<?xml version="1.0" encoding="UTF-8"?>
<!DOCTYPE dita
  PUBLIC "-//OASIS//DTD DITA Composite//EN" "ditabase.dtd">
<dita xmlns:ditaarch="http://dita.oasis-open.org/architecture/2005/"
      ditaarch:DITAArchVersion="1.2">
   <concept id="id195K9H090NU"
            audience="GSAR"
            ditaarch:DITAArchVersion="1.2"
            class="- topic/topic concept/concept ">
      <title xtrc="GSAR" class="- topic/title ">
         <ph props="autonumber" class="- topic/ph ">552.238-115</ph> Special
Ordering Procedures for the Acquisition of Order-Level Materials.</title>
      <conbody class="- topic/body  concept/conbody ">
         <p audience="GSAR" class="- topic/p ">As prescribed in <xref href="GSAM-id538.7204.dita#id538.7204"
                  base="id538.7204"
                  outputclass="fm:ParaNumOnly"
                  class="- topic/xref ">538.7204</xref>(b), insert the
following clause:</p>
         <p audience="GSAR" outputclass="Ctr_SmCaps" class="- topic/p ">Special Ordering
Procedures for the Acquisition of Order-Level Materials (May 2019)</p>
         <ol class="- topic/ol ">
            <li audience="GSAR" class="- topic/li ">
               <p audience="GSAR" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(a)</ph>  <i class="+ topic/ph hi-d/i ">Definition.</i>
               </p>
               <p audience="GSAR" class="- topic/p ">
                  <i class="+ topic/ph hi-d/i ">Order-level materials</i> means supplies
and/or services acquired in direct support of an individual task
or delivery order placed against a Federal Supply Schedule (FSS)
contract or FSS blanket purchase agreement (BPA), when the supplies and/or
services are not known at the time of Schedule contract or FSS BPA
award. The prices of order-level materials are not established in
the FSS contract or FSS BPA. Order-level materials acquired following
the procedures in paragraph (d) of this section are done so under
the authority of the FSS program, pursuant to 41 U.S.C. 152(3),
and are not open market items, which are discussed in FAR 8.402(f).</p>
            </li>
            <li audience="GSAR" class="- topic/li ">
               <p audience="GSAR" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(b)</ph> FAR
8.403(b) provides that GSA may establish special ordering procedures
for a particular FSS.</p>
            </li>
            <li audience="GSAR" class="- topic/li ">
               <p audience="GSAR" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(c)</ph> The
procedures in FAR subpart 8.4 apply to this contract, with the exceptions
listed in this clause. If a requirement in this clause is inconsistent
with FAR subpart 8.4, this clause takes precedence pursuant to FAR
8.403(b).</p>
            </li>
            <li audience="GSAR" class="- topic/li ">
               <p audience="GSAR" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(d)</ph>  Procedures
for including order-level materials when placing an individual task
or delivery order against an FSS contract or FSS BPA.</p>
               <ol class="- topic/ol ">
                  <li audience="GSAR" class="- topic/li ">
                     <p audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(1)</ph> The
procedures discussed in FAR 8.402(f) do not apply when placing task
and delivery orders that include order-level materials.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(2)</ph> Order-level
materials are included in the definition of the term “material”
in FAR clause 52.212-4 Alternate I, and therefore all provisions
of FAR clause 52.212-4 Alternate I that apply to “materials” also
apply to order-level materials. The ordering activity shall follow
procedures under the Federal Travel Regulation and FAR Part 31 when
order-level materials include travel.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(3)</ph>  Order-level
materials shall only be acquired in direct support of an individual
task or delivery order and not as the primary basis or purpose of
the order.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(4)</ph> The
value of order-level materials in a task or delivery order, or the
cumulative value of order-level materials in orders against an FSS
BPA awarded under a FSS contract shall not exceed 33.33%.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(5)</ph>  All
order-level materials shall be placed under the Order-Level Materials
SIN.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(6)</ph> Prior
to the placement of an order that includes order-level materials,
the Ordering Activity shall follow procedures in FAR 8.404(h).</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(7)</ph>  To
support the price reasonableness of order-level materials–</p>
                     <ol class="- topic/ol ">
                        <li audience="GSAR" class="- topic/li ">
                           <p audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(i)</ph>  The
contractor proposing order-level materials as part of a solution
shall obtain a minimum of three quotes for each order-level material
above the simplified acquisition threshold.</p>
                           <ol class="- topic/ol ">
                              <li audience="GSAR" class="- topic/li ">
                                 <p audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(A)</ph> One
of these three quotes may include materials furnished by the contractor
under FAR 52.212-4 Alt I (i)(1)(ii)(A).</p>
                              </li>
                              <li audience="GSAR" class="- topic/li ">
                                 <p audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(B)</ph>  If
the contractor cannot obtain three quotes, the contractor shall
maintain its documentation of why three quotes could not be obtained
to support their determination.</p>
                              </li>
                              <li audience="GSAR" class="- topic/li ">
                                 <p audience="GSAR" class="- topic/p ">
                                    <ph props="autonumber" class="- topic/ph ">(C)</ph> A
contractor with an approved purchasing system per FAR 44.3 shall
instead follow its purchasing system requirement and is exempt from
the requirements in paragraphs (d)(7)(i)(A)-(B) of this clause.</p>
                              </li>
                           </ol>
                        </li>
                        <li audience="GSAR" class="- topic/li ">
                           <p audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(ii)</ph>  The
Ordering Activity Contracting Officer must make a determination
that prices for all order-level materials are fair and reasonable.
The Ordering Activity Contracting Officer may base this determination
on a comparison of the quotes received in response to the task or
delivery order solicitation or other relevant pricing information available.</p>
                        </li>
                        <li audience="GSAR" class="- topic/li ">
                           <p audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(iii)</ph> If
indirect costs are approved per FAR 52.212-4(i)(1)(ii)(D)(2) Alternate
I), the Ordering Activity Contracting Officer must make a determination
that all indirect costs approved for payment are fair and reasonable.
Supporting data shall be submitted in a form acceptable to the Ordering
Activity Contracting Officer.</p>
                        </li>
                     </ol>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(8)</ph> Prior
to an increase in the ceiling price of order-level materials, the
Ordering Activity Contracting Officer shall follow the procedures
at FAR 8.404(h)(3)(iv).</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(9)</ph> In
accordance with GSAR clause <xref href="GSAM-552.238-83.dita#id195D7800E8M"
                              base="id195D7800E8M"
                              outputclass="fm:ParaNumOnly"
                              class="- topic/xref ">552.238-83</xref>, Examination
of Records by GSA, GSA has the authority to examine the Contractor's
records for compliance with the pricing provisions in FAR clause
52.212-4 Alternate I, to include examination of any books, documents,
papers, and records involving transactions related to the contract
for overbillings, billing errors, and compliance with the IFF and
the Sales Reporting clauses of the contract.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(10)</ph>  OLMs
are exempt from the following clauses:</p>
                     <ol class="- topic/ol ">
                        <li audience="GSAR" class="- topic/li ">
                           <p audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(i)</ph>
                              <xref href="GSAM-i1876529.dita#i1876529"
                                    base="i1876529"
                                    outputclass="fm:ParaNumOnly"
                                    class="- topic/xref ">552.216-70</xref> Economic Price
Adjustment - FSS Multiple Award Schedule Contracts.</p>
                        </li>
                        <li audience="GSAR" class="- topic/li ">
                           <p audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(ii)</ph>
                              <xref href="GSAM-i1874019.dita#i1874019"
                                    base="i1874019"
                                    outputclass="fm:ParaNumOnly"
                                    class="- topic/xref ">552.238-77</xref> Submission
and Distribution of Authorized FSS Schedule Pricelists.</p>
                        </li>
                        <li audience="GSAR" class="- topic/li ">
                           <p audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(iii)</ph>
                              <xref href="GSAM-i1874127.dita#i1874127"
                                    base="i1874127"
                                    outputclass="fm:ParaNumOnly"
                                    class="- topic/xref ">552.238-81</xref> Price Reductions.</p>
                        </li>
                     </ol>
                  </li>
                  <li props="Runin" audience="GSAR" class="- topic/li ">
                     <p audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(11)</ph>  <i class="+ topic/ph hi-d/i ">Exceptions for travel.</i>
                     </p>
                     <ol class="- topic/ol ">
                        <li audience="GSAR" class="- topic/li ">
                           <p audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(i)</ph> 
Travel costs are governed by FAR 31.205-46 and therefore the requirements
in paragraph (d)(7) do not apply to travel costs.</p>
                        </li>
                        <li audience="GSAR" class="- topic/li ">
                           <p audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(ii)</ph> Travel
costs do not count towards the 33.33% limitation described in paragraph
(d)(4) of this section.</p>
                        </li>
                        <li audience="GSAR" class="- topic/li ">
                           <p audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(iii)</ph> Travel
costs are exempt from clause <xref href="GSAM-i1874125.dita#i1874125"
                                    base="i1874125"
                                    outputclass="fm:ParaNumOnly"
                                    class="- topic/xref ">552.238-80</xref> Industrial
Funding Fee and Sales Reporting.</p>
                        </li>
                     </ol>
                  </li>
               </ol>
            </li>
         </ol>
         <p audience="GSAR" outputclass="Endofclause" class="- topic/p ">(End of clause)</p>
      </conbody>
   </concept>
</dita>
