Disaster Recovery FAQs


Disaster Recovery Frequently Asked Questions

New Authorization for National Voluntary Organizations Active in a Disaster (NVOAD) to Purchase via Schedules

Disaster Recovery FAQs

GSA Schedule contractors can now sell to the National Voluntary Organizations Active in a Disaster (NVOAD) through their Federal Supply Schedules contract.  Section 2 of the Federal Supply Schedules Usage Act of 2010 (Public Law 111-263), states that the Administrator of General Services may provide for the use of  Federal Supply Schedules, by other qualified organizations to facilitate emergency preparedness and disaster relief.  Under the Act, the term “qualified organization” means a relief or disaster assistance organization as described in section 309 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5152).
GSA, pursuant to this Act, has authorized the NVOAD members to access Schedules when purchasing in furtherance of emergency preparedness and disaster relief.  GSA Order 4800.2H, Eligibility to Use GSA Sources of Supply, has been updated to reflect this new eligible ordering activity.  This authorization allows for immediate access to all Schedules, when the NVOAD members are purchasing in furtherance of purposes of emergency preparedness and disaster relief.
Purchases under this authority by other qualified organizations shall be used only in furtherance of purposes determined to be appropriate to facilitate emergency preparedness and disaster relief and set forth in guidance by the Administrator of General Services, in consultation with the Administrator of the Federal Emergency Management Agency. The authority under this subsection may not be used to purchase supplies for resale.
There is no modification, required at this time, to your Schedule contract in order to accept orders from the NVOAD members.  Acceptance of orders from the National Volunteer Organizations Active in a Disaster, is voluntary.  Schedule contractors may decline an order, for any reason, within a five-day period after receipt of the order; however, credit card orders must be declined within 24 hours (GSAM 552.232-79).  Orders placed under this authority are subject to the Industrial Funding Fee and should be reported quarterly on your 72a form under your Federal sales.  For a list of NVOAD members, please visit, www.nvoad.org.  For questions, please contact Tricia Scaglione at patricia.scaglione@gsa.gov.

What is Disaster Recovery Purchasing?

Disaster Recovery FAQs

Section 833 of the John Warner National Defense Authorization Act for fiscal year 2007 (Public Law 109-364) amended 40 U.S.C. 502 to authorize the Administrator of General Services to provide for the use of Federal Supply Schedules by state and local governments for the purchase of products and services to be used to facilitate recovery from major disasters, terrorism, or nuclear, biological, chemical, or radiological attacks.

Can state and local governments purchase from all GSA Schedules?

CoOp Purchasing FAQs

Yes. The Department of Homeland Security has determined that all of the products and services available under GSA Schedules could potentially be used for recovery from a disaster or a terrorist attack.

Can state and local governments use other GSA contracts?

CoOp Purchasing FAQs

No. Disaster Recovery Purchasing authority is limited to GSA Schedule contracts and does not include any other GSA programs. Schedules e-Library contains a list of all GSA Schedules subject to Disaster Recovery Purchasing.

When does Disaster Recovery Purchasing go into effect?

Disaster Recovery FAQs

Technically, Disaster Recovery Purchasing was effective upon publication of the interim rule in the Federal Register on February 1, 2007. Existing GSA Schedule contracts must be modified, as mutually agreed between the Schedule contractor and GSA, to allow for Disaster Recovery Purchasing.

How are state and local governments defined?

CoOp Purchasing FAQs

The General Services Administration Acquisition Manual (GSAM), Part 538.7001, Definitions, offers the following definition of state and local governments: “The States of the United States, counties, municipalities, cities, towns, townships, tribal governments, public authorities (including public or Indian housing agencies under the United States Housing Act of 1937), school districts, colleges, and other institutions of higher education, council of governments (incorporated or not), regional or interstate government entities, or any agency or instrumentality of the preceding entities (including any local educational agency or institution of higher education), and including legislative and judicial departments.” The term does not include contractors, or grantees, of state or local governments.

Are Disaster Recovery Purchasing orders subject to the Industrial Funding Fee (IFF)?

Disaster Recovery FAQs

Yes. Each Schedule contract price includes an industrial funding fee, which is represented in the prices paid by ordering activities and passed on to GSA by Schedule contractors. The IFF reimburses GSA for procurement and administrative costs incurred to operate the GSA Schedules Program.

Will GSA waive, or give a portion of, the IFF to state and local government entities?

Industrial Funding Fee FAQs

No.

Are state and local government entities required to use the GSA Schedules Program?

CoOp Purchasing FAQs

No. Disaster Recovery Purchasing is voluntary for both state and local government entities and for Schedule contractors. State and local entities have full discretion to decide if they wish to make a GSA Schedule purchase, subject to any limitations that may be established under state and local laws and procedures.

Are Schedule contractors required to accept orders from state and local government entities?

CoOp Purchasing FAQs

Schedule contractors have the option of deciding whether they will accept orders placed by state or local government buyers. Schedule contractors will make this decision on two levels. First, on the contract level, Schedule contractors will decide whether they want to offer Disaster Recovery Purchasing and enter into a mutual agreement with GSA to modify the contract. Second, even after an existing contract is modified or a new contract awarded, a Schedule contractor will retain the right to decline orders received from state or local government entities on a case-by-case basis. Schedule contractors may decline an order, for any reason, within a five-day period after receipt of the order; however, credit card orders must be declined within 24 hours.

How do state and local government entities place orders against Schedule contracts? Do such orders against Schedule contracts meet competition requirements?

CoOp Purchasing FAQs

State and local government entities are encouraged to use GSA’s Schedule Ordering Procedures to ensure the benefit of receiving the best value from GSA Schedule contractors. When state and local governments follow the GSA Schedule Ordering Procedures

Under Disaster Recovery Purchasing, can ordering activities include terms and conditions required by state or local statutes, ordinances, regulations, or orders?

Disaster Recovery FAQs

Yes. However, the additional terms and conditions must be included as a part of the Statement of Work (SOW) or the Statement of Objectives (SOO) and must not conflict with the terms and conditions of the GSA Schedule contract.

Are any GSA Schedule contract terms and conditions not incorporated by reference into Disaster Recovery Purchasing orders?

Disaster Recovery FAQs

Yes. The following contract terms and conditions are not incorporated by reference into Disaster Recovery Purchasing orders: Disputes Clause; Patent Indemnity Clause; and Certain Commercial Item Contract Terms and Conditions. Portions of the commercial item contract terms and conditions that specify compliance with laws unique to federal government contracts are not applicable to Disaster Recovery Purchasing orders.

If the contractor does not perform acceptably under a Disaster Recovery Purchasing order issued by a state or local entity, should the ordering activity request the GSA contracting officer take corrective measures?

Disaster Recovery FAQs

No. Acceptance of an order by the Schedule contractor under Disaster Recovery Purchasing constitutes the formation of a new contract between the non-federal ordering activity and the Schedule contractor. The ordering activity’s contracting officer is responsible for all contract administration under the new contract. While the majority of the terms and conditions of the Schedule contract are incorporated by reference into the Disaster Recovery Purchasing order (see Questions 13 and 14, below, for exceptions), the federal government is not liable for the contractor’s performance, or non-performance. Disputes that cannot be resolved by the parties may be litigated in any state or federal court with jurisdiction, using the principles of federal procurement law and the uniform commercial code, as applicable and appropriate. However, state and local government entities may submit information concerning a contractor’s performance to the GSA contracting officer for consideration when evaluating the contractor’s overall performance under the GSA Schedule contract.

Are Prompt Payment provisions incorporated into Disaster Recovery Purchasing orders?

Disaster Recovery FAQs

Yes. GSAM 552.232-81, Payments by Non-Federal Ordering Activities, allows for the terms and conditions of a state’s prompt payment law to apply to orders placed by eligible non-federal ordering activities. However, if the ordering activity is not otherwise subject to a state prompt payment law, the activity is covered by the federal prompt payment act in the same manner as federal ordering activities.

Are state and local government preference programs affected by Disaster Recovery Purchasing?

Disaster Recovery FAQs

No. Disaster Recovery Purchasing does not affect state and local government preference programs.

May state and local government entities use credit cards to purchase products and services under this program?

CoOp Purchasing FAQs

Yes. Schedule contractors may accept any state and local government-issued credit cards for orders placed under Disaster Recovery Purchasing. Contractors are required to accept credit cards for orders up to the micro-purchase threshold and contractors may voluntarily accept credit cards for orders exceeding the micro-purchase threshold.

Can state and local governments issue Blanket Purchase Agreements (BPAs) under the Schedule contracts?

BPA FAQs

Yes. State and local government entities may issue BPAs under the Schedule contracts. In order to qualify as a GSA Schedule BPA, the competition underlying the award of the BPA must be conducted in accordance with the GSA Schedule ordering procedures.

Can state and local government entities be granted additional price reductions under the Schedule contracts?

CoOp Purchasing FAQsDisaster Recovery FAQs

Yes. State and local government entities may be granted additional price reductions under Disaster Recovery Purchasing.

Will a spot discount to state and local government entities under the GSA Schedule contract trigger the Price Reductions clause?

CoOp Purchasing FAQs

No. Granting state and local government entities additional price discounts under the GSA Schedule contract will not trigger the Price Reductions clause.

Does the Trade Agreements Act apply to contracts between the Schedule contractor and state and local government entities?

CoOp Purchasing FAQs

Yes. All Schedule contract terms and conditions, except those stated in Questions 13 and 14, apply to contracts between the GSA Schedule contractor and state and local government entities.

Can state and local government entities use GSA Advantage!® to place orders under Disaster Recovery Purchasing?

Disaster Recovery FAQs

No. Although state and local government entities are free to “browse” on GSA Advantage!®, they may not currently purchase products and/or services through the GSA Advantage!® online shopping and ordering system.

Can state or local government grantees purchase from GSA Schedules? If state or local governments themselves receive grant money, can they use these funds to purchase products and services from GSA Schedules?

CoOp Purchasing FAQs

Under Disaster Recovery Purchasing, only state and local government entities, as defined in General Services Administration Acquisition Manual (GSAM) 538.7001, are eligible to purchase from GSA Schedules. As noted in the definition, the term, state and local government entities, “…does not include contractors of, or grantees of, state or local governments.” Thus, state or local government grantees cannot purchase Schedule products or services under Disaster Recovery Purchasing. With regard to state or local governments themselves receiving grant money, these entities are eligible users under Disaster Recovery Purchasing by virtue of meeting the definition of state and local government entities; the source of funding for these entities is irrelevant.

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