[Query Concerning Multiple Award Schedule Multiyear Contracting]

The General Services Administration (GSA) requested a decision as to whether a proposal for multiyear contracting in connection with the Office of Federal Supply and Services (FSS) Multiple Award Schedule (MAS) would violate sections of the U.S. Code or conflict with the purposes of the advertising provisions of the Federal Property and Administrative Services Act of 1949. These provisions of the law relate to an agency's authority to commit the Government to expend appropriated funds by contract. Under this proposal, MAS would contract on a 3-year, rather than a 1-year, basis to increase its efficiency and reduce the aggregate cost to the Government of procuring personal property. GSA expressed concern regarding the MAS multiyear contracting since the Government would be involved in a contract for a period of time prior to Congress' enacting an appropriation. GAO stated that MAS multiyear contracting would not violate those provisions of the law when the agreements are executed because they do not give rise to binding commitments. Furthermore, under the FSS proposed procedure, an agency would charge the cost of purchasing a scheduled item against the appropriation for the fiscal year in which it orders the item. Finally, GAO determined that the proposed MAS multiyear agreements may be acceptable because the GSA proposal requires an administrative determination before any funds are obligated. Regarding potential conflict with the 1949 act, GAO stated that 3-year MAS procurements would be competitive because all MAS agreements contain a price reduction clause which benefits the Government, and FSS would hold an "open season" which would allow new persons to do business with the Government.