Ordering Procedures – FAR 8.405-1
When is an SOW not Required?
According to FAR 8.405-1, when acquiring fixed-price services or supplies through
GSA Schedules, an SOW is not required when the dollar value of the order or BPA:
- Is at or below the micro-purchase threshold. You may place the order
directly with the selected vendor. FAR procedures for acquisitions at or
below the micro-purchase threshold emphasize simplicity and fair treatment.
Supporting documentation, including extensive information, collection, and
evaluation, is not required. However, the Schedule user should attempt to
distribute orders among Schedule contractors.
- Exceeds the micro-purchase threshold, but not the simplified acquisition
threshold. You should obtain at least three (3) quotes (always documenting your
contract file and select the best value quote).
- Survey at least three Schedule contractors, considering price and other
identified best value factors.
- Consider ordering from contractors that help you meet your agency’s
- Use an RFQ only if it is the most efficient method for gathering the
information needed to evaluate solutions available under GSA Schedules.
When using an RFQ, the Schedule user must provide the RFQ, including the
evaluation criteria, to any contractor under the appropriate Schedule that
requests a copy.
- The Schedule user should seek a price reduction when:
- Market research reveals that the supply or service is available elsewhere at
prices lower than those available from Schedule contractors.
- The Schedule contractor has been or will be selected to provide recurring
requirements and the size of the recurring orders appears to merit a price
- Market research identifies other information indicating that a price
reduction is appropriate.
- Exceeds the SAT, or when establishing a BPA. The
ordering activity shall seek a price reduction, survey more than three contractors,
and select the best value quote. If further price reductions are not offered, an order
may still be placed. eBuy shall be used as one method to ensure at least three written
quotations are received. If fewer than three are received, the Contracting Officer must
document the file as to the actions taken to ensure competitive quotations, and what
can be done in future acquisitions to enhance competition.
Schedule contractors are not required to pass on to all GSA
Schedule users a one-time spot price reduction provided to a
FAR 9.405-1(b) prohibits ordering from any Schedule
contractor that is debarred, suspended, or proposed
for debarment unless the agency head makes a written
determination of the compelling reasons for such action.
A Schedule user can review the contractor’s information page in GSA eLibrary
(www.gsaelibrary.gsa.gov) or the Excluded Parties List System (EPLS) (www.epls.gov) to determine whether the
prospective contractor is debarred, suspended, or proposed for debarment.