# Presentation: 737776

## Presentation to GSA/Services Acquisition and Management Services Centers
 Industry Government Council Meeting
July 22, 2004

**Presentation to GSA/Services Acquisition and Management Services Centers**
** ****Industry Government Council Meeting**
**July 22, 2004**

**GSA Schedule Contracts **** Using Schedules for International Contracting**

## AGENDA

- Introduction
- Customers Using GSA Schedules for International Contracting
- Pricing Non-Services Schedule Items
- Other Things Necessary to Work in Developing Countries
- USAID Contracting in Developing Countries
- How Should Things Be Priced?
- Local Subcontracting/Purchasing
- Managing the Task Order
- Alternatives?

## Introduction

**Using Schedules Internationally**
- USAID has RFQs for BPAs under both FABS and MOBIS
- For developing countries, including in theater (war zones, Iraq)
- USAID has conducted similar projects in Kosovo, Montenegro, Serbia and Afghanistan – all in the immediate “post-conflict” environment.
- Using these services schedules raises some interesting pricing issues
- Performing contracts in such locations has some different attributes
- Especially as to “stuff” needed to work in-country
- Simply providing schedule labor categories is not enough

## Customers Using GSA Schedules for International Contracting

- U.S. Agency for International Development (USAID)
- U.S. Department of State
- Department of Defense and Services
**Solicitations Issued**
- GSA FABS Schedule Contract:  USAID SEGIR – RFQ-M-OP-EGAT-04-255, Value $1B (7 BPAs)
- GSA MOBIS Schedule Contract: USAID Washington – RFQ M/OP/EGAT/EMD-04-1138, Value $3B (7 BPAs)
- GSA MOBIS Schedule Contract: USAID Kabul, Afghanistan – RFQ 306-04-527, Value $10M
- GSA MOBIS Schedule Contract: USAID Ghana – RFQ 641-04-033, Value $35M
- GSA MOBIS Schedule Contract: USAID Madagascar – RFQ 687-04-Q-027, Value $7.96M
- GSA MOBIS Schedule Contract: USAID Indonesia – RFP Indonesia 04-010, Value $3.6M

## Pricing Non-Services Schedule Items

- Schedule services are generally priced under commercial sales practices with commercial price lists
- Most services schedules have few, if any, non-service schedule items
- Incidentals, variously defined, are billed at cost in accordance with FAR 52.232-7 Payments under Time-and-Materials and Labor-Hour Contracts, e.g. travel

## Other Things Necessary to Work in Developing Countries

- USAID identified 32 types:
- Support Staff
- Fringe Benefits
- Social Costs
- Facilities Rental
- Subscriptions
- Utilities
- Maintenance
- Cleaning
- Insurance
- Auditing/Legal
- Marketing
- Workshops/International Training
- Website Development/Maintenance
- Hardware
- Office Equipment
- Software

- Furniture
- Electrical
- Vehicle Expenses/Rent
- Fuel
- Vehicle Maintenance/Insurance
- Banking Fees
- Communication Charges
- Printing/Reproduction
- Office Supplies
- Security/Guard Services and Fees
- Postage/Courier Fees
- Translators/Interpreters
- Drivers
- Medical Insurance
- DBA
- Medex

## USAID Contracting in Developing Countries

- There are also other types of costs, “Allowances”
- USAID has established processes and procedures
- Department of State Standardized Regulations (Government Civilians, Foreign Areas)
- Post differential
- Post allowance
- Housing allowance
- Separate Maintenance Allowance
- Education
- Danger Pay
- Appear to be treated as incidentals by USAID, just as travel

## How Should Things be Priced?

- Few services contractors have commercial price lists for such items
- USAID’s RFQ requires the 32 items to be on schedule
- Contractors must find a way to add these items to their schedules
- Cost-justified pricing with a NTE price for a unit of sale for each category of items
- Definitive item pricing occurs when the task order is priced and negotiated

## Local Subcontracting/Purchasing

- Legal Regime?
- Holding Competitions?
- Determining “Responsible” and “Price Reasonableness”?
- Educating on USG Flow-Down Clauses
- Payments? No banks, no checks, cash!
- Does any local buying count toward small business goals?
- Does everything need to be a schedule item?
- Can “incidental” cover all non-schedule items
- Are there bright line distinctions?

## Managing the Task Order

**Contractual Relations **
- Who is the client?
- Where is the CO?
- Getting approvals quickly?
- Audits: DCAA, Agency IG, GAO, etc.

## Alternatives?

**Since ODC pricing occurs at the task order level, why not just validate and negotiate the ODCs then, rather than place these items on the Schedule?**
**Could a cost reimbursable SIN be established restricted for use only in specified countries?**
- This would explicitly recognize that ODC pricing in certain environments is the most straightforward and simplest pricing methodology
- Audits may need to be conducted to determine final price, just as in CPFF
- The administrative burden of maintaining schedule price lists that are not really used could be avoided for both GSA and contractor