Maintain and Renew Your Contracts
Understanding schedules, contractual agreements, guiding regulations, policies, and the tools and resources available to submit contract modifications, extensions, or renewals is key to successful maintenance and renewal of your contract. Explore below to learn more:
Contracts may be canceled or options not exercised if you do not meet contractual requirements. These include:
- Minimum Sales Criteria Guidelines
Your company must report at least $25,000 in sales to GSA and its procurement customers within the first 24 months of the contract award and $25,000 in sales every 12 months thereafter. Your contract is subject to cancellation if sales criteria are not met.
- Report Sales and Remit the Industrial Funding Fee (IFF) to GSA
The IFF, currently 0.75% of total sales, is paid by Schedule holders to cover the GSA costs of operating the Schedules program. As a vendor, you need to build this expense into your Schedule fees. Sales reports and the IFF are due 30 days after the end of each quarter.
Use a sales tracking system that allows you to differentiate between Schedule and non-Schedule sales when calculating your IFF. A sale is considered a Schedule sale when:
- The product or service falls within the description of the Special Item Number (SIN) on your contract, and
- The customer is eligible to order the product or service
- Participate in Contractor Assessments
An assessment conducted by GSA’s Industrial Operations Analysts may occur periodically during a five year contract period. Contractor assessments are not audits. They are opportunities to identify and address contract compliance issues before they become a significant problem. Learn more by visiting the Vendor Support Center (VSC).
Update Registrations and Certifications
Annual updates are required for most certifications. This applies to certifications made in response to a Schedule solicitation, business size status, and any North American Industry Classification System (NAICS) Code changes. For more information, read the Steps to Success Guide [PDF - 739 KB] in the VSC.
Register with the VSC
The VSC provides resources and training to help your business be successful.
Create, Distribute, and Maintain your Company Price List
Small businesses that offer commodities and other tangible products should use GSA Advantage!, an online marketplace for millions of products and services. Businesses can upload their price list and update it over the life of their contract. GSA Advantage! can also be used by private sector companies to compare pricing when considering the pursuit of a Schedule contract.
The following is a brief overview of the significant policies and obligations related to Schedule contracts.
- Maximum Orders
Schedule contractors are obligated to accept any order from an executive agency that is below the maximum order threshold, the point at which a price reduction for volume orders meets or exceeds the volume threshold as indicated in a contractor’s catalog or price list. The maximum order threshold is determined on a Schedule by Schedule basis or sometimes on a SIN by SIN basis. Contractors are allowed to decline the order within five business days.
- Orders and Blanket Purchase Agreements (BPA)that Exceed the Simplified Acquisition Threshold (SAT)
Federal agencies are required to request additional price reductions from the Schedule price for orders that:
- Exceed the SAT; or
- Are BPAs established under Schedule contracts where the total of all orders is expected to exceed the SAT
Orders must also evaluate at least three Schedule contract holders and compete using the SAT. Exceptions are permitted provided that the buyer follows the appropriate procedures outlined at Acquisitions.gov.
- Price Reductions
Items and services on Schedule contracts are based on “Basis of Award” customer (“Basis Customer”). The vendor must maintain the approved “Basis of Award” discount relationship established under its contract as a minimum. Should the vendor lower prices to the “Basis Customer,” the vendor is obligated to make the same reduction for your Schedule contract.
- The Trade Agreements Act (TAA)
The TAA states that all products purchased by the government must be manufactured or “substantially transformed” in the United States. Your company may only offer products and services from countries with which the federal government has trade agreements. The TAA pertains to all Schedule contract sales.
- Government Purchase Card
Businesses and vendors that wish to obtain a Schedule contract to do business with the federal government are required to accept the GSA SmartPay charge cards as a method of payment for micro-purchases, generally those purchases under $3,000.
Many market factors can affect the supply chain, and your contract with GSA needs to reflect these changes. When these circumstances arise, you may need to request modifications to your contract. You can do this via eMod, a module of the eOffer site.
eMod allows vendors to add or delete a SIN for a product or service, change prices, and report and make administrative changes. The system requires a digital certificate, the receipt of which requires a vendor to submit notarized paperwork; processing can take seven to 14 days. Visit the eOffer/eMod site for additional information and necessary paperwork.
Once the eMod request has been assigned and reviewed by a GSA contracting officer they will contact the vendor to conduct further discussions if necessary. Discussions may include, addressing deficiencies identified in the modification request or the start of negotiations. Following the conclusion of these negotiations, the contracting officer is responsible for creating a modification package, which is eventually reviewed and digitally signed within eMod by both parties.
For construction, architectural, engineering, and other Public Buildings Service (PBS) contracts Standard Form 30 (Amendment of Solicitation/Modification of Contract) is submitted by the vendor to execute changes to the contract.
GSA Schedules contracts are issued with a five-year base period and the potential of three five-year extensions.
The Option Process Ensuring iNtegrity (OPEN) oversees the Options/Renewal of contracts. As part of the OPEN process, vendors are notified within four to six months prior to the contract expiration. If your company has met its $25,000 annual sales minimum and is a vendor in good standing, you will be allowed to renew or exercise the option to extend the term of your contract.
If you let your contract expire, it cannot be reinstated. You must submit a new offer. If you do not wish to renew your contract, the notification of renewal provides instructions for declining the offer. The VSC has additional, detailed information on OPEN and contract renewal/exercising of option extensions.