Know About GSA Schedule Modification & GSA IFF Fee

Jun 24, 2022
BOB STEGER

Contract modification changes the price and the scope of the contract. Contractors often need to change their GSA contracts due to various reasons. If you have a business that works in the federal market with the federal agencies then you must be dealing with contracts.

You may need to make modifications to the GSA contracts that you have obtained. For that, you need to understand the concept of GSA Schedule modification. It will help you to utilize your GSA contract in a more efficient way.

As you can make changes on your GSA contract, there is also something called Mass modification which you need to know. Mass modification is a government-initiated modification that is made when schedule-wide uniform change occurs.

This blog will be helping all the readers to understand the concept of GSA modification. We will also let you know about the GSA IFF fee. So without wasting any more time let’s figure out how one can get their GSA contract modified effortlessly.

First, understand the fundamental of the GSA Schedule contract.

What Does GSA Mean?

GSA is the short form of General Service Administration. It is an independent agency of the government of the United States that helps the federal agencies and supports federal contractors. GSA was established in the year 1949. The agency was established to manage and support the basic functioning of the federal agencies. Over the years the agency has evolved and these days GSA is involved in multiple tasks. These tasks include managing government buildings and real estate, providing procurement support for products and services, and developing policies and regulations. GSA-approved companies are allowed to sell products or services to the U.S. government through GSA contracts.

The government of the United States prefers buying goods and services from the GSA-approved companies for various reasons. First of all, the government prefers procuring goods and services from commercial companies through contracting vehicles. It is because GSA-approved companies are reliable and the certification indicates that these companies are responsible and promising. Companies with GSA certification are preferable because they give assurance and guarantee to the federal agencies. Apart from that, one of the major reasons is that government agencies can buy goods and services from these GSA-certified companies at a reasonable and fair price. That is why it is also easier for the GSA-certified federal contractors and commercial companies to win federal contracts. The official website of the GSA is www.gsa.gov.

As you have got to know about the fundamental concept of the GSA now it is time to know about GSA modification. It will help you if by any chance you need to make any changes or GSA modifications. Mass modification is also another type of modification that will be discussed.

Know About Mass Modification

Basically, Mass modifications are issued when there is a uniform change that impacts the GSA Schedule solicitation. Before issuing a mass modification for their Schedule solicitation, the schedule contractors get notified via email. Through the mass mod system, the Mass modifications are issued directly to the contractors.

The modifications may happen several times a year to reissue the solicitation under which your GSA Schedule contract was awarded. After refreshing the solicitation your contract’s terms and conditions may require additional action. It may also change the way your contract is managed. GSA contract holders need to accept the new terms and conditions.

You need to know when a Mass Mod gets available. When the modification is available the Administrative Point of Contact of the GSA Schedule will receive automated emails with a link to the Vendor Support Center. The email will have a Personal Identification Number associated with the contract number for accepting Mass Mod.

Mass mods should be signed within ninety days of receipt. Each mass modification will mention the significant changes that will impact the solicitations and contract. The changes will vary depending on the offerings of your contract.

Things you can modify in your GSA Schedule contract

Before modifying your GSA contract you should know what are the things that you can modify in your contract. GSA Schedule contract is living documentation that grows as a business expands. Depending on the needs the GSA contract holder should modify contracts. We have mentioned the things that you can modify in your GSA Schedule contract.

Add or remove products and services.
Add or remove Special Item Numbers.
Adjust prices of your products and services based on commercial and market prices.
Update products or services.
Change the name of the contract.
Update the necessary terms and conditions of the contracts.

So these are the types of modifications that a contract holder can make.

How to modify the GSA Schedule contract?

Your first step will be visiting eOffer or eMod to submit the GSA modification. To access the eMod system you need to be an authorized negotiator on the GSA Contract. Verify the claim by keeping valid digital documents. We have broken the procedure of making GSA modifications into 3 sections. Each section has specific objectives and activities which make them different from each other. The procedure has been explained below in sections so keep reading.

Get a digital certificate

If you don’t have an active digital certificate then it is not possible to access eMod. The government uses the digital certificate contract holders against the list of negotiators in the eMod system. That is why it is so important to keep a digital certificate for verification purposes. Make sure that the submitted name in the eMod system matches the name that is in the certificate. So don’t neglect to get a digital certificate.

Select the type of modification

After you get access to the eMod system you will need to select the appropriate contract and determine the type of modification that you want to implement. Remember, there are thirty-five types of modifications available. The eMod system does not allow certain combinations of modification types. So make sure to prioritize all the submissions. In the next step, you will need to verify your GSA contract data. Put the whole description of your request and upload the required documents so that you can modify GSA.

Submit the required documents for GSA Schedule contract modification

A MAS modification guide has been published by the GSA. This guide explains the specific required documentation for each type of modification. It is quite obvious that each mod will need a specific type of document. You will need to fill out two types of Modification Price Proposal Template for each type. Don’t get confused, the GSA contracting officers may request additional documentation along with the published requirements.

What is GSA IFF?

GSA IFF is the short form for General Service Administration, Industrial Funding Fee. IFF is basically a type of fee. It is a fee that the GSA charges agencies for using the GSA Schedule contracts to pay for the management cost of the GSA.

The fee is equal to 0.75% currently.

To calculate the GSA IFF fee you need to take your GSA discounted price and divide it by 0.9925. Open market items are not subject to the GSA IFF. Even travel and living expenses are not subject to the GSA IFF. If you want to pay the IFF fee then you would need to submit your sales report and remit your IFF payment online. It can be done through the VA Sales Reporting system.

Conclusion

Now you know about the fundamental concept of the GSA. You also got to know about the GSA modification that you may need to make. We have also explained Mass modification, GSA Industrial Funding Fee. So it is your time to begin your journey in the federal market. Just obtain the certification and acquire GSA contracts. We wish good luck to all the aspiring federal contractors. Hopefully, all this relevant information helped you in gathering knowledge regarding the subject matter.