GSA Moves Forward with the Implementation of the new Formatted Product Tool (FPT)
July 21, 2016
The Formatted Product Tool (FPT) has been established to assist GSA contracting officers in their evaluation and negotiation of all participating contractors’ schedule pricing. The FPT is expected to assist GSA with standardizing Manufacturer Part Numbers in order to streamline analysis of fair and reasonable pricing. The tool will utilize complex algorithms to compare all similar products and ensure pricing is within an established variance.
The Formatted Product Tool will also update and replace the old SIP and CORS systems for processing GSA Advantage price list uploads. The FPT will automatically publish new pricing/products to GSA Advantage upon award of such modifications. Contractors are required to publish their entire product offering on GSA Advantage.
Implementation of the Formatted Product Tool on select schedules will be via the mass modification process and is scheduled to begin any day on Schedule 58I (Professional Audio/Video) and Schedule 72 (Furnishings & Floor Coverings). Thereafter, the proposed rollout is scheduled to continue on a bi-weekly basis through September. The full implementation schedule for the new FPT is as follows:
Existing contractors will have a 60-day window to complete the required baseline modification process upon acceptance of FPT mass modification #A510. Contractors will complete this baseline modification by submitting an FPT upload of all currently awarded products and services through eMod. During the baseline modification process, all products will be subjected to standardization with any outlier pricing being identified – stay tuned for a follow-up blog on the baseline modification process next week.
GSA has indicated that the baseline modification will not automatically trigger negotiations of a contractor’s currently awarded pricing. However, the decision whether to enter negotiations is left to the discretion of the contracting officer. If a product is incorrectly identified for manufacturer part number standardization, or as having pricing that falls outside the established variance, contractors will be able to provide GSA with justification. Whether this justification is accepted by GSA is up to the discretion of the contracting officer.
GSA has confirmed to Aronson that, although the mass modification system currently lists FPT modification #A510 as mandatory, it is optional for existing contractors. All new offers under the affected schedules will be required to utilize the FPT when submitting their pricing. As GSA proceeds with the implementation of the FPT, contractors should carefully review the mass modification to ensure they understand all obligations prior to acceptance.
GSA is offering additional free Vendor Training Sessions on the FPT on July 27th, 2016 and August 10th, 2016. You can register here:
July 27th, 2016 https://meet.gsa.gov/tdr072716/event/registration.html
August 10th, 2016 https://meet.gsa.gov/e5b289hq427/event/event_info.html
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