The GSA IFF stands for Industrial Funding Fee. The IFF is a fee GSA charges agencies for using the GSA schedule contracts in order to pay for GSA's contract management costs.
Currenly, this fee is equal to 0.75%. GSA has vendors tack this fee onto their approved GSA discounted price.
This is how the GSA IFF works. Let's say you have a product that sells for $100. After negotiating with GSA, you agree to a 10% discount, or $90. GSA then has you tack on the .75% fee, and therefore, the price you charge agencies is $90.68. At the end of the quarter, you would report sales under the contract at the 72a.gsa.gov website and you would keep your $90 and send GSA their 68 cents.
The approved formula to calculate your GSA price is to take your GSA discounted price and divide by 0.9925.
For example, in the example above, the vendor took the 100 product and deducted the negotiated 10% discount, resulting in the GSA discounted price being $90. then applying this formula, you arrive at the official GSA Price inclusive of the IFF:
$90 / .9925 = 90.68
Prices quoted to agencies must ALWAYS be inclusive of the IFF.
No. If you sell open item markets on a GSA order, you do not need to report the sale on your 72a report nor pay the IFF.
No. You need not report travel and living on your 72a report nor pay the IFF.