The Navy wants a quote for 100 specific hammers (not on my FSS, but on another FSS). Can I order them from the other FSS contractor's schedule and quote the Navy, if that's the only item they need?
No, because your quote would represent 100% of the resultant order. OLMs cannot be the primary source of the order (see 538.7104-2(a)(1)).
When an FSS contractor purchases from another FSS contractor (under the OLM authority) to fulfill a government order, must they follow the FAR 8.4 ordering procedures?
Yes, when purchasing OLMs through other FSS contracts, FSS contractors must follow the FAR subpart 8.4 ordering procedures which are available under GSAR subpart 538.71 (GSA Class Deviation RFO-2025-FSS-GSAR 538).
Who is responsible for reporting the IFF tied to OLM?
If FSS Contractor A needs to purchase an item or service to support contract performance, and purchases that OLM item/service from FSS Contractor B.
FSS Contractor B is responsible for reporting the sale and remitting the IFF to the GSA. The IFF is already included in the price of the OLM item or service FSS Contractor B sells and therefore, FSS Contractor A will invoice the customer but should not report the sale or pay the IFF for the item purchased from FSS Contractor B. Additionally, FSS Contractor A:
- Must not invoice the customer for more than FSS Contractor B’s price (which must be equal to or lower than their FSS price).
- May add indirect costs (if approved by the ordering activity) for the administrative costs of conducting the acquisition(s).
- Contractor A must identify the line item on the invoice as “MAS-[insert contract number of Contractor B]”
Can a FSS contractor recover their costs associated with providing OLMs that they purchased from other FSS contractors?
Yes, a FSS contractor may seek to recover costs incurred for purposes of procuring/providing OLMs that they purchased from another FSS contractor (i.e., we refer to them as Fees/handling fee). Such fees can only be recovered, if the OCO reviews and approves them, and then includes them within the resultant order. Approved costs must :
- Include the IFF; and
- Be listed as a separate line item on the order.
The OCO is responsible for determining that all approved indirect costs are fair and reasonable.
What competition requirements must a FSS contractor follow in providing OLMs?
When providing OLMs under a FSS order, FSS contractors must follow the same competition, source-selection, and supply-source rules that a Government contracting officer would follow for a similar purchase. This means applying Federal acquisition principles related to competition, mandatory sources, and fair and reasonable pricing.
When acquiring OLMs—including items obtained via open market —FSS contractors Must:
- Follow the mandatory source hierarchy in FAR Subpart 8.1 - Presolicitation (GSA Class Deviation RFO-2025-08), unless:
- A statutory or regulatory exception applies, or
- The ordering contracting officer restricts use of a source in the order.
- Promote competition to the maximum extent practicable.
- Ensure prices are fair and reasonable, supported by price analysis when required.
- Clearly identify OLMs at the order level, in accordance with the FSS contract.
- Ensure that OLMs are ancillary to the FSS requirement and do not become the primary purpose of the order.
FAR Subpart 8.1 (as applied to FSS contractors):
- FSS Contractor required use of Government supply sources
- Requires FAR 52.208-9, Contractor Use of Mandatory Sources of Supply and Services in the order.
- When authorized, contractors must use mandatory Government sources (e.g., AbilityOne, Federal Prison Industries, wholesale supply sources) in the same manner as a contracting officer, unless:
- A statutory or regulatory exception applies, or
- The ordering contracting officer restricts use in the order.
- FSS Contractor permitted use of Government supply sources
- MAS contracts already include FAR 52.208-90, Government Supply Sources.
- The ordering contracting officer does not need to add this clause at the order level.
- FSS Contractors must follow the ordering procedures for the specific contract being used.
- For contractor use of FSS:
- Contractors must follow the Ordering Procedures in GSAM 538.7103.
- FSS Contractor use of GSA Fleet
- Requires FAR 52.208-91, GSA Fleet Vehicles and Related Services in order.
- FSS Contractors may use GSA Fleet only when:
- Use is consistent with the MAS order, and
- The ordering contracting officer has not restricted its use.
- Any GSA Fleet use must be directly related to performance of the MAS order and comply with all applicable requirements.
- Acquiring OLMs outside an existing contract
- Commercial products and/or services
What documentation should FSS contractors maintain concerning their acquisition of OLM?
FSS Contractors should maintain documentation which reflects their current business practices as well as existing contract requirements. This documentation is subject to audit and must be retained in accordance with contract record retention requirements. GSA has the authority to examine these records for compliance with pricing, sales reporting, and Industrial Funding Fee (IFF) obligation.