Common Schedule Myths
- Your agency can’t add terms and conditions
- Terms and conditions may be added at the order level as long as they do not
conflict with the Schedule contract
- Your agency can’t seek price reductions
- Price reductions may be sought on any order, but must be asked for on orders
exceeding the Simplified Acquisition Threshold (SAT). Contractors are not required to offer a discount.
MAS Contract Characteristics
- Multiple-award IDIQ (5-year award; three, 5-year options)
- Firm Fixed Price (FFP), Fixed-Price Economic Price Adjustment
- Quantity and delivery performance requirements at the order level
- Price reductions—discounting is allowed at anytime
Schedule contracts are IDIQ contracts,
available for use by all federal agencies, state and local governments, and certain
other entities.
Quantity and Delivery/Performance Requirements
As IDIQ contracts, the Schedules themselves contain no specific quantities, other than
minimum and maximum threshold amounts. The ordering activity sets specific order
quantities and specific delivery/performance dates when issuing an order under the
Schedule contract. When issuing an order:
- Delivery or performance periods and all other order requirements must conform
to the applicable terms and conditions of the Schedule contract, but
- An ordering activity may add additional terms and conditions as long as they do
not conflict with the Schedule contract.
Limits on Order Placement and Timing
In accordance with FAR 8.405-1 and 8.405-2, Schedule users:
- May issue orders for supplies or services not requiring a Statement of Work
(SOW) orally, by facsimile, by paper order, or by electronic commerce methods
- May not issue oral orders when ordering services requiring an SOW; orders by
facsimile, by paper order, or electronic commerce methods are authorized
- May place an order anytime during the effective period of the Schedule contract; any order not completed within the period of the Schedule contract must be
completed within the time specified in the order
- May not issue oral orders for brand name items when the order exceeds $25k
- May not place repetitive orders for the same items, to attempt to avoid exceeding
the SAT and holding a proper competition
Negotiating Reductions from Schedule Prices
- Permitted at any time; vendor may offer reduced prices based on specific
quantities, overall volume, delivery requirements, and other order-specific
conditions and terms
- REQUIRED for the government buyer to REQUEST reductions for any
requirement (order or Blanket Purchase Order (BPA)) in excess of the SAT
- Vendors not required to agree to any reductions