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

Expanding Ordering Flexibility and Functionality Makes it Easier for Customers to Meet Their Missions

September 8, 2016

WASHINGTON – The U.S. General Services Administration (GSA) has issued a proposed General Services Acquisition Regulation (GSAR) rule to incorporate Order Level Materials (OLMs), also know 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.

Tom Sharpe, GSA Commissioner of the Federal Acquisition Service:

“This proposed rule is another step forward and a crucial component of GSA’s MAS Transformation efforts. We have heard, from both our federal agency customers as well as our industry partners, that allowing for OLMs as part of the MAS program is a much-needed and extremely important feature missing from their procurement toolbox. The proposed addition of OLMs is good for government, as this new flexibility will improve

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