Using GSA’s Multiple Award Schedules: Fast, Easy Access (3 of 6)

I want you to kinda think big
picture because if you are
thinking about a local BPA that your agency has issued
and maybe you know, youre
getting supplies off of that and its running a few
thousand or maybe even tens of
thousands or maybe even a few hundred thousand
dollars on a regular basis. There is this element
available to your agency of a
GSA BPA that could expedite your
ordering process and could
give you the advantage of schedule pricing. And so there are two different
types of BPAs, there is the
Single Award BPA and there is the Multiple Award. And obviously with the Single,
weve got a one contractor who
is gonna fulfill the need and then with the Multiple,
you could have any number of
them that would be able to actually compete the
requirements as their
generated once the BPAs have been issued. And so lets talk for a few
minutes here just about the
Single Award because under this 863 Rule
that Nick has addressed, and
it comes into effect on the
on Monday. There is some major change
regarding Single Awards. And to tell you the truth, and
if you read the rule, you
know, it is written to encourage the use of Multiple Awards
BPAs as opposed to Single
Award BPAs because to establish a Single Award BPA
today, there are some special
hoops youre gonna have to jump through. Generally speaking, those
Single Award BPA is gonna be
allowed over 103 million dollars and that
includes all of your option
periods as well. And to have that BPA, youre
gonna also have to have that
Single Award BPA. Youre gonna have to have a
head of agency approval with
the D&F or a Determination and Findings. And that Determination and
Findings per FAR 8.405-3 has to really
address four particular areas,
and that includes that the orders expected under the BPA
are so related that only a
single source can reasonably perform the work. Secondly, were talking about
that BPA provides for a firm
fixed price orders for products or and with unit
prices established within the
BPA. And if its for services, its
going to be with prices
established for specific task. And then thirdly, only one
source is qualified and you
know that youre gonna have to determine that the
price is fair and reasonable
in that document. And then fourthly, it is and
theres gonna be a statement
that clarifies that this is clearly in the publics
interest. Now, you can have four options
yearson your BPA, your Single
Award BPA. But everyone of them is four
options years are gonna now
require a D&F to be written by your competition advocate,
all right? And so that D&F is going to
have to address, and remember,
this is gonna be once a year for your four option
years, is gonna have to
address that the schedule contract upon which the BPA
was established is obviously
still in effect that the BPA still represents the Best
Value for the government. And if the estimated
quantities or amounts that you
are ordering have exceeded what
you anticipated, additional
price reductions have been addressed with the
contractor. You know, at any time in the
use of a GSA Schedule, you are
allowed to ask for and encouraged to ask for
additional price reductions. And lets just go a little
step further, if your Single
Award BPA does happened to approach or go
over the 103 million dollar
threshold, you know, the limited source
justification thats addressed
in 8.405-6 will also and have to
be written. All right. And talking about the Multiple
Award BPAs, you know, there is
not nearly as much change to those as their list with the
Single under 863 but there is
the question or element that Nick has already
addressed in regard to fair
opportunity over the SAT, the Simplified
Acquisition Threshold. And so there are the standard
ordering procedures had been
upgraded just a little bit. But there is I want to
certainly inform you that
there has always been a requirement for annual
review, and that is still
there and its being emphasized more and more in
other arenas. And you know, with these BPAs,
addressing that Price
Reduction element, and its
just a good practice. And you know, in FAR even
encourage us additional
discounts off for the schedules already established
pricing. And this week, Mr. Daniel Gordon, the
Administrator of the Office of Federal Procurement Policy has
been here with us at the
event, and Mr. Gordon has encouraged the use
of BPAs. Last year, at the DoD Annual
Procurement Conference, thats
held in Orlando, and in fact, its going on this week,
and those of you in DoD
probably aware of that and its overlapping with us here at
the Expo. Mr. Mike Canales, who is SHAY
ASSAD, who is the under
Secretary for Acquisition and Technology for DoD, and
both gentlemen encouraged an
open session with all of the DoD people that were in
attendance and we were talking
about 1,300 folks or so. They encouraged the use of GSA
Schedules. I was a guest speaker and
actually, gave eight
presentations on GSA Schedules with another
co-worker. And so its a different world
in DoD today in regards to
using contract vehicles that are already available to you. And so when we speak about the
Schedules Program, we and GSA
have not only the availability or you have the
availability to use a Schedule
Contractor for the creation of BPAs. But GSA also creates BPAs for
you to be able to use. Just last Friday, I had an
email concerning the effective
use of one of the BPAs that GSA has established
against the GSA Schedule. And this Multiple Award BPA is
a part of the Federal
Strategic Sourcing Initiative
for office supplies. We refer to it as os2 And we are approaching or we
just recently approached the
first renewal period or option period on the BPA. And if you think about the
concept of IDIQ Contracts,
generally speaking, when we in government, have IDIQ
type contracts, our
contractors kinda become in the drivers seat and they are
kinda controlling the
procurement if you will. And so but with this
particular vehicle, what we
have done on this on the renewal
period is that weve taken an
opportunity to, with the first option period,
to reduce the pricing even a
little more. And what the end result is, is
that out of the 15 BPA
holders, 13 or 87% of them have agreed to lower their prices. Now, the figure that is
dropping, it doesnt may not
sound like a whole lot, is really . .9 percent Were talking about dropping
their figures to by one
percent or so. But in an industry, where the
wholesale market pricing has
risen by .4 percent in the last year,
that is a significant change. And by the volume of work that
the government is actually
issuing against the vehicle, you know, theres a substantial
savings that where theyre
going to receive. Another fact about a GSA BPA,
it is much easier and faster
to off ramp contractors and bring on new ones. You can at the renewal period,
at the Annual Renewal Period
of the BPA, you can off ramp non-productive BPA holders
from this vehicle that you
have and you can bring on new ones. And so in the world that IDIQ,
thats not a not one of
those things that youre gonna necessarily be able to do with
any expedients. And so when we look at the GSA
BPA, you know, being able to
off ramp now and you know, performing non-performing
contractor is being able to
have the Schedule Pricing that can actually be
negotiated again to over
periods of times, is a really good thing.

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