Military Equipment Procurement – GSA Pricing
Military equipment procurement and storage involve complex processes and specialized facilities.
The US military uses a variety of methods to procure equipment, including using the COTS, GSA, National Stock Number System, Fourth-Party Logistics and Open Market.
Effective and efficient military equipment procurement can be a challenging task to navigate.
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Before awarding a GSA Schedule contract, GSA contracting officers (COs) determine that the prices of supplies, fixed-price services, and rates for services offered at hourly rates are fair and reasonable. In addition to the pricing factors considered above, we compare the prices or discounts that a company offers the government with the best prices or discounts that the company offers to its own commercial customers – commonly known as “most favored customer” pricing.
Since GSA has already determined that prices under GSA Schedule contracts are fair and reasonable ordering activities do not need to make a separate determination of fair and reasonable pricing, except for DOD and NASA (see agency deviations to FAR 8.404(d)). Additionally, according to FAR 8.405-2(d), the ordering contracting officer must conduct an overall price reasonableness determination when buying services under Schedules. This determination ensures the level of effort and mix of labor are appropriate to accomplish the task.
Thus buyers do not need to obtain “cost or pricing data” or “information other than cost or pricing data” to place an order or establish a GSA Schedule BPA. The Federal Acquisition Streamlining Act (FASA) sets forth the policy that discourages agencies from obtaining cost or pricing data when a commercial item is being acquired.
Schedule policy and procedures are guided by two major governing regulatory documents:
- Federal Acquisition Regulation (FAR) – Pursuant to 41 U.S.C. 152(3), FAR Part 38 prescribes policies and procedures that GSA must follow in managing the Schedules program. FAR Subpart 8.4 prescribes ordering procedures for federal agencies when placing orders for supplies and services under Schedules.
- General Services Administration Acquisition Manual (GSAM) – GSAM covers GSA acquisition policies and practices.
To determine fair and reasonable pricing, the GSA contracting officer may consider many factors, including pricing on competitor contracts, historical pricing, and currently available pricing from other sources, corporate benchmarks, etc.
As part of the pricing review, the offeror must submit:
- Complete Price Proposal Template
- Written justification for offered pricing
- Mechanism for future potential pricing adjustments
- Proof that the price is fair and reasonable (The GSA contracting officer will negotiate and make the final determination on fair & reasonable pricing)
As a woman-owned small business, Combat Weapon Storage is eligible for set-asides and sole source awards under the Women-Owned Small Business Program. FAR Clauses 52.219-29 & 52.219-30 explicitly allow contracting officers to award contracts with limited competition.
