GSA gives in to OMB and drops schedule fee

Under pressure from the Office of Management and Budget, the General Services Administration earlier this month moved to lower the fee it charges agencies for using the Federal Supply Schedule.

GSA cut the Industrial Funding Fee from 1 percent to 0.75 percent of a contract's value.

'OMB has been critical of the fee FSS has been charging for at least the last two years,' said a government official, who requested anonymity. 'It came to a head in the last few months, and the GSA administrator and OMB agreed it needed to be lowered.'

The agency's decision comes on the heels of a report by the Logistics Management Institute of McLean, Va., that recommended the decrease. GSA hired LMI to see how much the agency could reduce the fee and still have enough money to run the program effectively.

GSA spokeswoman Deborah Ruiz said agency officials would not comment on the decrease and issued a short statement saying GSA reduced the fee, effective Jan. 1, 2004.

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