GSA Proposes New Rule Allowing Other Direct Costs into the Schedules Program

WASHINGTON – The U.S. General Services Administration (GSA) has issued a proposed General Services Acquisition Regulation (GSAR) rule to incorporate Order Level Materials (OLMs), also know as Other Direct Costs (ODCs), into the Multiple Award Schedule (MAS) program. This proposed rule will make it easier for customer agencies to buy, and industry partners to provide, complete procurement solutions through the MAS program while ensuring excellent value for taxpayer dollars. The proposed rule will publish in the Federal Register on September 9th, 2016, and is open for a 60-day comment period. GSA encourages public comments.

This proposed change to the Schedules program seeks to provide agencies the flexibility to easily acquire order-level materials, creating consistency between the MAS program and other established indefinite-delivery/indefinite- quantity (IDIQ) contracts. Government agencies buying through MAS have expressed frustration with the lack of flexibility around how to properly handle order-level materials on orders. This has led to the creation of elaborate workarounds and the inconsistent application of policies. Customer agencies and industry partners have long advocated for GSA to provide the ability to acquire OLMs through the MAS program. The proposed rule seeks to provide this buying flexibility, resulting in better value for customer agencies, industry partners and ultimately, for the taxpayer.

Tom Sharpe, GSA Commissioner of the Federal Acquisition Service:

“This proposed rule is another step forward and a crucial component of GSA’s MAS Transformation efforts. We have heard, from both our federal agency customers as well as our industry partners, that allowing for OLMs as part of the MAS program is a much-needed and extremely important feature missing from their procurement toolbox. The proposed addition of OLMs is good for government, as this new flexibility will improve our customers’ abilities to meet their mission needs while ensuring that the Schedules program can respond to ever-changing market forces to provide government with a streamlined, value-based contracting solution that continues to save time and money well into the future.”

Jeffrey Koses, GSA’s Senior Procurement Executive:

“Adding the ability for agencies to procure OLMs is an important step forward in ensuring that the Schedules program remains the vehicle of choice for the acquisition community. It’s a proposed change that our customer agencies and industry partners have been asking for. GSA anticipates the proposed rule would result in a reduction in the need to conduct costly open-market procurements and reduce contract duplication. This proposed new flexibility will remove barriers to entry into the federal marketplace, drive unnecessary costs out of the procurement process for federal agencies, and make it easier for industry to do business through the MAS program.”

OLMs provide a mechanism through which GSA can help industry bring solutions to the federal marketplace in a thoughtful way while also ensuring that the MAS program provides the best value for the federal government. The proposed rule seeks to apply this flexibility to a select number of Schedules:

  1. Federal Supply Schedule 03 FAC: Facilities Maintenance and Management
  2. Federal Supply Schedule 56: Buildings and Building Materials/Industrial Services and Supplies
  3. Federal Supply Schedule 70: General Purpose Information Technology Equipment, Software, and Services
  4. Federal Supply Schedule 71: Furniture
  5. Federal Supply Schedule 84: Total Solutions for Law Enforcement, Security, Facilities Management, Fire, Rescue, Clothing, Marine Craft, and Emergency/Disaster Response
  6. Professional Services Schedule 99: All Professional Services
  7. Federal Supply Schedule 738X: Human Resources and EEO Services