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PROCEDURES FOR SERVICES
PRICED ON GSA SCHEDULES AT HOURLY RATES 

FAR 8.402 contemplates that GSA may occasionally find it necessary to establish special ordering procedures for individual Federal Supply Schedules or for some Special Item Numbers (SINS) within a Schedule. GSA has established special ordering procedures for services that arc priced on Schedule at hourly rates. These special ordering procedures take precedence over the procedures in FAR 8.404. 

The GSA has determined that the rates for services contained in the contractor's price list applicable to this schedule are fair and reasonable. However, the ordering office using this contract is responsible for considering the level of effort and mix of labor proposed to perform specific task being ordered and for making a determination that the total firm fixed price or ceiling price is fair and reasonable. 

When ordering services, ordering offices shall

1. Prepare a Request for Quotes:

1. A performance based statement of work that outlines, at a minimum, the work to be performed, location of work, period of performance, deliverable schedule, applicable standards, acceptance criteria, and any special requirements (i.e., security clearances, travel, special knowledge, etc.) should be prepared. 

    

2. A request for quotes should be prepared which includes the performance based statement of work and requests the contractors to submit either a firm fixed price or a ceiling price to provide the services outlined in the statement of work. A firm fixed price order shall be requested, unless the ordering office makes a determination that it is not possible at the time of placing the order to estimate accurately the extent or duration of the work or to anticipate cost with any reasonable degree of confidence. When such a determination is made, a labor hour or time and materials quote may be requested. The firm fixed price shall be based on the hourly rates in the schedule contract and shall consider the mix of labor categories and level of effort required to perform the services described in the statement of work. The firm fixed price of the order should also include any other incidental costs related to performance of the services ordered. The order may provide for reimbursement of travel costs at the rates provided in the Federal Travel or Joint Travel Regulations, or as a fixed price incidental item. A ceiling price must be established for labor hour and time and materials orders. 

3. The request for quotes may request the contractors, if necessary or appropriate, to submit a project plan for performing the task and information on the contractor's experience and/or past performance performing similar tasks. 

    

4. The request for quotes shall notify the contractors what basis will be used for selecting the contractor to receive the order. The notice shall include the best value selection criteria including the intended use of past performance factors. 

2. Transmit the Request for Quotes to Contractors:

1. Based upon an initial evaluation of catalogs and price lists, the ordering office should identify the contractors that appear to offer the best value (considering the scope of services offered, hourly rates and other factors such as contractors' locations, as appropriate). 

    

2. The request for quotes should be provided to at least three (3) contractors if the proposed order is estimated to exceed the micro purchase threshold, but not exceed the maximum order threshold. For proposed orders exceeding the maximum order threshold, the request for quotes should be provided to additional contractors that offer services that will meet the agency's needs. Ordering offices should strive to minimize the contractors' costs associated with responding to requests for quotes for specific orders. Requests should be tailored to the minimum level necessary for adequate evaluation and selection for order placement. Oral presentations should be considered, whenever practical. 

3. Evaluate quotes and select the contractor to receive the order: 

After responses have been evaluated against the factors identified in the request for quotes, the order should be placed with the schedule contractor that represents the best value and results in the lowest overall cost alternative (considering price, special qualifications, administrative costs, etc.) to meet the Government's needs. 

The establishment of Federal Supply Schedule Blanket Purchase Agreements (BPAs) for recurring services is permitted when the procedures outlined herein arc followed. All BPAs for services must define the services that may be ordered under the BPA, along with delivery or performance time frames, billing procedures, etc. The potential volume of orders under BPAs, regardless of the size of individual orders, may offer the ordering office the opportunity to secure volume discounts. When establishing BPAs ordering offices shall inform contractors in the request for quotes (based on the agency's requirement) if a single BPA or multiple BPAs will be established, and indicate the basis that will be used for selecting the contractors to be awarded the BPAs. 

• SINGLE BPA: 

Generally, a single BPA should be established when the ordering office can define the tasks to be ordered under the BPA, and establish a firm fixed price or ceiling price for individual tasks or services to be ordered. When this occurs, authorized users may place the order directly under the established BPA when the need for service arises. The schedule contractor that represents the best value and results in the lowest overall cost alternative to meet the agency's needs should be awarded the BPA. 

• MULTIPLE BPAs: 

When the ordering office determines multiple BPAs arc needed to meet its requirements, the ordering office should determine which contractors can meet any technical qualifications before establishing the BPAs. When multiple BPAs are established, the authorized users must follow the procedures above, and then place the order with the Schedule contractor that represents the best value and results in the lowest overall cost alternative to meet the agency's needs. 

1. Review BPAs periodically. Such reviews shall be conducted at least annually. The purpose of the review is to determine whether the BPA still represents the best value (considering price, special qualifications, etc.) and results in the lowest overall cost alternative to meet the agency's needs. 
2. The ordering office should give preference to small business concerns when two or more contractors can provide the services at the same firm fixed price or ceiling price. 
3. When the ordering office's requirement involves both products as well as professional services, the ordering office should total the prices for the products and the firm fixed price for the services and select the contractor that represents the greatest value in terms of meeting the agency's total needs. 
4. The ordering office, at a minimum, should document orders by identifying the contractor the services were purchased from, the services purchased, and the amount paid. If other than a firm fixed price order is placed, such documentation should include the basis for the determination to use a labor hour or time and materials order. For agency requirements in excess of the micro purchase threshold, the order file should document the evaluation of Schedule contractors' quotes that formed the basis for the selection of the contractor that received the order and the rationale for any trade offs made in making the selection. 

ORDERS 

a.    Agencies may use written orders, EDI orders, Blanket Purchase Agreements, individual purchase orders, or task orders for ordering services under this contract. Blanket Purchase Agreements shall not extend beyond the end of the contract period; all services and delivery shall be made and the contract terms and conditions shall continue in effect until the completion of the order. Orders for tasks which extend beyond the fiscal year for which funds are available shall include FAR 52.232 19 Availability of Funds for the Next Fiscal Year. The purchase order shall specify the availability of funds and the period for which funds arc available. 

b.    All task orders are subject to the terms and conditions of the contract. In the event of conflict between a task order and the contract, the contract will take precedence. 

PERFORMANCE OF SERVICES

a. The Contractor shall commence performance of services on the date agreed to by the Contractor and the ordering office. 

b. The Contractor agrees to render services only during normal working hours, unless otherwise agreed to by the Contractor and the ordering office. 

c. The Contractor guarantees the satisfactory completion of the IT Services performed under the task order and that all contract personnel utilized in the performance of IT/EC services under the task order shall have the education, experience, and expertise as stated in the task order. 

d. Any Contractor travel required in the performance of IT Services must comply with the Federal Travel Regulation or Joint Travel Regulations, as applicable, in effect on the date(s) the travel is performed. Established Federal Government per diem rates will apply to all Contractor travel. Contractors cannot use GSA city pair contracts. 

INVOICES

The Contractor, upon completion of the work ordered, shall submit invoices for security consulting services. Progress payments may be authorized by the ordering office on individual orders if appropriate. Progress payments shall be based upon completion of defined milestones or interim products. Invoices shall be submitted monthly for recurring services performed during the preceding month. 

INCIDENTAL SUPPORT COSTS

Incidental support costs are available outside the scope of this contract. The costs will be negotiated separately with the ordering agency in accordance with the guidelines set forth in the FAR. 

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Last modified: March 11, 2006