Public Sector Institute

Joanne Woytek, SEWP PM:

The scope includes IT product solutions and related technology; it is fairly broad scope, as long as in the IT product world—any kind of hardware, software in the IT arena, audio visual equipment, teleconferencing, video conferencing; anything related to those types of technologies, plus supporting technologies like printers and fax machines.

It goes a little bit beyond IT, but it is those basic buckets such as IT AV or supporting to IT. SEWP also provides certain services that are product related including installation, training, site planning and warranty; those are in scope.

We are not a labor support service contract. For the most part, we do not have long term support services; there is a small amount allowed in a set of small contracts that are set aside for support services.

That is our main distinction. We are not in the support service arena.

OTFL: How does a buyer know they are getting fair and reasonable pricing?

JW, SEWP PM:

There are a number of different layers to the answer, starting with the fact that SEWP consists of pre-competed contracts. During the competition a discount structure is set up that takes the list price. A discount off of list is what we start with.

That structure is based on the type of product that is going to be added. Before anything begins you start with the list and have a competed discount structure. Then we actually compare that to other contracts to find out if the price comparable to what other people are charging. If it is too high then, we don’t add it unless a good explanation.

We then have a contract requirement that if the contract holder has a GSA contract—and they all do—and that product exists on their GSA contract, it is has to be at or below or that price on SEWP not counting the fee.

Our fee is lower therefore by definition our price has to be lower than GSA price. And that’s just the catalog price, which is which is discounted by the vendor even further.

Then the customer will go out and get quotes. When the quoting process is done — and there is competition in that — they will lower the price some more.

Then you will buy more than one of something; that will lower the price some more. Even if you get a quote that might seem too high, we will work with the contract holder or you can negotiate with the contract for an even lower price. It is a multi-layer pricing structure.

OTFL: What if the product I need isn’t on SEWP?

JW, SEWP PM:

SEWP does not work as a normal IDIQ (Indefinite Delivery/Indefinite Quantity) contract. Most contracts are set up on catalogs and you base your decision on what to purchase on what is in the catalog.

With SEWP there is no real static catalog; we operate as an on demand catalog. What that means is the question is not “whether it is on SEWP? The question is what you want to purchase?”

If the customer asks for a product to be added to the contract, the contract holders look at your request and will add those products that meet your request as long as they meet the pricing and scope requirements of SEWP. Then they can provide the quotes.

You don’t have a catalog that you search so much as a request system where you ask for the product you want and then contract holders respond getting you what you want.

OTFL: How much is the SEWP fee?

JW, SEWP PM:

We are run by NASA, but NASA doesn’t provide any funding directly for the SEWP program. The SEWP PMO and contracts are managed by staff paid for by the fee.

Unfortunately it can’t be free and we do have to charge. At the same time we are not trying to make money for anybody. We are making enough money to pay our bills. The 0.5% fee is the lowest in the government for this type of service.

Further there is a cap of $10,000 starting with orders at $2 million. We base our fee on our budget. If we do well we are able to lower it. The past three years we have gone from 0.65% to 0.5%. In comparison a GSA Schedule purchase is 0.75% without a cap.

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