GSA Schedule Contracts for Engineering Firms -- How to Decide Whether to Obtain One

GSA Schedule
Contracts for Engineering
Services
»Should your firm obtain one?
July 5, 2013
Presented by:
Dave Alexander
(978) 369-1140 ~ da@LincolnStrategies.com
www.LincolnStrategies.com
© 2013 Lincoln Strategies, LLC

Topics
Many engineering firms have GSA
Schedule contracts.
These contracts have advantages and
disadvantages for engineering firms.
Would a GSA Schedule contract make
sense for your engineering firm?
1

Topics
Schedule contracts.
2

Topics
Schedule contracts.
3

Contents
4
A. GSA Schedule contracts: the basics
B. Many engineering firms have them
C. Key advantages and disadvantages
D. Should your engineering firm get one? Suggestions
to help you make a decision

A. What are GSA Schedule contracts?
5

A. What are GSA Schedule contracts?
6
1. Contract type
2. Relationships
3. Ceilings, length, geography
4. Users
5. Scope: what types of engineering services?
6. Schedules and SINs
7. Comparisons to contracts issued by GSA’s Public
Buildings Service

A: What are GSA Schedule contracts?
1. Task order contracts
7
IDIQIndefinite Delivery, Indefinite Quantity

The Contract specifies…
 Scope of services.
 Labor categories.
 Authorized T&M rates by labor
category.
 Authorized ODCs and
rates/prices.
 Period (5-20 years).
 Price escalation.
 Terms and conditions.
8

The Contract specifies…
 Scope of services.
 Labor categories.
 Authorized T&M rates by labor
category.
 Authorized ODCs and
rates/prices.
 Period (5-20 years).
 Price escalation.
 Terms and conditions.
Each Task Order specifies…
 Services, deliverables, timelines.
 T&M rates or fixed price.
 Terms and conditions—but cannot
supersede terms and conditions in
GSA Schedule Contract.
9

2. Relationships
10
Example of Federal
Agency Client
GSA
Contractor

2. Relationships
11
Issue Task Order to GSA Contractor
Perform services; send invoices
Pay invoices (remit to Contractor)
Example of Federal
Agency Client
GSA
Contractor

2. Relationships
12
Example of Federal
Agency Client
GSA
Contractor

2. Relationships
13
Example of Federal
Agency Client
GSA
Contractor
Delegations? Approval of
choice of GSA Contractor?
Interagency $ transfers?

3. Ceilings, time limits, geographic limits
Ceilings?
• No limit on size or number of GSA Task Orders.
• No aggregate limits.
14

Ceilings?
Time limits?
• 5 year Base Period.
• 3 successive 5-year Option Periods.
15

Ceilings?
Time limits?
• 5 year Base Period.
• 3 successive 5-year Option Periods.
Geographic limits?
• Option of contractor.
• Domestic, overseas, or both.
16

4. Who can use GSA Schedule contracts?
17
All Fed. Gov’t.
Agencies
Civilian, military.
All branches: Executive,
Legislative, Judicial.
Mixed ownership
corporations (e.g.,
Millennium Corp.).

18
All Fed. Gov’t.
Agencies
Civilian, military.
Mixed ownership
corporations (e.g.,
Millennium Corp.).
States,
Municipalities
Two GSA Schedules (IT
and Law Enforcement) are
always available to states,
municipalities.
All other GSA Schedules
are available under limited
circumstances (e.g.,
disaster recovery; certain
public health missions).

19
All Fed. Gov’t.
Agencies
Civilian, military.
Mixed ownership
corporations (e.g.,
Millennium Corp.).
States,
Municipalities
Two GSA Schedules (IT
and Law Enforcement) are
always available to states,
municipalities.
All other GSA Schedules
are available under certain
circumstances (e.g.,
disaster recovery; certain
public health missions).
Other Entities, under
limited conditions,
e.g.:
International orgs. and
others eligible under
Section 607 of the Foreign
Assistance Act.
District of Columbia.
Other federal contractors,
under cost-reimbursable
contracts, and when
specifically authorized.

5. Scope
What types of services can engineering firms
provide under GSA Schedule contracts?
20

5. Scope
21
Wide range of
services…
A few examples:
 Planning, requirements analyses
 Design, prototyping
 Test and evaluation
 Integrated logistics support
 Construction management
 Energy efficiency consulting
 Energy audits
 Building commissioning
 “Smart Building” consulting
 Facilities maintenance & management
consulting
 Environmental studies, remediation
 Training

5. Scope
22
…but the Brooks Act
imposes limits for
services associated
with real property.
Brooks Act:
 Services covered by the Brooks Act
cannot be performed under GSA
Schedule contracts.
 In brief summary, Brooks Act
applies to engineering and
architectural services associated
with real property that, as defined
by State law, if applicable, can only
be performed by licensed
engineers and architects.
 Also covers certain incidental
services (e.g., surveying associated
with the site of a building).

6. “Schedules” and “SINs”
 There are more than 40 different GSA
“Schedules.”
 Each Schedule contains a related grouping of
goods and services.
23

Example
24
GSA Schedule 871:
“Professional Engineering
Services”
This Schedule covers a
wide range of civil,
mechanical, electrical,
and chemical engineering
services.

Example
25
GSA Schedule 871:
Services”
services.
This Schedule’s Scope of Work is
broken out into many “Special Item
Numbers” (SINs).

Example
26
GSA Schedule 871:
Services”
services.
SIN 871-1:
Strategic Planning for
Technology
Programs/Activities
SIN 871-2:
Concept Dev.;
Requirements
Analysis
SIN 871-3:
System Design,
Engineering &
Integration
SIN 871-4:
Test & Evaluation
SIN 871-5:
Integrated Logistics
Support
SIN 871-6:
Acquisition and Life
Cycle Management
SIN 871-7:
Construction
Management (CM)

7. Which GSA Schedules do engineering
firms typically obtain?
27
871: Professional Engineering Services

28
03FAC: Facilities Maint. & Mgmt. (includes
energy consulting)

29
03FAC: Facilities Maint. & Mngmt. (includes energy)
874-V: Logistics Worldwide (LOGWORLD)

30
899: Environmental Services.

31
899: Environmental Svcs.
(Mission Oriented
Business Integrated
Services)
874: MOBIS

www.LincolnStrategies.com 32
Scope Items (SINs)—examples:
 Civil, Mech., Elec., Chem.
 Full range of engineering life cycle
 Construction management
 Does not include services subject
to the Brooks Act
GSA Schedule 871:
Professional Engineering
Services

 Energy management program
support
 Energy audits
 Energy management & resource
efficiency planning
 Water conservation
 Facilities maintenance consulting
services
 “Smart Buildings” systems
integration
 Facilities management consulting
services
GSA Schedule 03FAC:
Facilities Maintenance &
Management Services

 Planning, acquisition and
management of logistics systems
 Expert advice, assistance,
guidance, management related to
logistics support
 Operational support services
 Training
GSA Schedule 874-V:
Logistics Worldwide
(LOGWORLD)

 Studies, analyses (e.g., NEPA
related)
 Remediation and reclamation
 Materials and waste recycling and
disposal services
 Environmental training
 GIS services
 Advisory services (e.g., hotlines)
 Some exclusions (e.g., asbestos;
radioactive)GSA Schedule 899:
Environmental Services

 Wide range of management
consulting services
 Facilitation
 Training
 Program & project management
 Often used for planning
 In some sense, the “oldest” and
best known of the GSA Schedule
contracts
GSA Schedule 874:
Mission Oriented Business
Integrated Services

8. Different than contracts issued by
GSA’s Public Buildings Service
37
GSA’s Public Buildings Service
(PBS Contracts)
GSA’s Federal Acquisition Service
(GSA Schedule Contracts)
Scope • A/E, construction, other services related to
buildings.
• Many services subject to Brooks Act.
 Hundreds of types of services; not limited to
real property.
 Does not include A/E services subject to
Brooks Act (e.g., facility design).
Selection
Process
• Some: SF 330; Qualifications-Based
Selection.
• Others: Traditional RFPs; variations (e.g., 2-
Phase).
• Deadlines for responses.
• All: RFPs; “Fair & Reasonable” pricing;
technical acceptability.
• Firms do not compete against each other.
• No deadlines (“Evergreen”).
# of Awards Varies; both single and multiple awards. Multiple awards (no limit).
Contract Term Varies; typically 1-5 years. 5-20 years.
Set-Asides Sometimes. Exceedingly rare.
Task Order or
Definitive
Both. Task Order only.
Ceilings Almost always. Never.

B. Many engineering firms have GSA
Schedule contracts
38

A few examples
Examples of firms
that hold GSA
Schedule contracts
Selected GSA Schedules
Professional
Engineering Services
Facilities Maintenance
& Management
Logistics Worldwide
(LOGWORLD)
Environmental
Services
Mission Oriented
Business Integrated
Services
AECOM ■ ■ ■ ■ ■
Arup ■
Carter & Burgess ■ ■ ■ ■
CDM ■ ■ ■
CH2M Hill ■ ■ ■ ■ ■
EMCOR ■
Fluor ■
Jacobs Engineering ■ ■ ■ ■ ■
Stantec ■
TRC Companies ■
Tetra Tech ■ ■ ■ ■ ■
URS ■ ■ ■ ■
Woolpert ■ ■ ■ ■
39

C. Key Advantages and Disadvantages
of GSA Schedule contracts
40

1. Key Advantages
41
 You will win a contract.
 There is no limit on the number of contracts that GSA can issue.
 Chances are exceedingly high that you will obtain a GSA Schedule
contract if you submit a responsive proposal with fair and reasonable
pricing.

1. Key Advantages
42
 The investment is relatively small.
 The RFPs for GSA contracts are a bit complex, but each step is
reasonably easy to take.
 There are strict page limits. GSA is not looking for a novel.
 Pricing is generally based on fixed hourly rates. The instructions can be
hard to understand, but the required analyses are straightforward.

1. Key Advantages
43
 A GSA contract can help firms enter
the federal market for the first time.
 Obtaining a GSA contract can be an excellent way to enter the federal
government market for the first time.
 With a few exceptions, GSA RFPs do not require offerors to have any
previous government experience.
 Specialized accounting systems and approved indirect rates are not
required. (Cost-plus contracting is not used.)

1. Key Advantages
44
 GSA contracts can help firms
diversify in the federal market.
 If your firm is already active in the federal market and you are looking to
diversify within it, a GSA Schedule contract can be a useful tool.
 Consider a case in which an engineering firm has expertise in
Engineering Areas A and B. The firm has a lot of federal government
clients for “A;” but all of the firm’s experience in “B” is with private sector
clients.
 It can be hard for your firm to win a federal contract in Area “B” because
of your lack of federal “past performance” for that area.
 Your firm can obtain a GSA Schedule contract for Area B even if none of
your prior experience in Area B is with federal government clients.

1. Key Advantages
45
 Your GSA Schedule contract can be
broad or narrow: it’s your choice.
 Some firms find it strategically advantageous to offer only a narrow set of
services under their GSA contracts.
 Other firms’ GSA contracts include many specialty areas and even hold
multiple GSA contracts. For example, AECOM currently holds 8 GSA
Schedule contracts.
 Firms also can obtain a GSA “Consolidated” Schedule contract: a single
contract that includes scope of work areas from two or more GSA
Schedules. For example, Michael Baker Jr., Inc., holds such a contract,
and it covers Scope of Work items from 5 separate GSA Schedules.

1. Key Advantages
46
 Small firms are welcome.
 GSA welcomes the participation of small firms.
 The key is to ensure that the proposal demonstrates that the firm can
perform a reasonably broad range of services within each Special Item
Number (SIN) included in the proposal.

1. Key Advantages
47
 The customer base is huge.
 Any federal government department or agency will be able to order
services under your GSA contract.
 Under some circumstances, State and municipal government can order
services directly from firms with GSA contracts—for example for help in
recovering from natural disasters: The State of New Jersey will use GSA
Schedule contractors to support its response to Superstorm Sandy.

1. Key Advantages
48
 GSA contracts are preferred by many
federal buyers.
 Many federal buyers prefer to use GSA Schedule contracts, because
doing so reduces paperwork burdens compared to most other options.
 When using a GSA Schedule contract to “get” to a firm, a potential
federal client can obtain several benefits, including:
─ Rapid project startup.
─ No size limits on projects.
─ No middlemen—a federal agency does not have to transfer funding
to GSA in order to use a GSA Schedule contract.
─ Full credit towards its socioeconomic contracting goals if the agency
issues a task order to a qualifying firm (e.g., a veteran owned small
business firm).

2. Key Disadvantages
49
x Certain types of engineering work is
out of bounds.
 As noted earlier in this briefing package, architectural and engineering
design services associated with real property cannot be performed,
because that work is covered by the Brooks Act.
 For example, under a GSA Schedule contract a firm can help federal
agencies plan how to retrofit buildings for greater energy efficiency,
perform construction management tasks during the construction phase,
or provide commissioning services for the new systems—but cannot
create stamped drawings during the design phase.

50
x Administrative and compliance
burdens.
 GSA Schedule contracts impose the typical administrative and
compliance burdens associated with virtually all federal contracts (e.g.,
Equal Opportunity reporting requirements).
 GSA Schedule contracts also impose unique administration
requirements, e.g.:
─ Collection, tracking, and reporting of Industrial Funding Fee.
─ Administration of Economic Price Adjustment clause.

51
x Unique price monitoring
requirements.
 GSA contracts include the “Price Reductions Clause.”
 Under this provision, if a firm offers additional discounts to certain
commercial customers, the firm might have to reduce its prices under its
GSA contract by a proportionate amount for the time in which the
commercial discounts are in place. (Hint: Properly structured, the pricing
section of a GSA proposal can help limit the overall impact of the Price
Reductions Clause.)

52
x No guarantee of sales.
 Many firms sell millions of dollars of work per year under their GSA
contracts, but others make few or no sales.
 A firm’s success will depend on how much time and effort are devoted to
marketing and direct sales.
 Note: There is a minimum guarantee in each GSA Schedule contract
($2,500), which generally is paid only if the government cancels the
contract due to the contractor’s continued lack of sales.

D. Should your engineering firm obtain
a GSA Schedule contract?
»Suggestions to help you make a decision.
53

Do not inadvertently use a weak rationale.
54
We need a GSA contract in
order to do work with the
federal government, right?
Incorrect premise.
There are many other ways in which an
engineering firm can perform work for the
federal government, either as a prime
contractor or a subcontractor.

55
Incorrect premise.
Our competitors have GSA
contracts. If it makes sense
for them, it probably will
make sense for us.
“Me too” fallacy.
What your competitors do might suggest
courses of action that you should consider
in light of your firm’s own circumstances.
But merely imitating your competitors’
moves is not a good strategy.

56
Incorrect premise.
Our competitors have GSA
contracts. If it makes sense
for them, it probably will
make sense for us.
“Me too” fallacy.
What your competitors do might suggest
courses of action that you should consider
in light of your firm’s own circumstances.
But merely imitating your competitors’
moves is not a good strategy.
Let’s get a GSA contract and
add it to our quiver. Even if
we ultimately do not use it,
what’s the harm?
Let me count the ways.
Re-read the section of this briefing that
summarize administration and compliance.
Do not take on a GSA Schedule contract if
you are not prepared to incur significant
burdens.

Does your firm have a strong rationale for
obtaining a GSA Schedule contract?
57
 Which of our strategic or tactical goals might GSA
Schedule Contracts help us achieve?
 What are the pros and cons of GSA Schedule
contracts for our firm?
 On balance, is it likely that the net advantages of
GSA Schedule contracts would be large enough to
warrant obtaining one for our firm?

D. Should your engineering firm get a
GSA Schedule contract?
»Suggestions to help you make a decision.
58

As you assess whether obtaining a GSA
Schedule contract makes sense for your
engineering firm, here is some
additional research you can do to help
inform your decision-making.

Review Statements of Work.
 Review the SOWs of all GSA Schedule contracts that are of
potential interest to your firm. Cast a wide net.
 You can find them at the “Schedules e-Library” portion of the
GSA web site:
www.gsaelibrary.gsa.gov
 As an alternative, contact the author of this briefing package
for a list.
da@LincolnStrategies.com
60

Any matches?
 Are there any Special Item Numbers (SINs) that cover the
types of services that are relevant to your firm’s federal
marketing goals?
61

Get a snapshot of sales in the relevant
areas.
 After you find specific SOW areas of potential interest to your
firm, see whether sales in these areas are robust.
 The easiest way to examine overall sales in each GSA scope
area is to go to the “Schedules Sales Query” (SSQ) portion of
GSA’s website: http://ssq.gsa.gov.
62

Research your competitors’ GSA
Schedule contracts.
 Knowing how your competitors use their GSA contracts can
be useful in:
– Assessing whether such a contract might be a good fit for your firm.
– Sizing up the competition.
 For any firm with a GSA contract, the SSQ can tell you how
much they’ve sold of each type of service under their GSA
contracts.
 The USASpending.gov website offers information on
individual sales under a firm’s GSA contract (e.g., identifies
the customer agency). But there are gaps in the data.
63

Review key contractual clauses.
 Before you decide whether to pursue a GSA contract, ask
whether your firm could live with the various clauses that will
appear in the contract, such as the Price Reductions Clause.
 You can find these clauses in GSA RFPs, and documents to
which they refer (some clauses are incorporated by
reference).
64

Assess your ability to sell task orders.
 Many firms obtain GSA Schedule contracts and never make
any sales under them.
 Does your firm have the ability to sell task orders to federal
government agencies?
– Relationships, or the ability to develop and nurture them.
– Knowledge of how to make task order sales, or the willingness to invest
in gaining this knowledge.
– Willingness to invest resources in marketing the contract and making
direct sales.
65

Confer with others.
 Do you have—or can you develop—contacts in other firms
that have GSA Schedule contracts?
 Confer with consultants, others, with knowledge of GSA
Schedule contracts.
 Ask contacts in the federal government, e.g.:
– Current federal clients under other contract vehicles. Would they use a
GSA Schedule contract if you had one? Why or why not?
– Prospective federal clients. If a GSA Schedule contract were available,
would this significantly improve your odds of selling work to these
prospective clients?
66

Questions, comments?
67
Lincoln Strategies provides insightful, practical services to help
firms create and sustain competitive advantages in the federal
government market. Our clients include high value-added
professional services firms and manufacturers. We have helped
dozens of engineering firms obtain GSA Schedule contracts, and
have done the same for many other types of firms. We also
provide market research, strategic planning services, consulting,
and proposal support focused on the federal market.
For further information or if you have questions, please contact
the firm’s Principal, Dave Alexander.
Telephone: (978) 369-1140
E-mail: da@LincolnStrategies.com
Web: www.LincolnStrategies.com

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