Overview
This section prescribes the mandatory procedures and administrative responsibilities for agencies placing orders under Federal Supply Schedules, covering the entire lifecycle from order issuance to closeout. It defines the specific authorities of the ordering activity regarding inspection, disputes, performance evaluations, and the termination of individual orders.
Key Rules
- Order Placement Limits: Oral orders are prohibited for services requiring a Statement of Work (SOW), supplies exceeding the Simplified Acquisition Threshold (SAT), or brand-name requirements exceeding $25,000.
- Mandatory Order Content: Every order must include specific data elements, including shipping/billing addresses, F.o.b. points, SOWs (if applicable), and inspection/acceptance points.
- Inspection and Acceptance: While inspection generally occurs at the destination, the ordering activity must perform inspections for services according to a Quality Assurance Surveillance Plan (QASP) without causing undue delay.
- Termination Authority: Ordering COs may terminate individual orders for cause or convenience; however, only the Schedule CO (GSA/VA) has the authority to terminate items or services from the master Schedule contract.
- Excess Repurchase Costs: If an order is terminated for cause, the ordering activity is responsible for repurchasing the requirement at the lowest reasonable price and collecting any excess costs from the defaulting contractor.
- Dispute Resolution: The ordering activity CO handles disputes regarding order performance, but must refer any disputes regarding the master Schedule’s terms and conditions to the Schedule CO.
- Performance Evaluations: Ordering activities must document contractor performance in CPARS at least annually and upon completion for all orders exceeding the SAT.
Practical Implications
- Ordering activities must maintain a clear administrative divide between order-level issues and master contract-level issues, ensuring GSA is notified immediately of terminations for cause or fraud.
- The preference for "no-cost" settlements in terminations for convenience requires COs to negotiate with contractors to avoid the administrative burden of formal settlement proposals whenever possible.