The Industrial Funding Fee is a fee paid quarterly on vendor sales. This fee is used to support the contract administration and is .75% of your quarterly GSA contract sales
Please make your check payable to:
General Services Administration
Industrial Funding Fee (IFF/SIFT) for Multiple Award Schedule Contracts
P.O. Box 979017
St. Louis, MO 63197-9017
The IFF clause requires that sales identified as made under Federal Supply Schedules to state and local governments under Cooperative Purchasing authority and under the Disaster Recovery Purchasing program shall be counted as reportable sales for IFF purposes.
The IFF Clause, 552.238-74, specifies that the contractor must maintain a consistent accounting method of sales reporting based on the contractor’s established commercial accounting practice. This established accounting practice should be the determining factor on when the contractor reports sales: (1) receipt of order; (2) shipment or delivery, as applicable; (3) issuance of an invoice; or (4) payment. The clause does not limit the number of times a contractor may change the method of sales reporting. However, this doesn’t mean the contractor may change the method of sales reporting each quarter because the contractor must demonstrate “consistent” practices in accordance with this clause. Also see question 16 above.
Yes. BPAs are agreements under the Federal Supply Schedule contract. Therefore, all sales on the BPA are contract sales and should be reported as such.
All team members must abide by the terms and conditions of their respective Federal Supply Schedule contracts. All team members must report their own contract sales and submit the resulting IFF obligation.
Should a contractor report sales and remit the fee if sales/fee for a particular contract are zero or some small amount?
Yes. Clause 552.238-74 requires contracts to submit sales reports quarterly. If no sales occur, it requires the contractor to show “zero” on the report. Contractors must remit fees quarterly for all amounts greater than zero.
The ACO is the point of contact for questions regarding a specific contract. If the contractor does not know which ACO is assigned the contract, the Contract Management Division below appropriate to the contractor’s contact for contract administration is located can provide the information.
Yes. The contractor must report and remit the IFF for all sales that occurred while that SIN was under contract.
Can contractors report sales and remit fees on a contract rather than Special Item Number (SIN) basis?
The IFF clause specifies that contractors must report sales separately for each National Stock Number (NSN), Special Item Number (SIN), or sub-item. A contractor may consolidate fees for multiple SINs and/or contracts into one check provided that the check is annotated with the following identifying information:
(1) contract number(s)),
(2) reporting period(s)), and
(3) report amounts. There is no requirement to remit the IFF by individual SIN.
The IFF is a simple application of the rate to the sale. If a contractor makes a sale of contract items under a Federal Supply Schedule contract, the IFF applies. However, if the contractor doesn’t record compensation for additional expenses as a sale under the GSA contract, then the IFF should not be applied.
For IFF purposes, GSA recognizes a sale recorded in a manner consistent with the contractor’s accounting system. This method minimizes the administrative burden on contractors.
Clause 552.238-74 specifies the following acceptable points at which contractors may report sales:
(1) receipt of order;
(2) shipment or delivery, as applicable;
(3) issuance of an invoice; or
(4) payment. Any contractor that changes accounting and reporting practices, however, should notify the applicable ACO.
The benefits a customer received are well worth the fee, particularly when compared to the cost of customer staff time required to award a new procurement:
Competition: All competition requirements have been met.
Hassle-free Volume Purchase Prices: GSA has already negotiated discounts for its customers.
Expedited Delivery: Many items can be delivered overnight or within two days.
Easy Payment Options: Federal Supply Schedule contractors accepts the GSA SmartPay Card.
Flexible Purchasing Options: Blanket Purchase Agreements (BPAs) save customers time and money.
No FedBizOps Synopsis required: GSA has already issued the synopsis.
Price Reductions: Customers are free to request price reductions beyond the discounted Schedule prices.
No Order Limitations: Customers can place an order for any dollar amount.
Socioeconomic Goals: Federal Supply Schedule orders count toward small business goals.
Quality Purchases: Customers have access to state-of-the-art technology and quality services and supplies.
Environmental Compliance: Orders placed under Schedules provide compliance with environmental requirements for application services and products.
Skill Pool: Federal Supply Schedules afford customers extensive teaming arrangements
Contractors should follow the instructions in the IFF Clause, 552.238-74, and must provide the following information with all payments: contract number(s)), report amount(s)), and report period(s)). If the payment is for more than one contract and/or for multiple reporting periods, the specific amount to be allocated to each reporting period and each contract number must be included on any check submitted
Yes! Please CLICK HERE to download the ePay user’s guide.
To calculate how much IFF to remit, multiply total Federal Supply Schedule sales reported by the IFF rate in effect. The contractor should direct any questions regarding IFF calculations to the respective Administrative Contracting Officer (ACO).
The current IFF rate is located at http://72a.gsa.gov/. The rate is set by the Commissioner, Federal Supply Service, reviewed periodically, and may be changed yearly.
At the inception of the IFF, Government and industry mutually agreed that the current IFF remittance procedure would have the least impact on all parties.
The contractor must have Internet connectivity and access to a web browser to submit sales reports electronically. The first step is to register with the GSA Vendor Support Center (VSC) at http://vsc.gsa.gov/. This web site provides information and instructions, including an online demo, regarding registration and electronic sales reporting. You may also contact the VSC by telephone at (877) 495-4849 or (703) 305-6235. Additional information on electronic payments can be found at http://72a.gsa.gov/. Following award, the appropriate ACO issues instructions to the contractor on utilizing these web sites.
The IFF Clause, 552.238-74, defines the respective calendar quarters as January 1-March 31, April 1-June 30, July 1-September 30, and October 1-December 31. The clause requires that contractors remit the appropriate IFF to GSA within 30 days of the end of the applicable reporting quarter.
The 72a Report is abbreviated reference to “GSA Form 72A, Contractor Report of Sales.” This is the form by which contractors electronically report sales via the Internet on a standard quarterly schedule. Clause 552.238-74 contains instructions for reporting sales.
Contractors must report contract sales to GSA within 30 calendar days following the completion of each reporting quarter. Clause 552.238-74 defines calendar quarters and defines four acceptable points at which contractors may report sales.
Additionally, it specifies that GSA will provide the contractor with specific written procedural instructions on remitting the IFF within 60 days of award of a new contract. If no sales occur on a contract during a quarter, the contractor is still responsible for filing the sales report by entering zeroes.
Schedule contractors remit to GSA a fixed percentage of their quarterly contract sales. Clause 552.238-74, Industrial Funding Fee and Sales Reporting, contains instruction for remitting the IFF.
The IFF is included in the price customer agencies pay the contractor when they purchase items from a MAS. The contractor remits the IFF due to GSA, quarterly.
The IFF requirement was introduced to Multiple Award Schedule contracts in April of 1995. It is currently included in all Federal Supply Schedule contracts as 552.238-74, Industrial Funding Fee and Sales Reporting (July 2003).
No. The IFF is already included in the price of the item because GSA negotiated the fee into the contract price before the award was made.
The IFF is a fee paid by customers to cover GSA’s cost of operating the Federal Supply Schedules program. The fee is a percentage of reported sales under Schedules contracts.