How to Place a Task Order Against GSA IT Schedule 70 Contract

1. How to Place a Task Order Against GSA IT Schedule 70 Contract Gregory P. Roseman Center for IT Schedule Program May, 2010

2. Agenda

3. ITS offers government access to the spectrum of IT products and services, and to strategic solutions that meet customer needs Internet Services Data Centers & Storage Satellite Services IT Offerings ITS “Great Government through Technology” Software & Applications Communication Networks & Services Computer Systems & Hardware Professional IT Services Strategic Solutions Sustainability Socioeconomic Wireless & Mobility Cybersecurity

4. ITS delivers products and services through four main channels • ITS helps government execute its core mission by making IT acquisitions: • Faster • Cheaper • Easier IT Schedule 70 Fair and reasonable prices for IT products and services Office of Infrastructure Optimization Good for Government Programs ITS Assisted Acquisition Services Governmentwide Acquisition Contracts Comprehensive and flexible contracts that provide virtually any IT services Network Services Your one-stop shop for telecommunications solutions.

5. A streamlined, convenient, money-saving, and time-saving tool for obtaining the commercial goods and services needed to satisfy recurring requirements. Reduce administrative burden. Leveraging buying power through volume. Can incorporate non-conflicting terms and conditions. Schedule order lead-time is 1/2 of traditional RFP acquisition lead-time. The Schedules program strongly supports small business, women-owned small business and small disadvantaged business participation. Volume discount pricing. Wide selection of contractors. Direct relationship with contractor. Schedule orders count toward small business goals. All applicable laws and regulations have been applied by GSA. Benefits of IT Schedule 70

6. Methods of Ordering

7. Methods of Ordering: 8.405-1  Ordering procedures for supplies, and services not requiring a statement of work • A statement of work is not required for supplies and services that are listed in the schedules contracts at a fixed price for the performance of a specific task (e.g., installation, maintenance, and repair) • For orders at, or below, the micro-purchase threshold, place orders with any Federal Supply Schedule contractor that can meet the agency’s needs • For orders exceeding the micro-purchase threshold but not exceeding the maximum order threshold, survey at least three schedule contractors through the GSA Advantage! on-line shopping service, or review the catalogs/pricelists of at least three schedule contractors • For orders exceeding the maximum order threshold, shall survey catalogs or pricelists of three or more schedule contractors, seek price reductions from the schedule contractors considered to offer the best value

8. Methods of Ordering:8.405-2  Ordering procedures for services requiring a statement of work • For orders at, or below, the micro-purchase threshold, place orders with any Federal Supply Schedule contractor that can meet the agency’s needs • For orders exceeding the micro-purchase threshold, but not exceeding the maximum order threshold, provide the RFQ (including the statement of work and evaluation criteria) to at least three schedule contractors that offer services that will meet the agency’s needs • For orders exceeding the maximum order threshold, provide the RFQ (including the statement of work and evaluation criteria) to three schedule or more schedule contractors that offer services that will meet the needs of the ordering activity; establish the BPA with the Schedule contractor that represents the best value

9. Methods of Ordering:Non-schedule Items: FAR 8.402(f) • An ordering activity contracting officer may add items not on the Federal Supply Schedule to a Federal Supply Schedule blanket purchase agreement (BPA) or an individual task or delivery order only if: • All applicable acquisition regulations – FAR and Agency supplements have been followed: • (e.g., publicizing (Part 5), competition requirements (Part 6), acquisition of commercial items (Part 12), contracting methods (Parts 13, 14, and 15), and small business programs (Part 19)). • The items must be clearly labeled “non-schedule” on the task order. • Ordering Activity has determined price reasonableness for the open market purchase. • All clauses applicable to items not on Schedule are included in the order. • The total dollar amount for open market (non-schedule) items is less than $3000 per task order.

10. Methods of Ordering Non-schedule Items: FAR 8.402(f) Con’t... • Agencies must follow applicable regulations when purchasing Non-Schedule items • Pyxis Corp., B-282469, B-282469.2, July 15, 1999 • SMS Systems Maintenance Services, Inc., B-284550.2, August 4, 2000 • T-L-C Systems, B-285687.2, September 29, 2000 • FAR 51 Deviation (implementation is coming soon)

11. Methods of Ordering:Schedule Pricing • Supplies offered on the schedule are listed at fixed prices. • Services offered on the schedule are priced either at hourly rates, or at a fixed price for performance of a specific task. • GSA has already determined the prices of supplies and fixed-price services, and rates for services offered at hourly rates, under schedule contracts to be fair and reasonable. • Although GSA has already negotiated fair and reasonable pricing, ordering activities may seek additional discounts before placing an order (see 8.405-4).

12. The Task Order Process

13. Steps to Issuing an IT Schedule 70 Task Order • Acquisition Planning • Market Research • Request for Quotation (RFQ) Development • RFQ Considerations • Issuance of Request for Quotations • Evaluation of Quotes • Evaluation Considerations • Evaluation Best Practices • Award Decision • Post-Award Documentation

14. A. Acquisition Planning FAR 8.404 (c)(1) Acquisition planning--Orders placed under a Federal Supply Schedule contract— • Are not exempt from the development of acquisition plans (see Subpart 7.1), and an information technology acquisition strategy (see Part 39) (2) Must comply with all FAR requirements for a bundled contract when the order meets the definition of “bundled contract” (see 2.101(b)); and (3) Must, whether placed by the requiring agency, or on behalf of the requiring agency, be consistent with the requiring agency’s statutory and regulatory requirements applicable to the acquisition of the supply or service.

15. B. Market Research • Documented market research with suggested Schedule sources [FAR 10.001(a)] • Purchase request, evidence of availability of funds and Government estimate of order price [FAR 4.803] • Commerciality of services [FAR 12, Schedule contract scope] • GSA eLibrary SIN descriptions and GSA Advantage!® Schedule pricelists consulted [Schedule contract scope] • Socio-economic goals • Complexity of requirement

16. C. RFQ Development • Agency identifies a need for services with or without a statement of work • Performance-based Statement of Work (SOW) • Labor Hours • Time and Material • Evaluation Criteria • Period of Performance • Industry Idiosyncrasies • Services Required • Appropriate Performance Measurements and Criteria • Special Requirements (security clearance, special equipment, CADD/GIS, etc.) • Location of Performance of Work • Deliverables and Delivery Schedule • Applicable Standards and Specification References • Acceptance Criteria

17. D. RFQ Considerations • The RFQ may request contractors to submit a project plan for performing the task and past performance information for performing tasks of similar size and scope. • The RFQ must identify evaluation factors to establish the basis of award used for selection. • Following initial evaluation of catalogs and price lists, CO’s should forward the RFQ to a minimum of 3 schedule contractors, if the order is estimated to exceed the micro-purchase threshold, but not exceed the maximum order threshold. • Preference for small business firms. • Oral presentations may be utilized in lieu of written technical proposals. • Minimize contractors’ costs associated with responding to RFQ’s.

18. D. RFQ Considerations Con’t… • For orders estimated to exceed the maximum order threshold, RFQ should: • Supplies, and Services Not Requiring an SOW: Follow the same procedures for orders exceeding the micro-purchase threshold, except review additional Schedule contractors' pricelists (the GSAAdvantage!® online shopping service may be used to facilitate this review); evaluate; seek price reductions; and make a best value selection. • Services Requiring an SOW: Follow the same procedures for orders exceeding the micro-purchase threshold, except transmit the RFQ (including the statement of work and evaluation criteria) to additional Schedule contractors that offer services that will meet the needs of the ordering activity; evaluate responses (using the evaluation criteria provided in the RFQ); seek price reductions; and make a best value selection. When determining the appropriate number of additional Schedule contractors, the ordering activity may consider the complexity, scope, and estimated value of the requirement, and the market search results

19. E. ISSUANCE OF RFQ • Agency issues a Task Order Request, a Request for Quote, or Proposal using the SOW, or LOE and specifies type of contract: • Firm Fixed Price (FFP), or • Labor Hour or • Time and Materials (T&M) with a Not To Exceed (NTE) Ceiling Price (LOE & T&M vehicles require D&F) • Task Order(s) may be performance based IAW FAR 37.6 • Agency can issues Task Order Request via eBuy; Email, etc… However, FAR 5 is NOT applicable

20. F. Vendor Quotes • Contractors submit either a firm fixed price or a ceiling price (labor-hour/Time & Material) quote. A ceiling price must be established for labor-hour and Time & Material orders. • Price quotes must be based upon the IT Schedule 70 contract and consider mix of labor categories and level of effort. • Orders may be written to include travel costs or other direct costs in the firm fixed price or provide for reimbursement of travel costs at FTR rates.

21. G. Evaluation Considerations • When evaluating contractor quotes for services and making a best value determination, consider the following criteria: • Quality of past performance / Quality of experience, size & scope relating to requirements: To what extent did the contractor demonstrate compliance with prior contract requirements for similar work and scope, accuracy of reports, timely delivery and technical excellence. • Price performance: To what extent did the contractor perform within or below the total price, and performance in a current, accurate and timely manner. • Schedule performance: To what extent did the contractor meet milestones, was responsive to technical direction, and completed services on-time and in accordance with established schedules. • Price: To what extent did the labor mix and level of effort proposed demonstrate the contractor’s understanding of the requirement MUST EVALUATE OFFER(s) AGAINST THE EVALUATION FACTORS STATED IN THE RFQ

22. H. Evaluation Best Practices • Agencies can use "best value" criteria for the placement of orders. However, if a formal FAR Part 15 negotiation process or something akin to it is utilized, GAO may use FAR Part 15 as guidance in reviewing an agency's actions. • ACS Government Solutions Group, Inc., B-282098.2, B-282098.3, June 2, 1999 • The Government Accountability Office (GAO) has stated that FAR Part 15 does not apply to FSS orders. • Computer Products, Inc., B-284702, May 24, 2000 • The Multiple Award Schedules (FSS) Program is a streamlined process; do not use complex Federal Acquisition Regulation (FAR) Part 15 procedures for an FSS order. The United States Court of Claims has specifically held that FAR Part 15 is not applicable to FSS orders. • Ellsworth Associates, Inc. v. United States, 45 Fed. Cl. 388 (1999) • Discussions with contractors are not required when using FSS ordering procedures; can seek additional information regarding a request for quotations without triggering discussion rules • Intelligent Decisions, Inc., B-274626.2

23. H. Evaluation Best Practices Con’t… • GAO sustained protests where the agency improperly failed to evaluate offers consistent with the instructions to Schedule contractors in the request for quote. • ACS Government Solutions Group, Inc., B-282098, B-282098.2, June 2, 1999 • There is no requirement to identify detailed evaluation criteria but, at a minimum, identify the basis on which the selection is to be made. • Tell contractors what the plan is and adhere to it • Evaluate in accordance with stated selection methodology and/or criteria– • COMARK Federal Systems, B-278343.2, January 20, 1998, 98-1 CPD 34; Amdahl Corporation, B-281255, December 28, 1998 • When an agency knows that its requirements can be met under either one of two different Schedules, it is not reasonable to issue an order to the sole vendor capable of performing under one Schedule without also reviewing the prices offered by several vendors capable of performing under the other Schedule • REEP Inc., B-290665, September 17, 2002

24. I. Award Decision • After responses have been evaluated against evaluation factors identified in RFQ, award order to IT Schedule 70 contractor representing best value. • Best value considerations may include (see FAR 8.404): • Special features required for effective program performance • Trade-in considerations • Probable life cycle of item selected compared with comparable item • Warranty considerations • Maintenance availability • Past performance • Environmental and energy efficiency considerations (Make sure these considerations are traceable to your evaluation criteria)

25. J. Post Award Documentation • File documentation should include, at minimum: • Purchase Request • RFQ/SOW • Contractors solicited • Task order award document/attachments • If other than a firm fixed price task order is awarded, state basis for the determination to use a labor hour or T&M order. • Selection decision including evaluation of contractor prices that formed the basis for selection and rationale for trade-offs made in the selection.

26. Reminder • Price reasonableness has been determined: Although GSA has determined that the prices for services contained in the contractor’s price lists are fair and reasonable, CO’s must consider level of effort and mix of labor to perform the specific task and for making a determination that the total firm fixed price or ceiling price is fair and reasonable. In addition GSA encourages CO to negotiate for further discounts when procuring off Federal Supply Schedule.

27. Avoid Trouble DOCUMENT… DOCUMENT… DOCUMENT • In the case of a conflict between a delivery order and the underlying FSS contract, the contract controls; avoid unnecessary contractual language in a request for quotations that may confuse or frustrate a contractor Intelligent Decisions, Inc., B-274626.2, December 23, 1996. • Where an agency is making a purchase from the FSS program, it is not required to engage in "equal discussions" with FSS contractors; rather, it may solicit information from only one contractor without affording another FSS contractor a similar opportunity to clarify the terms of that contractor's FSS contract Intelligent Decisions, Inc., B-274626, B-274626.2, December 23, 1996. • When using a performance-based SOW, allow the contractors to propose the labor skill mix and associated hours; do not dictate the number of hours or labor skill mix Computer Products, Inc., B-284702, May 24, 2000. • Reasonable to reject unacceptable quotes where required information is not provided for team member under planned contract teaming arrangementKearny & Company, B-298436.2, October 4, 2006.

28. GSA Online Resources/Tools

29. Schedules eLibrary • www.gsaelibrary.gsa.gov • A great resource for market research • Information on the Terms and Conditions of the Schedule 70 Contract • Listing of Contractors and Special Item Numbers (SINs) • Access to most eCatalogs of IT Schedule 70 Contractors

30. GSA Advantage! • www.gsaadvantage.gov • Federal Government’s premier online shopping superstore • Facilitates access to more than 40 million commercial products and services • Enables convenient search feature by keyword, part number, manufacturer, contractor, and contract # • Streamlines acquisition for Supply Chain and Schedule Purchases under IT 70

31. Facilitates the request for submission of quotes or proposals for commercial products, services, and solutions offered through GSA Federal Supply Schedules and Governmentwide Acquisition Contracts (GWACs) Customer prepares RFQ or RFI Online Helps Customer to find viable sources of supply Prepares RFQs/Define Parameters Allows the buyer to procure big-ticket items eBuy • www.ebuy.gsa.gov

32. Customer Support Line: (General Information) 703-605-2700 (M-F 8:00 am - 4:30 pm EST) email: it.center@gsa.gov IT Schedule 70 www.gsa.gov/itcenter Multiple Award Schedules Desk Reference www.gsa.gov/cmls Contractor Teaming Agreement guidance www.gsa.gov/cta Blanket Purchase Agreement guidance www.gsa.gov/bpa Schedule 70 Resources

33. Thank you for your interest and participation! • Use FAR 8.4 as guidance when issuing a Task Order(s) against IT Schedule 70 Federal Supply Schedule (FSS) - FAR 15 is not appropriate for FSS Orders • AVOID TROUBLE BY: Following criteria set forth in RFQ and document… document… document… ITCenter@gsa.gov Please remember: For more information contact: ITS can help make all of your IT acquisitions faster, cheaper and easier 33

34. Questions?