What is the GSA Order-Level Materials (OLM) SIN & Can It Drive GSA Schedule Sales?
What exactly is the Order-Level Materials SIN?
The Order-Level Materials (OLM) SIN allows companies to offer supplies or services through their GSA Schedule Contract that directly support a GSA Schedule order or Blanket Purchase Agreement (BPA), but are unknown or can’t be priced until the order level. In June of 2018, GSA added the new OLM SIN to seven different GSA Schedules. The agency then extended the new OLM SIN to an additional five GSA Schedules this year.
Will OLMs Drive Government Spending through GSA?
The GSA Schedule Contract vehicle offers buyers several benefits, including simplified ordering process, pre-negotiated pricing, and reduced administration. However, the GSA Schedule lacked some flexibility that other indefinite delivery, indefinite quantity (IDIQ) contracts allowed for. Prior to the OLM SIN, companies could not include supporting products/services on the GSA Schedule that were defined and priced at the order level. Depending on the type of offering, this inability prevented some companies from providing a total solution through the GSA Schedule, which in turn potentially pushed buyers towards other contract vehicles.
GSA hopes the OLM SIN will:
- Help the GSA Schedule better compete with other ID/IQs,
- Lead to increased usage of GSA Schedule Contracts, and
- Ultimately contribute to a reduction in contract duplication
How is the GSA OLM SIN Different from Ancillary or ODC SINs?
You may be wondering how the Order-Level Materials SIN differs from Ancillary SINs that have historically been in place on each GSA Schedule. Like the OLM SIN, Ancillary SINs allow for supplies or services that are not covered under other SINs, but are ordered in conjunction with or in support of GSA Schedule orders and BPAs.
The difference between the OLM SIN and Ancillary SINs is that supplies and services under the Ancillary SINs are known and can be priced when you receive your GSA Schedule Contract award. Supplies and services under the OLM SIN are unknown at the time of your contract award, and cannot be priced. Another difference is that while OLM and Ancillary SINs can be used under any order type (including Fixed-Price, Time and Materials, or Labor-Hour), OLMs can only be included as a Time and Materials or Labor-Hour Contract Line Item Number (CLIN).
How is the GSA OLM SIN Different from Open Market Items?
Open market items are products/services that are quoted with a GSA Schedule order for the convenience of your buyer, but are NOT considered a GSA Schedule purchase. When you include an open market item with a GSA Schedule quote, you must clearly label it as open market. Open market items should not be reported with GSA Schedule Sales and should not factor into IFF payments.
Items quoted under the OLM SIN are considered a GSA Schedule purchase. Unlike open market items, contractors should include OLM sales in GSA Schedule sales reporting and should pay IFF.
If you have to pay IFF on OLM items, why wouldn’t you want to sell them as open market instead? First of all, depending on how you negotiated your pricing, your buyer is technically paying the IFF and you are simply collecting and remitting it to GSA. Secondly, quoting open market items could disqualify you from competing for some RFQ’s. We’ve seen RFQ’s where the Contracting Officer has specified that all items must be GSA Schedule items; open market items do not meet this requirement. Finally, adding open market items to your order puts additional work back on your buyer, requiring them to complete extra steps. In addition to determining that the pricing of open market items is fair and reasonable (which is also required for OLM items), your buyer must follow all applicable acquisition regulations, including:
- Part 5 – Publicizing
- Part 6 – Competition Requirements
- Part 12 – Acquisition of Commercial Items
- Parts 13, 14, and 15 – Contracting Methods
- Part 19 – Small Business Programs
Summary Comparison of OLM vs Ancillary vs Open Market
|GSA Schedule Item||IFF Applies||Priced At||Allowable
|OLM||Yes||Yes||Order Level||T&M/LH||GSAR 552.238-82|
|Ancillary||Yes||Yes||Schedule Level||FFP/T&M/LH||GSAR 538.270|
|Open Market||No||No||Order Level||All||FAR 8.402(f)|
Special Procedures for the OLM SIN
If your company holds the OLM SIN, you’ll be required to meet some additional requirements when you quote for OLM products/services. Unless you have an approved purchasing system, you’ll have to collect at least three quotes for each OLM item over the Simplified Acquisition Threshold.
Who is Eligible to Obtain the Order-Level Materials SIN?
As of right now, companies that hold one of 12 GSA Schedules may add the Order Level Materials SIN to their contract. After the MAS Consolidation in October of 2019, the OLM SIN will continue to be available to companies eligible under the legacy GSA Schedules. According to the draft SIN structure proposed, the OLM SIN was supposed to be available to companies under 10 of the 12 proposed Large Categories. As of a September 17, 2019 webinar, GSA announced the OLM SIN will not be extended to additional GSA Schedule Contractors after the consolidation.
The OLM SIN is only available to companies with the following GSA Schedules:
|Schedule #||Schedule #||OLM SIN #||Released|
|00CORP||Professional Services Schedule||00CORP 500||June 2018|
|03FAC||Facilities Maintenance and Management||03FAC 500||June 2018|
|36||Office, Imaging and Document Solutions Schedule||36 500||Spring 2019|
|56||Buildings and Building Materials||56 500||June 2018|
|58 I||Professional Audio/Video||58 500||Spring 2019|
|70||IT||70 500||June 2018|
|71||Furniture||71 500||June 2018|
|71 II K||Comprehensive Furniture Management Services||71 II K 500||Spring 2019|
|72||Furnishings and Floor Coverings||72 500||Spring 2019|
|78||Sports, Promotional, Outdoor, Trophies, and Signs||78 500||Spring 2019|
|84||Total Solutions for Law Enforcement and Security||84 500||June 2018|
|738 X||Human Capital Management & Administrative Support||738X 500||June 2018|
Order-Level Materials Overview:
- OLMs are supplies or services acquired in direct support of task or delivery order placed against a GSA Schedule Contract or Blanket Purchase Agreements (BPAs)
- OLMs cannot be defined or priced at the GSA Schedule level
- OLMs cannot exceed 33.33% of the order, excluding travel costs
- Unless you have an approved purchasing system, you must obtain at least three quotes for each OLM above the simplified acquisition threshold
- OLMs should be included in GSA Schedule sales reports and IFF remittance
Sales under the OLM SINs have more than doubled from the fourth quarter of fiscal year 2018 to the first quarter of fiscal year 2019. To date, contractors have reported nearly $48 million in sales under the OLM SINs.
Overall, the OLM SIN allows companies to offer buyers greater flexibility through the GSA Schedule. Something that wouldn’t normally lend itself to being added to the GSA Schedule Contract can now potentially be included under the OLM SIN. Think custom products and services or items where pricing is determined by several moving variables.
Need help evaluating and updating your GSA Schedule Contract? Contact us to talk.