What is the Industrial Funding Fee (IFF)?
For contractors offering products and/or services to the government through the General Services Administration’s (GSA) and Veteran’s Affairs (VA) Multiple Award Schedule program, keeping up with Industrial Funding Fee (IFF) payments is a critical component of GSA contract compliance and contract maintenance. Government agencies prefer to procure through the MAS program and incur the IFF because of the resulting benefits, particularly compared to the cost of the customer staff time needed to award a new procurement. By selling through GSA’s Multiple Award Schedule and paying the IFF, GSA & VA contractors will have easier payment options, hassle-free volume purchase prices, flexible purchasing options, and no order limitations among additional benefits.
The Industrial Funding Fee is a fee to cover GSA’s cost of operating the Federal Supply Schedules (FSS) program. This fee is a fixed percentage of reported sales under GSA &VA Schedule contracts that is paid quarterly by contractors. The IFF on Schedule 599 for Special Item Number (SIN) 599-2 is $1.50 per transaction. The IFF for all other SINs and Schedules is 0.75% of sales. The IFF is included in the price that government agencies pay the contractor when they purchase items from a MAS contract. Quarterly IFF reporting and payments are due by the 30th day of January, April, July, and October. Contractors must still report sales for each quarter even if no sales occur by entering “zero” (0) in the sales report. To avoid overpayment, it is important that the contractors only report sales for products or services on their Awarded GSA Pricelist to avoid overpayment of the IFF and ensure accuracy. Contractors can only send the IFF payment after sales have been reported. Once sales are reported, the IFF payment can be made by check, electronic funds transfer, or credit card. For more information on how to make an IFF payment online in the 72A Quarterly Reporting System, visit the instructions page.
As the first quarter of Fiscal Year 2014 (FY2014) is wrapping up and the year’s first Industrial Funding Fee payment is due January 30th, MAS contractors should be preparing to report their first quarter sales and make the necessary IFF payment to remain in compliance with their contract. Making quarterly IFF payments is only one factor in GSA contract compliance. To learn more about IFF compliance, you may want to consult with MAS contracting professionals and verify that your firm is not overpaying or underpaying this required fee.
GSA contractors can mail their IFF Payments to the mailing address listed below,
Industrial Funding Fee Mailing Address
General Services Administration
ACCOUNTS RECEIVABLE BRANCH (6BCDR)
P.O. Box 979017
St. Louis, MO 63197-9017