Attention MAS Contractors: Urgent Action Needed to Update Your ARO Terms!

If you’re a product contractor under GSA’s Multiple Award Schedule (MAS) and haven’t updated your After Receipt of Order (ARO) terms, this message is for you! In May 2024, GSA sent out refresh notices urging MAS contractors to review and validate their contract details, including Free On Board (FOB) and ARO terms. As of today, many contractors still haven’t taken the necessary steps.

Why This Matters

It’s essential that your ARO terms—the number of calendar days it takes to ship or deliver products after receiving an order—correctly align with your FOB terms. Misaligned or incorrect terms can lead to non-compliance with the GSAR 552.238-86 Delivery Schedule and may hurt your GSS Delivery Scorecard On-Time Metric.

Here's a simple breakdown of how ARO should correlate with your FOB terms:

●      FOB Origin = ARO Shipped

●      FOB Destination = ARO Delivered

Incorrect terms could negatively impact your contract and put you at risk of corrective action from GSA.

What You Need to Do

If you haven’t yet updated your catalog terms, now is the time to act. Here’s how:

1. For FOB Destination Items:
   If your catalog currently lists ARO days as “Shipped,” you must submit a modification (MOD) to update it to the number of days ARO Delivered.

2. For FOB Origin Items:
   If your catalog currently lists ARO days as “Delivered,” you need to submit a MOD to reflect the number of days ARO Shipped.

Important Considerations

ARO days are calendar days, which means weekends, holidays, and your normal business turn times all count. Additionally, you need to factor in the typical delivery timelines of your chosen carriers. Failing to account for these factors could lead to inaccurate delivery timelines and negatively affect your Monthly GSS Delivery Scorecard.

Why Compliance Is Critical

Not updating your ARO terms is a violation of your MAS contract, and incorrect catalog information can lead to GSA taking corrective action. More importantly, accurate and compliant terms ensure that you continue to provide the federal government with the reliable services and products they depend on.

Take Action Now

To avoid any issues and ensure your catalog is fully compliant with GSA requirements, review and update your ARO terms as soon as possible.

If you have any questions or need assistance with submitting a MOD, reach out to K&G today.

Don’t delay—take action today and keep your business running smoothly on GSA Advantage!