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Veterans Crisis Line Badge

VA Federal Supply Schedule Service

 

General - IFF & Sales Reports

  1. What is the Industrial Funding Fee (IFF)?
  2. How often am I required to report sales under my VA Schedule contract?
  3. When are the sales reports and IFF remittance due?
  4. How do I remit my IFF payment?
  5. Who should I contact if I’m having trouble with the Sales Reporting System?
  6. How do I know if a sale should be reported?
  7. How is the Contract Sales Criteria clause handled with regard to sales made through the prime vendor program?
  8. Does the IFF play a role in determining the tracking customer ratio?
  9. Do ordering activities pay IFF in addition to the price listed by the VA FSS contractor?

1.  What is the Industrial Funding Fee (IFF)?

The Industrial Funding Fee is an administrative fee built in to the pricing of all products & services offered under the VA Schedules program.   The monies earned from this fee serve to support the agency office that negotiates all VA Schedule contracts.

2.  How often am I required to report sales under my VA Schedule contract?

In accordance with 552.238-74, Industrial Funding Fee and Sales Reporting, VA Schedule contractors are required to remit the requisite Industrial Funding Fee every quarter for all sales under the contract during the preceding 3-month period (to include any partial month).

3.  When are the sales reports and IFF remittance due?

Sales reports and IFF payments are due immediately following the completion of each quarter of the Government fiscal year.  Any partial month is to be considered as one (1) month for reporting purposes.

If sales reports and IFF payments are not reported and paid within 60 days of the end of the quarter, the report and payment due is delinquent and constitutes a contract debt to the United States Government and could result in cancellation of the contract pursuant to contract clause 552.238-73 Cancellation.

Quarter 1
(Oct–Dec)
  • Sales and IFF are due starting January 1
  • Q1 Sales and IFF not received by February 28 are delinquent
Quarter 2
(Jan–Mar)
  • Sales and IFF are due starting April 1
  • Q2 Sales and IFF not received by May 31 are delinquent
Quarter 3
(Apr–Jun)
  • Sales and IFF are due starting July 1
  • Q3 Sales and IFF not received by August 31 are delinquent
Quarter 4
(Jul–Sep)
  • Sales and IFF are due starting October 1
  • Q4 Sales and IFF not received by November 30 are delinquent

4.  How do I remit my IFF payment?

Currently, you are required to submit your sales report and remit your IFF Payment online through the VA Sales Reporting System.  There are no additional fees or charges associated with this system.

5.  Who should I contact if I’m having trouble with the Sales Reporting System?

Direct all questions related to paying IFF and reporting quarterly sales to the VA FSS Sales Desk.

6.  How do I know if a sale should be reported?

A sale should be reported if the

  • …task or delivery order includes a direct reference to your VA Schedule contract number, then the entire order should be reported as an FSS sale (this includes sales made under prime vendor, direct-to-patient, and consignment programs).
  • …product or service falls within the description of the SINs on your contract and the customer is an eligible ordering activity, the order is considered a Schedule sale. 

If an ordering activity opts to include non-FSS line items, or indicates an open market exception, then these line items must be annotated as "open market" or "not under contract" and the sales value of these items should be excluded from reported FSS sales.

You must have a tracking system and methodology in place that allows you to differentiate between Schedule and non-Schedule sales.  Contractors are reminded that proper and timely sales reporting is a contract requirement.

7.  How is the Contract Sales Criteria clause handled with regard to sales made through the prime vendor program?

The sales will be credited to the contractor if the prime vendor acted on behalf of your company to sell the product.

8.  Does the IFF play a role in determining the tracking customer ratio?

No, the tracking customer ratio is established before the IFF is applied.

9.  Do ordering activities pay IFF in addition to the price listed by the VA FSS contractor?

No, the IFF is already included in the net VA FSS price of an available item or service.