What are Order Level Materials?
Order Level Materials (OLMs) are products, services, and/or solutions (a combination of products and/or services) acquired in direct support of an order placed against a GSA Schedule contract, including orders under Blanket Purchase Agreements (BPAs), when the products, services, and/or solutions are not known at the time of contract or BPA award. OLM pricing is not established in the GSA MAS contract or BPAs. ancillary supplies and services that are delivered to customers during the performance of GSA Schedule task and delivery orders.
How are OLMs prices determined?
OLMs are not priced on the GSA Schedule. The prices are determined by the ordering agency at the task order level.
What percentage of OLMs can be used in task/delivery orders?
There is no fixed percentage, but OLMs must not be the primary purpose of the task or delivery order. OLMs are intended to support the main objective of the order or total solution. When determining what percentage of the OLM is too much of an order, you can utilize any of these thresholds:
- It is not the primary driver of the technical evaluation or performance metrics, and
- It is not the main deliverable in the Performance Work Statement or Statement of Objectives.
The government will not issue an order solely for the OLM product or service if the OLM product or service is the primary purpose of the order.
What rules and regulations apply to OLMs?
OLMs must meet the following requirements:
- GSA MAS Contractors must have the OLM SIN awarded on their FSS contract.
- OLMs must be clearly identified on the customer order/invoice.
- OLMs under GSA MAS contracts are subject to sales reporting and require compliance with all GSA MAS contract terms and conditions (e.g., TAA, Security Prohibitions and Exclusions, Cybersecurity Supply Chain Risk Management (CSCRM), Industrial Funding Fee (IFF) requirements).
- OLMs must satisfy the definition of a “commercial product” or “commercial service” as outlined in FAR 2.101.
- GSA MAS contractors may add an indirect cost fee if the ordering contracting officer reviews and approves it. Approved fees must: Include the IFF; and be listed as a separate line item on the order.
What are some examples of OLMs?
Examples include, but are not limited to:
- Materials and Supplies: Specific cables, unique insulation, or specialized tools required for a particular project that aren’t on the main price list.
- Material Handling Charges: Costs associated with order execution, shipping, and tracking.
- Incidental Services: Minor supporting services not explicitly listed under a specific labor category on the FSS contract.
- Specialized Repair Work: If a piece of equipment used during a project requires a unique, unforeseen repair that isn’t covered by the contract’s standard maintenance SIN, the specialized labor might be an OLM.
- Subcontracted Services: Services provided by a third-party subcontractor when there isn’t a specified labor category for that service on a GSA Schedule contract.
- Customized Training: Specific, customized training services required for a particular project that were not known or priced during the original contract award.
- Installation/Site Preparation: Services like basic electrical work, plumbing, or painting that are incidental and necessary for the delivery or installation of a product under the main contract.
- Shipping / Freight: Applicable to FOB Origin products where shipping is not awarded under the MAS contract.
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