# Presentation: 674467

## FSS 101 – TRAINING

*GETTING STARTED WITH THE*
* **VA FSS Program*

## Authority – GSA delegated to Veterans Affairs National Acquisition Center the responsibility for the Federal Supply Schedule program for medical care related supplies, equipment, pharmaceuticals and services.

**Authority** – **GSA delegated to Veterans Affairs National Acquisition Center the responsibility for the Federal Supply Schedule program for medical care related supplies, equipment, pharmaceuticals and services.**

## WHAT IS THE FSS PROGRAM?

- Listing of contracts to multiple companies supplying comparable commercial supplies and services.
- National contracts awarded to responsible vendors to provide supplies and services at established prices, terms and conditions.

## Historically, just about any type of commercial item the government uses from paper clips, to fire engines were on FSS.
Federal Acquisition Streamlining Act in 1994 and Clinger Cohen Act in 1996 expanded the definition of commercial item to include services.
With the new flexibilities available through procurement reform, FSS program was expanded to include services.

- Federal Acquisition Streamlining Act in 1994 and Clinger Cohen Act in 1996 expanded the definition of commercial item to include services.
- With the new flexibilities available through procurement reform, FSS program was expanded to include services.

**WHAT IS THE FSS PROGRAM?**

## WHAT IS THE FSS PROGRAM?

_**Structure**_
- Product/Service Groups delineated by Federal Supply Class (FSC)/Product Service Codes (PSC).
- 65 & 66 – medical-related
- 621 – medical service-related
- Products/Services also further delineated by Special Item Numbers (SIN) and Subcategories.

## FEDERAL SUPPLY SCHEDULE PROGRAM

_**Type**_
- Multiple Award Contract
- Indefinite Delivery, Indefinite Quantity (IDIQ)
- Guaranteed minimum/maximum (varies per commodity)
- Fixed-Price Contract with Economic Price Adjustment
- Open and Continuous Solicitation Cycle
- They are multi-year (5 years base), with option to extend for up to an additional 5 years (all expect 65IB – pharmaceuticals)
_**Scope**_
- National and World-Wide Coverage contracts awarded to responsible manufacturers, distributors or dealers.

## AUTHORIZED USERS

- Authorized Users – All Federal Agencies and activities in the Executive, Legislative, and Judicial Branches
- VA, DOD (& Coast Guard), Bureau of Prisons, Indian Health Services, etc.
- Includes State Veteran Homes with Sharing Agreements
- FAR Part 51 authorized representatives
- State and Local Entities under Disaster Recovery
- GSA Website for agency eligibility:
- _[http://www.](http://www.gsa.gov/eligibility-gsasource)__[gsa](http://www.gsa.gov/eligibility-gsasource)__[.gov/](http://www.gsa.gov/eligibility-gsasource)__[eligibility](http://www.gsa.gov/eligibility-gsasource)__[-](http://www.gsa.gov/eligibility-gsasource)__[gsa](http://www.gsa.gov/eligibility-gsasource)__[source](http://www.gsa.gov/eligibility-gsasource)__[ ](http://www.gsa.gov/eligibility-gsasource)__[ ](http://www.gsa.gov/eligibility-gsasource)_

## Closely mirrors commercial buying practices.  
Streamlined contract vehicle for selling to the entire Federal Government.
New supplies/services may continually be introduced to the system.
Ordering activities place orders directly with vendors.
Participation with just-in-time distribution
Pharmaceutical Prime Vendor
Med/Surg Prime Vendor

- Streamlined contract vehicle for selling to the entire Federal Government.
- New supplies/services may continually be introduced to the system.
- Ordering activities place orders directly with vendors.
- Participation with just-in-time distribution
- Pharmaceutical Prime Vendor
- Med/Surg Prime Vendor

**CONTRACTOR BENEFITS**

## AGENCY/ORDERING FACILITY BENEFITS

- Prices have already been determined fair and reasonable.
- All ordering activities, large or small, even those in remote locations, are provided with the same services, convenience, and pricing.
- Shorter lead-times, lower administrative costs.
- Enables the customer to focus on the quality of the product or service acquired and not the process to acquire it.

**AGENCY/ORDERING FACILITY BENEFITS**

## FEDERAL SUPPLY SCHEDULE SERVICE        OVERVIEW OF THE VA SCHEDULES SERVICE    

- 65 I B - Drugs and Pharmaceutical-related Products
- 65 II A - Medical Equipment and Supplies
- 65 II C - Dental Equipment and Supplies
- 65 II F - Patient Mobility Devices
- 65 V A - X-Ray Film, Equipment and Supplies
- 65 VII - Diagnostic, Reagents, Test Kits and Sets
- 66 III -Cost-Per-Test for Clinical Laboratory Analyzers
- 621 I - Professional and Allied Healthcare Staffing Services
- 621 II – Medical Laboratory Testing and Analysis Services

## Product Availability-  Similar and Identical products are available from multiple sources (more than one contractor) providing a variety of products and services.

Competition – FAR Part 8 requires review of 2 or more

Other Terms and Conditions are incorporated into individual contracts, such as:
Delivery terms
Return goods policy
Warranty and liability statements

Open & Continuous Solicitations – Vendors may submit offers at any time.  This allows contractors to provide the latest  technology to Federal customers.  

- Competition – FAR Part 8 requires review of 2 or more
- Other Terms and Conditions are incorporated into individual contracts, such as:
- Delivery terms
- Return goods policy
- Warranty and liability statements
- Open & Continuous Solicitations – Vendors may submit offers at any time.  This allows contractors to provide the latest  technology to Federal customers.

**FEDERAL SUPPLY SCHEDULE ****PROGRAM CHARACTERISTICS**

## Worldwide Deliveries:
Domestic (48 Contiguous States, DC, Hawaii, Alaska and Puerto Rico)
Overseas (Overseas destination other than AK, HI & PR)
FOB Destination Pricing (except 65 VII) 52.247-34 (Refer to Attachment 3)
At a minimum, includes the 48 Contiguous States and DC.
Use of Government Purchase Card (Smart Pay Program) for micro purchases (at or below $3,000). Mandatory
Economic Price Adjustments (EPA) Allows consideration of price increases. At least a 30 day lapse and no increase within 60 days of contract expiration.  
Order Limitations - Maximum order 52.216-19 
Disaster Recovery Program – 
Public Law 109-364, John Warner National Defense Authorization Act
Use of Federal Supply Schedule Contracts by Certain Entities – Recovery Purchasing (Feb 2007) 552.238-80 (Refer to Attachment 3)

- Domestic (48 Contiguous States, DC, Hawaii, Alaska and Puerto Rico)
- Overseas (Overseas destination other than AK, HI & PR)
**FOB Destination Pricing (except 65 VII) **52.247-34 *(Refer to Attachment 3)*
- At a minimum, includes the 48 Contiguous States and DC.
**Use of Government Purchase Card (Smart Pay**** ****Program)** for micro purchases (at or below $3,000). Mandatory
**Economic Price Adjustments (EPA)** Allows consideration of price increases. At least a 30 day lapse and no increase within 60 days of contract expiration.
**Order Limitations - Maximum order** 52.216-19
**Disaster Recovery Program – **
- Public Law 109-364, John Warner National Defense Authorization Act
- Use of Federal Supply Schedule Contracts by Certain Entities – Recovery Purchasing (Feb 2007) 552.238-80 *(Refer to Attachment 3)*

**FEDERAL SUPPLY SCHEDULE ****PROGRAM CHARACTERISTICS**

## CONTRACTOR COMPLIANCE

- Equal Employment Opportunities Compliance  (If estimated award value is over $10 million)
- All products must be in compliance with the Trade Agreements Act
- Dealer/Distributors must submit a manufacturer commitment letter/statement of support
- FDA Approval for pharmaceuticals
- 510K pre-market approval for medical & surgical items

- Dun & Bradstreet (D&B), http://www.dnb.com
- Central Contractor Register
- 	http://www.ccr.gov
- On-line Representations & Certifications Application
- 	http://orca.bpn.gov
- VETS-100 https://vets100.dol.gov
- VetBiz
- 	http://vip.vetbiz.gov

## FAR 52.225-5 TRADE AGREEMENTS (NOV 2007)	

- Buy American Act does not apply to FSS contracts
- Substantially transformed (wholly different product) are accepted
- Customs website:
- _[http://www.customs.ustreas.gov/](http://www.customs.ustreas.gov/)_

**TRADE AGREEMENTS ACT**

## DESIGNATED COUNTRY END PRODUCT: a WTO GPA country end product, an FTA country end product, a least developed country end product, or a Caribbean Basin country end product.

 WORLD TRADE ORGANIZATION GOVERNMENT PROCUREMENT AGREEMENT (WTO GPA) COUNTRIES:
Aruba, Austria, Belgium, Bulgaria, Canada, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, United Kingdom	

(2) FREE TRADE AGREEMENT (FTA) COUNTRIES:
Australia, Bahrain, Canada, Chile, Dominican Republic, El Salvador, Guatemala, Honduras, Mexico, Morocco, Nicaragua, Singapore

(3) LEAST DEVELOPED COUNTRIES:
Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Cape Verde, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, East Timor, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Madagascar, Malawi, Maldives, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, Tanzania, Togo, Tuvalu, Uganda, Vanuatu, Yemen, Zambia

(4) CARRIBEAN BASIN COUNTRIES:
Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, British Virgin Islands, Costa Rica, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Netherlands Antilles, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Trinidad and Tobago

** ****WORLD TRADE ORGANIZATION GOVERNMENT PROCUREMENT AGREEMENT (WTO GPA) COUNTRIES:**
- Aruba, Austria, Belgium, Bulgaria, Canada, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, United Kingdom
**(2)** **FREE TRADE AGREEMENT (FTA) COUNTRIES:**
- Australia, Bahrain, Canada, Chile, Dominican Republic, El Salvador, Guatemala, Honduras, Mexico, Morocco, Nicaragua, Singapore
**(3) LEAST DEVELOPED COUNTRIES:**
- Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Cape Verde, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, East Timor, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Madagascar, Malawi, Maldives, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, Tanzania, Togo, Tuvalu, Uganda, Vanuatu, Yemen, Zambia
**(4) CARRIBEAN BASIN COUNTRIES:**
- Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, British Virgin Islands, Costa Rica, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Netherlands Antilles, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Trinidad and Tobago

**TRADE AGREEMENTS ACT**

## SOLICITATION: a document that contains terms and conditions that apply to the procurement as well as identifications of products and services solicited and the time of performance of any ensuing contract.
Each program has its own solicitation package
A solicitation becomes an offer when a contractor completes, signs and submits it.
A completed solicitation package typically contains the solicitation, brochure/literature, 1 copies of the offeror’s commercial pricelist and any related attachments.

- Each program has its own solicitation package
- A solicitation becomes an offer when a contractor completes, signs and submits it.
- A completed solicitation package typically contains the solicitation, brochure/literature, 1 copies of the offeror’s commercial pricelist and any related attachments.

**FSS SOLICITATION PACKAGE**

## Cover Page Notices
Standard Form 1449 – Solicitation/Contract/Order for Commercial Items
Schedule of Items (SIN)
Clauses
Commercial Sales Practices
Other Related Attachments
Contractor Signature Authority Form
Subcontracting Plans
Past Performance

- Standard Form 1449 – Solicitation/Contract/Order for Commercial Items
- Schedule of Items (SIN)
- Clauses
- Commercial Sales Practices
- Other Related Attachments
- Contractor Signature Authority Form
- Subcontracting Plans
- Past Performance

**SOLICITATION PACKAGE - CONTENT**

## HOW TO COMPLETE THE SOLICITATION PACKAGE

**Cover Pages Notices**
- General Information
- Notice of significant changes (since last issuance)
- Trade Agreements Act
- Solicitation Checklist
- Important clauses
- DO NOT SUBMIT COVER PAGES WITH YOUR PROPOSAL
**Standard Form 1449 **
- 1st page to complete
- Name & Address – important
- Signed by the authorized signatory denoted in the Signatory Authority Form

## Clauses
Vendor must accept ALL clauses – as such, vendors are encouraged to read all clauses and provisions
Complete all necessary sections 
		(use checklist included in the cover pages)
Commercial Sales Practices (CSP)
Disclosure of commercial sales practices
Identify all commercial customers that receive equal to or better than the proposed Government pricing
Discounts
Volume requirements
FOB Terms (Refer to Clause 52.247-34)
Additional Concessions

- Vendor must accept ALL clauses – as such, vendors are encouraged to read all clauses and provisions
- Complete all necessary sections
- 		(use checklist included in the cover pages)
**Commercial Sales Practices (CSP)**
- Disclosure of commercial sales practices
- Identify all commercial customers that receive equal to or better than the proposed Government pricing
- Discounts
- Volume requirements
- FOB Terms ***(Refer to Clause 52.247-34)***
- Additional Concessions

**HOW TO COMPLETE THE SOLICITATION PACKAGE**

## Commercial Sales Practice (CSP)

- Note: Please refer to clause 552.212-70, PREPARATION OF OFFER (MULTIPLE AWARD SCHEDULE), for additional information concerning
- your offer.  Provide the following information for each SIN (or group of SINs or SubSIN) for which information is the same.
- 1.       Provide the dollar value of **sales to the general public** at or based on an established catalog or market price during the previous 12 month period or the offerors last fiscal year.
- 	SIN $__________	SIN $__________	SIN $__________
- 	State beginning and ending of the 12 month period.  Beginning __________ Ending______________.  In the event that a dollar value is not an appropriate measure of the sales, provide and describe your own measure of the sales of the item(s).
- 2.       Show your total **projected annual sales to the Government** under this contract for the contract term, excluding options, for each SIN offered.  If you currently hold a Federal Supply Schedule contract for the SIN the total projected annual sales should be based on your most recent 12 months of sales under that contract.
- 	SIN $__________	SIN $__________	SIN $__________
- 3.       Based on your written discounting policies (standard commercial sales practices in the event you do not have written discounting policies), _are the discounts and any concessions which you offer the Government equal to or better than your best price_ (discount and concessions in any combination) _offered to any customer acquiring the same items regardless of quantity or terms and conditions?_
- 	YES____ NO_____.  See definition of "concession" and "discount" in 552.212-70.
- 4.       (a) Based on your written discounting policies (standard commercial sales practices in the event you do not have written discounting policies), provide information as requested for each SIN (or group of SINs for which the information is the same) in accordance with the instructions at Table 515-1 which is provided in this solicitation for your convenience.  The information should be provided in the chart below or in an equivalent format developed by the offeror.  Rows should be added to accommodate as many customers as required.
***(Refer to  clause 552.212-70)***

**How to Complete the ****Solicitation Package**

## Commercial Sales Practice (CSP)

**HOW TO COMPLETE THE SOLICITATION PACKAGE**

| Column 1-
Customer | Column 2 –
Discount | Column 3- 
Quantity/Volume | Column 4 – 
FOB Term
(Destination or Origin) | Column 5 – 
Additional Discounts or Concessions (Include Prompt Payment Discount and Annual Rebate) |
| --- | --- | --- | --- | --- |
| XYZ Company | 40% | 1 | Destination | 10% Net20 days, additional 5% for 5 or more |
| ABC Company | 40% | 1 | Origin | Net30 days |

- (b)  Do any deviations from your written policies or standard commercial sales practices disclosed in the above chart ever result in better discounts (lower prices) or concessions than indicated? YES ____ NO_____.  If YES, explain deviations in accordance with the instructions at Table 515-1 which is provided in this solicitation for your convenience
***The information provided herein does not reflect real companies or any actual disclosed information.  The information provided in this presentation is for training purposes only.***

**The company information above is for demonstration purposes only**

**SAMPLE**

## Commercial Sales Practice (CSP) Submitting proposed pricing format

**Commercial Sales Practice (CSP) ***Submitting proposed pricing format*

| SIN | Item # | Short 
Description | Commercial
List Price  | Proposed
Gov’t
Discount
Off List
Price | Proposed
FSS Price* | MFC**
Discount
Off List
Price | MFC
Net
Price | MFC Name |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| SIN  | 12345  |  Widgets | $100.00  |  45% | $55.14 | 40%  |  $60.00 | XYZ Company  |
|   |   |   |   |   |   |   |   |   |
|   |   |   |   |   |   |   |   |   |
|   |   |   |   |   |   |   |   |   |

- *Proposed FSS Price is to be inclusive of F.O.B. Destination and the Industrial Funding Fee – Clause 552.238-76 (0.25% or 1%) – ***(Refer to Attachment #3)*****MFC – Most Favored Commercial Customer
**Note**: Commercial list price is your retail catalog pricing.**Note**: The proposed Government pricing should include FOB Destination, discounted pricing and the IFF fee.  It should also be submitted to the Contracting Officer in an excel format.
***The information provided herein does not reflect real companies or any actual disclosed information.  The information provided in this presentation is for training purposes only.***

**SAMPLE**

## (5.) 	If you are a dealer/reseller without significant sales to the general public, you should provide manufacturers‘
	information required by paragraphs (1) through (4) above for each item/SIN offered, if the manufacturer's sales under any resulting contract are expected to exceed $500,000.  You must also obtain written authorization from the manufacturer(s) for Government access, at any time before award or before agreeing to a modification, to the manufacturer's sales records for the purpose of verifying the information submitted by the manufacturer.  The information is required in order to enable the Government to make a determination that the offered price is fair and reasonable.  To expedite the review and processing of offers, you should advise the manufacturer(s) of this requirement.  The contracting officer may require the information be submitted on electronic media with commercially available spreadsheet(s).  The information may be provided by the manufacturer directly to the Government.  If the manufacturer's item(s) is being offered by multiple dealers/resellers, only one copy of the requested information should be submitted to the Government.  In addition, you must submit the following information along with a listing of contact information regarding each of the manufacturers whose products and/or services are included in the offer (include the manufacturer's name, address, the manufacturer's contact point, telephone number, and FAX number) for each model offered by SIN:
	a.      Manufacturer's Name
	b.      Manufacturer's Part Number
	c.      Dealer's/Reseller's Part Number
	d.      Product Description
	e.      Manufacturer's List Price
	f.        Dealer's/Reseller's percentage discount from List Price or net prices

- 	information required by paragraphs (1) through (4) above for each item/SIN offered, if the manufacturer's sales under any resulting contract are expected to exceed $500,000.  You must also obtain written authorization from the manufacturer(s) for Government access, at any time before award or before agreeing to a modification, to the manufacturer's sales records for the purpose of verifying the information submitted by the manufacturer.  The information is required in order to enable the Government to make a determination that the offered price is fair and reasonable.  To expedite the review and processing of offers, you should advise the manufacturer(s) of this requirement.  The contracting officer may require the information be submitted on electronic media with commercially available spreadsheet(s).  The information may be provided by the manufacturer directly to the Government.  If the manufacturer's item(s) is being offered by multiple dealers/resellers, only one copy of the requested information should be submitted to the Government.  In addition, you must submit the following information along with a listing of contact information regarding each of the manufacturers whose products and/or services are included in the offer (include the manufacturer's name, address, the manufacturer's contact point, telephone number, and FAX number) for each model offered by SIN:
- 	a.      Manufacturer's Name
- 	b.      Manufacturer's Part Number
- 	c.      Dealer's/Reseller's Part Number
- 	d.      Product Description
- 	e.      Manufacturer's List Price
- 	f.        Dealer's/Reseller's percentage discount from List Price or net prices

**HOW TO COMPLETE THE SOLICITATION PACKAGE**

**Commercial Sales Practice (CSP)**** **

## Must submit MFR CSP information
MFR data may be audited
Tracking mechanism is not customer for PRC (price reduction clause)
MFR data needed for product addition modifications

- MFR data may be audited
- Tracking mechanism is not customer for PRC (price reduction clause)
- MFR data needed for product addition modifications

**HOW TO COMPLETE THE SOLICITATION PACKAGE**

**Dealer/Reseller with low or insignificant sales **

## HOW TO COMPLETE THE SOLICITATION PACKAGE

- Provide a complete justification if the Government is not offered equal to or better than your best commercial customer pricing
- Provide copies of commercial agreements, when relevant
- Contracting Officer will request additional information as needed to support the proposal data

## Timeframes for submission
For follow-on contract – coordinate with enough time to meet expiration date 
For new – at vendor’s discretion
Assigned/Reviewed/Clarifications, etc. 
    If not completely correct, the Contracting Officer will work with the vendor to provide an opportunity to submit additional information to update minor deficiencies/clarifications.
Questions – Contact your assigned Contracting Specialist

- For follow-on contract – coordinate with enough time to meet expiration date
- For new – at vendor’s discretion
- Assigned/Reviewed/Clarifications, etc.
-     If not completely correct, the Contracting Officer will work with the vendor to provide an opportunity to submit additional information to update minor deficiencies/clarifications.
- Questions – Contact your assigned Contracting Specialist

**HOW TO COMPLETE THE SOLICITATION PACKAGE**

## PROPOSAL SUBMISSION REVIEW

-  **Pre-award reviews:**
- Assigned CO will review offer to ensure it is current, accurate, and complete
- Office of the Inspector General (OIG) will review offers where the estimated value exceeds $3 million to $5 million per year (dependent upon commodity)

## PROPOSAL SUBMISSION ANALYSIS

**Government Contract Specialist will:**
- Identify proposed items
- Identify proposed discounts
- Identify proposed commercial pricelist
- Identify other proposed concessions/terms, i.e.:
- Quantity
- Installation
- Warranty
- Incentive programs
- Return goods policy
- Prompt payment terms
- Rebates
- Value Added Services (VAS)

## Purpose
Identify price objectives
Foundation for strategy
Review against current FSS contracts
Factors that affect objectives:
 Volumes
 Current market conditions
 MFC determination
 Special concessions, terms/conditions
 Price adjustment provision

- Identify price objectives
- Foundation for strategy
- Review against current FSS contracts
- Factors that affect objectives:
-  Volumes
-  Current market conditions
-  MFC determination
-  Special concessions, terms/conditions
-  Price adjustment provision

**PROPOSAL SUBMISSION ****PRICE ANALYSIS**

## 
Most Favored Commercial Customer (MFC):
Defined as that customer or class of customer which receive(s) the best discount and/or price arrangement on a given item from a supplier.  The term includes any entity which does business with the supplier.  In MAS contracting, the Government’s negotiation objectives are developed based on a comparison of the MFC arrangement.

- Most Favored Commercial Customer (MFC):
- Defined as that customer or class of customer which receive(s) the best discount and/or price arrangement on a given item from a supplier.  The term includes any entity which does business with the supplier.  In MAS contracting, the Government’s negotiation objectives are developed based on a comparison of the MFC arrangement.

**PROPOSAL SUBMISSION ****PRICE ANALYSIS**

## NEGOTIATION PROCESS

**How we negotiate:**
- Offers evaluated independently
- Identification of MFC pricing
- Identification of MFC terms and conditions
- Establishment of negotiations targets
- Negotiation discussions – usually conference call
- Final Proposal Revision (FPR) – document from which award decision is made

## What do we negotiate?

- Tracking Customer
- Basic Discount
- Quantity Discount
- Delivery Terms
- Prompt Payment
- Return Goods Policy
- Expedited Delivery
- Warranty terms

- Installation/Training
- Software License Agreements
- Leasing/Rental Terms
- Annual rebates
- BPA/Incentive Programs
- Distribution Program
- Minimum Orders

**NEGOTIATION PROCESS**

## TRACKING CUSTOMER  

- Price Reduction Clause ***(Clause 552.238-75)***
- A commercial relationship against which to track awarded pricing
- Paragraph (a) – Before award of a contract, the CO and the offeror will agree upon:
- The customer (or category of customers) which will be the basis of award, and
- The Government’s price or discount relationship to the identified customer (or category of customers)

**NEGOTIATION PROCESS****TRACKING CUSTOMER**

## NEGOTIATION PROCESSTRACKING CUSTOMER

**TERMS**
- Agreement of both parties
- Start with category, helps to avoid future concerns
- New companies – possible - All Commercial Customers
- Tracking customer ratio determined by dividing discount relationship to Gov’t by discount relationship to agreed upon tracking customer
**Example:** (*refer to proposed sample pricing on slide 22*)
- 	Agreed upon Tracking Customer = XYZ Company
- 	FSS Price at time of award = $55.14
- 	Tracking Customer price at time of award = $60.00
- 	Tracking customer Ratio  = $55.14/$60.00
- 	**Ratio ****= 0.94**

## NEGOTIATION PROCESSTRACKING CUSTOMER

**VERY IMPORTANT**
- Agreed to tracking customer and subsequent ratio will affect price changes (price reductions and economic price adjustments)
- If the ratio is disturbed with a decrease to commercial customer, the Government must automatically be offered the same discount
- If tracking customer did not receive increase, Government cannot

## NEGOTIATION PROCESSTRACKING CUSTOMER

- Included in award documents:
-    “If the identified tracking customer’s contract/agreement has been cancelled, terminated, has expired, or the tracking customer has merged with another group, the CO shall be notified within 10 calendar days after the event occurs, and, if possible, before the event occurs.”

## Awarded FSS price:				$56.14

- Awarded FSS price:				$56.14
- MFC price at award:			$60.00
- List price at award:				$100.00
- Awarded tracking customer =(MFC)        XYZ Company
- Tracking customer changed price:	$75.00
- List Price Change:				$125.00
*What would be the acceptable Government price increase?*

_**Tracking Customer Example**_  *(refer to proposed sample pricing on slide 22)*

## Answer:

- 1) Ratio = $56.14/$60 = .94
- 2) Commercial pricelist change noted
- 3) Apply ratio to current tracking customer:
- Ratio times new tracking customer price
- 			*.94($75) = $70.50*
*The highest price that can be accepted by the Gov’t would be limited to $70.50.*

_**Tracking Customer Example**_

**NEGOTIATION PROCESS****TRACKING CUSTOMER**

## NEGOTIATION PROCESSTRACKING CUSTOMER

**NEGOTIATION PROCESS****TRACKING CUSTOMER**

_**Scenario 1:  **_
- Awarded FSS price:							$87.50
- MFC price at award:							$175.00
- List price at award:							$225.00
- Awarded tracking customer =					          (MFC): XYZ Company
***What would be the Tracking Customer Ratio?******	******	******	******	***_***.50***_
** ****=(FSS Price / MFC Price) = ($87.50 / $175.00) = .50**
**Your firm would like to implement the EPA clause and increase the price of a product:**
- Tracking customer changed price:						$225.00
- List Price Change:							$300.00
***What would be the highest price that your firm can charge the Government?*****	****	**** **_***$112.50***_
**= (TC price * Awarded Ratio) = ($225.00 * .50) = $112.50**
**Your firm has reduced the price to the Tracking Customer and the price reduction clause has been triggered.**
- Tracking customer changed price:						$150.00
- List Price Change:							$200.00
***What would be the highest price that your firm can charge the Government?******	******	****** ***_***$75.00***_
**= (TC price * Awarded Ratio) = ($150.00 * .50) = $75.00**

## NEGOTIATION PROCESSFINAL PROPSAL REVISION (FPR)

- Reiteration of all negotiated points
- Will include pricing, terms and conditions
- Award decision made from this document
- Must be signed by an authorized signatory

## AWARD DECISION

-  Determining factors:
- Is it in the best interest of Government?
- Did we achieve a fair and reasonable price?
- Did offeror complete all certifications and regulatory requirements in their entirety?
- Is past performance history satisfactory?
- Are they financially capable?
- If yes to all --- contract is awardable.

## FSS PRICELIST REQUIREMENTS

- PRINTED PAPER PRICELIST (within 30 days of award)
- Suggested format for the supplemental and cumulative pricelists can be found in Clause I-FSS-600 and ContractAward Letter
- Submit draft for CO review and approval prior to distribution
- Mail final pricelist to:
- FSS Contracting Officer   (1 copies)
- Provide authorized pricelist to FSS customer’s upon request.
-  NAC-CM DATABASE PRICELIST (within 30 days of award)
- Complete the spreadsheet provided by your assigned CO
- GSA ADVANTAGE PRICELIST (within 6 months of award)
- _[http://www.vsc.gsa.gov](http://www.vsc.gsa.gov/)_

**Notes:**
Prepare the pricelist making sure you include the company information, contract number, effective dates and the awarded line items, SINs, terms and conditions

Sometimes, the CO will annotate minor changes on the draft and return to you for correction

Cumulative pricelist captures all of the line items and price changes to date for a specific period of time, e.g., every six months or once a year

Supplemental pricelists are sequentially numbered and reflect product and price changes at each occurrence (for only those affected line items)   Coincides with executed modifications and contract changes    

## SUBCONTRACTING PLAN FAR 19.702

- Required when:
- Large business with 500 employees
- Estimated contract or modification value ≥ $550,000 ($1 million for construction)

**Notes:**
SB Plan is required when these two criterion are met:Exceptions:

When contracts or contract modifications will be performed entirely outside any State, territory, possession of the United States, District of Columbia and the Commonwealth of Puerto Rico  or

After a good faith effort by the Contractor, it is determined that no subcontracting opportunities exists

## SUBCONTRACTING PLAN

- Recent Major Changes:
- Plan is based on Government fiscal year (OCTOBER 1 – SEPTEMBER 30)
- 2. 	Achievement reports are due 30 days after the end of the fiscal year

**Notes:**
Total planned subcontracting dollars

## SUBCONTRACTING PLAN

- More Information:
- View online Training Webinar
- Veronica Hazen_[veronica.hazen@va.gov](mailto:veronica.hazen@va.gov)_ or 708-786-5145

**Notes:**
Subcontracting plan is received in our office and reviewed by our Management Assistant and Director Carole O’Brien

Secondary review with comments/recommendations by SBA

After approval, an SF-30, Modification is prepared by CO to incorporate the plan into your FSS contract

Distribution is made to- Contractor   
SBA Regional Office
Office of Small and Disadvantaged Business Utilization (OOSDBU)
Our NAC office file.

## SUMMARY SUBCONTRACTING ACHIEVEMENT REPORT

- Annually input subcontracting summary achievement report data -  **Electronic Subcontracting Reporting System (eSRS)**
- _[http://www.esrs.gov/](http://www.esrs.gov/)_

- Online Training

**Notes:**
SF-294, Subcontracting Report for Individual Contract
SF-295, Summary Subcontract Report

I briefly mention these forms only because in the past they were used to submit your achievement reports

Now, the new way for Summary Subcontracting Achievement Reporting is through
e-SRS, Electronic Subcontracting Reporting System

## e-SRS TRAINING/ASSISTANCE

- SBA Commercial Market RepresentativesWebsite:  _[http://www.sba.gov/GC/cmr.html](http://www.sba.gov/GC/cmr.html)__ _
- e-SRS Contractor User TrainingPowerpoint PresentationWebsite:  _[http://www.esrs.gov](http://www.esrs.gov/)__ _
- Help Desk for technical questionsE-mail address:  _[Help@esrs.gov](mailto:Help@esrs.gov)__ _
- SBA for questions regarding subcontracting policy

**Notes:**
Attachment 17The e-SRS system is considered user friendly, however, if additional training or assistance is required, the e-SRS Help Desk and the Commercial 
Market Representatives are available

Our VA NAC Small Business Liaison is Mr. Jay McClain, located in Hines, IL is also available to answer your questions and provide assistance 

## STANDARDIZATION – Federal initiative to award national contracts or Blanket Purchase Agreements to preferred sources in order to standardize the VA’s purchasing of products while securing the lowest possible pricing or best value procurement.
GOVERNMENT PRIME VENDOR – affords participating VA ordering facilities a vehicle to do one-stop shopping for just-in-time delivery of pharmaceutical and medical/surgical products.
Product demand must be shown to require stocking
Sales fall under FSS contract, unless National Contract Vehicle
DISTRIBUTION & PRICING AGREEMENTS (DAPA) – affords participating DOD ordering facilities a vehicle to do one-stop shopping for just-in-time delivery of pharmaceutical and medical/surgical products.

**GOVERNMENT PRIME VENDOR** – affords participating VA ordering facilities a vehicle to do one-stop shopping for just-in-time delivery of pharmaceutical and medical/surgical products.
- Product demand must be shown to require stocking
- Sales fall under FSS contract, unless National Contract Vehicle
**DISTRIBUTION & PRICING AGREEMENTS (DAPA)** – affords participating DOD ordering facilities a vehicle to do one-stop shopping for just-in-time delivery of pharmaceutical and medical/surgical products.

**FSS RELATED PROGRAMS**

## VA NAC Homepage
	http://www1.va.gov/oamm/oa/nac/index.cfm

NAC Contract Catalog Search Tool
http://www1.va.gov/nac/

Schedules E-Library (schedule information)
http://www.gsaelibrary.gsa.gov

GSA Advantage! / e-Buy (GSA Schedule 70, SIN 152-51)
	http://www.gsaadvantage.gov

- 	_[http://www1.va.gov/oamm/oa/nac/index.cfm](http://www1.va.gov/oamm/oa/nac/index.cfm)_
- NAC Contract Catalog Search Tool
- _[http://www1.va.gov/nac/](http://www1.va.gov/nac/)_
- Schedules E-Library (schedule information)
- http://www.gsaelibrary.gsa.gov
- GSA Advantage! / e-Buy (GSA Schedule 70, SIN 152-51)
- 	http://www.gsaadvantage.gov

**E-COMMERCE TOOLS**

**Notes:**
I would like to briefly highlight two of our our electronic commerce tools, Schedules E-Library and GSA Advantage.
Schedules E-Library is an online source information for complete Schedules and contract award information.  The NAC updates this website weekly with new contract award and current contract information.
You can search by key word, contractor name, contract number, Schedule number and SIN.   
GSA Advantage GSA advantage is our electronic online shopping and ordering system. This  system provides on-line access to contract ordering information, up-to-date pricing, and the option to create an electronic order.  One of our priorities is to work with all of the VA FSS contract holders to make their line items available on GSA Advantage for your shopping convenience. 
There are currently 114 VA FSS vendors participating in the program representing over 90,000 line items.  Of these 114 vendors approx 57% are med/surge FSS contractors and approx 38% are dental equipment and supply contractors. Sales are increasing dramatically! 
GSA Advantage and Schedules E-Library, are tools that will provide you immediate access to the Schedules, increase your knowledge of schedules, advise you who are schedule contractors which will result in savings in both time and money. Please utilize these tools. 

## E-COMMERCE TOOLS

- GSA’s Vendor Training Website
- 	_[http://](http://vsc.gsa.gov/training/online_training_reg.cfm)__[vsc.gsa.gov/training/online_training_reg.cfm](http://vsc.gsa.gov/training/online_training_reg.cfm)_
- VA PBM for pharmaceuticals
- 	_[http://www.pbm.va.gov/PBM/prices.htm](http://www.pbm.va.gov/PBM/prices.htm)_

## FSS DIRECTOR & ASSISTANT DIRECTORS CONTACT

**Carole O’Brien**
- Director, Federal Supply Schedule Service
- (708) 786-4957carole.obrien@va.gov
**Cheryl Ward-Roberts**Assistant Director, Pharmaceutical, Dental and Other
- (708) 786-5259
- cheryl.ward-roberts@va.gov

**Dore Fessler**
- Assistant Director, Medical Services
- (708) 786-5223
- dore.fessler@va.gov
**Paul Skalman**
- Assistant Director, Medical Equipment and Supplies
- (708) 786-5247
- paul.skalman@va.gov

**Notes:**
Microsoft ACCESS  ONLY!!

## SCHEDULE PROGRAM MANAGERS

**Monee Robinson**
- 65IIA -Medical Equipment and Supplies
- (708) 786-5183
- monee.robinson@va.gov
**Lynda O’Neill**
- 65 IIC - Dental Equipment and Supplies
- 65IIF - Patient Mobility Devices
- 65 VA - X-Ray Equipment and Supplies
- (708) 786-4958
- lynda.oneill@va.gov
**Bob Satterfield**
- 65 IB - Pharmaceuticals
- 65 VII - Diagnostics, Reagents, Test Kits & Sets
- (708) 786-4955
- bob.satterfield@va.gov

**Andrew Morgan**
- 621 II – Medical Laboratory Testing and Analysis
- 66 III – Cost-Per-Test, Clinical Laboratory Analyzers
- (708) 786-4950
- andrew.morgan@va.gov
**Linda Smith**
- 621 I – Professional and Allied Healthcare Staffing
- Teleradiology Initiative
- (708) 786-5194
- linda.smith@va.gov

**Notes:**
Microsoft ACCESS  ONLY!!

## SCHEDULE SUPPORT & GENERAL INFORMATION

**FSS SUPPLY HELP DESK**
- (p) (708) 786 – 7737
- (f) (708) 786 – 4975
- (e) helpdesk.ammhinfss@va.gov
- (w)http://www1.va.gov/oamm/oa/nac/index.cf m

**FSS SERVICE HELP DESK**
- (p) (708) 786 – 7722
- (v) (888) 801 – 7210
- (f) (708) 786 – 5828
- (e) helpdesk.fss621i@va.gov
- (w)http://www1.va.gov/oamm/oa/nac/fsss/fssproftrain.cfm