Policies and Implementation Program for Federal Supply Service Multiple Award Schedule Contracts April 19, 1979 Explanation of References Throughout this document, references are made to the General Services Administration Procurement Regulations, e.g., 5A-73.203, the Federal Property Management Regulations, e.g., 101-26.401-4, and the Federal Procurement Regulations, e.g., FPR 1-3.802-1. PART A GENERAL MANAGEMENT POLICIES ON MULTIPLE AWARD SCHEDULES 1. General Policy Multiple award schedule contracts shall be used when no other method of supply support is more economical or effective, and (a) a wide range of similar items are required in order that agencies may select those items which they consider essential for the performance of their missions, or (b) writing suitable commercial item descriptions would not be economical or effective. The decision as to which method of supply support will be used will only be made after a thorough analysis is made of all of the available methods of supply, i.e., stock, store, and issue; local purchase; definite quantity, direct delivery; single award or multiple award schedule contracts. The analysis must include the application of econometric analytical techniques. 2. Solicitation provisions and contract clauses Solicitations shall include provisions and contract clauses as required by the Federal Procurement Regulations (FPR). They may also include additional provisions not inconsistent with the FPR, as necessary, for this type of contract and the commodity or service involved. See 5A-73.202. Contracts normally shall be for periods of one year but may be extended for periods of one year or less for a total period of not more than three years. See 5A-73.203. 4. Minimum order requirements a. A contractor shall not be required to fill orders below a minimum order limitation level prescribed by the contracting officer. b. The minimum order limitation level shall be the level which does not force the contractor to increase the price to compensate for the additional cost of processing small orders. The contract clause in 5A-73.205-4 is prescribed for use. 5. Maximum order limitation Contracts shall include maximum order limitations set at levels which the contracting officer determines represents the best estimate of the quantity or volume above which suppliers will likely quote lower prices due to larger purchase quantities. The contract clause in 5A-73.205-5 is prescribed for use. 6. Use of economic price adjustment clauses Contracts may include economic price adjustment clauses when they are -employed in accordance with prescribed procedures. See 5A-73.206 and 5A-7.103-73. Offerors shall be required to certify that for catalog or market price items (a) prices submitted are current, (b) substantial quantities have been sold to the general public, and (c) all data submitted are accurate, complete and current. See 5A-73.217-3. 8. Price reductions a. To commercial customers. Contractors shall be required throughout the contract period to retain the same pricing relationship between the contractor's discounts to the Government and to commercial customers. See 5A-73.217-5 for contract clause. b. To Federal agencies. Contractors shall be required to reduce the prices of items to the same extent that the contractor has reduced prices to any Federal agency. See 5A-73.217-5 for contract clause. The substitution of changed catalog or market price lists after award and not later than 30 days before the start of the contract period is permissible in accordance with prescribed procedures, if the relationship of discounts to the Government and commercial customers is no less advantageous to the Government. See 5A-73.217-6 for contract clause. 10. Renewal of contracts Contracts may provide for renewals of one year or less up to but not exceeding three years by mutual agreement of the parties. See 5A-73.217-9 for applicable contract clause. 11. Cancellation of contracts Contracts shall provide that either party may cancel the contract on a 60-day written notice. See 5A-73.217-10 for applicable contract clause. 12. Review for addition and deletion of items The items under contract shall be reviewed at least annually to determine the need to add or delete items. 13. Late offers The requirements of FPR 1-3.802-1 and 1-3.802-2 with respect to acceptance of late offers shall be strictly enforced. Acceptance of a proposal after negotiations have been started gives the offeror an unfair advantage. Negotiations conducted in a timely manner, strictly in accordance with a 75-533 0-81-17 |