May, 2010

1. Renewing and/or Exercising Your GSA IT Schedule 70 Gregory 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 3

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. 4

5. Goals for the Options • Treat the option as an unilateral modification, not a new offer • Follow FAR 17.207, 517.2, and clause I-FSS-163 • Determine if advantageous to the Government considering the following factors: • Price • Performance • Small Business Subcontracting goals • GSA Advantage! Pricelist is current • Other non-price factors

6. Purpose of Exercising Option • Government’s need for the products/services still exists • Substantially reduces solicitation/offer preparation costs • Continue to provide ordering activities access to quality contractors • Provides ordering activities with quicker access to new products/services consistent with the commercial marketplace (i.e., new technology) • Facilitate longer term contractual relationships with those Schedule contractors that have quality performance • Contractor’s performance is acceptable • Provides uninterrupted contract coverage

7. Performance is in compliance with current contract terms and conditions Schedule contractor is responsive and responsible Contractor’s meeting small business subcontracting goals Goals for the next contract period are sufficient Compare to small business subcontracting goals established by GSA Prices are fair and reasonable Schedule contractor’s electronic catalog was kept current, has been approved, and posted on GSA Advantage! Essential to Consider for the Evergreen Option

8. The Evaluation Process

9. Evergreen Option clause (I‑FSS‑163) • Evaluate proposed option in accordance with contract clause • I-FSS-163 Option to Extend the Term of the Contract (Evergreen) (Apr 2000) • An Evergreen contract has 5-year base period with three separate 5-year option periods • Evergreen Option may be an unilateral modification • Government makes the unilateral decision to exercise the contract option • All three option periods cannot be exercised at one time • The Government may require continued performance of the contract for an additional 5 year period

10. Notification • Notify the Schedule contractor at least 210 days prior to contract expiration date • Notification can occur earlier if an OIG audit is required • Vendor shall receive Auditor’s Information Request letter for the GSA contracting officer • 2nd notification letter with worksheet of contract items that must be up to date for option to be exercised • At least 120 days prior to end of contract date • Government may exercise the option by providing a written notice to the Contractor within 30 days prior to the expiration of the contract or option • Notify the contractor if not exercising the Evergreen option • Send written notification to the contractor

11. Contractor's Response • Provides cover letter signed by an authorized company official, which includes the following: • Verification of Most Favored Customer • Basis of award changed? • Updated CSP and Letters of Supply (for manufacturers and distributors) • Annual reports or financial statements • Updated employee’s compensation plan (IT Professional Services only) • Small Business Subcontracting Plan • Large Businesses • Statement of compliance regarding Report of Sales (72A) and the Industrial Funding Fee (IFF) • Points of Contacts (POCs) for options and contract administration • Continued acceptance of the Government-wide purchase card for orders over the micro-purchase threshold • Clarification of commercial pricing and discounting policy • GSA proposed pricelist and GSA current pricelist • Schedule contractor’s commercial price list

12. Past Performance • Analyzes past performance via the Administrative Report Card, other IOA and ACO reports, or other available information • Contractor Report Card • Demonstrates how well Schedule contractors manage and comply with contractual requirements • GSA manages the Contractor Report Card process • Contractor Assistance Visit (CAV) reports • Provides additional information not included in the report card • GSA manages the CAV reporting process • Consider input from ordering activities and other databases

13. Responsibility Determination • Research Excluded Parties List • www.epls.gov • Equal Employment Opportunity • Request EEO clearance on Schedule contracts exceeding $10 Million • Financial Responsibility Determination • Provide the most current, completed, audited consolidated financial statements • Specifically balance sheets and income statements, or information that demonstrates the company’s financial capacity

14. Small Business Subcontracting • Certify Business Size • Clause I-FSS-95 Re-representation Of Size Status For Option Periods (JAN 2008) • Verify the Primary NAICS code of the Schedule contractor • Small or large business • Large businesses are required to submit a Small Business Subcontracting Plan • Small Business Subcontracting Plan is needed if Schedule contractor is large • Made “best faith effort” to meet previously negotiated small business subcontracting goals • The contract specialist will determine: • Has the contractor met his goals for subcontracting to small, small disadvantaged, and women owned businesses? • What efforts have/will be made to ensure the participation of small, small disadvantaged, and women owned business concerns in accordance with the contractor’s plan? • Does the contractor require its large subcontractors comply with the “flow down” provision of its small business subcontracting plan? • Does the plan meet GSA’s small business subcontracting goals?

15. Other Requirements • Review company’s reporting in the Electronic Subcontracting Reporting System (eSRS) • http://www.esrs.gov • Submitted Individual Subcontract Reports (ISR) and Summary Subcontract Reports (SSR) • E-Verify • FAR 22.18 • Clause 52-222-54 • http://www.dhs.gov/E-Verify • Trade Agreement and Buy America clauses • FAR 25.4 • Clauses 52.225-5; 52.225-13

16. Other Requirements Con’t… • E-PEAT • FAR 23.7 • Clause 52.223-16 • http://www.epeat.net • Comply with the Veterans Employment Reporting Requirements (VETS 100) • http://vets100.vets.dol.gov • Company’s CCR and Online Representations & Certifications Application (ORCA) are up to date • http://orca.bpn.gov • www.ccr.gov

17. Review of Schedule Sales • Compliance with I-FSS-639 CONTRACT SALES CRITERIA (MAR 2002) • Options will not be exercised if sales did not exceed $25,000 within the first 24 months • Maintain a minimum of $25,000 in sales for each succeeding year • Cancellation due to low or no sales is a business decision of the contracting officer • Overall trend in sales under Schedule contract • Increased, decreased, or remained constant • Compliance with IFF and sales reporting • Full submission and payments, Outstanding payments, Timely payments • Corrective action?

18. Modification Requests During Option Evaluation • Modifications to exercise the option will be separate and unilateral • Other modifications shall not be included • Mass Modification • Is the Schedule contract terms and conditions up to date • Were all mass modifications accepted and incorporated into Schedule contract? • Exceptions • To expedite option process, ensure changes to contract pricing, terms or conditions, or other changes occur prior to or after exercising the option

19. Price Increases/Decreases • Contract prices may be increased in accordance with Economic Price Adjustment Clause • Clause 552.216-70 or I-FSS-969 • Economic price increases shall not be executed on the unilateral modification to exercise the option • Price decreases will be handled in accordance with Price Reduction clause • Clause 552.238-75; 552-243-72 • Contract prices may be decreased any time during the contract period • Addition or deletion of products/services • Clause 552.243-72 • Ensure changes to contract pricing, terms or conditions occur prior to or after exercising the option • Shall not be executed on the unilateral modification to exercise the option • A separate modification

20. Fair and Reasonableness Determination • Contract Specialist completed market analysis and price analysis • Conduct market analysis to assist in determining that the proposed option pricing is fair and reasonable • Compare contractor’s current commercial pricing to its proposed option pricing • Compare contractor’s MFC pricing to its proposed option pricing • Review trade publications, newspapers and periodicals for articles on industry changes and pricing in order to compare to proposed option pricing • Review websites on the Internet, including state and local websites, and compare commercial pricing to proposed option pricing • Review pricing for similar or identical products posted on GSA Advantage! and compare to proposed option pricing • Contact several retail and wholesale companies to check pricing for same or similar products, to compare to proposed option pricing

21. Fair and Reasonableness Determination Con’t… • Obtain updated CSP data from the contractor • Obtain a contractor statement that the basis of award customer/MFC customer • No changes in the awarded pricing or MFC • Prices are fair and reasonable • Products/Services on contract are in scope • A change has occurred to the contractor’s Most Favored Customer (MFC) and commercial pricing practices • Basis of award changed? • Renegotiate to establish new MFC/Basis of Award customer • New CSP and pricing, and terms and conditions • Exceptions to Schedule terms and conditions? • Determines prices are fair and reasonable • Pricing information provided has not changed • Negotiations has resulted in new pricing • Awarded prices fair and reasonable to the Government • Do not award an option if the price can not be justified

22. Audit Assistance • Contract Specialist can obtain appropriate audit assistance • Vendor shall receive Auditor’s Information Request letter for the GSA contracting officer • Office of Inspector General (OIG) provides audit assistance in the determination that option pricing is fair and reasonable • Audit assistance may be obtained if the estimated dollar value for the 5 year option period is greater than ($25 million) • OIG also nominates, with concurrence of the acquisition activity, Schedule contracts for auditing • Audits should not prevent an option exercise • Once audit is complete, contract specialist shall consider recommendations

23. Contractor's performance has not been acceptable Various reasons, such as untimely IFF reporting, performance, quality issues, etc. Small Business Subcontracting goals have not been met Company did not make good faith effort Current commercial practices have dramatically change Pricing practices has dramatically changed from initial contract award e.g. Merging contracts due to a Novation Agreement (different pricing practices) Government would be better served with a new contract Contractor has not kept his GSA Advantage! electronic catalog up to date Schedule pricing has not kept up with the current market changes Continuation of published schedule pricing is disadvantageous Evergreen Option may not be Exercised

24. Exercising the Option • Contract Specialist documents contractor is responsive in regards to performance, compliance, pricing, IFF, GSAAdvantage!, etc. • Option may be exercised within 30 days of Contract Expiration • Contract Specialist determines exercising option is in the best interest of the Government • Issue a unilateral modification • Standard Form 30 shall be signed by a contracting officer • Option exercised the next 5-year option period • Schedule contractor shall update its GSA Advantage! File

25. Customer Support Line: (General Information) 703-605-2700 (M-F 8:00 am - 4:30 pm EST) email: it.center@gsa.gov Multiple Award Schedules Desk Reference www.gsa.gov/cmls Federal Acquisition Regulation www.arnet.gov IT Schedule 70 http://www.gsa.gov/Portal/gsa/ep/channelView.do?pageTypeId=17112&channelId=-24754 Schedule 70 Resources

26. Thank you for your interest and participation! • Treat the Evergreen Option as an unilateral modification, not a new offer • To expedite option process, ensure changes to contract occur prior to or after exercising the option • Active effort by contractor and GSA to keep contract current and up-to-date prior to exercising option • ITCenter@gsa.gov Please remember: For more information contact: ITS can help make all of your IT acquisitions faster, cheaper and easier

27. Questions?