GSA Issues Mass Modification to Implement Order-Level Materials (OLMs) on Select Schedules

July 10, 2018

The General Services Administration (GSA) has begun a two-step process to incorporate Order-Level Materials (OLMs) into its Schedules program. GSA is implementing the OLM rule into seven Schedules through the solicitation refresh and mass modification process. Contractors must accept the Commercial Supplier Agreement (CSA) mandatory modification before they can process the OLM mod (#A653) to begin providing OLMs on Schedule orders and Blanket Purchase Agreements (BPAs).

Authorized OLM Schedules

OLMs can be implemented under the following GSA Schedules:

GSA will consider applying the OLM authority to additional Schedules in the future.

How Do I Participate in OLM?

Contractors are authorized to quote OLMs only if the Order-Level Materials SIN is awarded under its contract.

  • Accept the Commercial Supplier Agreement (CSA) mass modification for your contract.
  • Accept the OLM mass modification that adds the OLM SIN and GSAR clause 552.238-82 Special Ordering Procedures for the Acquisition of Order-Level Materials to your contract.

Acceptance of the OLM modification is optional. However, GSA requests that contractors either accept or decline the modification within 30 days of receipt. By accepting, the OLM SIN and OLM terms and conditions will automatically be added to the contract. Contractors may begin to propose OLMs in response to customer requirements following acceptance of the modification. Existing contractors must accept the modification to begin providing OLMs in response to customer requirements.

Important Notes:

  • The OLM SIN is specifically reserved for items that are not known at the time of Schedule contract award and is only authorized for inclusion under a time-and-materials or labor hour Contract Line Item Number (CLIN).
  • The ordering activity contracting officer is responsible for making the determination that prices for all OLMs are fair and reasonable.
  • Cumulative value of OLM SIN cannot exceed 1/3 of the total value of an order, excluding travel.
  • Contractors have the flexibility to recover indirect costs.
  • The Industrial Funding Fee (IFF) should be added to the OLM price, as they must be included in GSA sales reporting and remitted to GSA.

You can learn more about OLMs in our blog, “GSA Finalizes Rule to Allow Inclusion of Order-Level Materials on Schedule Purchases.” For additional information, including vendor training, please visit the GSA Order-Level Materials home page. For any questions, please contact Vanessa Payne or one of our government contracting specialists at 301.231.6200.