May 15, 2014

GSA New IT-70 Schedule Refresh Alerts

Future contractors who are looking into pursuing an IT-70 Schedule– take notice! On April 30, 2014, the General Service Administration (GSA) released the latest version (refresh #33) of the Information Technology Schedule 70 Solicitation. Contained in the new refresh is a number of changes to the Administrative, Technical, and Pricing section of the proposal submission instructions, including Provisions SCP-FSS-001 Instructions Applicable to all Offerors (MAR 2014) and SCP-FSS-004 Specific Proposal Instructions for Schedule 70 (MAR 2014). The following are changes included in IT-70 refreshed #33 under provision SCP-FSS-001 and SCP-FSS-004 that are important to note when submitting a new IT-70 offer.

  1. Administrative Section:
  • Readiness Assessment: must now be completed and signed by a company officer (i.e., President, CEO, CFO, etc.) and completed/dated within the past one-year period.
  • Pathway to Success: training must now be completed by a designated authorized negotiator who is also a company officer (i.e., President, CEO, CFO, etc.).
  • Agent Authorization Letter: template has changed to now reflect Pre-award delegations and Post-award delegations.
  • Small Business Subcontracting Plan (Applicable only to Large Businesses): template is provided for reference only. The plan is to be completed in eOffer System and signature page to be signed and uploaded in the eOffer system.

2.  Technical Section:

  • Corporate Experience: must be completed for both products and/or service contractors. An additional response has been added to the narrative for contractors to complete. The remaining responses are the same from previous solicitations.
  • Quality Control: must be completed for both products and/or service contractors.

 

3.  Pricing Section:

  • GSA’s pricing goal is to obtain equal to or better than the Offeror’s Most Favored Customer (MFC) pricing under the same or similar terms and conditions. GSA seeks to obtain the Offeror’s best price based on its evaluation of discounts, terms, conditions, and concessions offered to commercial customers. However, offers that propose Most Favored Customer pricing but are not highly competitive will not be determined “fair and reasonable”, and thus, will not be accepted. The U.S. Government Accountability Office has specifically recommended that “the price analysis GSA does to establish the Government’s MAS negotiation objective should start with the best discount given to any of the vendor’s customers.”

GSA added paragraph (k) Raising the Bar, which is their attempt to raise standards under the Multiple Award Schedules Program. The following requirements have been highlighted in all solicitations and are relevant to IT-70, as applicable:

  • Frustrated Freight (applicable only to overseas delivery): The Offeror must maintain an order tracking system that permits ordering agencies to track the location of an order at any time, from the moment the order is shipped, to the point of delivery and acceptance.
  • Manufacturer’s Part Number: The Offeror must ensure that the Original Equipment Manufacturer (OEM), Manufacturer Part Number, or Wholesaler Number for each proposed product reflects the actual number assigned. If the OEM, Manufacturer Part Number, or Wholesale Number is submitted incorrectly or not submitted, the associated product will not be awarded.

Provision SCP-FSS-004 are specific proposal instructions for Schedule IT-70. Contractors must pay close attention to the Critical Information attachment and review the terms and conditions under their specific SIN numbers. Additionally, one of the more significant changes to IT-70 is the Service Contract Act (SCA). With the new refresh, GSA has specifically listed SCA requirements under the proposal instructions and has provided a separate attachment listing the applicable wage determinations for this solicitation. All price adjustments under SCA-eligible labor categories shall be in accordance with clause 52.222-43 Fair Labor Standards Act and Service Contract Act Price Adjustment (Multiple Year and Option Contracts). When a 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. In addition to clause 52.222-43, one of the following two methods of escalation may be awarded.

  • Method 1: An escalation method is negotiated prior to award in accordance with the clause I-FSS-969 Economic Price Adjustment – FSS Multiple Award Schedule, utilizing any of the methods available in the solicitation under that clause.
  • Method 2: When the offered prices are based upon a commercial price list, only revisions in the commercial price list will enable the contractor to revise Schedule contract prices. Schedule contract price increases will be allowed only in accordance with clause 552.216-70 Economic Price Adjustment – FSS Multiple Award Schedule Contracts.

Note: Regardless of the method used, the contractor must ensure that his/her electronic catalog is updated on GSA Advantage within 30 calendar days after the effective date of any contract modification to revise pricing based on changes in the applicable wage determination(s).

Current Schedule Holders: New modification guidelines have been released for future modification requests. Contact your Contracting Officer for the latest guidelines.

The significant changes to the IT-70 solicitation should not deter you from pursuing a Schedule. The total sales amount for FY 2013 was $14 billion dollars, which is a slight decrease from the $15 billion in both FY 2011 and 2012. The changes however are significant, and you want to ensure you have crossed your T’s and dotted your I’s before pursuing an IT-70 contract.

If you have additional questions on the new refresh you can contact me at mkim@centreconsult.com or 703-288-2800.

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