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GSA Proposes New Rule Allowing Other Direct Costs into the Schedules Program

The U.S. General Services Administration (GSA) has issued a proposed General Services Acquisition Regulation (GSAR) rule to incorporate Order Level Materials (OLMs), also known as Other Direct Costs (ODCs), into the Multiple Award Schedule (MAS) program.  This proposed rule will make it easier for customer agencies to buy, and industry partners to provide, complete procurement solutions through the MAS program while ensuring excellent value for taxpayer dollars. The proposed rule will publish in the Federal Register on September 9th, 2016, and is open for a 60-day comment period.  GSA encourages public comments.  

This proposed change to the Schedules program seeks to provide agencies the flexibility to easily acquire order-level materials, creating consistency between the MAS program and other established  indefinite-delivery/indefinite- quantity (IDIQ) contracts.  Government agencies buying through MAS have expressed frustration with the lack of flexibility around how to properly handle order-level materials on orders. This has led to the creation of elaborate workarounds and the inconsistent application of policies.  Customer agencies and industry partners have long advocated for GSA to provide the ability to acquire OLMs through the MAS program. The proposed rule seeks to provide this buying flexibility, resulting in better value for customer agencies, industry partners and ultimately, for the taxpayer.  

OLMs provide a mechanism through which GSA can help industry bring solutions to the federal marketplace in a thoughtful way while also ensuring that the MAS program provides the best value for the federal government.  The proposed rule seeks to apply this flexibility to a select number of Schedules:

  1. Federal Supply Schedule 03 FAC: Facilities Maintenance and Management
  2. Federal Supply Schedule 56: Buildings and Building Materials/Industrial Services and Supplies
  3. Federal Supply Schedule 70: General Purpose Information Technology Equipment, Software, and Services
  4. Federal Supply Schedule 71: Furniture
  5. Federal Supply Schedule 84: Total Solutions for Law Enforcement, Security, Facilities Management, Fire, Rescue, Clothing, Marine Craft, and Emergency/Disaster Response
  6. Federal Supply Schedule 00CORP: All Professional Services
  7. Federal Supply Schedule 738X: Human Resources and EEO Services

Rather than providing your comments on this Interact posting, please do so on the Federal Register notice so they can be part of our formal public notice process.   

Attached is a fact sheet with additional information.  As always, thank you for your continued partnership.

ATTACHED: Order Level Materials (OLMs) Fact Sheet

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