Unpricing GSA

The Coalition for Government Procurement has been lobbying for an unpriced schedule, and Section 876 of Fiscal Year 2019 National Defense Authorization Act provides just that. It authorizes agencies, specifically GSA and its Schedules (41 USC 152) to not include price or cost as an evaluation criterion when awarding hourly rate and service contracts.  (Federal News Network, January 10, 2020)

An unpriced schedule is seen as more efficient by:

  • Allowing for evaluation against actual requirements
  • Reducing oversight activities associated with auditing of the award and the Price Reductions Clause
  • Honing competition by permitting customers to highlight speed and need for agency-specific service requirements
  • Allowing for common commercial practices in structuring contracts
  • Reducing hurdles to market entry for small businesses by allowing federal customers to leverage technology to meet end mission goals (ibid)

As we mentioned earlier in the week, GSA’s IG found that current pricing tools are resulting in insufficient price determinations. In many cases, the use of the CALC and CODCD pricing tools result in agency overpayment. The IG report stated, the “intent of the MAS Program is to leverage the government’s buying power in an effort to provide customer agencies with competitive, market-based pricing… GSA’s contracting officers are required to seek the best price granted to the contractor’s most favored commercial customer.”

The report outlines GSAM requirements that guide pricing determinations, such as requiring the government to pursue most favored customer pricing. It also defines methods that contracting officers should use to compare the terms and conditions of the MAS solicitation with those of the offeror’s commercial customers. MAS allows agencies to take advantage of the government’s purchasing power; moreover, it offers a channel for agencies to obtain commercial services and products swiftly. Per the statute, all responsible sources participate in the program, and all orders “result in the lowest overall cost alternative to meet the needs of the Federal Government (41 USC 152).” (ibid)

GSAR 538.270-1, states, “the Government recognizes that the terms and conditions of commercial sales vary and there may be legitimate reasons why the best price is not achieved.” This language actually reinforces leveraging the unpriced schedule. It highlights the complexity around contract-level pricing that is removed from government requirements reflected in a specific order. (ibid)

Federal News Network editorializes that an unpriced schedule focuses the price evaluation on actual requirements in real-time as they are being sought in the market. This type of competition, for agency-specific requirements, results in the most cost-effective, best value outcome for the agency.When resources are focused on competition, it’s a win for agencies, GSA and industry providers.

If you’re interested in learning more, give us a call.

GSA Pricing Tools, Untooling

A GSA internal watchdog has found the two comparative labor pricing tools contain flawed data and recommends GSA stop using the pricing tools. GSA however, plans to keep the current pricing tools in place for now. (FCS, January 2, 2020)

This report shows the use of discrepant data in flawed equations, thus arriving at unreliable pricing data. GSA’s Inspector General (IG) said, “the data and calculations are so flawed, they’re dulling the federal government’s buying power edge, as well as possibly resulting in the overpayment on contracts.” (ibid)

Julie Dunne, FAS Acting Commissioner, agrees with the IG that the two tools, Contract-Awarded Labor Category tool (CALC)  and Contract Operations Division Contractors Database (CODCD) used for labor pricing, are not the optimal. She also agrees about a need for pricing comparison capabilities; however, she refrains from wanting to scrap these tools in lieu of something else that might bring even greater inaccuracies. 

Dunne went on to say that without the current tools, labor pricing would be determined by individual searches via the internet resulting in more inaccuracies. She acknowledged that decisions on comparison pricing for labor have always been the judgment of FAS contracting officers. “Disallowing access to aggregated information about previously-awarded MAS contracts does not further our goal of improving pricing. Quality price analyses are the result of training, expertise and appropriate controls. FAS believes our continued focus in these areas will improve how comparative data is used in our MAS award documentation.” (ibid)

Have questions concerning your current labor pricing? Give us a call.

Open Ratings Closed

Open Ratings stopped accepting new orders for Past Performance Evaluations as of Friday, 6 December 2019. All Multiple Award Schedule (MAS) offerers must now demonstrate a sample of past performance by using one of the methods outlined by the solicitation:

  1. verify in eOffer there are three or more CPARS assessment reports that meet the solicitation criteria outlined in SCP-FSS-001 (j)(2)(ii)(A) or
  2. submit a past performance record and list of customer references as outlined in SCP-FSS-001 (j)(2)(ii)(C) when the offeror does not have CPARS assessments that satisfy the solicitation criteria in SCP-FSS-001 (j)(2)(ii)(A).  GSA will contact all customer references and request they complete a past performance questionnaire. Note – offerors should not upload completed past performance questionnaires with the MAS offer. (GSA Interact, December 18, 2019)

An offeror’s demonstration of past performance is limited to the methods spelled out in the solicitation. Additionally, GSA will not accept Dun & Bradstreet reports in lieu of the Past Performance Evaluation prepared by Open Ratings. Any offerors who ordered an Open Ratings Past Performance Evaluation on or before December 6, 2019, can use SCP-FSS-001 (j)(2)(ii)(B) to demonstrate a pattern of Past Performance if the Open Ratings Past Performance Evaluation uploaded to the offer is dated within one year of the offer submission and the offeror had no CPARS assessments that satisfied the solicitation criteria as spelled out in the SCP-FSS-001 (j)(2)(ii)(A). (ibid)

Is this all perfectly clear? If not, give us a call and we can walk you through the steps to demonstrate the acceptable Past Performance for a MAS offer.

New Year, New Mass Mod

At the start of the new year, GSA plans to issue a Mass Modification that will update Schedule contracts to mirror the new consolidated Multiple Award Schedule (MAS) for products and services. The new Multiple Award schedule was released this past October 1st. (GSA Interact, November 25, 2019)

The single Schedule solicitation promotes a simplified format, terms, and conditions along with new categories and Special Item Numbers (SINs). The new Schedule should make it easier for contractors to offer products and services and for agencies to find them. (ibid)

When the Mass Mod is issued, all current Schedule holder’s terms and conditions will align with the new consolidated MAS. The new consolidated MAS solicitation and category attachments are posted on BETA.SAM.gov. Attachments incorporate additional instructions and requirements specific to each large category, subcategory, or SIN. The new consolidated MAS solicitation includes:

  • Solicitation
  • Available Offerings Summary Document
  • Regulations Incorporated by Reference

The Available Offerings and Requirements page on GSA.gov contains templates and attachments for the solicitation. Instructions for each template can be found on Beta.Sam.gov; however individual documents will be housed on GSA.gov. (ibid)

So what do you need to do go get ready? GSA recommends attending one of the following webinars:

Session One:

Date: Thursday, December 19, 2019

Time: 2:30 – 3:30 PM EST

Registration Link: can be found by clicking here.

Session Two:

Date: Thursday, January 9, 2020

Time: 3:00 – 4:00 PM EST

Registration Link: can be found by clicking here. (ibid)

Individuals unable to attend either of the two webinars can find recordings on Interact. In addition, there is an Overview of MAS Consolidation and Consolidated Solicitation Advance Notice training recordings which can be reviewed at any time.

To understand the New Offerings structure, individuals should review the solicitation to understand where specific offerings will fall under the new large categories, subcategories, and SINs. In addition, review of the advance notice for the release of the MAS solicitation, for an overview of clauses, available offerings, and a matrix of clauses included in MAS. (ibid)

GSA recommends questions be submitted to your assigned contracting officer (CO) or the Multiple Award Schedule Program Management Office (MAS PMO) at MASPMO@gsa.gov. (ibid)

Once in receipt of the upcoming Mass Mod, we recommend you review it immediately. Note any exceptions. When responding to the Mass Mod, contractors will be presented with each clause in the consolidated Schedule and may either accept the clause or request an exception. Each exception must include a written justification and be negotiated with the CO. (Contractors should not take exception to clauses that do not apply to them.)

All responses to the Mass Mod are due before July 31, 2020. Those not responding by the due date will find their offerings unavailable on GSA eTools. The contract number, period of performance, products, and services offered as well as the assigned CO will not change as a result of accepting the Mass Mod. (ibid)

Concerns about the Mass Mod and whether or how an exception might affect your current Schedule? Concerned with how to justify an exception? Give us a call.