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  1. GSA Schedule 70 Informational Forum July 29, 2009

  2. Agenda

  3. Schedule 70 GSA Contracts Tim Hay, DAS SPO Julie Penry, DOJ

  4. Today’s Discussion • Public Contracting Code • DAS Rules • GSA Advantages and Disadvantages • Time Differences between Competitive Solicitations and GSA Schedule 70 • GSA Process Overview

  5. ORS 279A.180Purchases through Federal Programs • Alternative to competitive sealed bidding, competitive sealed proposals or other competition required under ORS 279B.050 to 279B.085, provided that: • (1) Agency follows applicable procurement rules; and • (2) The procurement is made under the 2002 E-Government Act

  6. E-Government Act40 USC 502 • Authorizes state and local Governments to acquire IT goods and services off the GSA schedules • GSA Schedule 70 contains these IT goods and services • IT goods and services on the GSA Consolidated Schedule are also available

  7. OAR 125-246-0360DAS GSA Procurement Rule • Agencies are exempt from using competitive processes (ITBs and RFPs) • Federal Authorization must exist in order to purchase from GSA Schedule • Acquisition must meet Agency needs; price and terms must be advantageous to the State • Agency must check to see if a Statewide Price Agreement exists; if one does, then Agency must use it

  8. Items Currently under Statewide Price Agreements • Software: large volume and shrink-wrap • Personal Computers: desktop, laptops and mobile • Servers: small, mid-range • Hardware: storage solutions for small LANS • Printers: individual or small shared, & multifunctional--print, copy, scan, fax • Instructional Bundles for white board, laptop and digital projectors • Limited Peripherals to support desktop computing

  9. OAR 125-246-0360 • Agency must consider impact on local businesses by: • Posting notice on ORPIN if the acquisition exceeds $5,000 • Notice must include the Agency need, reason and intent to procure through GSA • Providing a reasonable time period to allow for response (usually 7 days) • Considering and responding to all responses submitted before proceeding

  10. OAR 125-246-0360 • State and local preference programs are not exempt and must be considered first • Inmate Work Program • Qualified Rehabilitation Programs (QRF) • OMWESB • Agency must have legal sufficiency review per normal thresholds • The Agency understands the federal procurement process:

  11. OAR 125-246-0360 • Voluntary and Direct contact between Agency and Contractor • GSA Industrial Funding Fee • Contract between Agency and Contractor • May negotiate additional terms and conditions as required by State law just so long as they do not conflict with Federal Law • GSA allows negotiation of: • Prompt payment • Commercial Terms • Conflict Resolution

  12. GSA Contract Format • GSA Schedule 70 terms and conditions: non-negotiable but most are high level • Vendor GSA terms and conditions: non-negotiable & important to review • State terms and conditions: can add so long as they do not conflict with the prior two sets of terms and conditions

  13. Advantages Shortened time frame to procure Can avoid competitive process Can still negotiate prices Disadvantages At the mercy of pre-negotiated terms and conditions Less control over responsiveness when negotiating GSA Advantages and Disadvantages

  14. Time Differences: Competitive Solicitations and GSA • Formal RFPs – 4 months to one year, depending on complexity of solicitation • Formal ITBs – 60 to 120 days • GSA – 30 to 90 days, depending on negotiations with contractor

  15. Oregon GSA Process Overview • Identify need for IT goods or services • Verify there is no existing price agreement or preference program • Verify the goods or services are available from GSA Schedule 70 • Seek DAS assistance, if purchase exceeds DAS delegation threshold • Seek DOJ legal sufficiency review, if applicable • ORPIN Notice of Intent to conduct a GSA procurement • Issue an RFQ to GSA vendors • Evaluate responses • Negotiate contract with selected vendor

  16. GSA Contract Key Points • GSA is not a price agreement • Contractors are learning this process, too • Contract negotiation timelines are vendor dependent • GSA pricing is a ceiling, not a floor • Feds are not a party to the resulting contract • Take advantage of training on GSA website • Coordinate the work group

  17. Contact Information Julie Penry julie.s.penry@doj.state.or.us Tim Hay tim.hay@state.or.us

  18. Cooperative Purchasing Program Dennis Harrison, Mark Groat, Michael O’Neill www.gsa.gov/cooperativepurchasingJuly 2009

  19. Agenda • Cooperative Purchasing Basics • Customer Benefits • Leveraging GSA’s IT Schedule 70 • Recommended Ordering Procedures • GSA Online Acquisition Tools • Points of Contact

  20. Cooperative Purchasing Basics

  21. Federal Statutory Authority ---------------------------------------------------------------------------------------------- Section 211 of the e-Gov Act of 2002 authorized GSA sales of Schedule 70 IT products, software and services to State & Local Governments through the introduction of Cooperative Purchasing. ---------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------- Public Law 110-248 of the Local Preparedness Acquisition Act authorized GSA sales of Schedule 84 Law Enforcement, Security, Facilities Management, Fire and Rescue products and services to State & Local Governments through Cooperative Purchasing. ----------------------------------------------------------------------------------------------

  22. COOP – Schedule 70 homepage

  23. Eligibility and Scope • Scope: • GSA IT Schedule 70 Contract Vehicle • Consolidated Schedule with IT Special Item Numbers (SINs) • Eligible Users: • The 50 states, All counties, municipalities, cities, towns and townships, Tribal Governments, Public Authorities (Public or Indian Housing agencies under the U.S. Housing Act of 1937), school districts, and colleges or any instrumentality there of.

  24. State and Local ParticipationSchedule 70, Schedule 84, Consolidated Corp OO • Voluntary • No obligation by state and/or local governments to use the schedule. • Contractors decide whether to accept orders from state and local governments. • Always Open for Use • Meet GSA Eligible Users Criteria • Have State or Local Authority • Granted by State or Local Entity

  25. Cooperative Purchasing Exceptions • The following is a list of clauses in the GSA Schedules Program which do not apply to the Cooperative Purchasing Program: • Federal Prompt Payment Act – The Applicable State’s Prompt Payment laws take precedence • Disputes – GSA is not a party to resolving disputes within the Cooperative Purchasing Program • Patent Indemnity Clause – Applies to Federal Ordering Activities only • Commercial Item Contract Terms and Conditions Unique to the Federal Government – Applies to Federal Ordering Activities only

  26. Customer Benefits

  27. Why Should State and Local Government Use GSA? • Streamlined Acquisition Process • Determination of Price Reasonableness • Wide Selection of Products and Services • Low Administrative Costs • Direct Vendor/Customer Relationship • Further Price Reductions/Discounts • Continuous opportunity for competitive prices

  28. Why Should State and Local Government Use GSA? • “Fair and Reasonable” prices determined • The GSA Schedule contract pricing is only a ceiling amount • The Schedules program always permits and encourages you to negotiate additional discounts on rates • Vendors’ past performance is carefully reviewed during the Schedule solicitation process • Suite of Online Acquisition Tools • State and Local preference programs are not waived or otherwise affected by Cooperative Purchasing

  29. Wide Selection of Products and Services • 1 million IT products • More than 4700 vendors currently on schedule • Complete lines of IT services and technical solutions • Vendor Catalogs may be found at www.gsa.gov/elibrary or by request from vendor

  30. Established Blanket Purchase Agreements (BPAs) facilitate repetitive ordering Teaming between Schedule Vendors allows acquiring multiple offerings with a single order Streamlined Acquisition

  31. Security Solutions

  32. THERE IS NO ADDITIONAL COST TO THE BUYER The Price You See is the Price You Pay! Low Administrative Cost

  33. Leveraging GSA’s IT Schedule 70

  34. Software Software Hardware Hardware Services Services Overview – IT Schedule 70 FY08 Sales • Total Sales: • $16.3 Billion • Software: • $1.9 Billion • Hardware: • $3.4 Billion • Services: • $11.0 Billion

  35. Software Hardware Services IT Schedule 70 Cooperative Purchasing Sales Trend 441 298 240 Average Annual Growth in Total Cooperative Purchasing Sales: 71% 140 75 33

  36. SINDescription 132 3 Leasing of Product 132 4 Daily/Short Term Rental 132 8 Purchase of Equipment 132 8 Used & Refurbished Equip 132 12 Maintenance of Equip./Repair 132 32 Term Software Licenses 132 33 Perpetual Software Licenses IT Schedule 70 Special Item Numbers (SINs) SINDescription 132 34 Maintenance of Software 132 50 Training Courses 132 51 IT Professional Services 132 52 E-Commerce Services 132 53 Wireless Services SINDescription 132 60 Access Certificates for Electronic Services (ACES) Program 132 61 Public Key Infrastructure (PKI) Shared Service Provider (SSP) Program 132 62 HSPD-12 Product and Service Components

  37. HSPD 12 Special Item Numbers SIN Description 132 60A Electronic Credentials, Not Identity Proofed 132 60B Electronic Credentials, Identity Proofed 132 60C Digital Certificates, including ACES 132 60D E-authentication Hardware Tokens 132 60E Remote Identity and Access Managed Service Offering 132 60F Identity and Access Management Professional Services 132 61 Public Key Infrastructure (PKI) Shared Service Provider (SSP) Program 132 62 HSPD-12 Product and Service Components

  38. IT Schedule 70 Small Business Participation • 80%-85% of Schedule 70 contracts are held by small businesses • More than 40% of schedule sales are to small businesses • Agency orders count toward meeting Small Business Goals / Economic Development throughout municipalities in your state

  39. Recommended Ordering Procedures – FAR 8.4

  40. Recommended Ordering Procedures • Additional State/Local requirements are permitted but must NOT conflict with GSA Schedule Terms and Conditions • State and local governments are encouraged to use GSA Schedule Ordering Procedures • Incorporate by referencing GSA Schedule terms and conditions • See Federal Acquisition Regulation (FAR) 8.4 • Each task order is a new contract among government, industry, and municipal government

  41. Recommended Ordering Procedures (continuted) • Source of Funding can be of any type allowed by the ordering agency • Contract Funding • Grant Funding • Schedule Vendors are required to accept Credit Card for payments equal to or less than the micro-purchase threshold ($3K) • Maximum Ordering Provisions give guidance for seeking further price reduction

  42. Defining the Scope of Requirements Acquisition Research With GSA’s online tools, GSA Advantage! and e-Library Sending a Request for Quote (RFQ) to a Selected Contractor Evaluating Proposals and Making a Selection Using the GSA Schedule Contract as a Model Customers negotiate their respective contracts with the selected Vendor with mutually agreed-on modifications Paying the Contractor as per the contract agreement Receiving Products or Services from the Contractor Example Cooperative Purchasing Process

  43. GSA Recommended Ordering Procedures (FAR 8.4) • At or below Micro-Purchase Threshold ($3K) • Transmit RFQ with SOW (for services) • Oral or written quotes and delivery instructions acceptable • Select a vendor and purchase • Vendors must accept Government purchase cards

  44. GSA Recommended Ordering Procedures (FAR 8.4) • Above the Micro-Purchase Threshold • ($3K Micro Purchase level & Up to Maximum Order Threshold): • Develop A Performance-Based Statement of Work (SOW) for Services • Include in the SOW evaluation criteria to determine “Best Value” offer • Must seek at least three vendors and Evaluate Proposals in Accordance with Evaluation Criteria • Select the vendor that offers the “Best Value” • Government purchase card acceptance is not mandatory but strongly recommended

  45. Best Value • Determination may be based on many factors but not just limited to lowest price. • Consider: • Technical Solution • Environmental Considerations • Past Performance • Delivery Date • Warranty • As Determined by Requiring Office

  46. GSA Online Acquisition Tools GSA Cooperative Purchasing GSA.gov GSA State and Local GSA Schedules e-Library

  47. www.gsa.gov • Provides information on GSA’s various offerings • A great tool for learning more about Cooperative Purchasing and the Schedules program.

  48. www.gsa.gov/stateandlocal • Quick reference for all GSA State and Local Programs • Program brochure download links • Special Program links • Drill down for more information

  49. www.gsa.gov/cooperativepurchasing The GSA Cooperative Purchasing site offers: • General Information on the Program • FAQs on the Programs and other related topics • Links to the sites for Schedule 84 and the Consolidated Schedule • Link to the Center for Acquisition Excellence • And More!

  50. www.gsaelibrary.gsa.gov The GSA Schedules e-Library offers: • A great resource for market research • A list of Vendors participating in the Cooperative Purchasing Program • Information on the Terms and Conditions of the Schedule 70 Contract • Listing of Schedule 70 SINs