GSA Schedule Holders...Multiple Award Schedule (MAS) solicitation Refresh #22 was issued this afternoon (8/8/2024). You can find Refresh #22 at: https://sam.gov/opp/da6dacecb6b6481f85811f8fee9f733d/view
(Check out my prior LinkedIn post at https://lnkd.in/g-HB8jgw for all the changes in this refresh.)
The biggest (and BEST) change in this refresh "rights" what I've seen as a "wrong" for a long time.
You know that term in the contract that says you will accept the Government Purchase Card (GPC) ("P-Card") for payment? If you got paid by the Ordering Agency using the GPC, you couldn't recoup any card processing surcharges and fees to accept that payment...until NOW!
YES!!!
BUT...there's a process to do it. (And we expect that because, well, it's the Government.)
Refresh #22 allows contractors to add the processing fees they incur to accept the GPC as a payment method into the MAS prices offered on their schedule. They CANNOT be added at the order level.
So...adding GPC fees to schedule prices = an eMod.
I know, I know, eMods take time and cost money. BUT, this is a "win-win" for you.
(Hear me out.)
Before this refresh, processing fees came out of your bottom line (i.e., PROFIT), right?
Well, I have been advocating for this change for YEARS both inside Government and outside as a consultant. Agencies should not be able to arbitrarily choose to pay you using the GPC without allowing you to factor in the processing fees you must pay into your pricing to them.
There should be no "gotcha" that has you LOSING money. Period.
Refresh #22 solves that problem.
ALSO, the BENEFITS of being paid by the GPC to YOU are amazing!
✅ Not waiting for a 30-day billing cycle -- GET PAID THE SAME DAY in many cases!
✅ That fast payment IMPROVES CASH FLOWS, which...✅ INCREASES your CASH RESERVES,
✅ Giving you ACCESS TO more AFFORDABLE CREDIT, which in turn...
✅ ACCELERATES GROWTH opportunities, thereby...
✅ EXPANDING ACCESS to the Federal marketplace.
This is a HUGE win, particularly for small business schedule holders!
This will be implemented through the addition of a note to FAR clause 52.232-36, Payment by Third Party, the standard Price Proposal Templates (Read Me First tab) and MAS Modification Guidance on gsa.gov.
That note reads--
"1. Proposed prices must be inclusive of all costs associated with acceptance of the Governmentwide commercial purchase card (e.g., payment processing fees). Schedule contractors may not impose a surcharge at the order level for payment by Governmentwide commercial purchase card."
You got that, right?
You CANNOT impose a surcharge at the order level.
You MUST go through the eMod process to recoup these costs.
So why did the GSA add this now?
Well, there's a couple of reasons...
If you didn't know, the Government earns cash back on every purchase and payment made with the GPC. They use that money to maintain their card programs and buy items that are a bona fide need where appropriated money isn't available.
AND
The Government needs to start accelerating payments to small businesses under a final rule that was issued in the spring of 2023.
Using the GPC to make contract payments, particularly to small businesses, gets money into your hands faster and gets the Government more cash back.
WIN-WIN
Start getting those eMods submitted because I guarantee agencies will start using their cards to make payments in the near future, particularly GSA, and you don't want to be left with less in your bottom line.
What if your agency doesn't want to pay with the GPC? Offer them a discount off your rates equivalent to your processing fees and keep your pricing competitive.
Again, WIN-WIN.
Once your eMod is processed, if you want to be paid by the GPC, ask your contracting officer at the ordering agency about making that happen.
Take advantage of this opportunity! The Government is trying to expand its p-card use in a variety of ways. This is one of them.
These things don't come along often where everyone WINs! Be a winner!
(August 2024)
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