(Editor’s Note. From time to time we have addressed the rules related to Federal Supply Schedules since they are increasingly being used for pricing purposes. Regulations, guidance and court/board decisions keep altering the rules so we decided to provide an update, relying on the April 2004 issue of the Briefing Papers written by John Stafford and Pang Khou Yang of Greenberg Traurig, LLP.)
Basic Rules
The FSS program has for decades provided the government a convenient vehicle for purchasing commercial products and services. The FSS program is administered by the General Services Administration under the Federal Property and Administrative Services Act of 1949 and it is touted as mirroring the commercial marketplace. Though it provides for a single award schedule the FSS program is primarily oriented to multiple award schedules (MAS) where solicitations are kept open indefinitely, contractors may bid on proposals at any time and the GSA awards government-wide contracts for a full five year period with options to numerous suppliers for commercial products and services at varying prices and labor rates.
MAS contracts are indefinite-delivery, indefinite-quantity (ID/IQ) contracts where eligible buyers place task and delivery orders directly with Schedule contractors and deliveries are made and services performed directly for the government customer. There are currently over 12,000 MAS contracts in place to provide four million commercial services and products. Services account for 60% of MAS program sales and they are growing faster than products.
In addition there are Government-wide acquisition contracts (GWACs) and multiple-agency contracts (MACs) which are both task or delivery order contracts and are established by one agency for government-wide use. There is also the Department of Veterans Affairs separate FSS program that provides products and services such as healthcare services, pharmaceuticals and medical and dental equipment and supplies.
GSA Order ADM 4800.2F provides definitions and a comprehensive list of agencies and other activities authorized to use GSA sources of supplies and services where at present there are over 200 agencies, organizations and other eligible users. In May 2004 the GSA issued a final rule authorizing state and local governments to purchase automated data processing equipment, software, supplies, support equipment and services from Schedule 79, Information Technology, contracts. The program, known as "Cooperative Purchasing" is open to all state, local, regional and tribal governments and their instrumentalities such as school districts and local colleges.
