The VA shared a significant improvement to Federal Supply Schedule (FSS) program. The VA has received approval to change/extend the performance period of all contracts. Currently we award contracts for five years base, plus one five-year option for a total performance period of 10 years.
The VA now has the authority to award contracts for a five-year base period, plus three (3) five-year options. What this means is the total possible performance period of FSS contracts will be 20 years instead of the current 10 years. This improvement to the program will ensure ordering activities are better able to align their associated blanket purchase agreements and other procurement vehicles with the performance period of the underlying FSS contracts.
To make this change a reality, the VA will be issuing a Mass Modification (MM) to all existing/current FSS contract holders. The MM will incorporate new Evergreen Option to Extend clause into the contract allowing for three option periods instead of one. This modification will be bilateral, requiring the contract holder and the government to sign.
Your assigned contract specialist will review the contract to determine if additional administrative updates are necessary before the MM can be incorporated. The review includes assessing the impact of the extended performance period on the contract’s estimated value. The original contract value was based on 10 years; therefore, it must be adjusted to the remaining years left on the contract. Also, there are several regulatory actions that are triggered by dollar value, such as the requirement to establish a small business subcontracting plan. 65 I B Contract Options – Prior to the expiration of the initial 5 year base contract period, 65 I B contractors must submit a proposal for a new FSS contract. 65 I B contracts will be granted short-term extensions only, ensuring ample time for submission and review of a new proposal.
The VA will be issuing the MM shortly via GovDelivery. A copy of the modification will also be available on at the VA FSS website. Please review the modification when it is issued by the VA, complete Blocks 8 and 10A, have an authorized signatory complete Blocks 15a – 15c, and return it to your assigned Contract Specialist (CS). Attendant to this action, a decision about applicability of small business subcontracting plan or other contract requirements will be made.
The goal of the VA is to release the Mass Modification on April 17, 2026; therefore, the ask that an authorized signatory review, sign and return the MM by May 1, 2026.
If you have any questions please contact your TGG consultant or contact us at info@gormgroup.com.