In an effort to increase efficiency and encourage savings, GSA published a final rule on transactional data reporting on June 23, 2016. This new requirement instructs vendors to report transactional data from orders placed against certain Federal Supply Schedule (FSS) contracts, Government Wide Acquisition Contracts (GWACs), and Government Wide Indefinite-Delivery, Indefinite-Quantity (IDIQ) contracts.
The transactional data reporting will replace the perplexing and much dreaded Price Reduction Clause (PRC) that contractors currently must abide by and is a big step towards the procurement method of “category management.”
Solving a Big Problem
Currently, the acquisition system involves hundreds of departments and agencies with little to no knowledge of how their government counterparts are procuring. According to GSA, these new rules have the potential to save millions of dollars each year by allowing the government to buy smarter and act more like a single enterprise.
Increasing Efficiency
Category management has been used in the private sector for years and GSA’s objective is to increase efficiency by doing the following:
- Identifying core areas of spend.
- Collectively developing heightened levels of expertise.
- Leveraging shared best practices.
- Providing acquisition, supply and demand management solutions.
The implementation of the transactional data reporting will be conducted via a pilot program beginning in August that will carry through 2017. GSA has selected a number of Schedules in an effort to ease contract holders into this new reporting style.
The first step is to provide GSA with the necessary monthly transactional billing data. This includes: a description of deliverables, manufacturer part numbers, unit measurements, quantity of items, price paid per unit and total price.
Responding to Industry Criticism
To put this information into context, GSA’s first announcement regarding transactional data reporting in March of 2015 was met with questions and concerns from the industry regarding the overall outcome of the transactional data reporting program. The verdict was that, in many ways, transactional data reporting could be more burdensome and expensive to businesses than previously expressed.
Some of the changes made by GSA after this initial announcement include:
- Increasing the data reporting and fee remittance timelines from 15 to 30 days.
- Allowing vendors to no longer provide CSP disclosure for new contracts.
- Updating and revising certain clause language.
What Schedules will be effected by the pilot program?
The following schedules will partake in the transactional data reporting pilot over the next year:
- Schedule 58 I, Professional Audio/Video (all SINs)
- Schedule 72, Furnishings & Floor Coverings (all SINs)
- Schedule 03FAC, Facilities Maintenance and Management (all SINs)
- Schedule 51V, Hardware Superstore (all SINs)
- Schedule 75, Office Products/Supplies (all SINs)
- Schedule 73, Food Service, Hospitality, Cleaning Equipment (all SINs)
- Schedule 70, Information Technology (SINs 132-8, 132-32, 132-33, 132-34, 132-54, 132-55)
- Professional Services Schedule (Professional Engineering Services SINs)
GSA still has not announced when each roll out will begin. After one year, GSA will evaluate the results of the pilot and will decide the future of transactional data reporting. The rule does not apply to the VA FSS schedule.
While this is being slowly rolled out, it is important for contractors to stay vigilant and keep note of when these pilot programs are beginning, especially if your contract falls under one of the effected schedules.
If you have any questions in regards to the coming changes and how they will affect your reporting, The Winvale team can help simplify this process for you. For some contractors, the peace of mind that comes with the aid of an experienced GSA Consultant decreases the complexity of anticipated contractual changes.
Contact one of our experts today if you have any questions or concerns about this new rule.
