Order-Level Materials (OLMs)
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OLMs are supplies and/or services acquired in direct support of an individual task or delivery order placed against a Schedule contract or BPA. OLM pricing is not established at the Schedule contract or BPA level, but at the order level. Since OLMs are identified and acquired at the order level, the ordering contracting officer (OCO) is responsible for making a fair and reasonable price determination for all OLMs.
OLMs are procured under a special ordering procedure that simplifies the process for acquiring supplies and services necessary to support individual task or delivery orders placed against a Schedule contract or BPA. Using this new procedure, ancillary supplies and services not known at the time of the Schedule award may be included and priced at the order level.
Benefits of OLMs
- Increases the flexibility of GSA Schedules to provide a total solution to meet the ordering activity’s requirements
- Reduces agency procurement and administrative costs and enhances the time savings and streamlined processes of leveraging GSA Schedules
- Reduces contract duplication by eliminating the need to set up new commercial IDIQs or conduct open market procurements to obtain necessary order level ODCs
- Increases competition, resulting in cost savings for the ordering activity
- Eliminates the need for Government Furnished Equipment (GFE), which can be labor intensive to administer
- All Schedule terms and conditions apply to OLMs (e.g., TAA and mandatory environmental attributes clauses), which ensures agency purchases are compliant with FAR and other regulatory guidelines
This authority allows buyers the flexibility to easily acquire OLMs, creating consistency between the Schedules program and other established indefinite-delivery/indefinite-quantity (IDIQ) contracts.
Authority and Procedures to Utilize OLMs
On January 24, 2018, GSA issued a final rule amending the General Services Administration Acquisition Regulation (GSAR) to incorporate Order-Level Materials (OLMs) into the Schedules Program. In accordance with its authority under FAR 8.403(b), GSA established special ordering procedures for the inclusion of OLMs under specific designated as listed below.
The special ordering procedures are contained in GSAR clause 552.538-115 Special Ordering Procedures for the Acquisition of Order-Level Materials, which may be incorporated into contracts under OLM-authorized Schedules. This clause, along with a dedicated Special Item Number (SIN) for Order-Level Materials, allows ordering activities to include OLMs in Schedule orders.
OLMs are currently authorized under 12 legacy Schedules and 59 subcategories under the Consolidated Schedule.
Under these designated OLM Schedules [PDF - 170 KB], a contractor is authorized to quote OLMs only if the Order-Level Materials SIN is awarded under its contract. Orders that include OLMs must be placed in accordance with the Special Ordering Procedures for the Acquisition of Order-Level Materials detailed in GSAR clause 552.238-115. It is important to remember:
- Prices for OLMs are not established in the Schedule contract or BPA.
- OLMs are identified and acquired at the order level, and the ordering activity contracting officer is responsible for making the determination that prices for all OLMs are fair and reasonable.
An OLM Ordering Guide is coming soon.
OLM procedures may be used to purchase OLM products or services to support delivery orders (products) or task orders (services) under authorized GSA Schedules.
OLMs may be added to any order-type, i.e. Firm Fixed-Price, Time & Materials (T&M), or Labor Hour. The OLM CLIN must be T&M, but it can be the only T&M CLIN on the order. i.e. OLMs may be added to a Firm Fixed-Price order, but the OLM CLIN itself must be T&M.
Travel may be considered an OLM (see GSAR clause 552.238-115) or it may be authorized IAW Schedule clause C-FSS-370(b). Under either authority, travel costs are governed by FAR 31.205-46, which addresses Federal Travel Regulations, Joint Travel Regulations, and Standardized Regulations (Government Civilians, Foreign Areas). If travel is considered to be an OLM it is exempt from the Industrial Funding Fee and Sales Reporting requirements, the 33.33 percent cost limitation, and the price reasonableness determination required by GSAR clause 552.238-115(d)(7). The ordering activity CO should establish a separate CLIN for travel. The travel CLIN may be established as direct-reimbursable or priced on a firm fixed-price basis.
OLM Training and Resources
- Training: Understanding Order-Level Materials (OLMs) [PDF - 248 KB]
- Training: Order-Level Materials - Vendor Webinar [PDF - 3 MB]
- GSAR Case 2016-G506 Federal Supply Schedule, Order Level Materials - Final Rule dated 1/24/2018
- Technical Amendment to Final Rule - August 16, 2018
- GSAR Clause 552.238-115 Special Ordering Procedures for the Acquisition of Order-Level Materials
Additional Guidance and Frequently Asked Questions
- Order-Level Materials SIN Description [PDF - 72 KB]
- Summary of Support Item Types for GSA Schedules Program Orders [PDF - 149 KB]
- Instructions to Quoters [PDF - 41 KB]
- Order-Level Materials FAQs [PDF - 227 KB]
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