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Subpart 5A-73.2—Preparation and

Issuance of Solicitations

8 5A-73.205 Scope of Contract and related


8 5A-73.200 Scope of subpart.

This subpart prescribes procedures for the preparation and issuance of Federal Supply Schedule solicitations.

8 5A-73.205-1 Scope of Contract clause.

(a) Each schedule solicitation shall include the following Scope of Contract clause:

8 5A-73.201 General.

The assigned contracting officer is responsible for ensuring that Federal Supply Schedule solicitations are complete, comprehensive, and properly organized, taking into consideration the special nature of the items involved, commercial practices, and other relevant factors.

8 5A-73.202 Solicitation provisions.

In addition to the general and special provisions prescribed in the Federal Procurement Regulations and elsewhere in this GSPR 5A, Federal Supply Schedule solicitations may include additional provisions not prescribed by regulation which apply to the particular commodity or service being procured.

8 5A-73.203 Contract period.

Federal Supply Schedule contracts normally shall be entered into for 1 year periods. The inclusion of the Renewal of Contracts clause, prescribed in § 5A-73.217-9 for negotiated multiple-award Federal Supply Schedules, does not indicate that the initial contract period or any one subsequent renewal increment may be in excess of 1 year.

SCOPE OF CONTRACT This solicitation provides for the normal supply requirements of (complete in accordance with (b) and (c), below), and resultant contracts will be used as mandatory sources for the articles or services listed herein. Articles or services will be ordered from time to time in such quantities as may be needed to fill any requirement determined in accordance with currently applicable procurement supply procedures. As it is impossible to determine the precise quantities of different kinds of articles and services described in the solicitation that will be needed during the contract term, each Contractor whose offer is accepted will be obligated to deliver all articles and services of the kinds contracted for that may be ordered during the contract term, except as otherwise provided herein.

(b) The extent of agency and geographic coverage shall be coordinated with FPS in connection with new schedules or changes to existing schedules. Any questions on whether GSA is authorized by law to procure for a particular activity shall be referred to assigned counsel. In the case of multiple award Federal Supply Schedules, geographic coverage should provide for supply support in all of the 48 contiguous States and the District of Columbia (DC). However, offers which do not provide for contract coverage in all of the 48 contiguous States and DC may be accepted if it is determined by the contracting officer that this limited coverage would be significantly advantageous to the Government. The determination to limit the geographic coverage must be approved by the Assistant Commissioner for Procurement (FP). Examples of situations which might warrant limiting contract coverage are: the market testing of innovative products or services; special pricing plans; or, temporary limitations on a supplier's capacity.

(c) The statement set forth below, appropriately filled in, shall be used to complete the first sentence of the clause in paragraph (a) of this section.

8 5A-73.204 Assignment of stock numbers.

An approved NSN and description shall be obtained when an item is added to a schedule, other than multiple award schedules. GSA Form 1303, Request for Federal Cataloging/ Supply Support Action (illustrated in FPMR 101-30.4902-1303), shall be used to obtain or delete NSN's, or to change item descriptions or coding data. Separate requests shall be prepared for each type of action, and for each Federal Supply Classification group; the original and one copy being forwarded to the Logistics Data Management Division (FFL).

ceptance whereupon all provisions of the contract shall apply to such order. (Note: Questions regarding activities authorized to use this schedule should be directed to the Contracting Officer.)

NOTE TO CONTRACTING OFFICERS: Insert the following sentence at the end of the first paragraph of the above clause in solicitations for security cabinets: The requirement for written authorization pursuant to 41 CFR 1-5.9 does not apply to purchase orders for security cabinets purchased in accordance with the provisions of FPMR 10126.407-3.

All departments and independent establishments, including wholly owned Government corporations, in the executive branch of the Federal Government (specify additional agencies in the legislative or judicial branches, or the Government of the District of Columbia, when appropriate, and state exceptions, if any). (Follow with geographic coverage by inserting phrase in pars. (i) through (v), below, as appropriate).

(i) When Alaska and Hawaii are to be included- **• for delivery within the 50 States and Washington, DC.

(ii) When Alaska only is to be excluded

*. for delivery within the 49 States (excludes Alaska) and Washington, DC.

(iii) When Hawaii only is to be excluded*** for delivery within the 49 States (excludes Hawaii) and Washington, DC.

(iv) When both Alaska and Hawaii are to be excluded- *. * within the 48 contiguous States and Washington, DC.

(v) When geographic coverage is on a limited use basis- *** for delivery within the States (list States, including exceptions, if any, to geographic areas within particular States).

(d) The Scope of Contract clause may also be modified to indicate other exemptions from mandatory use (e.g., items andatory on some agencies and optional on other agencies).

8 5A-73.205-3 Urgent Requirements

clause. The following Urgent Requirements clause shall be included in each schedule solicitation and resulting schedule (included in GSA Form 2891).

URGENT REQUIREMENTS When the Federal Supply Schedule contract delivery period does not meet the bona fide urgent delivery requirements of an ordering agency, use of the Federal Supply Schedule is not mandatory. However, agencies shall, if time permits, contact the Contractor for the purpose of obtaining accelerated delivery in the case of urgent require. ments. The Contractor shall reply to the inquiry within 3 workdays after receipt. (Telephonic replies shall be confirmed by the Contractor in writing.) If the Contractor offers an accelerated delivery time acceptable to the ordering agency, any order(s) placed pursuant to this offer shall be deliv. ered within this shorter delivery time and in accordance with all other terms and conditions of the contract.

8 5A-73.205-2 Non-mandatory use of

schedules. The following clause shall be included in each schedule solicitation and resultant schedule to permit use of the schedule by Federal agencies not covered by the Scope of Contract clause and those contractors who have been authorized, pursuant to FPR 1-5.9, to use the schedule:

(43 FR 1348, Jan. 9, 1978)

NON-MANDATORY SCHEDULE USERS The following activities are authorized to use this contract and resultant schedule on a non-mandatory basis: (i) Federal agencies, in addition to those required by the Scope of Contract clause to use the resultant schedule as the mandatory source of supply (including non-appropriated fund activities as prescribed in FPMR 101-26.000), (ii) Gov. ernment Contractors authorized in writing by a Federal agency pursuant to 41 CFR 15.9, and (iii) mixed ownership Government Corporations (as defined in the Government Corporation Control Act). Contractors are encouraged to honor orders from these activities. If the Contractor is unwilling to accept an order, the Contractor shall return it by mailing or delivering it to the ordering office within 7 workdays after receipt. Failure to return an order shall constitute ac.

8 5A-73.205-4 Small requirements.

(a) Each schedule solicitation, except those covered by paragraph (c) of this section, shall include the Small Requirements clause shown in paragraph (b) of this section. This clause limits the Scope of Contract by providing a minimum order limitation. Without such limitation, bidders would tend to increase their bid prices to provide for the additional costs of processing small orders.

(b) The small requirements limitation shall be established by the contracting officer and approved by the procuring director. The following factors must be considered in establishing the limitation: (i) Customary business practice for the commodity; (ii) value of smallest unit; (iii) unit pack; (iv) frequency of orders; and (v) effect of limitation on an ordering agency's ability to use the schedule. The following clause may be modified in solicitations to provide for varying limitations, or a limitation other than dollar amount.

SMALL REQUIREMENTS (a) The minimum dollar value of orders to be issued under resulting contracts is

Contractors are obligated to accept all orders for delivery to one destination which equal or exceed this amount, subject to any maximum order limitation.

(b) If bidder is willing to accept smaller orders than shown above, he may specify such smaller amount below. If bidder inserts a higher amount than shown above, his bid will be rejected as nonresponsive. The minimum acceptable order against a contract resulting from this solicitation is (bidder to insert). If a smaller amount is inserted, it is mutually agreed that the Contractor will accept small orders as indicated, and this information will be shown in the resultant schedule and applicable catalog/ price list.

(c) If bidder does not furnish the information asked for above, the Government may place orders for an amount less than that specified in par. (a), above. Such orders shall be deemed to be accepted by the Contractor and subject to all of the provisions of the contract, unless returned to the ordering office by mail or messenger within 5 workdays after receipt by the Contractor.

NOTE TO CONTRACTING OFFICER: (1) Paragraph (a)-If a quantity limitation is required, the first sentence of this paragraph shall be revised to read: “The minimum order quantity for orders resulting from the solicitation is .." (2) Paragraph (b)Delete the second sentence of this paragraph from negotiated procurements.

(c) The Small Requirements clause shall not be used in schedule solicitations when (i) the items involved are frequently procured to satisfy low value requirements, or (ii) the commodities are of a type for which vendors customarily accept small orders at no additional cost. Such exemptions shall be approved by the procuring director and recorded in the contract file.

gory of items therein, above which orders may not be placed under the schedule contract. The purpose of such limitation is to enable the Government to explore the possibilities of securing lower prices for larger quantities exceeding the limitation. Maximum order limitations shall be included in those Federal Supply Schedule contracts where it is determined, in accordance with this section, that the use of such limitations will be advantageous to the Government.

(b) The amount of the maximum order limitation shall represent the best possible estimate of the quantity or volume above which suppliers will likely quote lower prices per unit due to the large quantity purchased. In fixing such amounts, appropriate categories shall first be determined and then the following factors should be considered:

(1) Pricing methods in the industry, including quantity discount practices.

(2) Approximate volume which represents a “production run” in the industry, giving consideration to both small and large business concerns.

(3) Number of sources from which the items are available.

(4) Whether the items involved are normally manufactured and sold commercially or manufactured to meet Government specifications.

(5) Extent to which the use of industry distribution facilities is contemplated as contrasted with shipment direct from factory.

(6) Relationship of total Government requirements to total production of industry.

(c) Maximum order limitations shall be examined prior to the issuance of a solicitation for a new schedule contract period. A record of such examination, including the justification for the limitations selected, shall be made a part of the contract file.

(d) When it appears advantageous to alter or eliminate existing limitations, or to establish new limitations, an appropriate recommendation and statement of justification therefor shall be forwarded to the procuring director for approval. Two information copies shall be furnished FPS.

(e) Whenever a maximum order limi. tation is used, the applicable clauses

8 5A-73.205-5 Maximum order limitation.

(a) A maximum order limitation is a dollar amount or unit quantity established for an entire schedule or a cate

(4) The Maximum Order Limitation clause shown below is to be used when bidders are requested to offer discounts for quantity breakdowns. Con. tracting officers shall enter the limitation selected (see paragraph C, above) in paragraphs (a) (1) and (2) of the fol. lowing clause. In addition, dollar breakdowns shall be listed for single order-one item and multiple items.

prescribed in paragraphs (1) through (4), below, with the monetary limitations inserted, shall be included in the solicitation. These clauses may be revised to express the maximum order limitation as a quantity rather than as a dollar value. Other situations require approval of the procuring director. In addition, the provision below shall be included in the solicitation immediately following the Maximum Order Limitation clause:

CONSOLIDATION OF REQUIREMENTS For the information of offerors, agencies will, in accordance with FPMR 101-26.106, consolidate their requirements whenever feasible so as to take advantage of price savings available through separate procurement of quantities which exceed the maximum order limitation.

(1) When the maximum order limitations, both as to total value of orders and single items, will apply uniformly to all items in the schedule, the following clause shall be used:


MAXIMUM ORDER LIMITATION (MOL) (a) LIMITATIONS. No ordering office may submit and no Contractor may accept an individual order in excess of the limits imposed by the following paragraphs. (For purposes of this clause, discounts for prompt payment shall not be considered.) Violation of these limits may result in termination of the contract under the clause of the General Provisions entitled “Default.”

(1) MOL for Contractors with accepted volume discounts. (See Discounts paragraph below.) No single order may exceed $

No order for a single item, whether ordered separately or in combination with other items, may exceed $--

(2) MOL for Contractors with no accepted volume discounts. No single order may exceed $-- -. No order for a single item, whether ordered separately or in combination with other items, may exceed $

(b) DISCOUNTS. Offerors are requested to offer volume discounts for the dollar amounts listed below. If the offeror does not offer a discount for each dollar amount, or if the discounts offered are unacceptable to the Government, the MOL will be set at the highest discount acceptable to the Gov. ernment. Volume discounts will not be eval. uated for award of contract (see Method of Award clause).

MAXIMUM ORDER LIMITATION (All dollar amounts are exclusive of any discount for prompt payment.) The total dollar value of any order placed under this contract shall not exceed $---: Provided, That the dollar value for any single item ordered, whether ordered separately or in combination with other items, shall not exceed $---. The Contractor agrees not to accept or fulfill any order in violation of this clause. Violation may result in termination of the contract pursuant to the clause of the General Provisions entitled "Default."

(2) When maximum dollar limitations are not established for single items, the clause in paragraph (e)(1) of this section, shall be used without the proviso in the first sentence.

(3) When varying single item limitations are established for different items, the clause in paragraph (e)(1) of this section, shall be used with the last phrase of the first sentence changed to read “shall not exceed the dollar amounts set forth below for the items indicated." and then listing the limitations for the individual item; for example:

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Item No. NSN 1234-00-567-8901
Any item in Class 7835
Any other single item

$2,000 2,500 5,000

[41 FR 27059, July 1, 1976, as amended at 43 FR 1348, Jan. 9, 1978)

(41 FR 27059, July 1, 1976, as amended at 43 FR 1349, Jan. 9, 1978)

8 5A-73.205–6 Requirements in Excess of

Maximum Order Limitations clause. Except as noted below, schedules resulting from solicitations containing a Maximum Order Limitation clause shall include the clause shown below (included in GSA Form 2891). See $ 5A-73.508 for procedures for processing requisitions for requirements in excess, or below, a schedule's maximum order limitation.

8 5A-73.206 Price escalation clauses.

The use of price escalation or price adjustment clauses in Federal Supply Schedule contracts shall be in accordance with § 5A-7.103-73.

§ 5A-73.207 Quantity discounts.

Although Federal Supply Schedules are designed to provide a contractual source of supply for day-to-day requirements of Governmental agencies, single orders for relatively large quantities, within the maximum order limitations, may be issued. In recognition of this fact, provision shall be made in the solicitation, whenever feasible, for the bidder to quote quantity discounts. (See also $ 5A-73.205-5(e)(4).)


ORDER LIMITATIONS Agencies required to use Federal Supply Schedules as a mandatory source shall forward purchase requests for items included therein which exceed the applicable maximum order limitation to the GSA regional office serving the consignee. Non-mandatory users may, at their option, forward such purchase requests to the above office for purchase action in accordance with appropriate FEDSTRIP/MILSTRIP procedures.

NOTE.-The above clause shall be modified when included in schedules covering FSC Group 58, Part V, Section C; FSC Group 70, Part XI; or FSC Group 75, Part VIII, to require submission of excess MOL requirements to the “office issuing the schedule" in lieu of the “GSA regional office servicing the consignee." (See FPMR 101-26.508-2 and 101-26.509-2(a).) (41 FR 27059, July 1, 1976, as amended at 43 FR 1349, Jan. 9, 1978)

8 5A-73.208 Basis of award.

8 5A-73.208-1 Progressive awards.

Progressive awards shall be avoided and used only when another method of award is clearly not feasible. (See also $ 5A-72.212.)

8 5A-73.208-2 Aggregate awards.

For instructions regarding grouping items for aggregate awards, weighting of items, and the pricelist method of making aggregate awards, see $$ 5A2.201-53 and 5A-2.201-54.

8 5A-73.205-7 Procurement of similar ar

ticles or services. The following clause shall be included in each solicitation and resulting schedule (included in GSA Form 2891).

8 5A-73.208-3 Multiple awards.

See § 5A-73.217-2 for award clauses for use in multiple award Federal Supply Schedule solicitations. 8 5A-73.209 Delivery provisions.

For delivery terms and time of delivery provisions see Part 5A-19 and § 5A-1.316, respectively.


SERVICES When an agency required to use this Federal Supply Schedule as a mandatory source determines that an article or service contained in the schedule will not serve the functional end-use purpose required by the agency, procurement of a similar article or service having the same general characteristics of the schedule article or service is authorized: Provided, That a prior written waiver of the requirement for using the schedule is obtained from the Commissioner, Federal Supply Service, General Services Administration, Washington, D.C. 20406, in accordance with FPMR 101-26.401-3 and any implementing regulations of the requesting agency.

8 5A-73.210 Sales volume determination.

Accurate sales volume data for each schedule item is important. Such information (a) has a direct effect on bid prices; (b) assists the contracting officer in determining the type of contracting most suitable; and (c) serves as the basis for official reports on the total usage under the Federal Supply Schedule Program. The input data document for Federal Supply Sched

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