The General Services Administration (GSA)’s Office of Inspector General (OIG) published a report on March 21, 2017, titled “Audit of Price Evaluations and Negotiations for the Professional Services Schedule Contracts.” According to the IG audit, GSA’s process to consolidate eight pre-existing schedules into the Professional Services Schedule (PSS) resulted in the award of new contracts without establishing price reasonableness. Contracting officers also used a combined “Pre and Price Negotiation Memorandum” template that does not conform to Federal Acquisition Regulations (FAR) and Federal Acquisition Service (FAS) policy. Finally, contract files lack sufficient documentation to determine fair and reasonable pricing. In February 2017, GSA’s FAS initiated price reevaluations for all 322 migrated contracts to ensure prices awarded were fair and reasonable.
At a recent industry event, Kevin Youel Page, the deputy commissioner of GSA’s Federal Acquisition Service (FAS), made a surprising revelation – GSA is considering making participation in its controversial Transactional Data Reporting (TDR) pilot program completely optional. Currently, only existing contractors can choose whether they want to participate, and even they have to participate if they add a Special Item Number (SIN) to their contract or renew it. Mandatory participation also applies to all new offers against Schedules included the pilot.
On February 7, the General Services Administration (GSA) hosted a roundtable panel event to discuss its pilot program under the Transactional Data Reporting (TDR) rule. The discussion included Kevin Youel Page, the Deputy Commissioner of GSA’s Federal Acquisition Service (FAS); Judith Zawatsky, the Director of GSA’s Multiple Award Schedule (MAS) Program Management Office; Elliott Branch, the Deputy Assistant Secretary of the Navy (Acquisition & Procurement); and Larry Allen, the President of Allen Federal Business Partners.
On June 23, 2016, the General Services Administration (GSA) released the final rule launching its highly anticipated – and controversial – Transactional Data Reporting (TDR) pilot program. The TDR pilot, coupled with the new Formatted Pricing Tool (FPT), aims to radically alter the way prices on GSA Schedule contracts are negotiated. Rather than rely on contractors’ disclosures regarding their commercial pricing practices, GSA will eliminate the Commercial Sales Practices (CSP) disclosuresaltogether. Further, contractors will no longer have to monitor a basis of award discount relationship for the purposes of price reductions.
In a webinar to discuss its Transactional Data Reporting (TDR) pilot program, GSA announced tentative dates for the issuance of the mass modification (A509) to implement the pilot program for affected schedules. As discussed in Aronson’s previous blog, schedule holders who participate in the TDR pilot will be required to provide monthly contract sales reports, including prices paid information, to serve as the basis for pricing negotiations. In exchange, GSA will eliminate the requirements for those contractors to provide Commercial Sales Practices (CSP) and track commercial prices to a Basis of Award customer for price reductions. The following dates are subject to change:
Acceptance of this mass mod is OPTIONAL during the pilot, unless the GSA contract renews during the pilot period. Contractors must respond to the mass mod whether they plan to enroll in the pilot or not by accepting or declining the mod.
Transactional data must be reported monthly. IFF remittance is still required quarterly, although contractors participating in the pilot now have the option to remit IFF monthly. If and when contractors accept the TDR pilot program mass mod, transactional data reporting will be required at the start of the next calendar quarter. This quarterly timeframe will allow for a smoother reporting transition from the 72a Quarterly Reporting System to the new FAS Sales Reporting system.
Contractors can register for the third GSA-hosted webinar on TDR held on Tuesday, August 23 here. Please contact Barbara Connell (240-364-2657, email@example.com) or Jennifer Aubel (301-231-6253, firstname.lastname@example.org) if you have any specific questions about this significant change or other GSA Schedule compliance matters.