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Are you a GSA Schedule contractor? Expect changes next year in how you report sales and pay your IFF

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The General Services Administration (GSA) has announced that Federal Supply Schedule contractors will be required to use a new system beginning in 2019 to report their sales and remit their Industrial Funding Fee (IFF).

The present 72A Reporting System will be replaced with a Sales Reporting Portal (SRP).  The goal of the transition to the SRP is to provide a single reporting system for all contractors to use for reporting sales and remitting IFF.

GSA’s overall IT modernization efforts include improving its IT enterprise by building and maintaining a more modern and secure architecture for its IT systems.

The transition to the SRP system not only supports GSA’s modernization effort, but it streamlines the overall process of reporting sales and remitting the IFF, making it more efficient for GSA and its industry partners alike.

The Federal Acquisition Service’s Sales Reporting Portal currently houses all the Transactional Data Repository (TDR) contracts as well as all new quarterly reporting MAS contractors as of July 2018. GSA wants to complete the transition by moving more than 14,000 current contracts into the FAS SRP to allow for the sun-setting of the existing 72A reporting system.

GSA has developed and implemented a three-phase implementation approach that will be carried out over the next 12 months. This phased-in approach will let contractors start reporting in the new system while GSA transitions their historical data over from the legacy 72A system.

  • In Phase One, companies will be notified via email that their Schedule contract(s) have been assigned a FAS Sales Reporting Portal transition date. This date will be the first day of a reporting quarter.  No action will be needed until the end of that reporting period, when the contractor will begin reporting sales and remitting their IFF in the new FAS SRP.

Example: A contract is assigned the Jan. 1, 2019 transition date which is the first day of a reporting quarter.  No action will be necessary until the contractor has to report sales for that quarter in April 2019. That will be the first time the contractor would be required to log into the FAS SRP and report sales there.

  • In Phase Two, contractors complete their final reporting of sales and remittal of IFF in the legacy 72A System for the current quarter.

Example: FAS SRP Report Date: January 2019 – The contractor will report sales and remit their IFF in the legacy 72A system one final time for the period covering October 2018 thru December 2018.  This reporting will be due by January 30, 2019.  The company will report sales for the quarter January 2019 through March 2019 in the new FAS SRP during April 2019.

  • In Phase Three, all contract history will transfer over from the legacy 72A System into the new FAS SRP. This process will not happen until the last sales have been reported and the IFF is paid in the 72A System. Once complete, GSA will migrate the contract sales history over into the FAS SRP . If the contract has an overall variance (i.e., an imbalance between IFF owed and IFF paid) at that time, the contractor will be notified via email prior to migrating their history into the FAS SRP.

Contractors may direct questions related to this transition via email to: MASPMO@gsa.gov.

Companies to pay $5.8 million for misrepresenting small business status and failure to pay GSA fees

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Justice Dept. seal - CopyThe U.S. Department of Justice (DOJ) has announced that a group of California-based companies — En Pointe Gov., Inc., En Pointe Technologies, Inc., En Pointe Technologies Sales, Inc., Dominguez East Holdings, LLC and Din Global Corporation — have resolved allegations of violations of the False Claims Act by agreeing to pay the government $5.8 million.

The government alleged that En Pointe Gov., Inc. falsely certified that it was a small business in order to obtain contracts set aside for small businesses.  The government also found that the company under-reported sales under a General Services Administration (GSA) contract in order to avoid the payment of fees.

En Pointe Gov., Inc. is now known as Modern Gov IT, Inc.; En Pointe Technologies Sales, Inc. is now known as Collab9, Inc.; and En Pointe Technologies, Inc. is now known as Dinco, Inc.

“These companies defrauded the government in two ways, each of which cost taxpayers,” said U.S. Attorney Eileen M. Decker for DOJ’s Central District of California. “Small businesses, in some cases, are eligible to receive a preference when government contracts are issued. Large companies that fraudulently solicit and obtain contracts under small business set-aside programs, like the companies in this case, not only abuse the system but also harm legitimate small businesses by taking those contracts away from them.”

In this case, the government alleged that, between 2011 and 2014, the defendants were liable for false representations that En Pointe Gov., Inc. met Small Business Administration (SBA) requirements to obtain work that was only available to small businesses.  In particular, the government alleged that En Pointe Gov, Inc.’s affiliation with the other defendants rendered it a non-small business and, thus, ineligible for the small business set-aside contracts it obtained.

The government also alleged that defendants caused En Pointe Gov., Inc. to file false quarterly reports with the GSA between 2008 and 2015, under-reporting sales made under a GSA schedule contract that allowed other federal agencies to purchase from En Pointe.  Under the terms of the contract, En Pointe was supposed to return to GSA a percentage of its sales receipts.  This is known as an Industrial Funding Fee.

The settlement resolve allegations filed in a lawsuit by Minburn Technology Group, LLC (Minburn), a Virginia company that sells information technology products and services, and Anthony Colangelo, Minburn’s managing member.  The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery.  The Act also allows the government to intervene and take over the action, as it did in this case.  Minburn and Mr. Colangelo will receive approximately $1.4 million.

Source: https://www.justice.gov/opa/pr/information-technology-companies-pay-58-million-misrepresentations-relating-small-business

GSA continues efforts to consolidate Professional Services contracts

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The General Services Administration (GSA) recently announced its intention to further promote the consolidation of professional services contracts by encouraging agencies to transition from expiring, one-off contracts to multiple-award contracting vehicles.

GSA Schedule ContractThe announcement comes on the heels of GSA’s October 1, 2015 announcement that it would be consolidating eight separate schedules into a new Professional Services Schedule (PSS) that will allow federal government agencies to use one contracting vehicle to fulfill a host of professional services requirements.

With many professional services contracts set to expire in Fiscal Year 2016, GSA is actively encouraging agencies to re-compete the contracts using existing agency indefinite delivery indefinite quantity contracts (IDIQ), GSA schedule contracts, such as the PSS, or GSA’s OASIS contracting vehicle, an IDIQ contract meant for professional services.

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=441736

For more information on the PSS, read the blog post at: http://govcon.mofo.com/schedule-contracting/gsa-launches-new-professional-services-schedule/.

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