Overview
FAR Part 38 prescribes the policies and procedures for the Federal Supply Schedule (FSS) program, a simplified acquisition vehicle managed by the General Services Administration (GSA). It establishes the framework for awarding indefinite-delivery contracts to commercial firms, allowing federal agencies to acquire commercial supplies and services at volume-discounted prices with streamlined administrative procedures.
Key Rules
- Commercial Focus: The program is specifically designed for the acquisition of commercial supplies and services pursuant to 41 U.S.C. 152(3).
- Applicability of FAR Parts 5, 6, and 19: These requirements (Publicizing, Competition, and Small Business Programs) apply at the schedule contract award stage (when GSA or the delegated agency creates the schedule). They generally do not apply to individual orders or BPAs placed against the schedule, except as noted in FAR 8.404 and 8.405-5.
- Mandatory vs. Optional Use: Each schedule identifies specific agencies for whom use of the contract is mandatory. Other agencies may use the schedules optionally, provided the contractor agrees to accept the order.
- Geographic Scope: Contracts are established for delivery within specific geographic areas, typically covering the contiguous United States, D.C., Alaska, Hawaii, and overseas locations.
- Exclusions: While the Department of Veterans Affairs (VA) operates under this program via delegated authority, similar systems managed by the Department of Defense (DoD) for military items are not part of the Federal Supply Schedule program.
Responsibilities
- General Services Administration (GSA): Holds primary responsibility for directing and managing the FSS program, awarding most contracts, and authorizing other agencies to award schedules.
- Department of Veterans Affairs (VA): Manages delegated schedules for medical supplies and nonperishable subsistence items.
- Contracting Officers (Schedule-Level): Responsible for coordinating with GSA’s Federal Supply Service (FSS) before establishing new schedules, discontinuing existing ones, changing geographic coverage, or modifying Special Item Numbers (SINs).
- Ordering Agencies: Responsible for identifying if they are a mandatory user and following the ordering procedures found in FAR Subpart 8.4.
- Contractors: Responsible for providing supplies/services at stated prices and are "encouraged" to accept orders from non-mandatory users.
Practical Implications
- Efficiency for Ordering Activities: Because GSA performs the "heavy lifting" of FAR compliance (competition, publicizing, and small business set-aside determinations) at the contract level, individual ordering officers save significant time and administrative effort when placing orders.
- Centralized Control: Agencies cannot unilaterally create "Schedule-like" programs that overlap with GSA’s authority without formal coordination and approval from the GSA Office of Acquisition in Washington, DC.
- Pricing Advantages: The program leverages the collective buying power of the federal government to secure volume discounts that an individual agency might not be able to negotiate on its own.
- Compliance nuances: Government contractors must be aware that while the schedule is competed, they must still maintain the "stated prices" and adhere to the specific geographic and agency-scope limitations defined in their GSA contract.