22. Furnish a copy of the approved FSS POA to AP within 75 days from the date of this document. . Formally monitor the implementation of the policy with interim reports Furnish a final report to AP on the overall results of implementation Item reduction program FSS will initiate a comprehensive three-part program to reduce both the number of line items covered and the number of contractors placed in the multiple award schedule program (MASP) contracts. (See also and coordinate this effort with the policy statement on geographical coverage of MASP contracts.) Part 1 Reduction of low volume items. FSS will develop and implement a plan to reduce the number of basic equipment items which have a very low volume of annual sales through MASP contracts. Such a plan must balance the cost of maintaining centralized supply support with the need for effective support of using agency programs. You may, for example, decide that at today's prices, the minimum volume necessary to justify retention in the multiple award schedule program is $5000 in annual sales. This threshold could easily be adjusted to compensate for inflation in the years ahead in order to always have an up-to-date support threshold. FSS's actual plan for item reduction will (a) be fully coordinated to assure minimum adverse impact on the agencies we serve; and (b) have definite quantitative goals established for management tracking purposes. Part 2 - Elimination of high volume Special Item Numbers (or basic equipment items, if appropriate) from the multiple award schedule program. FSS will develop and implement a plan to identify all items within the MASP which are of a similar nature, e.g., electric typewriters, electrostatic copying equipment, etc., for which annual sales volume and value are sufficient to justify developing commercial item descriptions (CIDs). For these items, FSS will conduct a head-to-head price competition, based on the CID which will include appropriate performance requirements, in order to transfer the item from MASP to the single award schedule program. Part 3 Reduction of residual items and contractors within the MASP. After FSS has purged schedules and/or line items because of low volume and transferred high volume items to some other method of supply, FSS will make a concerted effort to reduce the residual line items/contractors left within the MASP. Implementation: FSS is requested to Develop a Plan of Action (POA) to apply the policy on all schedules as they come due for award with special emphasis and attention assigned to Parts 1 and 2 of the policy. This POA is to be prepared within 60 days from the date of this document. Furnish a copy of the approved FSS POA to AP within 75 days from the date of this document. . Formally monitor the implementation of the policy with interim reports furnished to AP quarterly. The first progress report will cover the period July 1979 through September 1979. This report, as well as subsequent reports, will be due to AP within 10 days of the end of the quarter. Furnish a final report to AP on the overall results of implementation of the policy on all FSS schedules within 15 months from the date of this document. 23. Policy on use of blanket purchasing agreements (BPAs) Blanket purchase agreements are described in FPR 1-3.606. FSS should encourage the use of BPAs by agencies using the multiple award schedule program as a means of simplifying paperwork and securing additional pricing economies based on total business volume which would not be available through the individual multiple award program schedules. In addition, FSS will study the feasibility of negotiating area-wide BPAs for use by all Government agencies within the given area. This may be appropriate where many users end up dealing with a small group of contractors such as in a major metropolitan area. Where using agencies now negotiate BPAS based on an estimate of their total yearly requirements, they should be encouraged to provide FSS with the information to allow FSS to issue a contract which may be more favorable to the Government than the multiple award schedule contract. • Develop a Plan of Action (POA) to apply the policy on all appropriate Furnish a copy of the approved FSS POA to AP within 75 days from the date of this document. Formally monitor the implementation of the policy with interim reports 24. furnished to AP semiannually. The first progress report will cover . Furnish a final report to AP on the overall results of implementation of the policy on all FSS schedules with 15 months from the date of this document. Policy on overseeing other agencies purchasing practices FSS, in accordance with the authorities set forth in and/or derived from Title II of the Federal Property and Administrative Services Act of 1949, will develop and implement a comprehensive plan to review executive agency purchasing procedures and practices. (This plan should begin with the small executive agencies to (a) develop proper review procedures on a small scale; and (b) establish the necessary administrative precedent prior to reviewing the larger agencies.) Areas of particular interest should be whether or not the lowest priced item is purchased, the extent to which purchase requests are consolidated to take advantage of quantity price breaks, adequacy of justification for purchasing high cost items, and compliance with other related policies set forth in the FPMR which using agencies should follow. Implementation: 25. FSS is requested to Develop a Plan of Action (POA) to apply the policy on all schedules . Furnish a copy of the POA approved by FSS to AP within 105 days from the date of this document. Formally monitor the implementation of the policy with interim reports . Furnish a final report to AP on the overall results of implementation of the policy within 18 months from the date of this document. Policy on audit support In accordance with the March 22, 1979, AP memorandum, FSS and AW will develop and coordinate with AP a formal audit support plan for the multiple award schedule program. The objective of the plan would be to provide all audit support necessary to ensure that the discounts negotiated are obtained, assist in the analysis of pricing information provided by offerors, and review the overall management of the program. Particular attention will be given to high dollar value contracts and other areas which AW and FSS. feel need additional audit attention. Develop a joint (AWA/FC) Audit Support Plan within 30 days from the date of this document. Furnish to AP a copy of the plan as agreed to by AWA/FP within . Formally monitor the audit plan implementation with interim reports furnished to AP quarterly. The first progress report will cover the period July 1979 to September 1979. This report, as well as subsequent reports, will be due to AP within 10 days of the end of the quarter. Furnish a final report to AP on the overall results of implementation of the policy on FSS schedules with 15 months from the date of this document. 26. Policy on training All GSA personnel directly concerned with the schedule program shall receive related training commensurate with their duties on an initial and periodic refresher basis (not less frequent than annually). This will ensure up-to-date awareness of applicable policies and procedures as well as adding to the professional stature of the personnel. FSS, working through APM, will take action to develop and fund the necessary training programs. Implementation: FSS is requested to Develop a Plan of Action (POA) to apply the policy on all contract personnel. This POA is to be prepared within 90 days from the date of this document. Furnish a copy of the approved FSS POA to AP within 105 days from . Formally monitor the implementation of the policy with interim reports Furnish a final report to AP on the overall results of implementation of the policy on all FSS schedules within 24 months from the date of this document. The schedule program shall be subject to the overall management of a designated program manager. This individual shall have as his sole responsibility and authority the multiple award schedule program. Implementation: FSS is requested to Develop a Plan of Action (POA) to identify the duties of a Multiple . Furnish a copy of the approved FSS POA to AP within 35 days from the date of this document, along with FSS's candidate for the multiple award schedule Program Manager. Formally monitor the actions of the policy with interim reports furnished on the Program Manager's accomplishments to AP quarterly. The first report will cover the period July 1979 through September 1979. This report, as well as subsequent reports, will be due to AP within 10 days of the end of the quarter. Furnish a final report to AP on the overall results of implementation of the policy on all FSS schedules within 15 months from the date of this document. |