Overview
FAR Subpart 8.4 governs the Federal Supply Schedules (FSS) program, also known as the GSA Schedules or Multiple Award Schedules (MAS). It provides federal agencies with a simplified process for obtaining commercial supplies and services at volume-buying prices, utilizing pre-negotiated contracts managed by the General Services Administration (GSA) or the Department of Veterans Affairs (VA).
Key Rules
- Simplified Competition: Orders placed against MAS contracts using Subpart 8.4 procedures are considered to be issued using "full and open competition." Agencies do not need to seek competition outside the schedules or synopsize requirements in Sam.gov (with limited exceptions).
- Pricing Fair and Reasonableness: GSA has already determined that the prices on the schedule are fair and reasonable. However, ordering activities are responsible for determining "best value" and are encouraged to seek additional discounts for specific orders.
- Ordering Thresholds:
- At or below Micro-purchase Threshold (MPT): Can be placed with any schedule contractor.
- Between MPT and Simplified Acquisition Threshold (SAT): Must survey at least three schedule contractors (via GSA Advantage! or pricelists).
- Above SAT: Must post an RFQ on eBuy or provide the RFQ to a sufficient number of contractors to ensure at least three quotes are received.
- Open Market Items: Non-schedule items may be added to an order only if all applicable FAR regulations (Parts 5, 6, 12, 13, 14, 15, and 19) are followed for those specific items, and they are clearly labeled as "open market."
- Order Types: Agencies must use Firm-Fixed-Price (FFP) orders to the maximum extent practicable. Time-and-Materials (T&M) or Labor-Hour (LH) orders require a formal Determination and Findings (D&F).
- Single-Award BPAs: Single-award Blanket Purchase Agreements (BPAs) exceeding $150 million are prohibited unless the Head of the Agency provides a written determination of necessity.
Responsibilities
- GSA/VA: Responsible for directing, managing, and negotiating the overarching MAS contracts and determining base price reasonableness.
- Ordering Activity Contracting Officer (CO):
- Determines which contractor represents the "best value."
- Ensures compliance with agency-specific statutory and regulatory requirements.
- Documents the basis for award and price reasonableness (especially for open market items or services requiring an SOW).
- Approves D&Fs for T&M/LH orders.
- Requiring Agency: Responsible for defining the requirement, providing an SOW (preferably performance-based), and identifying applicable regulatory requirements to the CO.
- Schedule Contractor: Must maintain an "Authorized Federal Supply Schedule Pricelist" and provide it to ordering activities upon request.
Practical Implications
- Procurement Speed: Subpart 8.4 is significantly faster than FAR Part 15 (Contracting by Negotiation) because the foundational terms, conditions, and prices are already established. This makes it the "go-to" vehicle for rapid commercial acquisitions.
- Audit Risk for "Open Market" Items: A common compliance failure is "scope creep," where agencies add non-schedule items to a GSA order without following the stricter competition rules required by FAR 8.402(f). Auditors frequently flag this as a violation of the Competition in Contracting Act (CICA).
- Brand-Name Restrictions: If an agency requires a specific brand name, the CO must post the justification along with the RFQ on eBuy, increasing transparency and allowing other vendors to challenge the restriction if they offer an equivalent.
- Documentation Burden: While "simplified," orders over the SAT still require a robust "paper trail," including the evaluation methodology, rationale for any tradeoffs, and evidence that at least three contractors were considered.