GSA released a proposed rule to allow Order-level Materials (OLM) or Other Direct Cost(ODC) to be ordered through the Federal Supply Schedule and Blanket Purchase Agreements on a task order basis. The proposed rule is designed to create a more competitive acquisition vehicle on par with other more agile indefinite-delivery/indefinite-quantity; within certain guidelines. Allowing for OLMs will also help end regulatory acrobatics and elaborate work-arounds.

FAR definition: “Order-level materials means supplies and/or services acquired in direct support of an individual task or delivery order placed against a Federal Supply Schedule (FSS) contract, when the supplies and/or services are not known at the time of Schedule contract award. The prices of order-level materials are not established in the FSS contract. Order-level materials are not open market items discussed in FAR 8.402(f).”

This change will allow for a re-interpretation of FAR 8.402(f) regarding Open Market Items through FAR 52.212-4 Contract Terms and Conditions—Commercial Items which defined time & material contracts, where materials includes direct materials, ODCs, subcontracts, and indirect costs.

The revised language would allow for the purchase of Order-level Materials under the following circumstances:

• Must not be primary basis of order
• Must be less than 33 percent of overall order value
• Must be purchased under an Order-level Materials SIN
• If Order-level Materials are above the micro-purchase threshold ($3,500), vendors must submit three quotes (vendor concern)
• Contracting officer must determine all prices are fair and reasonable (contracting officer concern)

Federal vendors should see this as an opportunity to better meet customer needs through their existing GSA schedule.

The proposed rule will only affect select schedules during the Beta testing period, including:

• 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 99: All Professional Services
• Schedule 738X: Human Resources and EEO Service

To submit any questions or comments on the proposed rule, go to regulations.gov by Nov. 8th;  https://www.regulations.gov/comment?D=GSA-GSAR-2016-0016-0001