet-approved wage grade categories. Vendors under SINs 736-2, 736-3, and 736-4 will be consolidated into the two remaining SINs based on their current offerings. After the consolidation, those SINs will be deleted. FAS will update the solicitation to reflect all current Temp Help regulations, and contain a new ordering guide for customers.

Vendors who offer both Wage Grade and Professional Labor Rates will have to separate out their offerings. Through eMod, they should add either of the two primary SINs that apply to their offerings. Creation and submission of a new pricelist will be required, but price changes and new labor category additions are not allowed at this time.

Existing task orders will not be impacted, and will remain valid until their natural expirations. The SIN descriptions will show the entire List of Occupational Categories based on the fifth edition of the DOL Occupations Directory.

Ultimately, FAS aims to increase utilization of the schedule (as full-time hiring is becoming greatly abridged), streamline procurement and end contract redundancy, and facilitate greater capture of marketshare.

As always, if you have questions or concerns about these changes, please call our office at 301-913-5000.