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Federal Contracting

Effectiveness of TDR is TBD

GSA Responds to Criticisms of TDR

The new pilot program for Transactional Data Reporting has met widespread criticism, leading many to question its supposed benefits.

GSA wrote the Transactional Data Reporting (TDR) requirement as an alternative to the Price Reduction Clause (PRC) and Commercial Services Practices (CSP) provision, in response to contractor complaints. The CSP provision requires government contractors to inform GSA of any discounts they offer to commercial partners. Meanwhile, the PRC requires contractors to offer government clients discounts equal to those given to commercial customers, as determined by the contract itself.

Because vendors tend to loathe these clauses, the TDR requirement generated widespread enthusiasm before its June launch. However, since then, it has met with criticism from the contractor side and has included anecdotal evidence of contracting officers still requesting CSP, or CSP-esque information from contractors enrolled in the TDR pilot.

Kevin Youell Page, the deputy commissioner of the Federal Acquisitions Service has publicly stated that “We haven’t really heard from anyone that this has specifically happened.” Most of the criticism appears based more on worries that COs could still require these, as well as general apprehension. Nonetheless, Youell Page is trying to answer feedback and reform the program. FAS has set up an email address exclusively for questions, comments, and concerns about the program; worked closely with the inspector general’s office to alleviate confusion; and continues a cross-country campaign to train and educate contractors and stakeholders.

This is a dramatic shift, made more  so by the risks associated with the new administration. GSA has only committed to a three-year pilot, and as yet the Trump administration has not moved to support TDR. This creates concerns about the liability of participating contractors for PRC and CSP data after the pilot ends.

FAR Update

FAR Subpart 4.17, Service Contracts Inventory, requires service contractors with contracts containing either FAR clause 52.204-14 or 52.204-15 to submit a Service Contract Report (SCR) to the System for Award Management (SAM.gov) at the end of each Fiscal Year.

FAR clauses 52.204-14 and 52.204-15 should be contained in all of the following types of service contracts:

  • Cost-reimbursement, time-and-materials, and labor-hour service standalone contracts or orders with a total value above the simplified acquisition threshold (SAT);
  • Fixed-price definite-delivery service contracts with a total value at or above $500,000;
  • Indefinite-delivery contracts where the estimated total value meets either of the above criteria; and
  • First-tier subcontracts for services.

The initial service contract reporting window will remain open until December 15, 2016, and all service contractors are encouraged to submit their responses during that time-frame.  

It is extremely important that all service contractors comply with the reporting requirement. Contractors should be reminded that a failure to comply with the service contract reporting requirements must be documented as part of a contractor’s performance evaluation as required by FAR Subpart 42.15.

Further Information:

Please follow this link for an instructional GSA YouTube video on the SCR submission process.

Please review the SCR Quick Start Guide.

If you have any questions, please contact us at info@ezgsa.com or 301-913-5000

https://youtu.be/kMbcM9myWjo

Marketing Tip of the week: Expiring Contracts

When a government contract ends, there is a likelihood that the particular agency will again need the things they bought before. Like a yearly grocery list, they buy the same types of things over and over again.

Knowing contract end dates are essential to winning new business. By researching for existing contracts that will be expiring in the next 6 months, you’ll be able to determine:

  • the status of the current project
  • if it’s going to be up for “re-compete”
  • what the incumbent did to win the original
  • the likely parameters of the forthcoming RFP
  • the strengths and weaknesses of your competition

—and you’ll have this information well in advance of the RFP, giving your team ample time to prepare .

For more information or for research and marketing assistance, call EZGSA @301-913-5000

Disaster Response for Contractors

As a contractor to the US government, what should be our response to disasters? How can we help? We see pictures of the devastation, and it seems very far away. There is a hurricane approaching the coast of Florida. Baton Rouge needs rebuilding. Fires in California have been burning for weeks.

Helping as a contractor is simple: continue offering your products and services; specifically, reach out to state and local governments in regions that need assistance.

The federal government extends GSA pricing to state and local governments during times of emergency recovery. GSA Schedules offer the lowest rates and the least hassle for many  government entities in crisis. By buying through GSA, communities are able to recover sooner and with less expense. When there are serious emergencies, you don’t have to do something extraordinary. Simply being available and offering your business expertise may be the best thing you can do.  

There are certain indicators that we plan on: agency forecasts and contract cycles. But we should also be aware that every year there tragedies happen. Expected, yet unpredictable. These events can  motivate you to help rebuild the lives of others. Offering your products and services through the GSA to areas in need is a great way for you to help immediately.

Dealing with Financials—what are Contracting Officers looking for, exactly?

I’ve heard said that more than 80% of companies who apply for a GSA Schedule contract on their own get rejected on their first attempt.. When applying for their own GSA contract, many applicants do not have a full grasp of their Contracting Officer’s expectations. While not arbitrary, Contracting Officers’ expectations can be individualized and specific. If the applicant doesn’t know what a Contracting Officer wants, it can be very difficult to win them over.  Following the letter of the solicitation of not enough. You have to make a clear case that you are qualified and equipped to deliver whatever will be asked of you.

One place where these expectations may be less than clear is with company financials. There some are clear requirements, like having $250,000 annual revenue or 2 years of financial history*. If you don’t meet these standards, it might not yet be time for you to go after a GSA schedule contract. But even if you do, the point isn’t to go down a checklist that says you’ve met the minimum standards. Depending on your particular solicitation, you will be asked to provide financials from the past one to three years. The minimum guideline was put in place because without a history, the Contracting Officer (CO) may be unable to determine the state of your business. It is essential to give GSA all necessary information so that your CO will feel confident in your company.

Confidence comes with a clear overall picture of the applicant’s financial stability. This implies that the company could well be around for the next 5-20 years to fulfill an awarded GSA Schedule contract. It also shows the CO that the company has the ability to handle the exactitude of government accounting practices, including demonstration of a healthy profit, compared to your income. GSA doesn’t need a fully expanded financial statement, but the Contracting Officer would like to see some specifics of your Profit and Loss (P&L) statement, such as the various lines of income and major expense categories like employee costs, professional and legal fees, rent, etc.

Financials that would concern a CO show a negative P&L and unclear balance statements. Overloaded expense in some minor categories, such as phone, cars, or travel, may also raise a red flag.

If you are currently putting together a contract proposal, be sure that the picture you are creating is complete and accurate; not just in a way that says you met the minimum requirements, but in a way that says your business is responsible and ready to expand into the federal market.

For more information, contact Ivan Wohner at iwohner@ezgsa.com or 301-913-5000.

*There are examples of these requirements being waived by GSA in very specific instances.