Overview
Subpart 38.1 establishes the Federal Supply Schedule (FSS) program, a simplified procurement vehicle designed to help federal agencies acquire commercial supplies and services at volume-discounted prices. Managed primarily by the General Services Administration (GSA), the program utilizes indefinite-delivery contracts to provide a streamlined alternative to traditional open-market acquisitions.
Key Rules
- Competitive Award Process: Schedule contracts are awarded to vendors using competitive procedures to ensure "fair and reasonable" pricing for the government.
- Commercial Focus: The program is specifically designed for the acquisition of commercial supplies and commercial services.
- Pricing and Terms: Contracts provide stated prices for specific periods and cover defined geographic areas (including the 48 contiguous states, DC, Alaska, Hawaii, and overseas).
- Usage Requirements: Each schedule specifies which agencies are "mandatory users." Agencies not listed as mandatory are still permitted to use the schedules, and contractors are encouraged to accept their orders.
- Regulatory Carve-outs: While the creation of the schedule itself must comply with FAR Parts 5 (Publicizing), 6 (Competition), and 19 (Small Business Programs), these requirements generally do not apply to individual orders or BPAs placed against the schedule, as the compliance was handled at the master contract level.
Responsibilities
- General Services Administration (GSA): Holds primary authority to award FSS contracts, publish schedules, and issue program-wide publications.
- Delegated Agencies (e.g., Department of Veterans Affairs): Responsible for awarding and managing specific schedules when authorized by GSA (e.g., VA’s management of medical and subsistence schedules).
- Schedule Contracting Officers: Responsible for ensuring that the initial solicitation and award of the master schedule contract comply with all statutory requirements, including acquisition planning and small business set-asides.
- Ordering Agencies: Responsible for determining if they are mandatory users and following the procedures in FAR Subpart 8.4 when placing orders.
- Contractors: Responsible for providing supplies/services at the negotiated schedule prices and fulfilling orders within the stated geographic and temporal bounds of the contract.
Practical Implications
- Efficiency Gains: For an agency Contracting Officer, using the FSS program is significantly faster than an open-market procurement because the "heavy lifting" of price negotiation and competition has already been completed by GSA.
- Administrative Relief: Because FAR Parts 5, 6, and 19 are addressed during the establishment of the Schedule, ordering offices do not need to synopsize or conduct full-and-open competition for every individual order (with limited exceptions).
- Volume Leveraging: The program allows even small agencies to benefit from the government's collective buying power, obtaining discounts that would typically only be available to high-volume purchasers.
- Vested Authority: It is critical for contractors to note that while GSA manages the program, specific schedules like those for medical supplies are managed by the VA, meaning different agencies may have administrative oversight depending on the industry.