The GSA IFF stands for Industrial Funding Fee. The Industrial Funding Fee (IFF) is a fee charged by the General Services Administration (GSA) to agencies that use the GSA Multiple Award Schedule (MAS) contracts. It is collected by the participating companies, who embed the fee into their GSA pricing. The fee is used to offset the costs of the GSA's administration and management of the MAS program. The fee is typically a percentage of the total sales under the contract and is charged annually. The fee is used to support the development and maintenance of the program and its associated systems, as well as to support the negotiation of the MAS contracts and other administrative costs. The fee is not a profit for the government, and it is not intended to generate revenue.
Currently, 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 it by 0.9925.
For example, in the example above, the vendor had a $100 product and deducted the negotiated 10% discount, the GSA discounted price would be $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 report the sale on your GSA sales report nor collect or pay an IFF on those iopen market items.
No. You do not report travel and living on your sales report. You would not collect nor pay an IFF.