# Presentation: 832566

## FSS 201 – TRAINING

- SUCCESSFULLY ADMINISTERING YOUR FSS CONTRACT FOR MAXIMUM RESULTS

## CONTRACT MODIFICATION

- Delete obsolete products and services
- Add new products and services
- Administrative changes
- Item number changes
- Novation/Name change
- Clauses updated by the NAC
**ECONOMIC PRICE ADJUSTMENT (EPA) 552.216-70**** ****–**** **This clause allows contractors to increase/decrease prices in accordance with their commercial practice.  Requests for price decreases may be submitted anytime during the contract period.
**PRICE REDUCTION 552.238-75** – The Government’s price or discount relationship to the established tracking customer (individual or category of customer) must be maintained throughout the life of the contract.

**CONTRACT MODIFICATION**

## PROCESSING OF MODIFICATION ACTIONS

- Effective submission and timely processing take into account:
- The number of modification requests submitted
- The length of time between submission
- The inclusion of the modification request form
- The inclusion of supporting documentation with the modification requests

## PRODUCT DELETIONS

- Contractors must provide an explanation for the deletion.
- Government reserves right to reject any subsequent offer of the same item or a substantially equal item at a higher price during the same contract period, if it is determined the higher price is unreasonable in comparison.

## PRODUCT ADDITIONS

- SAME REQUIREMENTS AS NEGOTIATING A NEW OFFER
- Commercial Pricelist
- Letter of Commitment from manufacturer(s), *(if a distributor)*
- REQUEST FOR MODIFICATION FORM FROM YOUR CONTRACTING OFFICER

## PRICE REDUCTIONS

- AUTHORITY
- Price Reduction Clause (PRC) – 552.238-75
- PURPOSE
- Ensure the Government maintains fair and reasonable pricing throughout the contract period

## PRICE REDUCTIONS

- Price Reduction Clause (PRC)– 552.238-75
- Establishment of commercial relationship that is tracked against:
- Awarded FSS Price
- BOA Customer Price
- Commercial List Price relied upon during negotiations
- Agreement of both parties
- Order Limitations – Maximum Order

## PRICE REDUCTIONS

- Price Reduction Clause (PRC)– 552.238-75
- Tracking Customer ratio is determined by dividing the net price to the government by the net price to the Tracking Customer/Category.
**Tracking Ratio =(FSS Price / MFC Price)**
- If the ratio is disturbed with a decrease to the tracking customer, an automatic decrease must be given to the government
- The established tracking customer ratio is maintained throughout the contract period
- Change in Tracking Customer:
- Commercial agreement with tracking  customer expires, canceled or merged with another group, the CO shall be notified within 10 calendar days after the event occurs, and if possible, before the event occurs.

## PRICE REDUCTIONS

- Changes to Relationship Trigger the Clause
- Revised commercial catalog to reduce prices
- Granted better discounts or terms and conditions than those offered in the commercial catalog
- Granted additional discounts to the tracking customer, disturbing the established tracking ratio
- Offered for the same length of time
- Notify the Government within 15 days

## PRICE REDUCTIONS

- Does not Trigger Price Reduction Clause:
- Sales outside the basis of tracking customer/category
- Sales to commercial customers which exceed the maximum order threshold
- Additional discount to a single federal facility (Spot Discounts)

## SUMMARY

- Understand how the established tracking customer ratio is established
- Develop a system to track the discounts extended to the  tracking customer to ensure compliance with PRC
- Recognize when Price Reduction clause triggers
- Recognize discounts which will not trigger the PRC
- Permanent/Temporary
- May be voluntary to Government only

## PRICE INCREASES

- AUTHORITY
**Economic Price Adjustment Clause (EPA)** – 552.216-70 FSS Multiple Award Schedule Contracts (SEP) 1999) Alternate I (SEP 1999) (Local Deviation)
- PURPOSE
- Allows price increases in accordance with established commercial practices

## PRICE INCREASES

- Contractor Requirements
- Copy of previous and current commercial pricelist which shows increase and effective date
- Reason for the price increase
- CSP or Certification that no adverse change has occurred to the established tracking ratio since the award of the line item

## PRICE INCREASES

- Price increases can be accepted under the (EPA) clause when _all_ conditions below are met:
- Increase in commercial list price
- Increase in Tracking customer price
- Requested before the last 60 days of the contract (including contract extension)
- 30 days between increases
- Established tracking customer ratio is not disturbed

## PRICE INCREASES

-  The Government reserves the right to:
- Accept the price increase as requested;
- Negotiate more favorable discounts from the new commercial list price; or
- Remove the affected products from the contract if the increase is not supported

## CONTRACT PERFORMANCE & DELIVERABLES

- Successful performance requires timely submission of the following deliverables:** **
- PRICELISTS
- NAC-CM PRICELIST (within **30 days** of contract/modification award)
- FSS PAPER PRICELIST (within **30 days** of contract/modification award)
- GSA ADVANTAGE PRICELIST (within **6 months** of contract award or **30 days** after modification award)
- Contractor Report of Quarterly Sales & Industrial Funding Fee
-  Subcontracting Plan (when applicable)
- SF294 and SF295 Summary Subcontracting Achievement Reports (when applicable)

**Notes:**
I’d like to speak to you today about some recurring deliverables as they relate to
Contract Performance

## FSS PRICELIST REQUIREMENTS

**PRINTED PAPER PRICELIST (within 30 days of award/modification)**
- 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/modification)**
- Complete the spreadsheet provided by your assigned CO
**GSA ADVANTAGE PRICELIST (within 6 months of award/30 days of modification)**
- _[http://](http://www.vsc.gsa.gov/)__[www.vsc.gsa.gov](http://www.vsc.gsa.gov/)_

## QUARTERLY REPORT OF SALES

- Contractor Report of Sales
- GSA Form 72
- Report individually per SIN
- VA Sales
- OGA Sales
- Disaster Recovery Participation

**Notes:**
Attachment 3
GSA Form 72 has a fairly simple format to follow
Include Contract Number and Company Address
List all Special Item Numbers (SINs) that were awarded in the contract
Signed and dated by your company’s authorized personnel
 Form is important - Captures your company’s  quarterly VA / OGA sales.
Total is put in Block 5 
1st Qtr – (Oct – Dec)     Due EOM February
2nd Qtr – (Jan – Mar)    Due EOM May
3rd Qtr – (Apr – Jun)     Due EOM August
4th Qtr – (Jul – Sep)     Due EOM Nov                                         NEXT SLIDE
IFF is an administrative fee which is included in the negotiated or discounted price of your products and after each qtr, the funds are remitted back to the VA Fiscal Office either by a check or EFT.   For example  – Product price $100.  The awarded Net FSS price is $100.50 that you would charge to government customers.  That 50 cents is returned to the Gov’t through our Agent Cashier.  The address is indicated on the GSA Form 72 and in your contract.
The IFF is paid by Schedule Users and the monies are used to administer the FSS program

## QUARTERLY REPORT OF SALES

- _** __ZERO SALES MUST BE REPORTED **_
-    Due NO LATER THAN **60 DAYS **after end of each reporting quarter.
- Quarter 1 (October – December)
- Quarter 2 (January – March)
- Quarter 3 (April – June)
- Quarter 4 (July – September)
**DEPARTMENT OF VETERANS AFFAIRS**
**C/O FEDERAL SUPPLY SERVICES****	**
- P.O. BOX 76, Bldg 37
- HINES, IL  60141
**NOTE: VENDORS WHO ARE DELINQUENT IN SUBMITTING THE GSA FORM 72 ARE CONSIDERED TO BE DEFAULT WITH THE AWARDED TERMS & CONDITIONS OF THE CONTRACT AND MAY FACE CONTRACTUAL REMEDIES, INCLUDING TERMINATION.**

**Notes:**
Attachment 3
GSA Form 72 has a fairly simple format to follow
Include Contract Number and Company Address
List all Special Item Numbers (SINs) that were awarded in the contract
Signed and dated by your company’s authorized personnel
 Form is important - Captures your company’s  quarterly VA / OGA sales.
Total is put in Block 5 
1st Qtr – (Oct – Dec)     Due EOM February
2nd Qtr – (Jan – Mar)    Due EOM May
3rd Qtr – (Apr – Jun)     Due EOM August
4th Qtr – (Jul – Sep)     Due EOM Nov                                         NEXT SLIDE
IFF is an administrative fee which is included in the negotiated or discounted price of your products and after each qtr, the funds are remitted back to the VA Fiscal Office either by a check or EFT.   For example  – Product price $100.  The awarded Net FSS price is $100.50 that you would charge to government customers.  That 50 cents is returned to the Gov’t through our Agent Cashier.  The address is indicated on the GSA Form 72 and in your contract.
The IFF is paid by Schedule Users and the monies are used to administer the FSS program

## Industrial Funding Fee (IFF) 552.238-74 – The IFF is a fee paid by customers to fund the cost of operating the Schedules program.  Contractor must remit 0.50% or 1% of the total reported sales with each quarterly sales report depending on the schedule. 

**INDUSTRIAL FUNDING FEE (IFF)**

## INDUSTRIAL FUNDING FEE (IFF)

- Calculation of quarterly IFF
- Document method
- Two methods to calculate IFF
- Usual application (Total Sales x 0.0025)
- Back-out method (Total Sales x 0.9975) x 0.0025
- Payment must be remitted via ACH

## IFF CALCULATION

| VA Sales | OGA Sales | Total Sales | IFF Owed (Total Sales x 0.0025) |
| --- | --- | --- | --- |
| $0 | $50 | $50 | $50 x 0.0025 = $0.13 |
| $50 | $50 | $100 | $100 x 0.0025 = $0.25 |
| $225 | $275 | $500 | $500 x 0.0025 = $1.25 |
| $448 | $552 | $1,000 | $1,000 x 0.01 = $10.00 |
| $10,000 | $25,000 | $35,000 | $35,000 x 0.01 = $350.00 |

**IFF CALCULATION**

**TRADITIONAL APPLICATION**

## IFF CALCULATION

| VA Sales | OGA Sales | Total Sales | IFF Owed (Total Sales x 0.9975) x 0.0025) |
| --- | --- | --- | --- |
| $0 | $50 | $50 | ($50 x 0.9975) x 0.0025 = $0.12 |
| $50 | $50 | $100 | ($100 x 0.9975) x 0.0025 = $0.25 |
| $225 | $275 | $500 | ($500 x 0.9975) x 0.0025 = $1.25 |
| $448 | $552 | $1,000 | ($1,000 x 0.99) x 0.01 = $9.90 |
| $10,000 | $25,000 | $35,000 | ($35,000 x 0.99) x 0.01 = $346.50 |

**Back-Out Method**

## CONTRACTOR RESPONSIBILITY

- Maintain Integrity of Awarded Product and Prices
- Continue to Market Products to individual activities (FedMarts, Trade Shows, etc.)
- Submit timely/Quarterly sales reports and other deliverables e.g. subcontracting plans if applicable, printed pricelist, etc.
- Periodically update published price list based on contract changes (products & prices etc.)

## CUSTOMER RESPONSIBILITY

- Adhere to the terms and conditions of the contract
- Review 3 or more contractors if purchase exceeds $3,000 (micro-purchase threshold)
- Attempt to negotiate lower prices based on commitment/volume
- Timely Payments (EFT – Mandatory)
- Request price reduction for large buys over Maximum Order under contract

## MONITOR PRICING

- Contractor may perform self-audits and provide voluntary disclosures.
- Disclosures by Customers and Competitors
- Monitoring – sales reports and contracts are reviewed for trends and contractor compliance.
- Business size re-certification
- Post Award Reviews – If deemed necessary

## Authority - AS13 Examination of Records Clause 
Can be requested at anytime after contract award, if deemed necessary
Review reported sales and contract for contractor compliance with Price Reduction Clause
Government can initiate 2 years after contract award or modification award

- Can be requested at anytime after contract award, if deemed necessary
- Review reported sales and contract for contractor compliance with Price Reduction Clause
- Government can initiate 2 years after contract award or modification award

**POST AWARD AUDIT PROVISION**

## Termination for Convenience or Cause –

Convenience – Ordering activities reserve the right to cancel purchase/delivery orders placed against an FSS contract in whole or in part for their sole convenience. 
Cause – Ordering activities may terminate purchase/delivery orders placed against an FSS contract in whole or in part for cause in the event of any default by the contractor.

Cancellation – either party (Government Contract Officer or Contractor) may cancel the FSS contract in whole or in part by providing a written notice.  The cancellation will take effect 30 calendar days after receipt of notification. 

- _Convenience_ – Ordering activities reserve the right to cancel purchase/delivery orders placed against an FSS contract in whole or in part for their sole convenience.
- _Cause_ – Ordering activities may terminate purchase/delivery orders placed against an FSS contract in whole or in part for cause in the event of any default by the contractor.
**Cancellation –**** **either party (Government Contract Officer or Contractor) may cancel the FSS contract in whole or in part by providing a written notice.  The cancellation will take effect 30 calendar days after receipt of notification.

**TERMINATION/CANCELLATION**

## 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 

## FSS DIRECTOR & ASSISTANT DIRECTORS CONTACT

***FSS DIRECTOR & ASSISTANT DIRECTORS CONTACT***

**Carole O’Brien**
- Director, Federal Supply Schedule Service
- (708) 786-4957_[carole.obrien@va.gov](mailto:carole.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

***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