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Open Market Items

Are you aware how the Federal Acquisition Regulation (FAR) addresses the policy on handling open market items on Federal Supply Schedues (FSS) contracts? Open market items are also known as incidental items, noncontract items, non-Schedule items, and items not on a GSA Schedule contract.

In accordance with FAR 8.402(f), for administrative convenience, an ordering activity contracting officer may add items not on the GSA Schedule (Multiple Award Schedule) contract — i.e., open market items — to a GSA Schedule Blanket Purchase Agreement (BPA) or an individual task or delivery order only if:

  • All applicable acquisition regulations pertaining to the purchase of the items not on the GSA Schedule contract have been followed (e.g., publicizing (FAR Part 5), competition requirements (FAR Part 6), acquisition of commercial items (FAR Part 12), contracting methods (FAR Parts 13, 14, and 15), and small business programs (FAR Part 19));
  • The ordering activity contracting officer has determined the prices for the items not on the GSA Schedule contract are fair and reasonable;
  • The items are clearly labeled on the order as items not on the GSA Schedule contract; and
  • All clauses applicable to items not on the GSA Schedule contract are included in the order.
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hiteq
<p>I am new to the GSA Arena and want to know if I am allowed to quote items on ebuy that are not on my GSA Schedule as long as note that .</p><p>as such that I am an Authorized Reseller (VAR) of items</p>
MAS Blogger
<p>@hiteq -&nbsp;<span style="background-color: rgba(255, 255, 255, 0.917969); color: rgb(34, 34, 34); font-family: arial, sans-serif; line-height: normal; ">&nbsp;RFQs for Schedule orders require quotes that offer a Schedule solution (i.e. Schedule supplies/services). Sometimes those solutions require ancillary items that are not on Schedule. &nbsp;In these situations, agencies can buy these non-MAS items (i.e. open market items) as long as they comply with the regulations at FAR 8.402(f).</span></p>
MAS Blogger
<p>There is no limit on the dollar value of open market items on Schedule orders.&nbsp; However, <a href="https://www.acquisition.gov/far/current/html/Subpart%208_4.html#wp1089488"><u>FAR 8.402(f)</u></a> states that open market items can be added to Schedules orders only if &quot;all applicable acquisition regulations pertaining to the purchase of the items not on the Federal Supply Schedule have been followed (<em>e.g.,&nbsp;</em>publicizing (<a href="https://www.acquisition.gov/far/current/html/FARTOCP05.html#wp290921"><u>Part&nbsp;5</u></a>), competition requirements (<a href="https://www.acquisition.gov/far/current/html/FARTOCP06.html#wp280339"><u>Part&nbsp;6</u></a>), acquisition of commercial items (<a href="https://www.acquisition.gov/far/current/html/FARTOCP12.html#wp1033864"><u>Part&nbsp;12</u></a>), contracting methods (<a href="https://www.acquisition.gov/far/current/html/FARTOCP13.html#wp271421"><u>Parts&nbsp;13</u></a>, <a href="https://www.acquisition.gov/far/current/html/FARTOCP14.html#wp301185"><u>14</u></a>, and <a href="https://www.acquisition.gov/far/current/html/FARTOCP15.html#wp246607"><u>15</u></a>), and small business programs (<a href="https://www.acquisition.gov/far/current/html/FARTOCP19.html#wp223561"><u>Part&nbsp;19</u></a>).&quot;&nbsp;</p><p>Because of this regulatory requirement, which essentially mandates a whole other procurement for these items, many ordering activities do not allow open market items above the micro-purchase threshold (e.g. $3,000) on Schedule orders. The ordering procedures for items under the micro-purchase threshold are much more streamlined than&nbsp;procedures above the threshold.</p><p>Other solutions to acquiring open market items on GSA Schedule include <a href="http://www.gsa.gov/portal/category/100647"><u>Contractor Team Arrangements</u></a> and <a href="http://www.gsa.gov/portal/content/224689"><u>FAR Part 51 Deviation-Contractor Use of Schedules</u></a>. Also, the Federal Acquisition Service is implementing standardized Ancillary Supplies and/or Services SIN(s) and providing additional flexibilities to enable customers to more readily acquire, and industry partners to provide, total solutions off of Federal Supply Schedules.</p><p><object classid="clsid:05D96F71-87C6-11D3-9BE4-00902742D6E0" codebase="https://gsaworkspaces.gsa.gov/qp2.cab#Version=8,2,0,0007" height="0" id="Test_UploadControl" title="Upload control" width="0"></object></p>
tehealy
<p>one of our contractors is having an issue with a federal agency in responding to a request for a quote that limits the dollar value of open market items to $3,000.&nbsp; The agency, the National Science Foundation, is telling our contractor that this is a limit imposed by GSA.&nbsp; I can not find any information in the solicitation or the FAR that would indicate this limit is one being imposed by GSA in its schedules program.</p><p>What am I missing?</p>
NavyContractingSD
<p>...or is it already included in the Schedule contract price?&nbsp; Which Schedule contract clause can I show to the contractor on this issue?</p>
MAS Blogger
<p>Thank you for the question and my apologies for the delay in response. The issue of G&amp;A application on travel has come up frequently in the past. We are in the process of developing guidance for our Schedule Contracting Officers that will hopefully result in clearer contract terms and conditions regarding the matter.</p><p>At this time, most Schedule contracts do not explicitly address the issue (i.e. list in the award document what - if any - G&amp;A is to be applied to travel) so it is up to the ordering agency&#39;s Contracting Officer to determine whether to allow G&amp;A on travel or not. All travel under Schedules is to be in accordance with the Federal Travel Regulations. Paragraph(i)(1)(ii)(D)(2) of clause 52.212-4 Contract Terms and Conditions - Commercial Items (Jun 2010)(Alternate I - Oct 2008)(Deviation I - Feb 2007) provides instruction on how indirect costs are to be applied to other direct costs (ODCs).</p>
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