Federal Supply Service (FSS)

Stock Program
The Stock Program leverages purchasing power to provide savings, quality and choice in products. Over 7,000 high demand items are available for freight shipments to large customers or express shipments to customers' desktops. Ordering activities may obtain items from stock by submitting requisitions.

Special Order Program (SOP)
FSS arranges for the purchase and delivery of recurring commercial supply and equipment requirements that are more economical to support through vendor direct deliveries. Traditionally, this has included product lines like vehicles, appliances, and furniture. In essence, SOP is a buy on demand commercial buying service for ordering activities. Ordering activities place orders for items in the special order program by submitting requisitions.
The Federal Supply Schedule Program closely mirrors commercial buying practices. It provides ordering activities with literally millions of state-of-the-art, high-quality commercial products and services at volume discount pricing on a direct delivery basis. Ordering activities place orders directly with vendors. All ordering activities, large or small, even those in remote locations, are provided with the same services, convenience, and pricing. The Federal Supply Schedule Program also offers the benefits of shorter lead-times, lower administrative costs, and reduced inventories.
There are two parts of the program, Single Award Schedules (SAS) and Multiple Award Schedules (MAS), which are described below.

Single Award Schedules (SAS)
SAS contracts are a relatively traditional method of contracting for commercial items. The contracts are made with one supplier for a specific product at a stated price for delivery to a geographical area, defined in the schedule. Most SAS contain all the information necessary for placing orders. Some, however, specify that contractors provide prepared brochures containing additional ordering information.

Multiple Award Schedules (MAS)
The Federal Acquisition Streamlining Action of 1994 and the Federal Acquisition Reform Act of 1996 renamed the Clinger-Cohen Act touched upon virtually every aspect of the solicitation and award process from synopsis to debriefing. These statutory provisions have, among other things, institutionalized the preference for the use of commercial products and commercial practices in Government contracting.
GSA awards and administers the Federal Supply Schedule program pursuant to Section 201 of the Federal Property Administrative Services Act of 1949. Under this program, GSA enters into Government-wide contracts with commercial firms to provide over four million commercial off-the-shelf products and services, at stated prices, for given periods of time. Ordering, shipping, billing and payment relationships are between the ordering activity and contractors.
Under MAS contracts, GSA awards contracts to multiple companies supplying comparable services and products, at varying prices. Historically, the program has not used Government specifications or purchase descriptions to support the acquisition methodology. Thus they provide ordering activities with the variety and the flexibility necessary to select the best value item that meets their needs at the lowest overall cost. Awards are made based on commercial product descriptions.
Consistent with the Competition in Contracting Act, MAS contracts are competitive in that:

• participation in the program has been open to all responsible sources; and orders placed following the procedures in FAR 8.4 result in the lowest overall cost alternative to meet the needs of the Government.

• Multiple Award Schedule Process

• Acquisition Plan/Market Research is conducted.

• Commerce Business Daily (CBD) Notice is issued - for all solicitations.

• Solicitation is issued covering various Special Items Numbers.

• Offers are received/evaluated.

• Contracting Officers provide vendors opportunities to submit additional information when deficiencies in offer exist.

• Contracting Officer identifies best customer and prepares for negotiations.

• Negotiations are conducted.

• Proposal revisions are submitted.

• Contracts awarded for multi-year period or offer is rejected.

• Contractors are required to prepare and distribute an "Authorized Federal Supply Schedule Pricelist".

• The contractor is given a mailing list of Federal ordering activities to contact.

• GSA/FSS prints a Federal Supply Schedule document which is distributed through the Centralized Mailing List Service (CMLS).
  

As part of the contract award requirements, contractors are required to submit their pricing information electronically on GSA Advantage! Contracting Officers approve electronic submission.

Best Customer
GSA will award MAS contracts to all companies that offer a commercial item falling within the generic description of the Schedule, provided that prices are determined fair and reasonable.
GSA's negotiation objective is known as best customer pricing based on comparable terms and conditions. In order to make this comparison, MAS solicitations request offerors to disclose information about their commercial pricing policies and practices. The offeror provides this information in the section entitled Commercial Sales Practices Format.

Terms and Conditions
Blanket Purchase Agreements (BPAs)
Blanket Purchase Agreements (BPAs) are accounts that ordering activities establish with Schedule contractors to fill recurring requirements. BPA provisions are contained in all Federal Supply Schedule contracts. There is no need for ordering activities to add any other clauses to the BPA.
The contractor and agency can agree to administrative protocols within the scope of the contract to expedite ordering, payment and delivery. Ordering activities enter into BPAs by following the ordering instructions in FAR 8.404.

Certificate of Competency Program (COC)
A Certificate of Competency Program or COC Program empowers the Small Business Administration (SBA) to certify that a small business concern is responsible for the purposes of receiving and performing a specific contract even though the Contracting Officer has determined the firm to be nonresponsible. Once the Contracting Officer has made a determination that a small business is nonresponsible (i.e., incapable of performing a contract due to lack of capacity, competency, credit, integrity, perseverance, etc.), the Contracting Officer must withhold award and refer the matter to SBA. Firms offering a product from a foreign firm, or large concerns are not eligible to be considered for a COC.

Once a case has been referred to SBA, it must respond to the COC referral within 15 days after receipt of the case. SBA provides the small business with the application to apply for the COC. A team is sent to the firm's location to investigate reasons for the nonresponsibility determination; and the SBA Regional Office will then make a determination whether to issue a COC. Once SBA gives advance notice that they intend to issue a COC the Contracting Officer may then proceed with award.
On the other hand, the Contracting Officer may proceed with award to the next low responsive/responsible bidder if:

1. no response is received from SBA within 15 days (except when the SBA requests and the Contracting Officer grants an extension)

2. the small business concern declines SBA's assistance

3. SBA denies issuance of a COC.

Contractor Team Arrangements
Federal Supply Schedule contractors may use "Contractor Team Arrangements" to provide solutions when responding to an ordering activities' requirement. MAS vendors themselves can formulate such arrangements and offer such a solution to an ordering activity. GSA is not required to approve such actions. The only requirement is that all participants in such a teaming arrangement be Schedule contractors.

When using a Team Arrangement under the Federal Supply Schedule Program, just as any other order, it is considered to be a competitive procedure (FAR 6.102(d)(3)). In fact, the use of Team Arrangements may increase competition among the Schedule contractors and offer additional opportunities to contractors that would not be able to handle some of these requirements on their own.
The following are some basic points if you are contacted by an ordering activity interested in a Team Arrangement:

1. Team Arrangements are permitted when using Federal Supply Schedules.

2. All participants of the Team Arrangement must have a Federal Supply Schedule contract.

3. Schedule contractors may incorporate the Team Arrangement into a BPA.

4. Ordering activities should follow FAR 9.6 when using Team Arrangements.

5. Ordering activities must still follow FAR 8.4 and make a Best Value selection.

All terms and conditions of the existing Federal Supply Schedule contracts still apply (such as reporting 72A sales, price increases, warranties, etc.). This also holds true under a BPA. The BPA should address the details, arrangements or administration of the Team Arrangements. However, all terms and conditions of the existing Federal Supply Schedule contract cannot be changed/modified under this agreement (except as modified by the Schedule contract Contracting Officer).

An ordering activity may feel that specific details need to be addressed in a Team Arrangement proposal. Conditions such as the requirement, evaluation criteria, technical determinations, pricing comparisons, etc., can affect the level of detail needed in the Team Arrangement proposal. For example:

• A Team Arrangement solution may result in the combination of multiple vendors providing items/products/services that are currently under Federal Supply Schedule contracts. The Team Arrangement proposed solution may then be presented to the ordering activity as one overall price. Yet, the ordering activity may feel it is not advantageous to make a "best value" selection based on one "overall solution price." The ordering activity may determine lacking a price for the individual elements (/products/services) for the "solution" precludes a direct comparison with Schedule prices or other Team Arrangement proposals. In this case, an ordering activity could request Team Arrangement proposals to identify each Schedule item and the price of each individual element (item/product/service) included in the proposed solution.

• Depending on the agency, the ordering activity may want to make arrangements to have contact with just one contractor, or all contractors - it's up to the individual ordering activity.
  

Of course, there are many situations that may come up between the ordering activity and the vendors using a Team Arrangement.

Economic Price Adjustments (EPA)
This clause allows contractors to increase/decrease prices in accordance with their commercial practice. Requests for price decreases may be submitted at anytime during the contract period. However, contractors can only request price increases to be effective on or after the first twelve months of the contract period, provided that all of the following conditions are met:
a. the increase results from a reissue or other modification of the contractor's commercial catalog or pricelist that was used as the basis for the contract award;
b. no more than three increases will be considered during each succeeding twelve-month period of the contract;
c. at least 30 days have elapsed between requested increases; and
d. the increase has been requested before the last 60 days of the contract period.
The following material is to be submitted with the request for a price increase:

1. a copy of the contractor's commercial catalog/pricelist showing the price increase and the effective date for commercial customers;

2. an updated Commercial Sales Practice (CSP) format regarding the contractor's commercial pricing practice relating to the reissued or modified catalog/pricelist, or a certification that no change has occurred in the data since completion of the initial negotiation or a subsequent submission;

3. documentation supporting the reasonableness of the price increase.

The Government reserves the right to accept the contractor's request for a price increase; negotiate more favorable discounts; or remove the products from the contract.
Incidental Items

For administrative convenience, non-contract items may be added to the Federal Supply Schedule BPA or the individual task order if the items are clearly labeled as such, applicable acquisition regulations have been followed, and price reasonableness has been determined for the items.
Industrial Funding Fee (IFF)

FSS's industrial funding plan was developed by working closely with industry and customer agencies. The IFF is a fee paid by customers to fund the cost of operating the Schedules program. Customer agencies pay this fee when they purchase items from a Federal Supply Schedule contractor with a contract containing industrial funding provisions. The fee is included in the price of the item and is not a separate line item; therefore, the award prices or discounts that appear in contractors' pricelists already include the fee.

Leasing
Leasing is now recognized by FAR 2.101 as a method of acquisition, along with purchasing. Since the Walsh-Healey Act's application to commercial items has been deleted by the Federal Acquisition Streamlining Act (FASA), leasing by third parties (other than the equipment provider) has become more accessible to Government ordering activities. Several schedules, including the Information Technology (IT) Multiple Award Schedule have been expanded to include the leasing of equipment; others include Copiers, and Furniture - leasing is expected to be offered on all other Schedules. The presence of leasing on the MAS does NOT imply a recommendation by FSS or GSA for leasing over purchase. The decision to purchase or lease is at the discretion of the acquiring ordering activity. Only equipment offered on a Federal Supply Schedule may be leased under the schedule.

Maximum Order (MO)
The Maximum Order threshold (MO)is a level (usually a dollar amount) established in each schedule contract. When the order reaches the maximum order threshold the ordering activity is required to seek an additional discount (FAR 8.404 (b)(3)). Contractors can lower their price for one agency without having to pass the reduction on to all Federal ordering activities (FAR 8.404) When an ordering activity places an order that exceeds the MO the contractor may:

1. offer a new lower price for this requirement or

2. offer the lowest price available under the contract or

3. decline the order
   

The maximum order threshold procedures allow Multiple Award Schedule contractors to accept "any size" order.

Modification Clause
The modification clause permits the contractor to request varied contract modifications such as Economic Price Adjustment (EPA), Price Reduction or the Addition/ of Schedule Items/Special Item Numbers (SINs). With respect to the Addition or Deletion of Schedule Items/Special Item Numbers (SINs) these may be requested at any time during the contract period. The contractor must furnish the following information: sales and marketing data, product literature, copies of published pricelists/catalogs; production point(s) and delivery information with respect to the new items. If information has changed with respect to the "Basis of Award" category of customer, the contractor must supply data and details of all discounts and pricing plans that are offered. If all discounts, terms, and conditions are the same as those reflected in the initial award, or as previously modified, a statement to that effect is required from the contractor. Contractors are also required to certify that no discounts in excess of those disclosed in the modification request have been offered to any of their customers. If the information has changed the contractor must submit updated information.
If the request involves a product deletion, the contractor must state the reasons for requesting the deletion, i.e., unavailability, technological obsolescence, etc. Under the modifications clause of the contract the Contracting Officer reserves the right, during the contract to reject any subsequent offer of a higher priced item which is identical or substantially equal to the deleted item. Such a determination can be made if the Contracting Officer believes that the higher price of the same or substitute item from the same contractor is unreasonable when compared to that of the price of the deleted item.

New Products
MAS vendors may add and delete products and services from their contracts as their commercial product line changes. The "New Product" category allows and encourages contractors to continually refresh technology offered through the Schedules program, promoting new and improved products to the Government.

Price Reduction
The MAS price reduction clause requires the contractor to:

• Reduce the Government's price when it reduces prices to the commercial customer which was the basis for award
  

• Allows a Schedule contractor to give one Federal customer a discount without passing the discount onto the entire Federal Government (FAR 8.404 (b)(5))
  

As far as "spot reductions", the Price Reduction allows contractors to be more competitive by offering higher discounts to a single ordering activity without offering the same higher discounts to all other federal ordering activities. This method allows contractors to react more immediately to the commercial market place; move inventory, respond to technological advancements, etc.

At the same time, if promotional discounts are being given across the board commercially, these likewise shall be also given to federal ordering activities.

When a MAS contractor wishes to extend a commercial price reduction under the Schedule contract, the contractor should submit two copies of the proposed changes (pricelist) and identify the reason for the requested change.

Under the modifications clause, the contractor must state whether the price reduction involves
a. a reduction in prices that were contained in the commercial catalog, pricelist, etc. upon which contract award was predicated;
b. the granting of more favorable discounts or terms and conditions than those contained in the commercial catalog, pricelists, etc. (i.e. promotion, "freebie"); or
c. a price reduction through a special discount to the identified, "Basis of Award" customer or category of customer, upon which award was predicated.

Trade Ins
If trade-ins are a customary commercial practice, then Federal ordering activities can consider trade-ins against the purchase of new equipment, and in determining the "best value" purchase at the lowest overall cost; i.e., the price of the item plus administrative costs. See FAR 8.404 (b)(2)(ii). If equipment was traded in as part of the purchase arrangement, it is suggested that the file show the type, brand and value of the equipment exchanged. Trade-ins for this purpose are considered as a form of payment and can be applied directly to the schedule purchase.

Variable Contract Periods
Historically, the Federal Supply Schedules have always had an established schedule period under this arrangement. One basic solicitation was issued with periodic windows of "opportunities" called open seasons that were established allowing new offers to be submitted. All contracts awarded under this arrangement had common expiration dates.

Since the fall of 1997 the Federal Supply Schedule Program has been moving away from this "traditional" contracting method. Many of our Federal Supply Schedules will now offer the opportunity to seek a contract on an open basis. Under this standing solicitation there will be no closing dates. The initial term of contracts awarded will be for a five year period. The contract period will commence on the date of award and will expire five years from that date.

The terms and conditions of solicitations will be "refreshed" or periodically updated to incorporate all the latest changes resulting from recently issued acquisition letters, FAR and GSAR supplements. These changes may be the result of new laws and/or regulations, as well as changes introduced within the Federal Supply Service to enhance the Schedules program. Since contracts are being awarded at different times and against standing solicitations that may contain clauses not included in previous solicitations, it will be common for contracts under the same Schedule not to exactly mirror each other. Whenever a standing solicitation is updated, relevant changes included in the refreshed solicitation may be communicated to contractors.
New offers may be submitted in response to these standing solicitations at any time, and as a result, the issue of "late offers" will no longer be a basis for rejection of an offer. However, an offer may be rejected if an offeror fails to meet timeframes established by the Contracting Officer either to address deficiencies in the offer or to submit proposal revisions.

The fact that new offers are acceptable at any time does not eliminate a Contracting Officer's decision to reject an offer that has recently been rejected. If an offeror resubmits an offer that has previously been rejected, that resubmitted offer may be immediately rejected if it still is deficient in the area(s) that caused its initial rejection. The perpetual open season concept is not designed to provide ways for an offeror to circumvent the minimum requirements necessary for award, nor hamper a Contracting Officer's ability to ascertain that an offeror is responsible and will offer the Government quality goods/services at fair and reasonable prices. Contracting Officers may also award identical items to more than one MAS source so long as they can determine that prices are fair and reasonable.
Year 2000 Warranty

"Year 2000 compliant" with respect to information technology for these purposes is "that the information technology accurately processes date/time data (including, but not limited to, calculating, comparing, and sequencing) from, into, and between the twentieth and twenty-first centuries, and the years 1999 and 2000 and leap year calculations, to the extent that other information technology, used in combination with the information technology being acquired, properly exchanges date/time data with it.

Under the FSS warranty clause, a contractor is responsible not only for delivery Y2K compliant products, but also for ensuring that its products properly work with other existing products "provided that" these other products are also Y2K compliant. The FSS clause implicitly and properly recognizes that the responsibility for ensuring Y2K compliance in the integration of one contractor's products with an existing base of other products is, in the first instance, on the Government; the burden of knowing the date capabilities of a customer's existing inventory of computer systems, hardware, and software should with the rest Government as owner. In any event, all contractors should request such information any time Y2K compliance is required of the technology to be provided, and there is the possibility that the new system might interoperate with any existing IT products.

Selling Your Product Through Multiple Award Schedules(MAS)
To sell your products through the MAS, you must first be awarded a contract under the appropriate Schedule. MAS contract awards are based on full and open competition. After award you will receive your GSA contract number that Government ordering activities will use for ordering products from you. GSA contractors market directly to ordering activities.

GSA is also a front runner offering online shopping through GSA Advantage!. In addition, the new product category allows products/services to be brought to Federal ordering activities quickly. For faster payment, the Government purchase card(s) can be accepted when receiving orders for ease of ordering. Another advantage is the fact that order limitations have been removed.

• Advantages of Federal Supply Schedules
  

• Program similar to commercial catalog business
  

• Prices compete with wholesale outlets
  

• 100% Commercial - products, warranty, and delivery
  

• Volume Discount Pricing
  

• Single Awards for well defined requirements
  

• Multiple Award for varying requirements
  

• Easy vehicle for selling to the Federal Government
  

• Ordering activities are NOT required to synopsize orders in the CBD when purchasing from these established contracts.
  

• Prices have been determined fair and reasonable
  

• Government purchase card(s) are used
  

• New products may continually be introduced into the system
  

• Order limitations have been removed
  

• Ease of ordering
  

• Teaming Arrangements
  

Blanket Purchase Agreements (BPA) provisions
Products are exposed to a vast number of ordering activities for contract periods exceeding 5 years.
Shorter lead-times, lower administrative costs, and reduced inventories.
An extremely effective procurement method to satisfy the Government's widely diverse requirements with simple administrative processes.

The relationship between the contractor and the ordering activity is a direct one.
Special discounts can be given to an individual ordering activity without passing it to all Government ordering activities.

Orders for $2,500 or less can be placed with any GSA Federal Supply Schedule contractor.

Ordering Procedures
Generally, each schedule lists the brands names of items awarded by Special Item Number (SIN) in the "supplies and Services" section. The "contractor" section of the schedule contains the contractor's name, address, telephone number, business size, contract number and contract effective date.

After award of an MAS contract agencies select the contractor that will satisfy their needs using the ordering instructions of FAR 8.404.
Under $2,500, agencies may order the item that best meets their needs from any Schedule contractor.
Over $2,500 agencies may search for items using GSA's online shopping service GSA Advantage!, or by reviewing three price lists. Ordering activities select a contractor by making a best value determination (price and other factors considered).
For requirements over the Maximum Order threshold (MO), ordering activities must review additional Schedule price lists or products and prices contained in GSA's automated information and ordering system, GSA Advantage!.
Ordering activities must also request additional price reductions of Schedule contractor(s) appearing to provide a best value, and make a best value determination prior to placing an order.
When determining best value, ordering activities may consider: special features required of the supply or service; trade-ins; warranty; maintenance; past performance, etc. Minimum documentation is required.

FAQs on MAS
GSA Advantage!
GSA Advantage! is a World Wide Web on-line, electronic ordering system that allows ordering activities to search through all GSA sources of supply and select the item that is the best value for their requirements, without having to know any complex paper or logistics system. Vendors are able to search for products quickly and conveniently. For those not having Internet access, GSA has created a software program called GSA Advantage! ACCESS which provides modem access into GSA Advantage! via a toll-free number. Following these easy steps browsing is available to everyone.
YOU can browse, by entering a zip code (this provides access to your area) and search for products in GSA Advantage!The system offers all products supplied through:

• FSS Stock and Special Order Programs (7-14 day delivery);

• FSS Customer Supply Centers (1-3 day delivery); and

• Federal Supply Schedule Programs.

• Benefits for Vendors:

• Quick and easy identification of items increases potential for strong sales

• Potential reduction of catalog printing and mailing costs

If you have more questions, our voice mail hotline telephone number is 703-305-7359, e-mail: mailto:gsa.advantage@gsa.gov?Subject=Benefits for Vendors or

write:
GSA/FSS/FCS
Acquisition Operations & Electronic Commerce Center
Washington, D.C. 20406

Questions and Answers on GSA Advantage!
Vendor Start-up Kit
After a contract is awarded, contractors will be provided a vendor start-up kit with instructions for submitting electronic contract data in prescribed electronic form as required by clause 552.238-74, Submission and Distribution of authorized FSS Schedule Price lists. The kit explains how to include your products covered by your contract in GSA Advantage! Your participation is very important to us as we have been challenged to employ electronic commerce and to simplify the acquisition process in the Federal Government. The kit includes general instructions for the submission of schedule catalog data.

1. There are two mechanisms available in order to submit contract and product data for inclusion in GSA Advantage!

2. Electronic Data Interchange (EDI). ANSI ASC X12 832 and 864 transaction sets;

3. Schedule Input Program (SIP). For those contractors who are not yet EDI capable, a Windows based program which operates in either a Windows 95 or Windows 3.1/3.11 environment and be provided on diskettes

4. A Vendor Support Center (VSC) has been established by GSA to assist vendors in the preparation and submission of their electronic catalog data. Although the primary focus of the VSC is the support of non-EDI vendors using the SIP, it is also an important resource for EDI compliant vendors. The VSC maintains a staff of personnel ready to assist you. The VSC also maintains a system much like an on-line bulletin board which allows you to download the latest versions of the Look-up Tables, SIP software, EDI Transaction Set samples, etc. Vendors having a VSC account have full access to the VSC System.

Contacting the VSC: Personnel at the VSC may be reached at (703) 305-6235 (M-F 8:00-5:00PM EST), or FAX (703) 305-6690, or e-mail

Establishing a VSC Account: Contractors using the SIP must first contact the VSC at (703) 305-6235 to be set-up with an account before they can upload their catalog file.

Procurement Preference Programs
The Federal Supply Schedules Program offers significant opportunities for small businesses. Over 70 percent of the 6,000 Federal Supply Schedule Contracts are held by small businesses. Another benefit is ordering activities can now get credit for buying from small businesses using supply Schedule contracts.

Small Business Opportunities
It is the policy of the Government to place a fair proportion of its acquisitions, including contracts and subcontracts, with small business concerns and small disadvantaged business concerns. GSA, in accordance with the provisions of Public Law 95-907, established an Office of Small and Disadvantaged Business Utilization (OSDBU). The OSDBU negotiates annual procurement preference goals with Small Business Administration (SBA) based upon the goals set for each of the agencies' contracting activities. The procurement accomplishments with small, small disadvantaged and women-owned concerns plus negotiated subcontracting achievements with prime contractors are reported to SBA each fiscal year. Federal agencies are therefore, required by law to give preference to certain kinds of businesses in the award of contracts. The procurement preference programs are:
Small Business Set-Asides

The Small Business Set-aside program is authorized by the Small Business Act of 1953. It requires agencies to limit competition on certain contracts to qualified small businesses. Size qualification is determined by the Small Business Administration (SBA). Since the law requires awards to be made at competitive prices, set-asides are applied only when enough small businesses are expected to bid to ensure adequate competition.

A "set-aside" for small business is the reserve of an acquisition exclusively for participation by small business concerns. This may be accomplished by setting the entire amount of an acquisition or class of acquisition aside, or a portion thereof, with the exception of construction contracts. The determination to make a procurement set-aside may be unilateral or joint. A unilateral determination is made by the Contracting Officer. A joint determination is one that is recommended by the SBA procurement center representative and concurred by the contracting office.

In the early planning stages of an acquisition, it is the policy of the Government to provide the maximum practicable opportunities in its acquisitions to small business concerns, small disadvantaged business concerns, and women-owned small business participate as subcontractors in the contracts awarded by any executive ordering activity, consistent with efficient contract performance.

Socially & Economically Disadvantaged Business 8(A)
Section 8(a) of the Small Business Act, as amended by public Law 95-507, authorizes SBA to enter into contracts with Federal agencies for goods and services. In turn, SBA contracts the actual performance of the work to socially and economically disadvantaged small businesses which have been certified by SBA as eligible to receive contracts. Generally, to be eligible for the program the firm must be owned (51%) by a person(s) who is an descendent of Asian Pacific, American Indian, Black, Oriental, or Hispanic parents. Women may also qualify if they can prove they have been economically disadvantaged.

The SBA's subcontractors are referred to as "8(A) contractors". Through their cooperative efforts, the SBA and any ordering activity match the ordering activity's requirements with the capabilities of 8(A) concerns to establish a basis for the ordering activity to contract with the SBA under the program.
Subcontracting Opportunities for Small & Small Disadvantaged Businesses
Federal agencies are required to ensure that their prime contractors establish goals for awarding subcontracts to qualified small and small disadvantaged firms. Large businesses are required to negotiate a subcontracting plan which must outline in detail the contractor's specific goals and activities which will enable federal government businesses to "flow down" to these small concerns. Prime contracts with a total value of $500,000 ($1,000,000 for construction) must include percentage goals for subcontracts with such firms; and a description of how the goals will be achieved.

GSA/FSS Small Business Technical Advisor (SBTA):
Yvonne Knighton
703-305-5591

Women-Owned Businesses
Executive Order 12138 requires Federal agencies to take affirmative action in support of businesses owned by women.
To carry out the order, agencies make special efforts to advise women of business opportunities. Eligible women owned firms are strongly encouraged to participate in the above programs.

Vietnam Veterans
Although there are no statutory requirements for awarding contracts to businesses owned by Vietnam veterans, Federal agencies actively encourage this group to seek Government contracts and to participate, where eligible, in the above programs. However, the Vietnam Era Veterans Readjustment Assistance Act requires that every contract in the amount of $10,000 mandate that the contractor take affirmative action to employ, and advance in employment, qualified special disabled veterans and veterans of the Vietnam era. It further states that each contractor, including each subcontractor, immediately list all of its suitable employment openings with the appropriate or nearest local job service office of the State Employment Service system. The Office of Federal Contract Compliance Programs (OFCCP), U.S. Department of Labor, has the responsibility for enforcing the affirmative action obligations contained in CFR 41, Part 60-250.
To learn more about these programs, contractors and subcontractors should contact their Regional Small Business Centers. See listing in Section G: Additional Resources.

Helpful Websites
Acquisition Opportunities- scroll down the document to the bullet General Services Administration (GSA)
http://www.arnet.gov/AcqOpp/AcqOpp.html
ARNET
http://www.arnet.gov/
Commerce Business Daily
http://cbdnet.access.gpo.gov/
Electronic Commerce Resource Centers
http://www.ecrc.ctc.com/
FAR
http://www.arnet.gov/far/
FSS Homepage
http://pub.fss.gsa.gov/
FSS Pubs
http://pub.fss.gsa.gov/pub
GSA Advantage!
https://www.gsa.gov/advantage
GSA Homepage
http://www.gsa.gov/
Key OED Staff Contacts
http://www.gsa.gov/oed/keystaff.htm
National Minority Supplier Development Council, Inc.
http://www.trainingforum.com/ASN/NMSDC/
Office of Enterprise Development (GSA)
http://www.gsa.gov/oed/
OED Vendor Profile Registration
http://www.gsa.gov/oed/vendor.htm
Small Business Administration (SBA)
http://www.sbaonline.sba.gov/
SBA's Women's Business Centers
http://www.onlinewbc.org/
Small Business Help for the Year 2000
http://www.sba.gov/y2k/
Small Business Technical Advisors
http://gsa.gov/oed/advise.htm
Vendor Support Center
http://vsc.gsa.gov/public/default.htm
Vendor Support Center (GSA Advantage! and 72A Sales Reporting)
http://vendorsupport.fss.gsa.gov/public/default.htm
Additional Resources
Federal Supply Schedule Information Center
The Federal Supply Schedule Information Center maintains a library of Federal Supply Schedules and authorized contractor catalog pricelists. http://pub.fss.gsa.gov/c-assist/fss-ic.html
Acquisition Centers
http://pub.fss.gsa.gov/c-assist/ctr.html
Benefits of Schedules
http://pub.fss.gsa.gov/sched/
Federal Supply Schedule Listing/Mailing List Codes
http://sc2000.gsa.gov:9000/NetDynamics/NetDynamics40/ndNSAPI.nd/SchedSearch/pgSearch
Regional Small Business Centers
The General Services Administration's Regional Small Business Centers (formerly GSA's Business Service Centers) serve as GSA's "front door" to contracting opportunities. The center serving your area will help you become acquainted with GSA's programs and requirements and point you to the contracting offices that buy the types of products or services you provide.
Customer/Vendor Relations Directors and Marketing Managers
To make your dealings with GSA as easy as possible, we maintain a network of commodity specialists.
Click http://pub.fss.gsa.gov/c-assist/csd.html to reach the Customer/Vendor Relations Directors and Marketing Managers.
Acronyms
FSS encourages you to review and utilize the following listing of acronyms. Although the listing is not all inclusive, it reflects a portion of the Government's vernacular.
BPA -Blanket Purchase Agreement
BML -Bidders Mailing List
CBD -Commerce Business Daily
CMLS -Centralized Mailing List Service
CSP -Commercial Sales Practices
DOA -Date of Award
EPA -Economic Price Adjustment
EDI -Electronic Data Interchange
FAR -Federal Acquisition Regulation
FSC -Federal Supply Class
FSS -Federal Supply Service
GSA -General Services Administration
GSAR -General Services Administration Acquisition Regulation
IDIQ -Indefinite Delivery, Indefinite Quantity Contracts
IFF -Industrial Funding Fee
INP -Introduction of New Products
MAS -Multiple Award Schedule
MO -Maximum Order Threshold
SAS -Single Award Schedule
SIN -Special Item Number
SBA -Small Business Administration
SBC -Small Business Centers
SBSA -Small Business Set-Aside
SBTA -Small Business Technical Advisor
SOP -Special Order Program
Y2K -2000 Year Compliance
Glossary
A glossary does not define its terms but rather, explains or characterizes them within the general context of their use. There are dozens of terms that reflect the government procurement environment, but few of them are subject to precise, unerring definition. So, while the following explanations and characterizations are sound, the vendor is cautioned to remember that this is a glossary, not a dictionary. While it is always instructive, and sometimes necessary, to search the law for the regulatory base for the specific meaning and application of terms, there are times when it is helpful to understand their fundamental usage. That is the objective here.
ADDITIONAL CHARGE FOR DELIVERY WITHIN CONSIGNEE'S PREMISES (INSIDE DELIVERY)- a separate service charge placed on the purchase order (and subsequent invoice)--only when requested by an ordering activity--for delivery to an exact location within the delivery site, i.e., room, suite. - a separate service charge placed on the purchase order (and subsequent invoice)--only when requested by an ordering activity--for delivery to an exact location within the delivery site, i.e., room, suite.
AFFIRMATIVE ACTION - when used in connection with Equal Employment Opportunity, a positive and continuing effort to attract, recruit, promote, counsel, train, and hire minorities, demonstrated through results obtained.
AGGREGATE SALES - the total sales to the Government under a contract. The basis for comparison of Government discounts with commercial discounts given on the basis of estimated or previous actual sales to commercial firms: e.g., national accounts.
AUDIT - the systematic examination of records and documents and/or the securing of other evidence by confirmation, physical inspection, or otherwise, for one or more of the following purposes: determining the propriety or legality of proposed or consummated transactions; ascertaining whether all transactions have been recorded and are reflected accurately in accounts; determining the existence of recorded assets and inclusiveness of recorded liabilities; determining the accuracy of financial or statistical statements or reports and the fairness of the facts they present; determining the degree of compliance with established policies and procedures relative to financial transactions and business management; and appraising an accounting system and making recommendations concerning it.
BARGAINING - Negotiations are exchanges with the aim of having an offeror revise the proposal. It includes persuasion, alternation of assumptions and positions, give and take, and may apply to price, schedule, technical requirements, type of contract, or other terms of a proposed contract.
BASIS OF AWARD - refer to FAR 15.304, refers to award decision based on evaluation factors and significant subfactors that are tailored to the acquisition.
BEST AND FINAL OFFER - See PROPOSAL REVISIONS
BEST VALUE- represents the overall "best" solution which is achieved by the ordering activity selecting the lowest overall price offered depending on the circumstances of the buy, e.g., the relative importance of cost or price, special features, the amount of performance risk, urgency, trade-in considerations, warranty, maintenance availability, etc.; that is all terms and conditions considered.
When determining what is a "best value," the following factors may be considered:
Special features of the supply or service required but not provided by a comparable supply/service
Trade-in considerations
Probable life of the item selected compared to that of another item
Warranty considerations
Maintenance availability
Past performance
Environmental and energy efficiency considerations
BLANKET PURCHASE AGREEMENTS (BPA) - is a simplified method of filling anticipated repetitive needs for supplies by establishing "charge accounts" with qualified sources of supply. When an agency uses an established schedule BPA, they save time and money -- time because they are convenient, money because they reduce administrative costs and allow agencies to take advantage of higher level discounts.
DISCUSSIONS - are negotiations that take place after the establishment of a competitive range. The primary objective of discussions is to maximize the Government's ability to obtain best value, based on the requirement and evaluation factors in the solicitation ( - are negotiations that take place after the establishment of a competitive range. The primary objective of discussions is to maximize the Government's ability to obtain best value, based on the requirement and evaluation factors in the solicitation (FAR 15.306(d))
INCIDENTAL ITEM - for administrative convenience, open market (non-contract) items may be added to a Federal Supply Schedule BPA or the individual task/delivery order if the items are clearly labeled as such on the order, all applicable acquisition regulations have been followed, and price reasonableness has been determined by the ordering activity for the open market items. These can be referred to as a non-schedule item or as an open market item; as such these are minor items that are needed, and cannot be easily or reasonably separated from the Federal Supply Schedule item.
INDUSTRIAL FUNDING FEE (IFF) - is a fee paid by the ordering activity to fund the cost of operating the Schedules program. Ordering activities pay this fee when they purchase items from a Federal Supply Schedule vendor with a contract containing industrial funding provisions. The fee is included in the price of the item and not as a separate line item, because the Contracting Officer and the offeror negotiated the industrial funding fee into the contract price before award was made.
MODIFICATIONS - to the contract means any written change in the terms and conditions of a contract (FAR 43.103)
NEGOTIATIONS - are exchanges between the Government and offerors undertaken with the intent of allowing an offeror to revise their proposal (FAR 43.002).
ORAL PRESENTATIONS - may substitute or augment the written information provided in the proposal (FAR 15.102 for full discussion of oral presentation procedures). Within restrictions on the scope of exchanges of information and without providing opportunities for proposal revisions, presentations need not constitute "discussions". During an oral presentation, the Government conducts discussions (FAR 15.306(d), the Government must comply with FAR 15.306 and 15.307.
PROPOSAL REVISIONS (FAR 15.307(b)) has replaced "Best and Final Offers (BAFO)". Final proposal revisions are less formal than BAFO's. Although the common cut-off date remains, requests need not be in writing. CO's shall inform the offerors that their final proposal revisions must be in writing and that the Government intends to award without obtaining further revisions (FAR 15.307(b)).
REVISION - is the offeror's opportunity to clarify and document understandings reached during negotiations. Rather than having an offeror continually update the proposal, the Contracting Officer can maintain control and be more efficient by covering all issues, then calling for the submission of a proposal revision. With the revised proposal in hand, the Contracting Officer will have a complete picture of the offer, evaluate its relative merit and be assured that all significant issues are covered and understood. Revisions should be submitted only on the request or permission of the CO (FAR 15.307).
SPECIAL ITEM NUMBER (SIN's) - SINs in multiple award schedules represent groups of generically similar (but not identical) products that are intended to serve the same general purpose. These products normally compete in the market place for the same customer's business, although they may provide various methods or techniques for accomplishing a particular task.
BEST VALUE
BLANKET PURCHASE AGREEMENT
FEDERAL SUPPLY SCHEDULE
(Insert Customer Name)
In the spirit of the Federal Acquisition Streamlining Act
(Agency)__________________ and ___(Contractor)___ enter into a cooperative agreement to further reduce the administrative costs of acquiring commercial items from the General Services Administration (GSA) Federal Supply Schedule Contract(s) ____________________.
Federal Supply Schedule contract BPAs eliminate contracting and open market costs such as: search for sources; the development of technical documents, solicitations and the evaluation of offers. Teaming Arrangements are permitted with Federal Supply Schedule Contractors in accordance with Federal Acquisition Regulation (FAR) 9.6.
This BPA will further decrease costs, reduce paperwork, and save time by eliminating the need for repetitive, individual purchases from the schedule contract. The end result is to create a purchasing mechanism for the Government that works better and costs less.
Signatures __________________________________________________________________
AGENCY DATE ______________________ CONTRACTOR DATE_____________________


BPA NUMBER____________________________
(CUSTOMER NAME) ____________________________________________________________BLANKET PURCHASE AGREEMENT
Pursuant to GSA Federal Supply Schedule Contract Number(s)__________________________, Blanket Purchase Agreements, the Contractor agrees to the following terms of a Blanket Purchase Agreement (BPA) EXCLUSIVELY WITH (Ordering Agency):
(1) The following contract items can be ordered under this BPA. All orders placed against this BPA are subject to the terms and conditions of the contract, except as noted below:
MODEL NUMBER/PART NUMBER *SPECIAL BPA DISCOUNT/PRICE
__________________________________________________________
___________________________________________________________
(2) Delivery:
DESTINATION DELIVERY SCHEDULE/DATES
___________________________________________________________
___________________________________________________________
(3) The Government estimates, but does not guarantee, that the volume of purchases through this agreement will be ___________________________.
(4) This BPA does not obligate any funds.
(5) This BPA expires on _________________________ or at the end of the contract period, whichever is earlier.
(6) The following office(s) is hereby authorized to place orders under this BPA:
OFFICE POINT OF CONTACT
____________________________________________
____________________________________________
(7) Orders will be placed against this BPA via Electronic Data Interchange (EDI), FAX, or paper.
(8) Unless otherwise agreed to, all deliveries under this BPA must be accompanied by delivery tickets or sales slips that must contain the following information as a minimum:
(a) Name of Contractor;
(b) Contract Number;
(c) BPA Number;
(d) Model Number or National Stock Number (NSN);
(e) Purchase Order Number;
(f) Date of Purchase;
(g) Quantity, Unit Price, and Extension of Each Item (unit prices and extensions need not be shown when incompatible with the use of automated systems; provided, that the invoice is itemized to show the information); and
(h) Date of Shipment.
(9) The requirements of a proper invoice are specified in the Federal Supply Schedule contract. Invoices will be submitted to the address specified within the purchase order transmission issued against this BPA.
(10) The terms and conditions included in this BPA apply to all
purchases made pursuant to it. In the event of an inconsistency between the provisions of this BPA and the Contractors invoice, the provisions of this BPA will take precedence.

BASIC GUIDELINES FOR USING
CONTRACTOR TEAM ARRANGEMENTS
Federal Supply Schedule Contractors may use Contractor Team Arrangements (see FAR 9.6) to provide solutions when responding to a customer agency requirements.
These Team Arrangements can be included under a Blanket Purchase Agreement (BPA). BPAs are permitted under all Federal Supply Schedule contracts.
Orders under a Team Arrangement are subject to terms and conditions or the Federal Supply Schedule Contract.
Participation in a Team Arrangement is limited to Federal Supply Schedule Contractors.
Customers should refer to FAR 9.6 for specific details on Team Arrangements.
Here is a general outline on how it works:

• The customer identifies their requirements.
  

• Federal Supply Schedule Contractors may individually meet the customers needs, or -
  

• Federal Supply Schedule Contractors may individually submit a Schedules Team Solution to meet the customers requirement.
  

• Customers make a best value selection.
  

GSA FSS U-MAS TRAINING FOR GOVERNMENT BUYERS AND CONTRACTING OFFICERS
Note: You can find these classes at the U-MAS online at http://pub.fss.gsa.gov/schedules/building2a-frame.html
Classroom Series Description
Computer training that respects your time, and your schedule! This series provides
guidance on ordering Services. It includes instruction, tools, examples, and
additional resources to assist ordering agencies in ordering professional services;
and developing a statement of work while using Schedule contracts. The classes
for this series are listed below:
SER Series

SER 301 Ordering Professional Services
SER 302 Introduction to Statement of Work
SER 303 Types of Statement of Work
SER 304 Preparing a Statement of Work
Course objectives. Your successful completion of this series will enable you to:

1. Order professional services.
   

2. Understand types of Statements of Work (SOW) used.
   

3. Prepare a Statement of Work.
   

SER 301 - Ordering Professional Services
Procedures for services priced on GSA schedules at hourly rates. FAR 8.402 contemplates that GSA may occasionally find it necessary to establish special ordering procedures for individual Federal Supply Schedules or for some Special Item Numbers (SINs) within a Schedule. GSA has established special ordering procedures for services that are priced on Schedule at hourly rates. These special ordering procedures take precedence over the procedures in FAR 8.404. The GSA has determined that the rates for services contained in the contractor's price list applicable to this schedule are fair and reasonable. However, the ordering office using this contract is responsible for considering the level of effort and mix of labor proposed to perform a specific task being ordered and for making a determination that the total firm-fixed price or ceiling price is fair and reasonable.

When ordering services, ordering offices shall -
1. Prepare a Request for Quotes:
a. A performance-based statement of work that outlines, at a minimum, the work to be performed, location of work, period of performance, deliverable schedule, applicable standards, acceptance criteria, and any special requirements (i.e., security clearances, travel, special knowledge, etc.) should be prepared.
b. A request for quotes should be prepared which includes the performance-based statement of work and requests the contractors to submit either a firm-fixed price or a ceiling price to provide the services outlined in the statement of work. A firm-fixed price order shall be requested, unless the ordering office makes a determination that it is not possible at the time of placing the order to estimate accurately the extent or duration of the work or to anticipate cost with any reasonable degree of confidence. When such a determination is made, a labor hour or time-and-materials quote may be requested. The firm-fixed price shall be based on the hourly rates in the schedule contract and shall consider the mix of labor categories and level of effort required to perform the services described in the statement of work. The firm-fixed price of the order should also include any travel costs or other incidental costs related to performance of the services ordered, unless the order provides for reimbursement of travel costs at the rates provided in the Federal Travel or Joint Travel Regulations. A ceiling price must be established for labor-hour and time-and-materials orders.
c. The request for quotes may request the contractors, if necessary or appropriate, to submit a project plan for performing the task and information on the contractor's experience and/or past performance performing similar tasks.
d. The request for quotes shall notify the contractors what basis will be used for selecting the contractor to receive the order. The notice shall include the basis for determining whether the contractors are technically qualified and provide an explanation regarding the intended use of any experience and/or past performance information in determining technical acceptability of responses.
2. Transmit the Request for Quotes to Contractors:
a. Based upon an initial evaluation of catalogs and price lists, the ordering office should identify the contractors that appear to offer the best value (considering the scope of services offered, hourly rates and other factors such as contractors' locations, as appropriate).
b. The request for quotes should be provided to three (3) contractors if the proposed order is estimated to exceed the micro-purchase threshold, but not exceed the maximum order threshold. For proposed orders exceeding the maximum order threshold, the request for quotes should be provided to additional contractors that offer services that will meet the agency's needs. Ordering offices should strive to minimize the contractors' costs associated with responding to requests for quotes for specific orders. Requests should be tailored to the minimum level necessary for adequate evaluation and selection for order placement. Oral presentations should be considered, when possible.
3. Evaluate quotes and select the contractor to receive the order:
After responses have been evaluated against the factors identified in the request for quotes, the order should be placed with the schedule contractor that represents the best value and results in the lowest overall cost alternative (considering price, special qualifications, administrative costs, etc.) to meet the Government's needs. The establishment of Federal Supply Schedule Blanket Purchase Agreements (BPAs) for recurring services is permitted when the procedures outlined herein are followed. All BPAs for services must define the services that may be ordered under the BPA, along with delivery or performance time frames, billing procedures, etc. The potential volume of orders under BPAs, regardless of the size of individual orders, may offer the ordering office the opportunity to secure volume discounts. When establishing BPAs ordering offices shall inform contractors in the request for quotes (based on the agency's requirement) if a single BPA or multiple BPAs will be established, and indicate the basis that will be used for selecting the contractors to be awarded the BPAs.
a. SINGLE BPA: Generally, a single BPA should be established when the ordering office can define the tasks to be ordered under the BPA and establish a firm-fixed price or ceiling price for individual tasks or services to be ordered. When this occurs, authorized users may place the order directly under the established BPA when the need for service arises. The Schedule contractor that represents the best value and results in the lowest overall cost alternative to meet the agency's needs should be awarded the BPA.
b. MULTIPLE BPAs: When the ordering office determines multiple BPAs are needed to meet its requirements, the ordering office should determine which contractors can meet any technical qualifications before establishing the BPAs. When multiple BPAs are established, the authorized users must follow the procedures in II.B (Transmit the Request for Quotes to Contractors), and then place the order with the Schedule contractor that represents the best value and results in the lowest overall cost alternative to meet the agency's needs.
4. Review BPAs periodically. Such reviews shall be conducted at least annually. The purpose of the review is to determine whether the BPA still represents the best value (considering price, special qualifications, etc.) and results in the lowest overall cost alternative to meet the agency's needs.
5. The ordering office should give preference to small business concerns when two or more contractors can provide the services at the same firm-fixed price or ceiling price.
6. When the ordering office's requirement involves both products as well as professional services, the ordering office should total the prices for the products and the firm-fixed price for the services and select the contractor that represents the greatest value in terms of meeting the agency's total needs.
7. The ordering office, at a minimum, should document orders by identifying the contractor the services were purchased from, the services purchased, and the amount paid. If other than a firm-fixed price order is placed, such documentation should include the basis for the determination to use a labor-hour or time-and-materials order. For agency requirements in excess of the micro-purchase threshold, the order file should document the evaluation of Schedule contractors' quotes that formed the basis for the selection of the contractor that received the order and the rationale for any trade-offs made in making the selection.

SER 302 - Introduction to Statement of Work
GENERAL
In order to acquire commercial services and products, these must be listed in the Federal Supply Schedule contract. This description is called a needs statement or statement of work (SOW). The Federal Acquisition Regulation (FAR) Part 11 prescribes policies and procedures for describing your agency needs. It has established procedures for statements of work that should be "performance-oriented." Developing statements of work can be challenging. Normally a statement of work is used to describe in sufficient detail what must be accomplished. Purchasing for timely, high quality services or products is wholly dependent on the statement of work. If the needs are not well described, it is highly likely that a contractor will have difficulty producing what your agency needs to support your mission. As a result, this guidance is being provided to assist technical and program personnel in writing statement of works.
ALTERNATIVES TO A STATEMENT OF WORK
Once a need has been identified, it is possible that a statement of work may not be necessary. For example, small dollar acquisitions can be purchased by use of the Government Purchase Card through Federal Supply Schedule contracts.
STATEMENTS OF WORK (SOW)
Statements of work (SOW) can be very essential documents when purchasing commercial services and products. They are read and interpreted by Government and industry personnel with diverse backgrounds such as engineering, science, accounting, law, contracting, and other business fields. Therefore, the statement of work must be written so that technical and non-technical readers can understand them. An initial investment of time and effort to write a clear and high quality statement of work will:
h. Enable offerors to clearly understand your agency's requirements and needs.
i. Allow offerors to more accurately cost or price their proposal and submit higher quality technical proposals.
j. Provide a baseline for the development of other parts of the request, particularly the evaluation criteria, technical proposal instructions, and independent cost estimate.
k. Minimize the need for change orders which can increase the cost or price and delay completion.
l. Allow both the Government and contractor to assess performance.

SER 303 - Types of Statement of Work (SOW)
There are three major types of statements of work:
13. Performance-based
14. Level of effort
15. Design/detailed
Although there are other types and variations of each, this classroom will work within the following three categories.
Performance-Based Statements of Work
Performance-based statements of work are the preferred method of stating needs. A performance based statement of work focuses on outcomes or results and not methods of performance or processes. Acquisition reform is striving to reduce Government risk by using performance-based standards. A statement of work using performance-based standards makes the contractor: Responsible for providing the service requested, Assume the risk for meeting performance requirements, and Seek innovations to efficiently and effectively achieve performance objectives. This orientation gives contractors more latitude for determining methods of performance, with more responsibility for performance quality. By measuring a contractor's performance against a clear standard, the emphasis shifts from one that focuses on process, to one which focuses on product/end results. The use of performance-based SOWs should lead to more cost-effective acquisitions and better value. It is written to ensure that contractors are given the freedom to determine how to meet the Government's performance objectives, and provides for full payment only when the results meet or exceed these objectives. It maximizes contractor control of work processes and allows for innovation in approaching various work requirements. Performance-based SOWs emphasize performance that can be contractually defined so that the results of the contractor's effort can be measured in terms of technical and quality achievement, schedule progress, or cost performance. The goal of a performance-based SOW is to:
a. Save money by reducing administrative costs from elimination of unnecessary effort through innovation by the contractor.
b. Enable agency's to shift its emphasis from processes to outputs.
c. Hold contractors accountable for the end results.
d. Ensure contractors are given the freedom to determine how to meet your performance objectives.
e. Reduce Government monitoring (surveillance).
In performance-based ordering, Government's management role changes from prescribing and monitoring inputs, to collecting and generating the results-based data needed to measure the impact of the work performed.
Level-of-Effort SOWs
Level-of-effort SOWs can be written for almost any type of service unless it is an inherent Government function. The real deliverable under this type of SOW is an hour of work. These are normally associated with task order and delivery order contracts.
Services or products are acquired via individual orders issued by the Contracting Office. The SOWs are usually very broad, and describe the general nature, scope or complexity of the services or products to be procured over a given period of time. It is important when writing these SOWs to assure all work items are sufficiently covered.
Task orders or delivery orders can only be issued in those areas specifically covered in the SOW. All activities outside of the SOW must be acquired through a separate procurement action.

Design/detail Statements of Work
Design/detail statements of work tell the contractor how to do the work. It may include precise measurements, tolerances, materials, quality control requirements, and other Government requirements that control the processes of the contractor.
There are wide variances in application of this type of SOW. It is as varied as the requirements that are acquired under them. The point is, that the Government to a large degree, requires the contractor to follow the Government's way of performing the task or making a product. This causes the risk of performance to be borne by the Government. For instance, if the contractor builds and/or performs a task and follows the Government's SOW exactly, and the service or product is faulty, who is to blame? Absent malfeasance or shoddy workmanship it is the Government's process that the contractor was implementing so the contractor cannot be faulted. Although this type of SOW is primarily used for manufacturing or construction, other work efforts are described in this rigid format.
ADVANCE PLANNING
Attention to the early stages of program and procurement planning is critical to achieving a successful acquisition. The amount of planning should be proportional to the complexity of the contemplated procurement. It is much easier to write a SOW around the required output if a complete task is turned over to the contractor.
EARLY COMMUNICATION WITH INDUSTRY
In order to develop a definitive SOW, you may determine to release a draft SOW. This pre-release is recommended and has the following advantages:
f. Permits early industry review and comment on complex Statements of Work
g. Promotes contractor interest
h. Encourages informal resolution of procurement problems
i. Improves industry's understanding of your requirements and evaluation criteria
j. Conferences with prospective contractors can also be held to clarify or explain requirements, or to address industry questions or recommendations on how to state those requirements
SER 304 - Preparing a Statement of Work (SOW)GENERAL
The SOW will be read and interpreted by a variety of people from diverse disciplines, such as attorneys, acquisition personnel, cost estimators, accountants, technical specialists, engineers, etc. It is imperative that the words be understood by both the writer of the SOW, and by the readers.
A SOW serves several purposes, and there are important considerations to be made before developing and preparing a SOW. These include:
k. A clear understanding/idea of what performance is expected
l. Each goal must be expressed in definitive terms
m. LEGAL IMPLICATIONS
n. The SOW is as an integral part of your order. A fundamental legal principle is that because the Government is the drafter, any ambiguity is usually construed to be against the Government by the courts. That is, when two reasonable interpretations are possible, the court will adopt the interpretation espoused by the non-drafting party.
o. The interpreter must look to what the SOW actually says, not what the Government meant to say or would like to have said. Drafters of SOWs are often tempted to write vague language because they think it gives them the flexibility to loosely interpret the SOW at a later date. A high-quality document leads to a greater likelihood of successful contractor performance. When drafting a SOW strive for clarity above all else.
p. LANGUAGE: Simple words, phrases, and sentences should be used for clarity. Well understood words and phrases improve the performance-based SOW by minimizing ambiguities. Be concise, precise, and consistent. Careful and exact descriptions will avoid misunderstandings. Keep sentences short and to the point. Choice of Verbs: Use Active verbs. Examples include: analyze, audit, calculate, create, design, develop, erect, evaluate, explore, interpret, investigate, observe, organize, perform, and produce. For instance, the PWS could require the contractor to "conduct the experiment and produce a report describing and analyzing (or interpreting) the results." Avoid Passive verbs. They can lead to vague statements. For example, the phrase "the contractor shall perform," is preferred in lieu of "it shall be performed" because the latter does not definitively state which party shall perform. Avoid "should" or "may" because they leave the decision for action up to the contractor. Use "shall" when describing a provision binding on the contractor. Use "will" to indicate actions by the Government. To reduce the possibility of misinterpretation, terminology must be consistent. The same words and phrases must be used when describing the same requirement. Avoid redundancy. Redundancy can reduce clarity, thereby increasing the possibility for ambiguity and contradiction. If amplification, modification, or exceptions are required, make specific reference to the applicable portions and describe the change. Vague/inexact words and generalizations are open to so many interpretations that they become meaningless. Phrases such as "securely mounted", "properly assembled", and "carefully performed" are examples of unenforceable language. Avoid catch-all and open-ended phrases, such as "is common practice in the industry," "as directed," or "subject to approval." Note that common industry or in-house terminology is not always as universally defined as might be assumed. Technical terms must be specifically defined since judges settling disputes lean toward the "ordinary and usual" meaning, and usually interpret the meaning against the drafter. If the writer is unable to define the term, potential offerors will have the same difficulty. Avoid using "any," "either," or "and/or" unless you want to give the contractor a choice in what must be done. Also, avoid the use of "etc.," because the reader doesn't have any idea of the items that could be missing. Include definitions that provide a common basis for understanding between you and the contractor. Ensure each "term of art" has only one universally understood meaning; otherwise define it. Use abbreviations or acronyms only after spelling them out the first time they are referenced. When there are many, it is advisable to provide an appendix. Any document referenced in the request should be either furnished with the request or available at a location identified in the request. The date or version of each document should also be specified, not listed as "version in effect on date of award."
q. You should indicate, if appropriate, desired design output, verification, and how design changes will be managed. The inspection portion shall address inspection and testing requirements. It may be helpful to have the contractor develop a quality plan or document procedures that will be used to inspect and test the product or identify non-conforming items. In all cases, performance-based statements of work must:

1. Be definitive enough to protect the Government's interests.
   

2. Serve as a basis for contractor response, evaluation of proposals, and source selection
   

3. Provide a meaningful measure of performance so both the Government and the contractor will know when the work is satisfactorily completed (see classroom series on Performance-Based Work Statement)

DELIVERABLES
This section contains guidelines on what you may require of the contractor. Identify only those outputs that are essential and a part of the performance requirement's summary.
r. Express the outputs in concise, easily understood, measurable terms.
s. Clearly state who will perform each task by delineating a division of responsibilities between yourself and the contractor.
t. If you are to provide a review, you should set a time limit within which review/comment must be provided. Each time the contractor suspends activity to wait for your response, time and money are expended. To avoid delay, your order could state "the contractor shall presume 'no comment'; and proceed if comment is not provided within ______":(indicate a specified period). Statements that make contractor performance dependent on your actions should be avoided. An order should clearly state the intended effect of interim reviews to avoid releasing the contractor from subsequent liability. Beware of the contractor giving accountability back to the Government while they are being paid to be accountable. Provide a realistic delivery schedule for performance and completion. Delivery schedules that are unnecessarily short or difficult to attain tend to restrict competition and result in higher prices. Provide sufficient information for the contractor to establish its own milestones against which its progress can be measured.

DATA REQUIREMENTS
Prepare a list of all data to be delivered, including the time and frequency of delivery. This includes information on the status of the contractor effort, information needed to support, manage, and operate the system, and use contractor formats or those common to the contractor's customers, if feasible. The goal is to ensure and appropriately motivate "faster, better, cheaper" contractor performance, therefore it is important to:
a. Minimize the data requiremnts.b. Buy only the data needed to make a decision and/or comply with the requirement.c. Reduce costs by requesting data that will normally be created during performance.d. Avoid contractor proprietary information management or technical data systeme. Don't request reports that you can generate on your own from contractor data.