GSA CLARIFIES ORDER LEVEL MATERIAL PRACTICES FOR SCHEDULES
Travel is not to be considered an Order Level Material item per a recent training deck delivered by GSA officials discussing how contractors should handle quotes that include OLM items. Travel should, apparently, just be considered an “open market” item and priced according to a specific requirement. Direct or indirect cost items over the Micro-Purchase threshold that are not on your Schedule contract, but are part of a Schedule quote, however, could qualify as OLM items per GSA’s training deck. The new contract clause adding OLM’s to certain Schedule contracts states that OLM’s may not make up more than 1/3 of a total Schedule proposals price. Similarly, contractors that quote OLM amounts that exceed the Simplified Acquisition Threshold must conduct their own price reasonableness analysis by looking at its own pricing and comparing it to the prices offered by at least two other companies. Such an order would have to be very large indeed, though, as the SAT is being raised to $250,000. Despite OLM’s being non-priced on Schedule, contractors are expected to add the IFF to the price of any OLM and must pay the IFF just as they would for any other Schedule item. GSA expects to begin modifying Schedule contracts that will have the OLM feature this summer.