May 25, 2010

1. Management Services Center Industry DayUpcoming Changes Affecting the MAS Program Mark J. LeePolicy Chief, MAS Program Office Office of Acquisition Management May 25, 2010

2. Contracts Online – Phase II • Phase II will capture and display on a contract-by-contract basis in GSA e-Library award exceptions to standard contract clauses • Why is FAS implementing this change? • Facilitates customer agencies maximizing effective use of the Schedules Program • Support’s Administration goals of transparency and open government • MAS Program-wide Implementation • All FAS Schedule solicitations have been refreshed through the Solicitation Writing System (SWS) • Currently capturing exceptions with submission and award of offers • Baseline mass modifications will be issued on June 21st to capture existing exceptions across the Schedules Program

3. E-Verify General Applicability • FAR Case 2007-013 requires federal contractors and subcontractors to use the E-Verify system as of September 8, 2009 to: • Verify employment eligibility of federal contractors’ current employees who are assigned to work on a federal contract within the U.S. • FAR clause 52.222-54, Employment Eligibility Verification is required in all solicitations and contracts that exceed the SAT, except those that: • Performance outside the U.S.; • Less than 120 days period of performance; and • Are only for: Commercially available off-the-shelf (COTS) items (or minor modifications to a COTS item) and related services.

4. E-Verify Implementation Across the Schedules Program • Applies at the solicitation level to all unless: • Contracting Director determines exception applies (see FAR 22.1802); or • HCA has waives the requirement. • Contracts Online baseline mass modification with include FAR clause 52.222-54, Employment Eligibility Verification • Contractor may request individual exemptions from the E-Verify clause • PCO will review and determine applicability of the E-Verify clause

5. New Standardized Ancillary Supplies and Services SIN • Standardizing the Other Direct Costs (ODCs) SINs across the Schedules Program • Allows for ancillary supplies and/services that are not within the scope of another SIN under that schedule • Must be supplies and/or services necessary to compliment a contractor’s offerings to provide a solution to a customer requirement • Will start to see the new SIN make its way through the Schedules Program through solicitation refreshes and contract modifications

6. Using the New Standardized Ancillary Supplies and Services SIN • When placing an order using the ancillary supplies and services SIN, the: • Worked preformed under the SIN shall be associated with existing SIN(s) that are part of the schedule • Ancillary supplies and/or services shall not be the primary purpose of the order, but be an integral part of the total solution offered • Ancillary supplies and/or services may only be ordered in conjunction with or in support of supplies or services purchased under another SIN(s) of the same schedule

7. FAR Part 51 Deviation • Class Deviation granted on Oct. 8, 2009 and is effective for five years • The deviation authorizes Federal Government contracting officers to give GSA contractors access to the Schedules and GSA Global Supply Programs when deemed appropriate for fulfillment of their requirements • This authority is limited to order (s): • Placed on a time-and-materials or labor hour basis • For ancillary supplies/services that are in support of the overall order • Issued in accordance with the procedures in FAR 8.405-1, Ordering Procedures for Supplies, and Services Not Requiring a Statement of Work • Placed by the federal government

8. FAR Part 51 Deviation - Continued • FAS Implementation of FAR Part 51 Deviation Authority • New Schedule Contract clause • CI-FSS-056FEDERAL ACQUISITION REGULATION (FAR) PART 51 DEVIATION AUTHORITY (FEDERAL SUPPLY SCHEDULES) • Note added to GSAR clause 552.238-75 Alt 1 • Update to gsa.gov/schedules • FAR Part 51 Deviation Ordering Guide • The customer facing MAS training courses being developed in partnership with the Federal Acquisition Institute (FAI) will include a module on the use of the FAR Part 51 deviation authority

9. Future Regulatory Changes Coming • Section 863 of the FY 09 National Defense Authorization Act • FAR Case revamping FAR Subpart 8.4-Federal Supply Schedules • Section 863 requires: • For orders over the SAT that fair notice be provided to all contractors offering such supplies and services or the receipt of at least three quotes • Publication of a notice to FedBizOpps 14 days after award of sole source orders • Section 865 of the FY 09 National Defense Authorization Act • Will require that Schedule orders over $500,000 include a determination that an interagency acquisition is the best procurement alternative • T&M Contracts for Commercial Contracts FAR Case • Executing a Determination and Findings (D&F) will be required prior to awarding a Schedule T&M order

10. Future Regulatory Changes Coming – Continued • GSAM 538 Rewrite • Proposed rule published in January 2009 • Number of potential changes affecting day-to-day administration of Schedule contracts • FSS clauses becoming GSAR clauses • Mandatory eOffer/eMod provision/clause • Sales Practices Format – Supplies and/or Services with an Established Catalog (SPF-1) • Sales Practices Format – Supplies and/or Services with Market Pricing without an Established Catalog (SPF-2) • Change to Contractor Partner Arrangements (CPAs) • New Task Order Period of Performance Clause

11. Mark Lee Policy Chief, MAS Program Office Office of Acquisition Management Federal Acquisition Service mark.lee@gsa.gov 703.605.2572