Changes in the Center
Raising the Bar
Be in Compliance
Ancillary Supplies or Services
How to Market to the Federal Government
New Contractor Orientation
Aletha Pelham wins award
FY12 Q4 compared to FY13 Q4
Welcome new Industry Partners!
Some of you may have heard about a restructuring happening in the Federal Acquisition Service, (FAS) that includes the Facilities Maintenance and Hardware Acquisition Center (FMHAC). I wanted to keep you up to date on how this restructuring will impact the FMHAC, which is part of the General Supplies and Services (GSS) portfolio in FAS. The FMHAC is currently part of a reorganization along with the Heartland Supply Operations Center (HSOC) that will lead to a merged organization. Also included as part of this organization is the Federal Strategic Sourcing Initiatives (FSSI) being led out of the Heartland Region for Building Maintenance and Operations (BMO) Services as well as future FSSI initiatives. I know this might be confusing to you, but basically FMHAC is merging with Supply in the region and is also adding FSSI. In anticipation of the newly merged center, some management changes have taken place to ensure a smooth transition.
I have been selected as the newly formed Acquisition Center Director for the merged center and Elaine Rasmussen will assume a role as a Deputy Director. In addition, there are other managers that have been moved into acting positions to assist with the merger.
You might ask what this means for you. You will still be working with the same supervisors and contracting officers that you currently do in the FMHAC, but this organization will allow greater efficiencies in communication and collaboration, since many of you also do business with supply and might likely be part of FSSI initiatives that touch this merged center.
If you have any questions on this merger, please let me know.
I would also like to give an update from our last newsletter where we mentioned that we were exploring possible ways to maximize use of social media for information sharing. We have decided to begin an FMHAC Group in LinkedIn for Schedule 51V and Schedule 03FAC contract holders. We will start monitoring the group in January, so look for more information coming soon on connecting with us in this group!
I want to wish each of you a Wonderful Holiday Season!
Required Reporting - Are you in compliance?
Are you a large business? Do you have an up-to-date subcontracting plan? Are you submitting your Summary Subcontracting Report (SSR) or Individual Summary Reports (ISR) to the Electronic Subcontracting Reporting System as required? If not, you may be in breach of contract. In accordance with Federal Acquisition Regulation (FAR) 19.704(a)(10) Subcontracting Plan Requirements and Contract Clause 52.219-9(d)(10) Small Business Subcontracting Plan, the GSA Multiple Award Schedule contract requires submission of SSR and ISRs as applicable. Your SSR/ISR must be submitted at the end of the Fiscal Year (FY) via the ESRS or if unable to use ESRS, submit Standard Form 295 to the Administrative Contracting Officer (ACO). This is a mandatory requirement. Failure to submit the report may affect your ability to receive future awards from GSA (see FAR 9.104-3(b); and willful failure to perform or a history of failure to perform, may result in de-barment from future contracting with the government for a period of time (see FAR 9.406-2(b))
We Raised the Bar – Are You Up To Date?
As part of GSA's continuing effort to improve the Multiple Award Schedules (MAS) program, new requirements were incorporated into your contract under MAS Mod A329 issued after the last refresh. Every contractor MUST be aware of the changes and be in compliance at all times. GSA has “Raised the Bar” and below is a summation of those changes:
- PART NUMBER STANDARDIZATION - Contractors are now required to ensure the Original Equipment Manufacturer (OEM), Manufacturer Part Number, or Wholesaler Number for each product on the contract reflects the actual part number assigned. This number must be the primary number listed in GSA Advantage! When requesting a modification to your government contract, contractors are encouraged to submit manufacturer part numbers and manufacturer catalogs with each economic price adjustment, deletion, part number change, and/or additional modifications. NOTE: contracting officers will not process any future modifications under the contract until they can verify compliance with standardizing the part numbers for all products on your contract.
- FULL AND BROAD OFFERING - In an effort to provide a total solution to our customers, contractors are now required to offer a full and complete offering of products and services when applying for a government contract under the schedules program. If your contract does not currently include your entire product offering, please revisit your product/service offerings to ensure that an entire solution is available to the government customer when you submit your next modification to your contract.
- FRUSTRATED FREIGHT – Orders ultimately bound for overseas destinations often are mismarked resulting in frustrated freight, which causes the end users unnecessary delays or no receipt of what was ordered. Therefore, GSA now requires contractors to maintain an order tracking system that permits ordering agencies to obtain the location of an order from the time of shipment to the time/point of delivery and acceptance at delivery. Contractors must now demonstrate an understanding of an order bound for an international end point delivery and provide a sample electronic version of an appropriately marked label in accordance with the FED-STD-123 and MIL-STD-129 to the contracting officer or industrial operations analyst when requested.
- ABILITYONE - Contractors with products under SINs 105-001, 105-002, 341-800, 600-001, 612-209, 613-001, 834-100, 834-500, 834-600, 834-700 and 834-900 are now required to be an authorized AbilityOne distributor by the Committee for Purchase from People Who are Blind or Severely Disabled. You shall meet the AbilityOne exclusivity requirement by blocking orders of commercial products that are identified as being identical to or "Essentially the Same" (ETS) as AbilityOne offered products.
Be In Compliance When Responding to RFQs!
Is your company following its contract terms and conditions when responding to an RFQ? While we believe that contractors should consider offering terms and conditions better than negotiated in the schedules contract; it should be noted that at a minimum, proposals are required to comply with the terms and conditions. It is common knowledge that this applies to prices, but did you know that this also applies to other terms such as FOB and delivery time frames? For example, if your schedule contract has a delivery timeframe of “within 15 days,” your company cannot respond to an RFQ with a longer lead-time (for example, 30 days). Don’t be non-compliant with your schedule contract. If you have any questions, please contact your contracting officer.
At the beginning of Fiscal Year 2014, we wanted to pass along some reminders about submitting quotes to customers for schedule orders:
When submitting an offer in response to an RFQ, all companies should be quoting prices as stated on their schedule contract, or lower. In no instance should the quoted price/rate be higher than the price/rate stated on the schedule contract for the labor categories or services listed. Even if the procurement is through a commercial reverse auction site that charges a fee, the final price that an agency pays must not exceed the Schedule price.
If your company decides to use a subcontractor, and that labor category is covered on your schedule contract, the maximum that can be charged is the labor rate as stated in your contract. No “subcontractor markup” is permitted. If you wish to use a sub to do work that is not already priced on your contract, it would have to be added to your contract.
Ancillary Supplies or Services (003-100 and/or 871-100)
If your company proposes an Ancillary Service or Supply (formally ODC), the labor rates and/or charge must be listed on your schedule contract in a firm-fixed price format. Otherwise, this is considered an Open Market purchase, and the requesting agency must handle it as such. These services and supplies must be ancillary to the primary services offered, and a stand-alone task order cannot be written for these services/supplies.
Do you know what price adjustment method is in your 03FAC contract? There are three possible methods of Economic Price Adjustment under Schedule 03FAC depending on the type of pricing in the original contract:
- Pricing based on commercial catalog/pricelist in accordance with 552.216-70. Contractor must request a modification to change contract prices to coincide with changes in the company’s commercial catalog/pricelist. This applies for both professional (exempt) and Service Contract Act (non-exempt) labor categories. If the company has a commercial catalog/pricelist, this is the price adjustment method that must be used.
- For pricing based on market rates (not commercial catalog/pricelist), price adjustments may be in accordance with I-FSS-969. Contractor can choose to base future price adjustments on a set annual escalation rate (negotiated at time of contract award or modification) or a publicly available market indicator such as the Employment Cost Index (also determined at contract award or modification).
- If using a set annual escalation rate, the contractor must have pricing for the potential 20 year contract term in the contract. This applies for both professional (exempt) and SCA (non-exempt) labor categories.
- If using a market indicator, the contractor must request a modification to change contract prices based on changes in the market indicator. This applies for both professional (exempt) and SCA (non-exempt) labor categories.
- For Service Contract Act (non-exempt) labor categories ONLY – the contractor may choose to base future price adjustments on changes in the Wage Determination in accordance with the Fair Labor Standards Act (FLSA) 52.222-43, Fair Labor Standards Act and Service Contract Act Price Adjustment (Multiple Year and Option Contracts). When a mass modification is issued to all contract holders incorporating a revised index of wage determinations, contractors shall notify the Contracting Officer of any increase/decrease claimed under clause 52.222-43 within 30 calendar days after receipt of the modification. Contractors MUST request a price adjustment at the schedule contract level prior to requesting any adjustment to pricing for task orders.
- If the contractor chooses this method for SCA labor categories and also has professional (exempt) labor categories on the contract, they must choose either the set annual escalation or market indicator method for price adjustments to those professional labor categories.
How to Market to the Federal Government
The Facilities Maintenance and Hardware Acquisition Center (FMHAC), Business Management Division (BMD) offers a half day course to all 03FAC and 51V contract holders. This 3 hour course covers a variety of information to assist our contract holders with the best way to market to the federal government. This course is done via webinar at no charge to you.
During the half day session, you will learn about:
- Who in the federal government buys the products or services you sell,
- How to start developing a contact list utilizing the Fed Biz Ops archives,
- The importance of developing relationships with end users and contracting officers,
- Assistance available to small businesses,
- Where to look for federal buying trends,
- Procurement Technical Assistance Centers (PTAC),
- Where to advertise and how to make your company stand out,
- Advantages of having a GSA Schedule contract and the highlights of the MAS program,
- Trade shows,
- Learn about ordering procedures; and,
- FMHAC’s partnering corner
To sign up for a marketing session please send an e-mail to Kristy Wilbur with your company information, GSA Schedule Contract number and POC information.
New Contractor Orientation
Are you a new GSA Multiple Award Schedule (MAS) contract holder? If this is your first MAS contract, it is in your best interest to attend a New Contractor Orientation. This presentation will provide you with important information that will assist you with making your contract successful. You can attend the New Contract Orientation at no cost to your company one of two ways:
• Live Webinar – Presented online with the ability to chat questions to GSA personnel
• Online – Complete via the Vendor Education Center
GSA notifies all contractors of the opportunity to attend a live webinar via e-mail. After two email attempts, however, we will refer you to the Vendor Education Center to complete the New Contract Orientation online. Therefore, if you would like to attend the live webinar, look for the email requesting you to sign up! The Winter Issue of "GSA Steps" is now posted under the "publications" tab.
Aletha Pelham, a contract specialist in the Facilities Maintenance and Hardware Acquisition Center, has received the 2013 Coalition for Government Procurement (a nongovernment website) Excellence in Partnership civilian “myth-busters” award. She learned of her selection on Oct. 18 and accepted the distinction during the coalition’s Fall Training Conference last week in Washington, D.C. “I was very honored to win the award and surprised that I was nominated,” said Pelham. “It’s humbling to have your work recognized.” Pelham was actually nominated for the award by two different industry partners with whom she works. She was credited for her ability to facilitate open communication between government and industry during the acquisition process, and for effectively breaking down communication barriers to create a collaborative procurement environment. “Aletha has a passion for making sure that things are done promptly, correctly and by the rules,” said FMHAC Deputy Director Elaine Rasmussen. “Because of that, she works to establish close relationships with industry partners thus ensuring that they are successful and in compliance with regulatory requirements.” The “myth-busters” award was one of only two coalition awards given to members of the civilian federal government. Dr. Nick Nayak, the chief procurement officer for the Department of Homeland Security, received a Lifetime Acquisition Excellence Award. The Excellence in Partnership awards were developed by the coalition 14 years ago to promote government and industry partnership and to honor individuals and organizations in the acquisition community that have made significant contributions to the procurement system while providing best value to the taxpayer.
Reduced federal budgets clearly will impact schedule sales in FY13 as we fully anticipated. The fact that FMHAC sales ended the year down by 2.55% is not a surprise.
51V sales ended the year down by 6.78%. This was not a surprise as many schedules ended the year with a negative growth rate.
03FAC ended the year up nearly 4%. In the current fiscal environment, this represents large growth and is a real good news story for the center.
FY12 Q4 compared to FY13 Q4 Only
|Schedule||FY12 Q4||FY13 Q4||% Change|
FY12 Q4 compared to FY13 Q4 CUMULATIVE
|Schedule||FY12 Q4||FY13 Q4||% Change|
|Contractor Name||Contract Number||Schedule|
|LASAR CHEMICALS LLC||GS-21F-022BA||51V|
|KMF SUPPLY, INC.||GS-21F-023BA||51V|
|TURF PRIDE, LLC||GS-21F-018BA||51V|
|HAMILTON COATINGS, LLC||GS-21F-008BA||51V|
|T F T PNEUMATIC LLC||GS-21F-009BA||51V|
|MANER BUILDERS SUPPLY COMPANY, L||GS-21F-011BA||51V|
|COPPER STATE PETROLEUM, INC.||GS-21F-029BA||51V|
|C & E INDUSTRIAL SERVICES INC.||GS-21F-027BA||03FAC|
|BATTELLE MEMORIAL INSTITUTE||GS-21F-026BA||03FAC|
|ALCAZAR TRADES, INC.||GS-21F-025BA||03FAC|
|FLOTRON CONTRACTING, INC.||GS-21F-024BA||03FAC|
|MPE GOVERNMENT SOLUTIONS, INC.||GS-21F-021BA||03FAC|
|AFA PROTECTIVE SYSTEMS, INC.||GS-21F-020BA||03FAC|
|URS GROUP, INC.||GS-21F-014BA||03FAC|
|INFORMATION & ENERGY SERVICES, I||GS-21F-017BA||03FAC|
|TRADEMASTERS SERVICE, INC.||GS-21F-015BA||03FAC|
|UNIVERSAL SERVICE AGENCY LLC||GS-21F-013BA||03FAC|
|E B A ERNEST BLAND ASSOCIATES P||GS-21F-012BA||03FAC|
|DARIEN LAWN & TREE CARE, INC.||GS-21F-010BA||03FAC|
|FRANK O'CONNOR INC.||GS-21F-004BA||03FAC|
|BLEDSOE ENVIRONMENTAL SYSTEMS TE||GS-21F-003BA||03FAC|
|GFH ENTERPRISES, INC.||GS-21F-005BA||03FAC|
|GREENWAY ELECTRICAL SERVICES, LL||GS-21F-006BA||03FAC|
|NELSON REFRIGERATION INC.||GS-21F-001BA||03FAC|
|EASTERN RESEARCH GROUP, INC.||GS-21F-002BA||03FAC|
|P2S ENGINEERING, INC.||GS-21F-188AA||03FAC|
|BESTWAY SERVICES INC.||GS-21F-030BA||03FAC|