Following the award of your GSA proposal, you’ll be required to fulfill several reporting requirements as well as ensure that your pricing stays up-to-date and in compliance with the Price Reduction Clause. Being a new GSA Schedule vendor, these new requirements may seem overwhelming at first, so that’s why it’s important to stay in front of the requirements by knowing when and how to handle them.
GSA Sales Reporting & IFF Payments
Along with completing a VETS 4212 report and maintaining your SAM.gov registration each year, you’ll be required to report your GSA Sales and pay the Industrial Funding Fee (IFF) either on a monthly basis or a quarterly basis. When you report your sales and pay, your IFF will be dependent on whether you have decided to enter into the Transactional Data Reporting (TDR) Pilot Program or not. If your contract abides by the TDR Pilot Program, you will be required to report your sales on a monthly basis and pay the IFF each month. Whereas, if your contract does not apply to the TDR pilot program and goes by the legacy clauses, you will be required to report and pay the IFF on a quarterly basis. As a new GSA contractor, it will be vital to understand when you’ll need to report your sales. Even if no GSA sales occurred, you’ll still be required to file the sales report by entering a zero.
For IFF payments, you may decide to report your GSA sales in any of the following ways: (1) receipt of order; (2) shipment or delivery; (3) issuance of an invoice; or (4) payment. It’ll be important that you remember to only report your GSA sales for either the products or services that are currently awarded to your GSA pricelist. This will help in both not overpaying the IFF and guarantee that your records stay accurate.
Price Reductions Clause
One of the most critical GSA compliance areas is ensuring that the discount relationship between your Most Favored Customer (MFC) pricing and the pricing offered to GSA is maintained. If changes in the discount to your MFC were to occur, an equal change will need to take place to your GSA discount. If this does arise, and the Price Reduction Clause is triggered, you’ll be required to notify your GSA Contracting Officer within 15 days of this change. It is critical that you establish a system or process that will assist you in monitoring this discount delta relationship throughout the lifetime of your GSA contract.
Minimum Sales Requirement
With your GSA contract, you’ll be required to obtain a minimum of $25,000.00 in sales within the first two years of your contract’s lifetime. Following the first two years, you’ll be required to earn at least $25,000.00 each year for a total of $100,000.00 over your GSA contract’s 5-year base term. In order to meet the sales requirement, it’ll be important to actively market your GSA contract and to seek opportunities through GSA eBuy as well as ensure that your GSA Advantage profile stays up-to-date.
In order to learn more on the GSA contract compliance and their requirements, feel free to give us a call!
