1) IFF Tracking Options

Many GSA contractors have asked us about which method is most appropriate for paying the Industrial Funding Fee (IFF) on their GSA contracts. The IFF is a charge that GSA Schedule holders pay for doing business through the Federal Supply Schedules program: in other words, it is the method by which GSA makes its money. This charge is included in the price that ordering agencies pay the contractor when purchasing products or services from a GSA Schedule. The fee is a percentage (0.75 percent for GSA Schedule holders and 0.50 percent for VA Schedule holders) of reported sales. All Schedule holders are required to remit the fee on a quarterly basis to GSA. The calendar quarters are broken down as January 1-March 31, April 1-June 30, July 1-September 30, and October 1-December 31. Payments are due April 30, July 30, October 30, and January 30 of each year.

PLEASE NOTE: As of 1 January 2007, the fee for VA Schedule holders is decreasing to 0.25 percent. FSS Authorized Pricelists, Schedule pricelists, and other related materials must be amended to reflect this change.

To ensure that the correct IFF amount is identified each quarter, contractors should maintain a consistent accounting method of sales reporting, based on the company’s established commercial accounting practices. There are four ways to report sales to GSA. Contractors may report sales through:

1. Orders Received
2. Orders Shipped
3. Issuance of an invoice  (invoices shipped)
4. Payment (invoices paid)

As noted above, sales should be reported to the Federal Supply Service (FSS) within 30 calendar days following the completion of each reporting quarter. Contractors must furnish quarterly reports, even if there have been no sales through the Contract, through the completion of the last outstanding task order or delivery order of the Contract. Sales should be reported separately for each Special Item Number (SIN) in a Schedule.

Contractors should also electronically report the quarterly dollar value of sales, including “zero” sales, by utilizing the automated reporting system at a website designated by the FSS. Prior to using this automated system, contract registration with the FSS Vendor Support Center (VSC) should be completed. The website address, as well as registration instructions and reporting procedures, are provided when the Contract is awarded. For more information, go to www.gsa.gov or call the EZGSA Contract Management team at 301/913-5000, ext. 5015.