Can a GSA Schedule be used to procure an open market item that is estimated internally to be $140k (for a computer software license which is based upon a name brand but the RFQ will be written as name brand or equal) and this name brand also has computer software training for an additional $30k, and software maintenance for an additional $30k for one year of maintenance, the total of which is $200k. Total estimate for entire RFQ is around $645k for a 12 month period of performance and this license is only a part of the whole effort.
If the total exceeds $150k for an open market item, I believe this would require full and open competition, thus the GSA schedule cannot be used for this particular open market item (unless I'm mistaken). In an effort to secure just the license only, can the internal estimate be revised so that it reflects only the price of the license and then estimate the training as a separate line item / task and the maintenance as a separate line item / task thereby making the training and maintenance discretionary and separate open market item buys? If not, why not? If yes, how?
The goal is to utilize the GSA Schedule to the maximum extent practical. This is not a sole source and competition is expected under the GSA Schedule. Customer is US Navy.
Guidance would be appreciated. Thanks.
Thank you for the response and the interesting citation!
I am selling training, which includes:
1 labor to deliver the training,
2 preexisting courseware that is going to be adapted, and
3 labor to do the adaptation.
The labor for 1 and 3 is on my schedule. I am procuring the preexisting courseware from another vendor that has this courseware on its schedule.
In Rapiscan, the agency asked for separate quotes on eight CLINs. CLIN 7 was for an item (freight) that was not on SAIC's schedule. SAIC first showed a price of $6,832 for the freight, then revised its quote to show CLIN 7 was being discounted by $6. 832, to $0, while stating that CLIN 1 included the price for CLIN 7. From this it was clear that the price of the freight was more than the micropurchase threshold and that the government was paying for the freight.
My case differs from RapiScan in that the agency has not asked for a breakout of the fixed price and there is therefore no way to show that any OMI is greater than $3K.
The RFP has a single line item for "Training", broken down as follows:
Description - seminar for 200 participants, June 1, 2015-June 3, 2015
Unit - "Each"
Quantity - "One"
Price - For me to quote
When asked, agency said it did not require any support for the dollar value I am to enter in "Price."
As it happens, I can enter into a CTA with the vendor of the preexisting courseware, to cover a protest that the courseware isn't on my schedule.
But, is that necessary? How can it be determined that the courseware costs more than $3K? The price I pay the vendor for it is not relevant, because that is not the price the government is paying for it, and it is not possible to determine what the price is. Even the price shown on the vendor's schedule is not relevant, because they could be offering it to me at a discount (which might cause them a problem with their price reduction clause, but that is another issue.)