OLM rule finalized

OLMs, Order-Level Materials, are goods and services that are not covered by original FSS contracts or BPAs, but are necessary to the completion of a particular order. Historically, FSS prohibited agencies from adding them into task orders and delivery orders placed against contracts. This meant agencies could only acquire them by placing task orders on multiple-award-contracts, and were hence forced to make two separate procurements. However, on January 24, FSS issued a final rule to authorize agencies to acquire OLMs when placing orders, offering greater flexibility and efficiency.

The rule makes clear that OLMs are not open-market items, but rather may be added to an order under the new GSAR provision 552.238-82. The list of schedules authorized to allow for OLMs should soon be available here. 

Under the new rule, agencies may add OLMs up to one-third the value of the order, with some restrictions. Except for travel OLMs, each proposed OLM above the simplified acquisition threshold of $150,000 should come with three quotes. This ensures that prices are fair and reasonable.

Industry partners with affected GSA FSS schedules will receive bilateral modifications from GSA adding the OLM Special Item Numbers (SINs) to their GSA contracts. Before accepting, contractors should ensure that they have policies and procedures in place to comply with the three-quote requirement and the OLM limitation of one-third of the total order value.

Overall, this looks like a welcome change that will increase efficiency and decrease administrative costs.