GSA Schedule Consolidation Impact on Quarterly Sales Reporting

GSA Schedule Consolidation Impact on Quarterly Sales Reporting

by | GSA Audit Defense

It is time for GSA Schedule holders to report sales again. This month/quarter, you will notice that there has been a change to the sales reporting options. If you have accepted the MAS conversion A812 mass modification, you will notice that the SRP lists both legacy and new SINs.

We now know that contractors must report under both Legacy and Converted SINs. If not properly reported, this can potentially lead to future sales amendments or appear as a concern on an IOA visit.

The sales reporting will be based on the date that you accepted the A812 MAS Modification. This means all sales before the acceptance date will be reported under the Legacy SINs. All sales on and after that acceptance date will be reported under the Converted SINs. You will want to look carefully at invoices and verify dates when the sales occur, or payment was received. For easier tracking, you may want to include the associated SINs on your invoices.

The Legacy SINs will eventually drop off and all reporting will be under the Converted SINs.

If you have not accepted the MAS Mod, Legacy SINs will be the only available option to report under. This may mean when it’s time to accept the MAS Mod, you may have to report under both new and old SINs for the next quarter. Coley GCS assists GSA Schedule contract holders under our annual contract management with sales reporting. Reach out to Coley if you would like to discuss any of our government contract services at [email protected].

Guide to Prepare for Mass Modifications

Guide to Prepare for Mass Modifications

by | GSA Audit Defense, Industry News

GSA Interact has released a helpful guide to prepare for the upcoming mass modification being released this Friday: https://interact.gsa.gov/document/prepare-upcoming-mass-mod-13120-mass-mod-checklist

GSA covers three central topics to what to consider before, during, and after signing the mass modification.

Before You Sign the Mass Modification

To summarize, GSA lists Six Things to do before you sign the Mass Mod

  1. Review the SIN Mapping Available Offerings Attachment.
  2. Review beta.sam.gov and verify that your company has the appropriate NAICS listed.
  3. Review the terms and conditions under the Mass Mod (link).
  4. If you take any exceptions to the standard T&C, you will need to catalog and address them during the mass mod process.
  5. If you contract is in the process of being renewed for an option period, speak with your contracting before accepting the mass modification
  6. If you have any pending Add or Delete SIN mods, contact your contracting officer as this modification will either need to be processed and awarded or withdrawn/rejected.

While Signing the Mass Mod

  1. You must respond to every clause.
  2. A mass mod will need to be completed for every contract you have on GSA
  3. Your contract number and period of performance will not change.
  4. The products and services on your contract will not change.

After you Sign the Mass Mod

  1. Verify your company is visible in eLibrary under the MAS vehicle
  2. Confirm your that SINs have migrated
  3. If you have legacy SINs that map to multiple new SINs, work with your CO to delete any new SINs that you do not need
  4. All contractors will need to update their GSA FSS Price list and product files with the latest SINs and terms & conditions. Files and products must be uploaded through the SIP or EDI programs to be active on eLibrary/Advantage. If you are affected by the migration in #3, you will be required to create and submit a new SIP files to properly align SINs. SIP/EDI Instructions
  5. Update any websites and marketing materials to include the new Schedule name, Schedule number, Large Category, Subcategory, and SIN structure (e.g., company website, capability statements, quote templates, etc.)

Understand that GSA is restricting any new Add or Delete SIN modification actions in the eMod system under March.

For a complete MASS Mod Timeline see below:

Mass Modification Release Date Legacy Schedule Number
Friday, 1/31/20 03FAC, 23V, 36, 48, 51V, 58I, 599
Monday, 2/3/20 00CORP
Tuesday, 2/4/20 00CORP continued
Wednesday, 2/5/20 70
Thursday, 2/6/20 70 continued
Friday, 2/7/20 71,71 IIK, 72, 73,56, 66, 67
Monday, 2/10/20 736, 738X, 75, 751
Tuesday, 2/11/20 76, 78, 81 I B, 84 

If you need assistance with the transition to the MAS contract, contact the experienced advisors at ColeyGCS.

D&B No Longer Accepting Orders for Open Ratings Past Performance Reports – Now What?

D&B No Longer Accepting Orders for Open Ratings Past Performance Reports – Now What?

by | GSA Audit Defense, Industry News

When submitting a GSA Schedule Offer, GSA requires that you provide evidence of successful past performance. Typically, this requirement has been satisfied by ordering an Open Ratings Past Performance Report through D&B. However, as of Dec 6, 2019, D&B is no longer accepting orders for their Open Ratings Past Performance Evaluation Report. 

According to the latest Multiple Award Schedule (MAS) Solicitation, GSA permits three options for satisfying past performance requirements: 

Option 1: CPARS (preferred) 

Option one is to verify in eOffer that you have three (3) or more Contractor Performance Assessment Reporting System (“CPARS”) reports that:  

  1. were completed within the last three years,  
  2. represent at least three distinct orders/contracts, and  
  3. outline work similar to the scope of products/services included in the solicitation and for which you are proposing to offer 

Option 2: Open Ratings (NO LONGER AVAILABLE)

This option is not available at this time according to D&B’s website. We will update this blog when the government determines an alternative to the Open Rating report. In the meantime, use Options 1 or 3 to satisfy GSA Schedule Offer past performance requirements. 

Option 3: Past Performance Narrative 

Option three is developing a past performance narrative, which includes a list of relevant customer references. The narrative needs to explain why you cannot use method one or method two, and include up to five (5) references from customers for whom you have performed work within the past three (3) years that is similar in scope to products/services outlined in the solicitation.  

A List of TAA Designated Countries

A List of TAA Designated Countries

by | GSA Audit Defense, Resource

What is TAA Compliance?

(Updated: June 2019 )

How do you know if you are TAA Compliant? TAA refers to the Trade Agreement Act. Under 19 USC 2501 Trade Agreements Act government agencies may only purchase US-made or designated country end products or US or designated country services.

Are Your Products on GSA Schedule TAA Compliant?

Because the estimated value of a GSA schedule exceeds $191,000, all GSA product sales must be Trade Agreement Act (TAA) compliant, as per FAR 52.225-5. In order to be TAA compliant, Customs and Border Protection (CBP) considers either that 50 percent of the cost of manufacture or location where product is “substantially transformed” is from/within a TAA Designated Country.

If you offer services through your GSA Schedule, the TAA may also apply to you; but that is not always the case. The issue of how the TAA applies to services is a complex one.

How to Determine if products were “Substantially Transformed?”

If a product is completely manufactured in the United States or in a TAA designated country, you are TAA compliant. Software country of origin is determined in the country where the software was compiled.

Sometimes a product requires assembly in several countries or has components from various countries; the TAA compliance becomes murkier and a determination of where the product is substantially transformed is required. If a product is manufactured in various countries, the final product must be “substantially transformed” in a designated country. Substantial transformation would be transforming an article into a new and different article of commerce, with a name, character, or use distinct from the original article. (refer to FAR 25.001(c))

Responsibility falls wholly on the government contractor, to determine if a product has been substantially transformed. More information on International Trade: Rules of Origin available here: http://www.fas.org/sgp/crs/row/RL34524.pdf.

Who Makes the Determination of TAA Compliance?

The U.S. Customs and Border Protection states that “the responsibility for making a determination of substantial transformation rests solely with the contractor. The contractor can go to The Office of Regulations and Rulings within U.S. Customs and Border Protection, which is the Federal agency responsible for making substantial transformation determinations or giving their opinions.”

How to Keep Your GSA Schedule TAA Compliant?

First you must have a system in place that periodically verifies that the products being offered under your GSA schedule are TAA compliant. Furthermore, if you are not a manufacturer, we recommend that you verify countries of origin quarterly or, at minimum, with catalog updates from your suppliers to verify that products are still being manufactured or “substantially transformed” in a TAA designated country.

If your manufacturing source changes during the term of your contract and items are now manufactured in a non-designated country, your products will consequently be out of compliance. You must immediately take action to remove the non-TAA compliant items from your GSA Schedule. A GSA consultant from the Coley team can assist with getting this processed.

TAA Designated Countries are regularly updated and can be accessed from here:  FAR-Clause-52.225-5. Also, as noted on our table below, if a product is manufactured in China, Indonesia, Malaysia, or Sri Lanka, you may be permitted to sell them, but only to the VA with a required waiver. Territories belonging to the United States, are TAA compliant therefore, American Samoa, Northern Mariana Islands, Puerto Rico, and the United States Virgin Islands are compliant countries.

Current List of TAA Compliant Countries Include:

 

Edit
Afghanistan Denmark Latvia Sao Tome and Principe
Angola Djibouti Lesotho Senegal
Antigua and Barbuda Dominica Liberia Sierra Leone
Armenia Dominican Republic Liechtenstein Singapore
Aruba El Salvador Lithuania Sint Eustatius
Australia Equatorial Guinea Luxembourg Sint Maarten
Austria Eritrea Madagascar Slovak Republic
Bahamas Estonia Malawi Slovenia
Bahrain Ethiopia Mali Soloman Islands
Bangladesh Finland Malta Somalia
Barbados France Mauritania South Sudan
Belgium Gambia Mexico Spain
Belize Germany Moldova* Saint Kitts and Nevis
Benin Greece Montenegro Saint Lucia
Bhutan Grenada Montserrat Saint Vincent and the Grenadines
Bonaire Grenadines Morocco Sweden
British Virgin Islands Guatemala Mozambique Switzerland
Bulgaria Guinea Nepal Taiwan
Burkina Faso Guinea Bissau Netherlands Tanzania U.R.
Burundi Guyana New Zealand Timor- Leste (East Timor)
Cambodia Haiti Nicaragua Togo
Canada Honduras Niger Trinidad & Tobago
Central African Republic Hong Kong Norway Tuvalu
Chad Hungary Oman Uganda
Chile Iceland Panama Ukraine*
Colombia Ireland Peru United Kingdom
Comoros Israel Poland **United States of America
Democratic Republic of the Congo Italy Portugal Vanuatu
Costa Rica Jamaica Romania Yemen
Croatia Japan Rwanda Zambia
Curacao Kiribati Saba
Cyprus Korea, Republic of (South)
Czech Republic Laos

**Includes all US Territories: Puerto Rico, US. Virgin Islands, Guam, American Samoa and Northern Mariana Islands.

 

Non-TAA Compliant Countries List Below:

*FAR 52.225-5 (Reviewed: June 2019); Federal Acquisition Regulation , Trade Agreements.

 

Edit
Albania Georgia Marshall Islands Seychelles
Algeria Ghana Mauritius Sri Lanka
Argentina India Micronesia Sudan
Azerbaijan Indonesia Monaco South Africa
Belarus Iran Mongolia Suriname
Bolivia Iraq Myanmar Swaziland
Bosnia and Herzegovina Jordan Namibia Syria
Botswana Kazakhstan Nauru Tajikistan
Brazil Kenya Nigeria Thailand
Brunei Darussalam Korea, North Pakistan Tonga
Cameroon Kosovo Palau Tunisia
Cape Verde Kuwait Papua New Guinea Turkey
China Kyrgyzstan Paraguay Turkmenistan
Cote d’Ivoire Lebanon Philippines United Arab Emirates
Cuba Libya Qatar Uruguay
Ecuador Macao Republic of Congo Uzbekistan
Egypt Macedonia Russia Venezuela
Fiji Malaysia Saudi Arabia Vietnam
Gabon Maldives Serbia Zimbabwe

 

VA only – Waiver Required

The VA is in charge of the healthcare related Federal Supply Schedules (FSS.)There may be some instances where certain healthcare related products needed to save lives are only manufactured in non-TAA compliance countries including China. You must obtain a TAA Waiver from a Contracting Officer before you can add any non-TAA compliant products to your Schedule. The letter must state that the product is necessary and that they are providing a waiver of the TAA for a particular contract or task order.

The VA is currently processing Non-Availability Waiver Determinations under the VA’s 65 I B Pharmaceutical and Drugs Schedule program.  Furthermore, these waiver requests can only be processed for products falling under the scope of Special Item Number 42-2A Single source drug, innovator multiple source drug, and any biological product identified under Section 600.3 of Title 21, CFR.

 

Edit
China Indonesia Malaysia
Sri Lanka Thailand

Sources:
World Trade Organization
GSA Vendor Support
VA – Office of Acquisition and Logistics  
FAR 25. 4 Acquisition.gov  
FAR 25.225-5 Acquisition.gov
Harmonized Tariff Schedule of the United States

 

*FAR Case 2016-009; New Designated Countries Effective as of October 31, 2016 for Moldova and Ukraine

Original Content from Acquisition.gov

52.225-5 Trade Agreements.

As prescribed in 25.1101(c)(1), insert the following clause:

Trade Agreements (Feb 2016)

(a) Definitions. As used in this clause—

“Caribbean Basin country end product”—

(1) Means an article that—

(i)    (A) Is wholly the growth, product, or manufacture of a Caribbean Basin country; or

(B) In the case of an article that consists in whole or in part of materials from another country, has been substantially transformed in a Caribbean Basin country into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed; and

(ii) Is not excluded from duty-free treatment for Caribbean countries under 19 U.S.C. 2703(b).

(A) For this reason, the following articles are not Caribbean Basin country end products:

(1) Tuna, prepared or preserved in any manner in airtight containers;

(2) Petroleum, or any product derived from petroleum;

(3) Watches and watch parts (including cases, bracelets, and straps) of whatever type including, but not limited to, mechanical, quartz digital, or quartz analog, if such watches or watch parts contain any material that is the product of any country to which the Harmonized Tariff Schedule of the United States (HTSUS) column 2 rates of duty apply (i.e., Afghanistan, Cuba, Laos, North Korea, and Vietnam); and

(4) Certain of the following: textiles and apparel articles; footwear, handbags, luggage, flat goods, work gloves, and leather wearing apparel; or handloomed, handmade, and folklore articles;

(B) Access to the HTSUS to determine duty-free status of articles of these types is available at http://www.usitc.gov/tata/hts/. In particular, see the following:

(1) General Note 3(c), Products Eligible for Special Tariff treatment.

(2) General Note 17, Products of Countries Designated as Beneficiary Countries under the United States-Caribbean Basin Trade Partnership Act of 2000.

(3) Section XXII, Chapter 98, Subchapter II, Articles Exported and Returned, Advanced or Improved Abroad, U.S. Note 7(b).

(4) Section XXII, Chapter 98, Subchapter XX, Goods Eligible for Special Tariff Benefits under the United States-Caribbean Basin Trade Partnership Act; and

(2) Refers to a product offered for purchase under a supply contract, but for purposes of calculating the value of the acquisition, includes services (except transportation services) incidental to the article, provided that the value of those incidental services does not exceed that of the article itself.

“Designated country” means any of the following countries:

(1) A World Trade Organization Government Procurement Agreement (WTO GPA) country (Armenia, Aruba, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Montenegro, Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan (known in the World Trade Organization as “the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei)”), or United Kingdom);

(2) A Free Trade Agreement (FTA) country (Australia, Bahrain, Canada, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Oman, Panama, Peru, or Singapore);

(3) A least developed country (Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia); or

(4) A Caribbean Basin country (Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint Eustatius, Sint Maarten, or Trinidad and Tobago).

“Designated country end product” means a WTO GPA country end product, an FTA country end product, a least developed country end product, or a Caribbean Basin country end product.

“End product” means those articles, materials, and supplies to be acquired under the contract for public use.

“Free Trade Agreement country end product” means an article that—

(1) Is wholly the growth, product, or manufacture of a Free Trade Agreement (FTA) country; or

(2) In the case of an article that consists in whole or in part of materials from another country, has been substantially transformed in an FTA country into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed. The term refers to a product offered for purchase under a supply contract, but for purposes of calculating the value of the end product includes services (except transportation services) incidental to the article, provided that the value of those incidental services does not exceed that of the article itself.

“Least developed country end product” means an article that—

(1) Is wholly the growth, product, or manufacture of a least developed country; or

(2) In the case of an article that consists in whole or in part of materials from another country, has been substantially transformed in a least developed country into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed. The term refers to a product offered for purchase under a supply contract, but for purposes of calculating the value of the end product, includes services (except transportation services) incidental to the article, provided that the value of those incidental services does not exceed that of the article itself.“United States” means the 50 States, the District of Columbia, and outlying areas.

“U.S.-made end product” means an article that is mined, produced, or manufactured in the United States or that is substantially transformed in the United States into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed.

“WTO GPA country end product” means an article that—

(1) Is wholly the growth, product, or manufacture of a WTO GPA country; or

(2) In the case of an article that consists in whole or in part of materials from another country, has been substantially transformed in a WTO GPA country into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed. The term refers to a product offered for purchase under a supply contract, but for purposes of calculating the value of the end product includes services, (except transportation services) incidental to the article, provided that the value of those incidental services does not exceed that of the article itself.

(b) Delivery of end products. The Contracting Officer has determined that the WTO GPA and FTAs apply to this acquisition. Unless otherwise specified, these trade agreements apply to all items in the Schedule. The Contractor shall deliver under this contract only U.S.-made or designated country end products except to the extent that, in its offer, it specified delivery of other end products in the provision entitled “Trade Agreements Certificate.”

(End of clause)

New Consolidated Multiple Award Schedule Coming Soon & GSA wants Your Feedback

New Consolidated Multiple Award Schedule Coming Soon & GSA wants Your Feedback

by | GSA Audit Defense, Industry News

MAS Consolidation is happening as previously advised. Plans to consolidate all 24 GSA Federal Supply Schedules into one mega schedule beginning October 1, 2019. GSA has released an industry Request for Information on changes and formatting to the new solicitation scheduled to arrive in the next fiscal year: (more…)

Can You Decline GSA Schedule Orders?

Can You Decline GSA Schedule Orders?

by | B2G Marketing Tips, GSA Audit Defense

A new email pops into your Inbox. It’s an order off through your GSA schedule directly through GSAAdvantage. Your first thought is elation – the schedule program is working!

(more…)
2019 NDAA Restricts Government Use of LPTA

2019 NDAA Restricts Government Use of LPTA

by | GSA Audit Defense, Industry News

Federal professional services firms should all breath a sign of relief— one of the many changes of the FY2019 National Defense Authorization Act (NDAA) is the government-wide restriction on the application of Lowest-Priced Technically Acceptable (LPTA) as the basis of award on complex professional and IT services contracts. (more…)

Prepare For the New FAS Sales Reporting System

Prepare For the New FAS Sales Reporting System

by | GSA Audit Defense, Industry News

72A to be Terminated This Year

(May 20, 2019 Update:  Register For the New FAS Sales Reporting System)

As many GSA Schedule contractors are aware by now, GSA will be retiring the 72a Sales Reporting System and will require current users to make a switch to the new FAS Sales Reporting Portal (SRP).  72a is currently being described by GSA as a “legacy” system and will be terminated later this year.

You may have received correspondence from GSA earlier this year about the upcoming transition, however it did not specify the most important questions: when exactly will the transfer occur, how will this be done, and who will have access?

As of yesterday, many contractors are reporting about very specific instruction received regarding the
transition.  All questions have been answered and many concerns have been alleviated.

If you are currently using 72a as the platform to report sales, it is likely this April will be the last time you will be use this legacy system.  For this reporting quarter continue using your standard process: gather your sales by Special Item Numbers awarded against your contract and report via 72a as you normally would.  If you have generated any IFF (Industrial Funding Fee), continue to process payment via 72a as well.  Finally, say farewell to 72a as this would be the last time your going to be using this system.

Mark your calendars!  Sometime in May of this year, you will be able to set up your new FAS SRP
account.  Authorized Negotiators, Contract Administrators, and the listed IFF Representative on your contract will all be able to register.  Be advised that
this system will have implemented GSA’s improved security enhancements
and will not require the use of digital certificates,
however will still be used when submitting modifications and offers to GSA.

After the FAS SRP has been properly set up, your next sales report and IFF remittance will be completed within the FAS SRP for the APR-JUN 2019 quarter.  Sometime after, your historical records will also be migrated from legacy to SRP.

Don’t wait until the next SRP update from GSA!  There are actions that you can do now to help ensure a successful transition to the new sales portal.  We strongly suggest that you review your contracts’ listed points of contact and ensure that all contacts have valid contact information.  If something needs to be adjusted, or new points of contact need to be added, contact your Contracting Officer and submit your modifications now!

As always, we will strive to keep you up to date with the latest updates from GSA.  Please contact us if there’s anything that we can do to help via email or call us directly at 210-402-6766.

GSA Mass Modification for Order Level Materials is Coming

GSA Mass Modification for Order Level Materials is Coming

by | GSA Audit Defense, Industry News

Beginning June 11-13, 2018; vendors should begin seeing mass modification invitations addressing Commercial Supplier Agreements (CSA)/End User License Agreements (EULA).

Following the acceptance of the first modification, vendors will see a second mass modification to add the Order Level Materials (OLM) SIN to select schedules. NOTE: The first modification regarding CSAs must be accepted before you are able to receive the OLM modification.

The OLM SIN will allow vendors to include supplies and services necessary to perform a job when supplies and services are not known at the time. Items placed under the OLM on task order are not awarded to your GSA schedule and pricing will be determined on an order level. OLM may only account for up to 33% of a total order.

This change will provide vendors flexibility in bidding opportunities and make GSA more attractive to agencies. OLMs also include the Industrial Funding Fee (IFF), so include fee when calculating costs. GSA will see an increase in revenue as a result, as well.

GSA has created a convenient chart to understand the differences between OLM and others:

The Affected GSA Schedules Include:

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

If you have questions on the OLM or need assistance, contact Coley GCS at [email protected] or directly by phone at 210-402-6766

GSA Commercial Supplier Agreement Final Rule

GSA Commercial Supplier Agreement Final Rule

by | GSA Audit Defense, Industry News

The terms & conditions of standard Commercial Supplier Agreements (CSA) have been a point of frustrated negotiations in federal procurement for years. GSA has tried numerous times to create “fail charts” of terms that are at odds with the requirements set by statute as well as in the Federal Acquisition Regulation (FAR).   (more…)

New Sick Leave Requirement for Federal Contractors

New Sick Leave Requirement for Federal Contractors

by | GSA Audit Defense, Industry News

Executive Order 13706 – Paid Sick Leave for Workers on Federal Contracts

The Department of Labor released the latest Wage Determinations covering the Service Contract Act (SCA, now known as the Service Contract Labor Standards) July 25, 2017.  The wage determinations incorporate Executive Order 13706 – Paid Sick Leave for Workers on Federal Contracts, which requires all paid sick leave for all employees working on Federal contracts awarded after January 2, 2017.

The wage determinations did not include this provision until July 25th, so previous contracts incorporating the SCA will not be affected until the wage determination identified in the award or modifications are revised.

Here is what you need to know to be compliant with the new sick leave requirement:

  • All new contracts will be affected.
  • All non-exempt (SCA, DBA, or Fair Labor Standards Act) employees will accrue a minimum of 56 hours of sick leave annually
    • Contractor may make all 56 hours available immediately, or
    • Accrued at basis of 1 hour of sick leave for every 30 hours worked, at least to 56 hours annually.
  • Sick Leave requirement does not replace any portion of the Holiday & Vacation requirements
  • SCA employees must be notified in writing (pay stub) of their available balance every payday
  • Accrued sick pay does not need to be paid out on termination, unless employee is rehired within 12 months.
  • You may set a maximum of 56 hours to be carried over from year to year
  • Health & Welfare benefits are reduced from $4.41/hour to $4.13/hour

Covered employees can use sick leave for any of the following reasons and must provide “certification” from a health care provider for the absence. DOL defines certificate as “any type of written document created or signed by a health care provider (or by a representative of the health care provider) that contains information verifying the existence of the physical or mental illness, injury, medical condition, or need for diagnosis, care, or preventive care or other need for care:”

  • physical or mental illness, injury, or medical condition
  • obtaining diagnosis, care, or preventive care from a health care provider
  • caring for a child, parent, spouse, domestic partner, or any other individual related by blood or affinity whose close association with the employee is the equivalent of a family relationship who has any of the conditions or needs for diagnosis, care, or preventive care
  • as a result of domestic violence, sexual assault, or stalking,

If you have not modified your current GSA schedule to include the latest Executive Order, it is important that you begin that process. Coley GCS offers modification and consultation services, as well as training on the Service Contract Labor Standards.

For More information on the  New Sick Leave Requirement visit:

TAA Threshold Changes

TAA Threshold Changes

by | GSA Audit Defense

Effective January 24, 2018; DoD, GSA, and NASA issued a final rule amending the Trade Agreement Act Thresholds. The threshold establish trigger points as which each trade agreement becomes effective for federal acquisitions. However, Federal Supply Schedules (GSA), IDIQs, and other contract vehicles use the estimated contract values and therefore TAA nearly always applies. (more…)

Get Me Out of TDR!

Get Me Out of TDR!

by | GSA Audit Defense, Industry News

If you were mandated to accept the Transactional Data Reporting provisions there is now a path to reverse to legacy clauses.

As stated by Mary Davie, Acting Deputy Commissioner of FAS, GSA has decided to make the Transactional Data Reporting (TDR) Pilot Program voluntary for those vendors initially included in the program. (more…)

Fixing Federal Verification Co., Inc. Mistakes on GSA

by | GSA Audit Defense, Resource

If your GSA contract was awarded using the debarred Federal Verification Co., Inc or one of their 40 plus aliases, your contract may be at risk of non-compliance.  Names used include GSA Applications, GSA 1000, GSA Processors, GSA Alliance, Federal Suppliers Guide, Government Awards Consulting, and a variety of others.  A list of Alternate Business Names appears here.

GSA debarred this GSA consultant and has requested all affected contractors to update their schedule to remove these consultants from your schedule.

To complete this process, you must have at least one digital certificate associated with a company representative with signature authority.  If you (more…)

CA, Inc. to Pay $45 Million for Alleged Noncompliance on GSA IT 70 Contract

by | GSA Audit Defense

Failure to comply with the False Claims Act has resulted in another large IT company, CA, Inc. paying $45 million in claims. The Department of Justice found that CA, Inc. neither disclosed all key commercial discounting practices nor offered them to GSA customers while negotiating its GSA Schedule contract.

The allegations against CA were brought to the Department of Justice through a whistleblower lawsuit filed by an employee of CA Software Israel, LTD; Dani Shemesh. The DOJ took the case over and pursued the claim.

CA, Inc. is resolving the allegations through a settlement; there has been no determination of liability.

The CA case highlights (more…)

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