GSA ISSUES PROPOSED RULE TO HANDLE OTHER DIRECT COSTS

GSA has initiated a solid attempt to make it easier for contractors and buyers to handle Other Direct Costs (ODC’s) for GSA Schedule transactions.  A proposed rule scheduled for the September 9th Federal Register would allow ODC’s to comprise as much as 33% of a total Schedule order.  Contractors, however, would be required to provide at least three quotes for the open market portion of their offer, one of which could be their own offered pricing.  This could be a potential burden on industry, depending on the complexity of the open market services or products.  Additionally, ordering agency contracting officers would be required to determine the price reasonableness of the open market items.  This could be an additional step unique to Schedule purchases.  Still, GSA could make the case that the steps it is proposing better ensure that federal agencies pay fair and reasonable prices on open market items than the processes currently in use on other IDIQ’s.  GSA officials have allowed for a 60 day comment period on the proposed rule, indicating that it is considered a major rule change.  Comments should be due by November 9th.