The Contract-Gift that keeps on giving

GSA offers continuous contracts to successful MAS contractors

With so many of our current clients approaching the sunset of their 20-year contract Schedule periods, we are pleased that GSA has finally released an official rule to help with ongoing Blank Purchase Agreements (BPAs).

In the past, the end of the Schedule options meant contractors had to perform a juggling act with their government clients to keep BPAs from becoming inactive or going to a competitor. When BPAs extend past the expiration date of their underlying MAS contracts, orders can be placed until the last day of the schedule contract, but no option periods can be used after the Schedule contract expires.

GSA has finally allowed contractors to maintain overlapping or continuous contracts. These contracts are essentially duplicate MAS contracts for different periods of performance. Holding two contracts is not mandatory, and for many contractors, would be unnecessary. But for others, it can be a business-saver.

For those that do need it, continuous contracts will allow contractors to complete work under BPAs, while simultaneously seeking new  business opportunities. Contractors should be aware that this may result in extra reporting burdens, but will be happy to know that MAS now has a streamlined process and revised requirements for previously successful contractors submitting offers for new contracts under the same schedule.

Readiness assessments, financial statements, corporate experience, open ratings report, and relevant project experience requirements have all been eliminated or greatly reduced for successful MAS contractors. To qualify, contractors must propose the same Special Item Numbers as those awarded under existing contracts, meet the minimum sales requirement under the existing contract, and demonstrate a pattern of satisfactory past performance.

For more information, check the vendor support center or contact us here at EZGSA (301-913-5000).

Dates to Mark on your GSA Schedule Contract Calendar

One-year point

If you have recently been awarded your GSA contract, congratulations. You are now on the clock. You have two years to generate $25,000 in GSA contract sales, a hard deadline which arrives more quickly than you’d expect (!).  Begin executing your marketing plan immediately, and at the one-year point, we suggest you  re-assess: Has your marketing plan generated the expected outcomes? Do you have enough potential business in the pipeline to meet your sales goal? It can take 12 months before you begin to see if a business development plan takes hold.   Mark the one-year point, and reassess your current trajectory. Your contracting officer will reach out to you several months before your two-year anniversary to indicate the government’s intention to either continue their contract or to cancel it due to lack of sales. Be prepared.

EPA Date

After having a GSA Schedule contract for 12 months, contractors may be eligible for an Economic Price Adjustment. For many Schedules, you can submit three price increases per 12 month period, so long as the combined  increases do not exceed the 12-month percentage cap.

Know the date you can submit your next EPA, and be forewarned. You are not able to recover missing a year’s EPA by doubling up on a request in subsequent years.  

Contract End

Note your contract end date. Approximately 210 days (seven months) before that date, you’ll receive information regarding an option to extend your contract. Prepare, and expect  this letter, as you have 45 days to respond.

Sunset Date

After your fourth and final renewal period goes into effect, you should begin to prepare a new GSA Schedule contract submission. Your current contract is still valid for the next five years, but every day past the renewal date shortens the length of time that a contract can be written against your GSA Schedule. If your company often wins one year BPAs with four year options, there’s bad news: when your  BPA doesn’t span five FULL years, you won’t be eligible to compete for 1+4 contracts. It is imperative, then, to be preparing your new GSA Contract as soon as possible after your final option to extend has been exercised.

For more information, contact EZGSA at 301-913-5000 or Iwohner@ezgsa.com.