What are OLMs?
An OLM is a product, service, or solution that is not available under the Contractor's FSS contract, but is needed for performance of the order. An OLM can be obtained from another Contractor's FSS contract, a mandatory or non-mandatory Government source, or a commercial source in the open market.
Order activities are reminded they must follow the order of priority of sources before considering obtaining an OLM from a commercial source in the open market (see RFO 8.105)
What are some examples of OLMs?
OLMs are varied and depend entirely on the scope of the specific order. They essentially function as "other direct costs" (ODCs) under the special OLM Special Item Number (SIN). Examples include, but not limited to:
- Materials and Supplies: Specific cables, unique insulation, or specialized tools required for a particular project that aren't on the main price list.
- Material Handling Charges: Costs associated with order execution, shipping, and tracking.
- Incidental Services: Minor supporting services not explicitly listed under a specific labor category on the FSS contract.
- Specialized Repair Work: If a piece of equipment used during a project requires a unique, unforeseen repair that isn't covered by the contract's standard maintenance SIN, the specialized labor might be an OLM.
- Subcontracted Services: Services provided by a third-party subcontractor when there isn't a specified labor category for that service on a FSS contract.
- Customized Training: Specific, customized training services required for a particular project that were not known or priced during the original contract award.
- Installation/Site Preparation: Services like basic electrical work, plumbing, or painting that are incidental and necessary for the delivery or installation of a product under the main contract.
It is important to note that OLMs do not include those items already awarded under an ancillary or ODC Special Item Number (SIN) and must not be the primary purpose of the order.
Can open market items still be obtained under the RFO FSS Ordering Procedures?
No, as the term 'open market items' no longer exists under the RFO FSS Ordering Procedures. However, products, services, and solutions can still be obtained from an FSS Contractor that are not available under the FSS program. Such items now fall under the new definition for OLM (i.e., the new definition of OLM (see 1. above) has replaced what previously was known as "open market items" and OLM).
When obtaining items outside of the FSS program, Ordering activities must consider the requirements of RFO subpart 8.1 before considering obtaining OLMs from commercial sources in the open market.
What is the difference between a FSS (MAS) contract item and an OLM?
The difference is whether or not the item (i.e., product, service, or solution) quoted is identified and priced on the contractor's FSS contract. If the item is not, then it is considered to be an OLM. If the item is, then it is considered to be a FSS contract item.
Can an OLM be a non-commercial item?
No, an OLM cannot be a non-commercial item when acquired through the FSS program, which is exclusively for acquiring commercial products and commercial services. Any OLM added to an order must satisfy the definition of a "commercial product" or "commercial service" as outlined in FAR 2.101. It is the OCO's responsibility to ensure that each OLM offered meets the definition of a commercial item.