GSA’s Upcoming Cost Reimbursable Option
According to a top agency official at the General Services Administration (GSA), the agency is exploring the idea of adding a cost-reimbursable option to its Multiple Award Schedules (MAS). While the GSA hasn’t released a definite date for when this option will become available, they have stated that the cost-reimbursable option will be available soon. In a statement made to the Federal Times, the commissioner of the GSA’s Federal Acquisition Service, Tom Sharpe, said the assessment “will include thinking through and working on a wide array of issues, and will not be a short-term action.” The GSA’s One Acquisition Solution for Integrated Services (OASIS) contract vehicle will include the cost-reimbursable option that will become available to government agencies. This new endeavor is the result of the Pentagon pushing the GSA to create a cost-reimbursable schedule that will create more value for government agencies.
Cost-reimbursement contracts are based on payments of allowable incurred costs, provide for payments of allowable incurred costs, to the extent prescribed in the contract. These contracts establish an estimate of total cost for the purpose of obligating funds and establishing a ceiling that the contractor may not exceed without the approval of the contracting officer. Cost reimbursable contracts are suitable when the uncertainties involved in contract performance do not allow costs to be estimated with sufficient accuracy to use any type of fixed price contract. As of now, the only way for government agencies to benefit from the contract schedules is by using fixed-price or time and materials contracts. To combat this inflexible option for Federal government agencies, the GSA’s Federal Acquisition Service will be developing this next generation contract vehicle for complex professional services.
The GSA will be engaging Federal agencies and industries in a collaborative process to identify the most advantageous structure and the best practices to incorporate into the design of their OASIS contract vehicle. These measures will be taken to reach the ultimate goal of creating a contract vehicle that provides the total solution for agencies’ requirements while maximizing opportunities for small business contractors. Businesses must be registered in the System for Award Management (SAM) to bid on this new contract. As this registration may be difficult and time consuming, companies wishing to take advantage of this opportunity should contact the proper GSA Schedule consultants for the value of their extensive government contracting knowledge and experience.