June 21, 2018 Update: GSA issued solicitation refreshes yesterday to add the new Order-Level Materials Special Item Number (SIN) to 7 GSA Schedules. Existing contractors that would like to add the new OLM SIN must first accept the Commercial Supplier Agreements (CSA) mass modification. They will then have the option to accept the OLM mass modification when it is released (likely within a few days).
If you currently hold a GSA Schedule Contract, stay tuned for more information on GSA’s decision to allow Order-Level Materials (OLMs) under the GSA Multiple Award Schedules (MAS) Program. Based upon feedback from industry and customer agencies, GSA announced they will soon allow up to 33.33% of a GSA Schedule order to include supplies or services in direct support of that order. OLMs will be incorporated in the form of a new Special Item Number (SIN), which will roll out to 7 GSA Schedules this summer.
Order-Level Materials
- 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)
- GSA hopes the addition of OLM’s leads to increased usage of the GSA Schedules Program and reduction of duplicative contracts
- OLMs will be initially introduced to 7 GSA Schedules in the form of a new SIN – existing contractors that hold one of the 7 GSA Schedules should receive a mass modification early summer of 2018
- OLMs cannot exceed 33.33% of the order, excluding travel costs
- Unless a contractor has an approved purchasing system, they must obtain at least 3 quotes for each OLM above the simplified acquisition threshold
- OLMs are not open market items, so contractors will have to report sales & pay IFF on OLMs
Why is GSA Adding OLMs to the Schedules?
While GSA Schedules currently allow for ancillary supplies and services and other direct costs, OLMs are different in that they are unknown at the time of GSA Schedule Contract award. GSA hopes that the inclusion of Order-Level Materials on the GSA Schedule Contract will lead government buyers to increase their use of the Schedules program, which in turn, would lead to an increase in sales for GSA Schedule contractors. The goal is also to decrease contract duplication. If achieved, a reduction in duplicative contracts would lead to a reduction in administrative costs for both industry and government.
What Does This Mean for Existing GSA Schedule Contractors?
GSA will issue a solicitation refresh to incorporate the new OLM SIN in each GSA Schedule. However, according to an information sheet distributed by GSA, the agency will introduce OLMs to just 7 GSA Schedules this summer and will consider expanding to all Schedules in the future.
7 GSA Schedules To Receive Initial Roll Out of OLM SIN
- 03FAC – Facilities Maintenance and Management
- 56 – Buildings and Building Materials
- 70 – IT
- 71 – Furniture
- 84 – Total Solutions for Security
- 00CORP – The Professional Services Schedule
- 738 X – Human Capital Management & Administrative Support Services
If you currently hold one of the GSA Schedules listed above, you should expect to see a mass modification in early summer of this year. If you accept the mass modification, the OLM SIN, terms, and conditions will be added to your contract. When using the OLMs SIN, keep in mind:
- OLMs cannot exceed 33.33% of the order, excluding travel costs
- For each OLM above the simplified acquisition threshold, you must obtain at least 3 quotes unless you have an approved purchasing system
- You will need to report OLM sales, in addition to collecting and remitting IFF (again, excluding travel costs)
