The Advantages of Using the GSA Schedule and Blanket Purchase Agreements

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1 The Advantages of Using the GSA Schedule and Blanket Purchase Agreements Contact Beth Miller-Herholtz, Chief Strategy Officer, SNVC About SNVC SNVC has been solving business challenges through innovative information technology solutions since We believe that when our clients succeed, we succeed. As a veteran-owned company, we are committed to supporting our nation, and delivering the value that enables mission success for America s armed forces and homeland defense. Our best-in-industry Microsoft Consulting Services have also assisted small, medium-sized and Fortune 1000 clients in making strategic technology decisions that positively affect the enterprise as a whole. Capabilities include Information Accessibility, SharePoint Solutions, Data Security, Program Support Services and Federal Solutions. Our cutting-edge solutions consistently help our customers work smarter, faster and more responsively.

2 ABSTRACT With today s federal market complexities, there is a need to better understand the specifics of GSA Schedule Blanket Purchase Agreements (BPAs) and the benefits of the programs. In this white paper, SNVC will outline several key advantages of using GSA Schedules. INTRODUCTION The pre-qualifying products, services and pricing of GSA Schedules helps firms pursue government business while decreasing the possibility of government customer contracting issues. A GSA Contract with SNVC is a competitive differentiator, allowing companies to save time, effort and cost, and increase efficiencies. 1 GENERAL FORM OF GSA SCHEDULE CONTRACTS GSA Contracts are similar to Basic Ordering Agreements, but task orders can be issued in days to weeks with the former as opposed to months with the latter. This is due to the fact that GSA Contracting Officers have completed a vast majority of the work before the process has even begun. This work includes: Synopsizing the procurement (no requirement to synopsize in FedBizOpps) Negotiating the contract Determining the prices to be fair and reasonable Meeting requirements for the Competition in Contracting Act Complying with all procurement regulations in establishing the GSA Schedule contracts 2 ESTABLISHED RATES AND VOLUMES DISCOUNTS When utilizing GSA Schedule contracts, rates are applicable nationwide and costs are managed by the application of contract labor categories. In terms of volume discounts, customers may seek price reductions when the potential for a lower price exists, typically on large orders. These discounts can be established for use by field offices across the nation, which allows geographically dispersed users to participate in the ordering office s BPA and place orders directly with SNVC. In addition, users can obtain better value by leveraging an ordering office s buying power through volume purchasing. 3 EFFICIENCIES AND BENEFITS There is no full Competitive Solicitation required for a GSA Schedule contract, yet it is considered a Competitive procurement. What s more, there is no benchmarking required. Contracts are awarded based on Best Value as determined by the client. Further benefits can be broken down into three categories. 3.1 Time and Effort Savings Eliminates repetitive, individual purchases and payments Reduces administrative efforts and paperwork Offers a short order cycle (1 to 15 days) Allows for quicker turnaround on orders 3.2 Cost Reduction Reduces acquisition costs through quantity discounts Offers Small Business credit Users can exceed maximum order amount once they coordinate orders with GSA Program Manager 2

3 3.3 Increased Efficiency Initial Task/Delivery Order can be executed in parallel with establishing the BPA, eliminating any lag time Ordering procedures become streamlined with no dollar limitations on individual task/delivery orders Blanket Purchase Agreements (BPAs) further streamline repetitive or phased acquisitions Protest risks are low Contractual terms are not renegotiated, eliminating contracting and open market costs such as source identification and the need to prepare full solicitations Ordering offices can incorporate additional terms and conditions (not in conflict with the underlying GSA schedule contract) and Contractor Team Arrangements (CTAs) Recurring requirements are satisfied 4 PROCESSES BPAs are established directly with SNVC. In accordance with FAR 8.404, an ordering office may request a price reduction based on the total estimated volume of the BPA, regardless of the size of individual orders. A Request For Quotation (RFQ) specifies the ordering office s requirements, including estimated quantities and work to be performed. A single BPA is normally established when the ordering office can clearly define its services and/or product requirements, and a firm-fixed price or an approximate ceiling price can be established. Since a best-value selection is made when said BPA is established, the ordering office does not need to make a separate selection for each delivery order under the BPA. No funding is obligated until a Delivery Order is placed. A BPA can be established for a five-year period (or longer if dictated by program requirements (FAR (c)). 5 SOURCE SELECTION Federal Regulations (FAR , Limited Sources Justification and Approval; DFARS , Additional ordering procedures) require the buyer to solicit sufficient schedule holders for orders that are more than $100K to ensure at least three offers, with the following exceptions: Logical Follow-on to an existing schedule contract Unusual Urgency Regulated Sole Source (e.g., 8(a) program) To satisfy a Contract Minimum Guarantee The customer can pick which schedule holders to solicit. Using ebuy ( is a fast, convenient way to execute the solicitation. RFQs may include any or all of the following for Best Value award: Oral or written proposals Simple (or detailed) technical and management proposals Past performance Resumes of key personnel Price 3

4 6 COMPARISONS The advantages of utilizing the GSA Schedule and BPAs versus popular alternatives are illustrated in side-by-side comparisons. 6.1 GSA GWAC vs Public Bid GSA GWAC Executed quickly days to weeks Minimal paperwork, can be as short as two pages No FedBizOpps synopsis requirement Minimal staff time required to develop the SOW Minimal evaluation requirements since the number of bids is usually low Low risk of complaints, protests Public Bid Long buy cycle months or longer Equivalent paperwork to a full acquisition Synopsis requirement over minimum threshold Often consume impractical amounts of staff time Subject to many responses, extensive evaluation reqs Often prone to time-consuming protests 6.2 GSA BPA vs Agency BPA GSA GWAC No maximum order limitation Best value procurement based on buyer s criteria Requirement eliminated to provide a cost basis in quote No additional competition requirements Up to 5-year term, or longer if supported program is more than 5 years* Not subject to FAR Part 13 (synopsis, posting, etc.) except , Establishment of BPAs Public Bid Agencies typically place ordering limits Technically acceptable, low price issues are common Requires a cost basis in initial vendor proposal Normally require additional competition for each task order Most agency BPAs limited to 3 years, with 5-year term more common in DoD Subject to FAR Part 13 7 REFERENCES The following serves as background and supportive information for submitting a GSA or BPA. 7.1 Required Information for GSA Schedules and BPAs Name of the GSA Schedule contractor GSA Schedule contract number BPA number assigned by the ordering office A description of the requirement (SOW), to include estimated quantities and work to be performed Prices and/or discounts The extent of the obligation Any additional price reductions negotiated by the ordering office, based on the proposed dollar value of the BPA A listing of individuals authorized to purchase under the BPA Delivery or performance time frames Location of deliveries Frequency of ordering and invoicing Date of BPA expiration A statement that all other terms and conditions are contained in the GSA Schedule contract 4

5 7.2 GSA Schedule to Workflow 7.3 GSA Schedule and BPA Links Overview, GSA Schedule BPA process GSA Schedule BPA FAQs DFARS FAR Conclusion In summary, employing the GSA and BPAs provide a myriad of benefits. It streamlines the procurement process that leads to saving time, effort and money. It s far more straightforward for the client to establish because SNVC is an existing Schedule contract holder. In addition, the procuring agency receives small business credit. Perhaps most persuasive, there is no risk to establishing a BPA funds are not obligated until delivery orders are awarded. SNVC Credentials SNVC has been a GSA holder since The following year, the Coalition for Government Procurement recognized the company as a Most Innovative Small Business. SNVC s federal solutions services were mentioned in government-marketing consultant Mark Amtower s best-selling book, Government Marketing Best Practices: Real World Tactics on How to Grow Mindshare and Increase Marketshare to Grab a Bigger Slice of the World s Largest Market. 5

6 SNVC Contact Biography Beth Miller-Herholtz has more than 25 years of experience in the business development of information management systems and supply chain management tools used across the public and private sectors. It is a rich background in customer-centric programs that spans sales, marketing, customer support and product development. Beth is the chief strategy officer at SNVC and leads the company s non-organic growth, internal systems development, marketing and communications. In 2011 and 2012, she helped the company be recognized on Virginia Business magazine s list of Best Places to Work in Virginia, capturing the number-one position for midsized firms in Beth holds a Bachelor of Science in Marketing Management from Virginia Tech in Blacksburg, VA. She has served on the Virginia Chamber of Commerce s Small Business Committee since She sits on the Advisory Group for the SNVC Institute for Leadership and Innovation, and provides services in kind to the Aurora Foundation, a nonprofit that supports veterans who return to college and enter the workforce. Beth is a member of SECAF, AFCEA and the American Marketing Association. An amateur photographer, she has collaborated with local artists to create programs that highlight America s National Parks. She is married to Steve Herholtz, and lives in Warrenton, VA. Together, they have 22 (and counting) nieces and nephews who reside all over the country inspiring frequent travels throughout the U.S. LinkedIn: 6