The Multiple Award Schedule ("MAS") contract program administered by the General Services Administration - and the Department of Veterans Affairs ("VA") for medical products - is the leading contract program for the sale of "commercial items" to the federal government. MAS contract sales in Government FY 2011 totaled $37.4 billion. While MAS contracts represent a substantial business opportunity for commercial item contractors, MAS contracts contain unique and frequently misunderstood requirements that create enhanced compliance risks and challenges for commercial item contractors. The certified commercial pricing disclosures required of MAS contractors before award and post-award pricing obligations to GSA under the Price Reductions Clause present especially difficult challenges. In recent years, numerous MAS contractors have paid substantial fines and penalties to settle allegations of noncompliance with these pre-award and post-award pricing requirements. Current and prospective MAS contractors are well-advised to be aware of the MAS contract program's unique requirements and to ensure that they have appropriate systems and procedures in place to meet these requirements.
The attorneys in Holland & Hart's Government Contracts Group have extensive experience in all areas of MAS contracting, including regular assistance on MAS contract audits involving GSA's Office of Inspector General ("OIG") and the VA OIG. We assist clients on all aspects of obtaining and performing MAS contracts, including:
- Researching and drafting commercial sales practices ("CSP") disclosures
- Negotiating the terms and conditions of the original MAS contract
- Counseling with respect to contract administration issues, including MAS leasing, pricing issues, Blanket Purchase Agreements ("BPAs") and FAR 9.6 Contractor Teaming Arrangements ("CTAs")
- Helping contractors to establish IT systems and to prepare tailored training courses designed to maximize compliance with Industrial Funding Fee, Price Reductions Clause and other MAS contract requirements
- Helping contractors respond to routine "contractor assistance" audits by GSA
- Helping contractors to respond to pre-award and post-award OIG audits
Representative matters include:
- Represented an IT hardware manufacturer in connection with a GSA OIG investigation into possible noncompliance with the Trade Agreements Act ("TAA") under its MAS contract
- Represented a professional services firm in all facets of a GSA OIG audit of its MAS contract extension proposal and successfully negotiated a 5-year contract extension
- Represented a software manufacturer in connection with a Department of Justice/GSA OIG investigation into allegations of noncompliance with the Price Reductions Clause and the TAA
- Represented a MAS contract dealer in connection with a GSA OIG investigation of alleged defective sales practices disclosures
- Helped to prepare proposals and to negotiate contracts based upon various MAS solicitations, including: IT hardware, software and professional services; business consulting services; professional engineering services; medical products; office products; and, marketing and media services
- Assisted the buyer of a MAS contract dealer to mitigate the impact of possible pre-closing pricing errors and to clarify the post-closing operation of the Price Reductions Clause
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