GSA Extends Moratorium on $25k minimum sales criteria through 9/30/2021
by Victoria Tollossa
On June 18, 2020, The GSA Office of Government-wide Policy, OFFICE OF ACQUISITION POLICY (MV), issued the Acquisition Letter MV-20-09 to provide a temporary moratorium on the enforcement of the minimum sales requirements of FAS clause I-FSS-639, Contract Sales Criteria in Response to COVID-19. This action was then extended in Supplement 1 from September 30, 2020 to March 31, 2021.
Acquisition Letter MV-20-09, Supplement 2 was issued on March 5, 2021. This action will extend the temporary moratorium on the enforcement of the minimum sales requirements of FAS clause I-FSS-639, Contract Sales Criteria, to September 30, 2021 in order to continue support of America’s response to COVID-19.
l-FSS-639, Contract Sales Criteria, stipulates that the Government may cancel a GSA schedule contract if reported sales do not exceed $25,000 in the first 24 months following contract award, and exceed $25,000 in each 12-month period thereafter.
The Novel Coronavirus Disease 2019 (COVID-19) was declared a nationwide emergency by the President on March 13, 2020. This declaration was made pursuant to section 501 (b) of the Stafford Act. COVID-19 has also been declared a pandemic by the World Health Organization (WHO) on March 11, 2020 (see the WHO webpage), and public health emergency by the Secretary of Health and Human Services on January 31, 2020 (see the Public Health Emergency webpage). The economic impact of the COVID-19 pandemic continues to be felt by businesses throughout the country, to include GSA’s Federal Supply Schedule (FSS) Program industry partners.
Executive Order 13924 directs agencies to “identify regulatory standards that may inhibit economic recovery” and to take actions such as recission or suspension.
If you have any questions regarding the moratorium extension please do not hesitate to contact the Centre Consulting Team.