Part 538 - Federal Supply Schedule

Contracting

538.000 Scope of part.

538.001 General.

Subpart 538.2 - Establishing and Administering Federal Supply Schedules

538.201 Coordination requirements.

538.270 Solicitation, evaluation, and award of Federal Supply Schedule (FSS) contracts.

538.270-1 Evaluation of offers without access to transactional data.

538.270-2 Evaluation of offers with access to transactional data.

538.270-3 Use of clause fill-in information.

538.271 FSS contract awards.

538.272 MAS price reductions.

538.273 FSS solicitation provisions and contract clauses.

Subpart 538.70 - Use of Federal Supply Schedule Contracts by Eligible Non-Federal Entities

538.7000 Scope of subpart.

538.7001 Definitions

538.7002 Authorities .

538.7002-1 Cooperative purchasing program.

538.7002-2 Disaster purchasing program.

538.7002-3 Public health emergencies program.

538.7002-4 Qualified nonprofit agencies for the blind or other severely disabled.

538.7002-5 Qualified relief or disaster assistance organizations.

538.7002-6 Indian Self-Determination and Education Assistance Act (ISDEAA).

538.7002-7 Native American Housing Assistance and Self Determination Act (NAHASDA).

538.7002-8 Native American Housing Assistance and Self Determination Act (NAHASDA).

538.7002-9 Tribally controlled schools.

538.7002-10 1122 Program.
538.7003 Non-Federal entity requirements.

538.7004 GSA responsibilities.

538.7005 Contract clause.

Subpart 538.71 - [Reserved]

Subpart 538.72 - Order-level Materials

538.7200 Definitions.

538.7201 General.

538.7202 Awarding Order-Level Materials in FSS contracts.

538.7203 Administering Order-Level Materials in FSS contracts.

538.7204 Contract clauses.

Parent topic: General Services Administration Acquisition Manual

538.000 Scope of part.

(a)This part prescribes policies and procedures for contracting for supplies and services under the

Federal Supply Schedule (FSS) program. GSA may delegate certain responsibilities for other agency

acquisition programs as they relate to the establishment of individual federal supply schedules.

(b)The authority of other agencies to award FSS contracts can only be accomplished through

delegation from GSA. An agency delegated authority by GSA to award contracts under the FSS

program is responsible for complying with GSA regulations and policies that apply to the FSS

program, unless an exception is approved by GSA (see 538.001).

538.001 General.

If a policy, regulation, or clause is identified as not applicable or in conflict to what is delegated by

GSA, the delegated agency shall submit a determination and finding supporting the rationale as to

why it does not apply, or is in conflict, in accordance with the delegation that was already received

from GSA. The determination and finding must be approved by the GSA Senior Procurement

Executive, the Commissioner of the Federal Acquisition Service (FAS) or a designee.

Subpart 538.2 - Establishing and Administering Federal

Supply Schedules

538.201 Coordination requirements.

GSA will coordinate with other agencies who administer FSS contracts specific to their delegated
authority (i.e., the Department of Veterans Affairs). Coordination will ensure adherence to policies

and procedures at the program level, such as providing guidance on approved exceptions (see

538.001).

538.270 Solicitation, evaluation, and award of Federal Supply Schedule (FSS)

contracts.

538.270-1 Evaluation of offers without access to transactional data.

(a) Applicability. Utilize this evaluation methodology for negotiating MAS offers when the

commercial sales practices format is included in the solicitation (see 515.408).

(b) When offerors have commercial catalogs, negotiate concessions from established catalogs,

including price and non-price terms and conditions.

(c) The Government will seek to obtain the offeror’s best price (the best price given to the most

favored customer). However, the Government recognizes that the terms and conditions of

commercial sales vary and there may be legitimate reasons why the best price is not achieved.

(d) Establish negotiation objectives based on a review of relevant data and determine price

reasonableness.

(e) When establishing negotiation objectives and determining price reasonableness, compare the

terms and conditions of the MAS solicitation with the terms and conditions of agreements with the

offeror’s commercial customers. When determining the Government’s price negotiation objectives,

consider the following factors:

(1) Aggregate volume of anticipated purchases.

(2) The purchase of a minimum quantity or a pattern of historic purchases.

(3) Prices taking into consideration any combination of discounts and concessions offered to

commercial customers.

(4) Length of the contract period.

(5) Warranties, training, and/or maintenance included in the purchase price or provided at

additional cost to the product prices

(6) Ordering and delivery practices.

(7) Any other relevant information, including differences between the MAS solicitation and

commercial terms and conditions that may warrant differentials between the offer and the discounts

offered to the most favored commercial customer(s). For example, an offeror may incur more

expense selling to the Government than to the customer who receives the offeror’s best price, or the

customer (e.g., dealer, distributor, original equipment manufacturer, other reseller) who receives

the best price may perform certain value-added functions for the offeror that the Government does

not perform. In such cases, some reduction in the discount given to the Government may be

appropriate. If the best price is not offered to the Government, you should ask the offeror to identify
and explain the reason for any differences. Do not require offerors to provide detailed cost

breakdowns.

(f) You may award a contract containing pricing which is less favorable than the best price the

offeror extends to any commercial customer for similar purchases if you make a determination that

both of the following conditions exist:

(1) The prices offered to the Government are fair and reasonable, even though comparable

discounts were not negotiated.

(2) Award is otherwise in the best interest of the Government.

(g) State clearly in the award document the price/discount relationship between the Government

and the identified commercial customer (or category of customers) upon which the award is based.

538.270-2 Evaluation of offers with access to transactional data.

(a) Applicability. Utilize this evaluation methodology for negotiating MAS offers when the

commercial sales practices format is not included in the solicitation (see 515.408).

(b) Contracting Officers shall utilize the techniques in FAR 15.404 when evaluating pricing for MAS

offers.

(c) Order of preference. When evaluating MAS offers and establishing negotiation objectives,

Contracting Officers shall–

(1) Use the following data that is already readily available in accordance with FAR 15.404-1(b)(2)(ii):

(i) Prices paid information on contracts for the same or similar items.

(ii) Contract-level prices on other MAS contracts or other government-wide contracts for the same

or similar items.

(iii) Commercial data sources that consolidate and normalize prices offered by commercial vendors

to the general public to compare prices for the same or similar items.

(2) If the Contracting Officer cannot determine the prices offered to be fair and reasonable based on

the data described in 538.270-2(c)(1), perform market research to compare prices for the same or

similar items in accordance with FAR 15.404-1(b)(2)(vi).

(3) If the Contracting Officer cannot determine the prices offered to be fair and reasonable based on

the data described in 538.270-2(c)(1) or (2), perform an analysis of data other than certified cost or

pricing data (as defined at FAR 2.101) provided by the offeror in accordance with FAR

15.404-1(b)(2)(vii).

538.270-3 Use of clause fill-in information.

(a) General. The fill-in information required by GSAR 538.273(e) outlines the timeframe that orders

must be completed and provides for—
(1)The exercise of task and delivery order options after the FSS contract ordering period, if those

options were evaluated as part of the initial award and the order is completed within the timeframe

outlined in 538.273(e);

(2) The FSS contract to remain an active contract until the final order is closed out; and

(3)The FSS contract to govern the terms and conditions with respect to active task and delivery

orders (e.g., price adjustments) to the same extent as if the orders were completed during the FSS

contract ordering period.

(b) Continuity of services. The fill-in information prescribed in 538.273(e) does not preclude use of

FAR clause 52.217-8 by ordering activities. However, the clause may only be used if the extension

does not extend the cumulative term of the task order beyond the timeframe outlined in 538.273(e).

538.271 FSS contract awards.

(a) FSS awards will be for commercial products and commercial services. Negotiate contracts as a

discount from established catalog prices.

(b) Before awarding any FSS awards determine that the offered prices are fair and reasonable (see

FAR Subpart 15.4 and 538.270). Document the negotiation and your determination using FAR

15.406-3 as guidance.

538.272 MAS price reductions.

(a) Applicability. This section applies when the contract contains the basic clause 552.238-80

Industrial Funding Fee and Sales Reporting.

(b) The basic clause and Alternate I of 552.238-81, Price Reductions, requires the contractor to

maintain during the contract period the negotiated price/discount relationship (and/or term and

condition relationship) between the eligible ordering activities and the offeror’s customer or

category of customers on which the contract award was predicated (see 538.271). If a change occurs

in the contractor’s commercial pricing or discount arrangement applicable to the identified

commercial customer (or category of customers) that results in a less advantageous relationship

between the eligible ordering activities and this customer or category of customers, the change

constitutes a “price reduction.”

(c) Ensure that the contractor understands the requirements of section 552.238-81 and agrees to

report all price reductions to the Contracting Officer as provided for in the clause.

538.273 FSS solicitation provisions and contract clauses.

The following clauses and provisions apply to FSS solicitations and contracts, unless otherwise

excepted (see 538.001) or as otherwise stated below. For example, if only used in solicitations, the

prescription will clearly state this. If the language does not specify “solicitations” then the clause

applies to both FSS solicitations and contracts.

(a) Insert the following provisions in FSS solicitations:
(1) 552.238-70, Cover Page for Worldwide Federal Supply Schedules. Use in all FSS solicitations.

(2) 552.238-71, Notice of Total Small Business Set-Aside. Use in FSS solicitations containing special

item numbers (SINs) that are set aside for small business.

(3) 552.238-72, Information Collection Requirements. Use in all FSS solicitations.

(b) Insert the following clauses and provisions in FSS solicitations and contracts] as an addendum to

FAR 52.212-1, Instructions to Offerors - Commercial Products and Commercial Services:

(1) 552.238-73, Identification of Electronic Office Equipment Providing Accessibility for Individuals

with Disabilities. Use only in FSS solicitations for electronic office equipment.

(2) 552.238-74, Introduction of New Supplies and Services Special Item Number (SIN). Only for

those solicitations allowing the introduction of new supplies/services. Note: GSA Form 1649,

Notification of Federal Supply Schedule Improvement, may be required if revising a Special Item

Number (SIN).

(c) Insert the following provisions in FSS solicitations as an addendum to FAR 52.212-2,

Evaluation—Commercial Products and Commercial Services:

(1) 552.238-75, Evaluation – Commercial Products and Commercial Services (Federal Supply

Schedules). Use in FSS standing solicitations.

(2) 552.238-76, Use of Non-Government Employees to Review Offers. Use only in FSS solicitations

when non-government employees may be utilized to review solicitation responses.

(d) Insert the following clauses in FSS solicitations and contracts as an addendum to FAR Clause

52.212-4, Contract Terms and Conditions—Commercial Products and Commercial Services:

(1) 552.238-77, Submission and Distribution of Authorized Federal Supply Schedule Price Lists.

(2) 552.238-78, Identification of Products that have Environmental Attributes. Use only in

solicitations and contracts that contemplate products with environmental attributes.

(3) 552.238-79, Cancellation.

(4) 552.238-80, Industrial Funding Fee and Sales Reporting. Use Alternate I for FSS with

Transactional Data Reporting requirements. Clause 552.238-81 Alternate I should also be used when

vendors agree to include clause 552.238-80 Alternate I in the contract.

(5) 552.238-81, Price Reductions. Use Alternate I for FSS with Transactional Data Reporting

requirements. This alternate clause is used when vendors agree to include clause 552.238-80

Alternate I in the contract.

(6) 552.238-82, Modifications (Federal Supply Schedules).

(i) Use Alternate I for FSS that only accept eMod.

(ii) Use Alternate II for FSS with Transactional Data Reporting requirements. This alternate clause is

used when vendors agree to include clause 552.238-80 Alternate I in the contract.

(7) 552.238-83, Examination of Records by GSA (Federal Supply Schedules).
(8) 552.238-84, Discounts for Prompt Payment.

(9) 552.238-85, Contractor's Billing Responsibilities.

(10) 552.238-86, Delivery Schedule. Use only for supplies.

(11) 552.238-87, Delivery Prices.

(12) 552.238-88, GSA Advantage!®. This clause is not required for the Department of Veterans

Affairs Federal Supply Schedules.

(13) 552.238-89, Deliveries to the U.S. Postal Service. Use only for mailable articles when delivery to

a U.S. Postal Service (USPS) facility is contemplated.

(14) 552.238-90, Characteristics of Electric Current. Use only when the supply of equipment which

uses electrical current is contemplated.

(15) 552.238-91, Marking and Documentation Requirements for Shipping. Use only for supplies

when the need for outlining the minimum information and documentation required for shipping is

contemplated.

(16) 552.238-92, Vendor Managed Inventory (VMI) Program. Use only for supplies when a VMI

Program is contemplated.

(17) 552.238-93, Order Acknowledgement. Use only for supplies.

(18) 552.238-94, Accelerated Delivery Requirements. Use only for supplies.

(19) 552.238-95, Separate Charge for Performance Oriented Packaging (POP). Use only for products

defined as hazardous under Federal Standard No. 313.

(20) 552.238-96, Separate Charge for Delivery within Consignee's Premises. Use only for supplies

when allowing offerors to propose separate charges for deliveries within the consignee's premises.

(21) 552.238-97, Parts and Service.

(22) 552.238-98, Clauses for Overseas Coverage. Use only when overseas acquisition is

contemplated. Choose the most appropriate clause(s) to the contract scenario. For example there

are multiple free on board (F.o.b.) clauses. Select those that apply best to what is being procured.

The GSAR clauses and GSAR provisions in paragraphs (d)(22)(i) through (xi) of this section shall also

be inserted in full text, when applicable.

(i) FAR 52.214-34 Submission of Offers in the English Language.

(ii) FAR 52.214-35 Submission of Offers in U.S. Currency.

(iii) 552.238-90 Characteristics of Electric Current.

(iv) 552.238-91 Marking and Documentation Requirements for Shipping.

(v) 552.238-97 Parts and Service.

(vi) 552.238-99 Delivery Prices Overseas.
(vii) 552.238-100 Transshipments.

(viii) 552.238-101 Foreign Taxes and Duties.

(ix) FAR 52.247-29 F.o.b Origin

(x) FAR 52.247-34 F.o.b. Destination.

(xi) FAR 52.247-48 F.o.b. Destination-Evidence of Shipment

(23) 552.238-99, Delivery Prices Overseas. Use only when overseas acquisition is contemplated.

(24) 552.238-100, Transshipments. Use only when overseas acquisition is contemplated.

(25) 552.238-101, Foreign Taxes and Duties. Use only when overseas acquisition is contemplated.

(26) 552.238-102, English Language and U.S. Dollar Requirements.

(27) 552.238-103, Electronic Commerce. This clause is not required for Department of Veterans

Affairs Federal Supply Schedules.

(28) 552.238-104, Dissemination of Information by Contractor.

(29) 552.238-105, Deliveries Beyond the Contractual Period-Placing of Orders.

(30) 552.238-106, Interpretation of Contract Requirements.

(31) 552.238-107, Export Traffic Release (Supplies). Use in FSS solicitations and contracts for

supplies, This clause is not required for vehicles.

(32) 552.238-108, Spare Parts Kit. Use only for products requiring spare part kits. This information

is to be specified at the order level.

(33) 552.238-109, Authentication Supplies and Services. Use only for information technology

associated with the Homeland Security Presidential Directive 12 (HSPD–12).

(34) 552.238-110, Commercial Satellite Communication (COMSATCOM) Services. Use only for

COMSATCOM services.

(35) 552.238-111, Environmental Protection Agency Registration Requirement. Use only for supplies

when products may require registration with the Environmental Protection Agency.

(36) 552.238-112 Definitions—Federal Supply Schedule Contracts., Definitions—Federal Supply

Schedule Contracts.

(37) 552.238-113 Authorities Supporting Use of Federal Supply Schedule Contracts., Authorities

Supporting Use of Federal Supply Schedule Contracts.

(38) 552.238-116, Option to Extend the Term of the FSS Contract. Use when appropriate.

(39) 552.238-117, Price Adjustment—Failure to Provide Accurate Information. Use only in FSS

solicitations and contracts under the MAS program. This clause is used when the contract contains

the basic clause 552.238-80 Industrial Funding Fee and Sales Reporting.
(e) Insert the following fill-in information within the blank of paragraph (d) of FAR clause 52.216-22,

Indefinite Quantity: “the completion of customer order, including options, 60 months following the

expiration of the FSS contract ordering period”.

Subpart 538.70 - Use of Federal Supply Schedule Contracts

by Eligible Non-Federal Entities

538.7000 Scope of subpart.

This subpart prescribes policies and procedures for implementing statutory, regulatory, and other

authorities that authorize use of Federal Supply Schedule (FSS) contracts by eligible non-Federal

entities.

538.7001 Definitions

As used in this subpart—

Eligible means an entity that meets the requirements prescribed by statute, regulation, or other

authority for purposes of being able to use FSS contracts. Information about GSA’s FSS eligibility

process is available at https://www.gsa.gov/eligibilitydeterminations.

Non-Federal entity means any state, local, 15 territorial, or tribal government, or any

instrumentality thereof (including any local educational agency or institution of higher education);

and any other non-Federal organization (e.g., a qualified nonprofit agency as defined in 40 U.S.C.

502(b)).

Preparedness means actions that may include, but are not limited to: planning, resourcing,

organizing, equipping, training, and conducting exercises to improve, build and sustain the

capabilities necessary to prevent, protect, mitigate, respond, and recover from a disaster.

Recovery means actions taken to assist communities affected by an incident to recover effectively.

This includes, but is not limited to, actions to restore, redevelop, and revitalize the health, social,

economic, natural, and environmental fabric of the community. Recovery may begin while response

is still occurring.

Response means actions taken during a disaster, or in its aftermath, in order to save lives, protect

property and the environment, and meet basic human needs. Response also includes the execution

of emergency plans and actions to enable recovery from a disaster.

538.7002 Authorities.

Various laws, regulations, and other authorities allow eligible non-Federal entities to use FSS

contracts. This section identifies some of the common authorities allowing eligible non-Federal

entities to use FSS contracts. See https://www.gsa.gov/eligibilitydeterminations for additional

information about the authorities available.
538.7002-1 Cooperative purchasing program.

40 U.S.C. 502(c) allows State or local governments, as defined in 40 U.S.C. 502(c)(3), to purchase

the types of supplies and services described in 40 U.S.C. 502(c). The supplies and services described

in 40 U.S.C. 502(c) are limited to those available under the Information Technology Category, and

the Security and Protection Category (or successor category(ies)). The GSA program that

implements this authority is called the Cooperative Purchasing program.

538.7002-2 Disaster purchasing program.

(a) 40 U.S.C. 502(d) allows State or local governments, as defined in 40. U.S.C. 502(c)(3), to

purchase supplies or services that are to be used to facilitate—

(1) Disaster preparedness or response;

(2) Recovery from a major disaster declared by the President under the Robert T. Stafford Disaster

Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.); or

(3)Recovery from terrorism, nuclear, biological, chemical, or radiological attack.

(b) The GSA program that implements this authority is called the Disaster Purchasing program.

538.7002-3 Public health emergencies program.

42 U.S.C. 247d allows State or local governments, as defined in 40 U.S.C. 502(c)(3), to purchase

supplies and services when expending Federal grant funds in response to a public health emergency

declared by the Secretary of Health and Human Services under section 319 of the Public Health

Services Act. The GSA program that implements this authority is called the Public Health

Emergencies program.

538.7002-4 Qualified nonprofit agencies for the blind or other severely disabled.

40 U.S.C. 502(b) allows qualified nonprofit agencies for the blind or other severely disabled, as

defined by 41 U.S.C. 8501, that are providing a commodity or service to the Government under 41

U.S.C. chapter 85, to purchase supplies or services. Purchases under this authority must be used

directly in making or providing to the Government a commodity or service that has been determined

by the Committee for Purchase From People Who Are Blind or Severely Disabled under 41 U.S.C.

8503 to be suitable for procurement by the Government.

538.7002-5 Qualified relief or disaster assistance organizations.

40 U.S.C. 502(e) allows the American National Red Cross and other qualified organizations, as

defined in 40 U.S.C. 502(e)(3), to purchase supplies or services. Purchases under this authority by

the American National Red Cross shall be used in furtherance of the purposes of the American

National Red Cross set forth in 36 U.S.C. 300102. Purchases under this authority by other qualified
organizations shall be used in furtherance of purposes determined to be appropriate to facilitate

emergency preparedness and disaster relief and set forth in guidance by the Administrator of

General Services, in consultation with the Administrator of the Federal Emergency Management

Agency.

538.7002-6 Indian Self-Determination and Education Assistance Act (ISDEAA).

(a) 25 U.S.C. 5324(k) allows Tribal organizations, as defined in 25 U.S.C. 5304, that have an active

ISDEAA contract, grant, or cooperative agreement to purchase supplies or services for the purposes

of carrying out the ISDEAA contract, grant, or cooperative agreement.

(b) 25 U.S.C. 5370 allows Indian Tribes, as defined in 25 U.S.C. 5304, that have an active ISDEAA

compact or funding agreement to purchase supplies or services for the purposes of carrying the

ISDEAA compact or funding agreement.

(c)25 U.S.C. 5396 allows Indian Tribes, as defined in 25 U.S.C. 5304, that have an active ISDEAA

compact or funding agreement to purchase supplies or services for the purposes of carrying out the

ISDEAA compact or funding agreement.

538.7002-7 Native American Housing Assistance and Self Determination Act (NAHASDA).

25 U.S.C 4111(j) allows Indian Tribes, as defined in 25 U.S.C. 4103, and tribally designated housing

entities, as defined in 25 U.S.C. 4103, that have an active NAHASDA contract, grant, or cooperative

agreement to purchase supplies and services for the purposes of carrying out the NAHASDA

contract, grant, or cooperative agreement.

538.7002-8 Native American Housing Assistance and Self Determination Act (NAHASDA).

25 U.S.C. 1660g(e) allows Urban Indian organizations, as defined in 25 U.S.C. 1603, that have an

active contract or grant pursuant to 25 U.S.C. chapter 18 subchapter IV to purchase supplies and

services for the purposes of carrying out the contract or grant.

538.7002-9 Tribally controlled schools.

25 U.S.C. 2507(a)(6) allows tribally controlled schools, as defined under 25 U.S.C. 2511, that have

an active grant pursuant to 25 U.S.C. chapter 27 to purchase supplies or services for the purposes of

carrying out the grant.

538.7002-10 1122 Program.

10 U.S.C. 281 allows States and units of local government, as defined in 10 U.S.C. 281, to purchase

equipment suitable for counter-drug, homeland security, and emergency response activities through

the Department of Defense. GSA, in coordination with the Secretary of Defense, produces and

maintains a catalog in accordance with the procedures established by the Secretary of Defense. The
catalog includes access to equipment available under FSS contracts. States and units of local

government interested in using the 1122 program should contact their designated State point of

contact.

538.7003 Non-Federal entity requirements.

Only non-Federal entities that are eligible may use FSS contracts. Use of FSS contracts by eligible

non-Federal entities is voluntary. The following requirements apply to eligible non-Federal entities

who decide to use FSS contracts:

(a) FSS contractors are not obligated to accept orders or enter into blanket purchase agreements;

however, they are encouraged to do so.

(b) Purchases cannot be made for personal use.

(c) Purchases cannot be for resale, unless specifically authorized.

(d) At a minimum, purchases shall comply with—

(1)FSS ordering guidance. Information about GSA's FSS contracts, including ordering guidance is

available at https://www.gsa.gov/schedules; and

(2)Any conditions of the underlying authority(ies) supporting the use of FSS contracts ( e.g.,40

U.S.C. 502(c) limits purchases to specific supplies and services available under the FSS program).

(e) An eligible non-Federal entity's eligibility cannot be transferred to a third party ( e.g., a

subcontractor) or successor entity.

538.7004 GSA responsibilities.

(a)Eligibility determination process. GSA may need to make a determination of eligibility to support

a non-Federal entity's use of FSS contracts. See https://www.gsa.gov/eligibilitydeterminations for

information about eligibility.

(b) Oversight. To ensure proper use of and access to FSS contracts by eligible non-Federal entities,

GSA may take any action within its authority as deemed necessary to deny, limit, or restrict use of

FSS contracts, in whole or in part. Reasons may include, but are not limited to—

(1)A change in an underlying authority;

(2)A change in the terms and conditions of the FSS program or FSS contracts;

(3)A failure by an eligible non-Federal entity to comply with the requirements of 538.7003; or

(4)Use by an ineligible non-Federal entity.

538.7005 Contract clause.

Insert the clause at 552.238-114, Use of Federal Supply Schedule Contracts by Eligible Non-Federal
Entities, in FSS solicitations and contracts.

Subpart 538.71 - [Reserved]

Subpart 538.72 - Order-level Materials

538.7200 Definitions.

As used in this subpart—

“Order-level materials” means supplies and/or services acquired in direct support of an individual

task or delivery order placed against an authorized (see GSAR 538.7201(b)) Federal Supply

Schedule (FSS) contract or FSS Blanket Purchase Agreement (BPA)), when the supplies and/or

services are not known at the time of Schedule contract or FSS BPA award. The prices of order-level

materials are not established in the FSS contract or FSS BPA. However, order-level materials are

purchased under the authority of the FSS program, pursuant to 41 U.S.C. 152(3), and are not open

market items, which are discussed in FAR 8.402(f).

538.7201 General.

(a) Authority. In accordance with GSA's authority under FAR 8.403(b), GSA has established special

ordering procedures for the incorporation of order-level materials into the Federal Supply Schedule

program.

(b) List. The list of Federal Supply Schedule subcategories authorized to allow for order-level

materials is available at https://www.gsa.gov/olm.

(c) Changes. HCAs may request changes to the list in paragraph (b) by submitting GSA Form 1649,

Notification of Federal Supply Schedule Improvement, for approval by the Assistant Commissioner

of the FAS Office of Policy and Compliance. Requests, submitted via GSA Form 1649 or otherwise, to

add this authority to a Federal Supply Schedule must address the need for the authority, including

why it is impractical to price the items at the contract level, and a description of the market research

conducted (see FAR 10.002(e)). The FAS Office of Policy and Compliance should notify the SPE of

changes to the list in paragraph (b) via email sent to spe.request@gsa.gov.

538.7202 Awarding Order-Level Materials in FSS contracts.

(a) Federal Supply Schedules authorizing order-level materials must include a separate Special Item

Number (SIN) with the following scope:

(1) Order-level materials are supplies or services acquired in direct support of a contractor's

offerings and which are unknown before a task or delivery order is placed against the FSS contract

or FSS BPA); including, direct materials, subcontracts for supplies and incidental services for which

there is not a labor category specified in the FSS contract, other direct costs, and indirect costs.

Order-level materials are subject to a negotiated price ceiling that the contractor exceeds at its own
risk.

(2) Items awarded under ancillary supplies or other direct cost (ODC) SINs are not order-level

materials.

(b) The order-level materials SIN cannot be the only awarded SIN on a FSS contract or FSS BPA.

(c) Price Pricing analysis for order-level materials is not conducted when awarding the Federal

Supply Schedule FSS contract or FSS BPA; therefore, sections 538.270 and 538.271 do not apply to

order-level materials.

538.7203 Administering Order-Level Materials in FSS contracts.

(a) Federal Supply Schedule Contracting Officers should consider requesting the assistance of

members of the acquisition team responsible for contract administration functions (e.g.,

Administrative Contracting Officers, Industrial Operations Analysts) when evaluating the use of

order-level materials at the FSS contract-level. Task or delivery orders including order-level

materials placed against FSS contracts should be monitored to ensure special ordering procedures

are being followed at GSAR 552.238-115(d).

(b) Except as stated in 552.238-115(d)(10), all terms and conditions that otherwise apply to the FSS

contract also apply to order-level materials. For example, order-level materials must comply with the

Trade Agreements Act clauses, the Environmental Attributes clause, and the Industrial Funding Fee

and Sales Reporting clauses.

538.7204 Contract clauses.

(a)Use FAR clause 52.212-4 Alternate I in all Federal Supply Schedules authorized for the

acquisition of order-level materials (see 538.7201(b)). Use the following language for the clause fillin—

(1)Insert “Each order must list separately subcontracts for services excluded from the FSS Hourly

Rates” in paragraph (e)(1)(iii)(D).

(2)Insert “Each order must list separately the elements of other direct costs for that order” in

paragraph (i)(1)(ii)(D)(1).

(3)Insert “Each order must list separately the fixed amount for the indirect costs and payment

schedule; if no indirect costs are approved,” insert “None” in (i)(1)(ii)(D)(2).

(b) Insert the clause at 552.238-115, Special Ordering Procedures for the Acquisition of Order-Level

Materials, in FSS solicitations and contracts authorized to allow for order-level materials.