GSA MAS Contract Types refer to the various pricing and contract structures allowed under the General Services Administration’s Multiple Award Schedule (MAS) Program. These contract types determine how pricing is established, how vendors are paid, and how risk is allocated between the government and the contractor. Understanding the types of contracts used under the MAS is essential for both acquisition professionals and Schedule contractors, as it affects everything from offer preparation to order fulfillment and compliance.
While the MAS program is governed by the Federal Acquisition Regulation (FAR) and includes pre-negotiated terms and conditions, individual orders placed under the Schedule may use different contract types depending on the nature of the work and the needs of the agency.
Overview of the MAS Contract Framework
The MAS program offers commercial products, services, and solutions to federal, state, and local government buyers. GSA awards contracts to vendors under a standardized contract vehicle, but the specific type of pricing arrangement is determined at the task or delivery order level by the ordering agency.
The MAS Solicitation includes standard contract clauses that permit a range of contract types authorized under FAR Part 16, especially those suited for commercial acquisitions under FAR Part 12.
Each contract type has different implications for proposal development, pricing strategy, contract administration, invoicing, and audit readiness. The choice of contract type depends on factors such as the clarity of the requirements, risk to the government, and market pricing availability.
Primary GSA MAS Contract Types
The contract types used under the MAS program are generally fixed-price in nature, but other types may be used when appropriate and authorized. The ordering agency makes the final determination on the type of contract used at the task or delivery order level.
The most common GSA MAS contract types include:
- Firm-Fixed-Price (FFP) — the most widely used contract type under MAS. The price is not subject to adjustment regardless of the contractor’s actual costs. Best suited for well-defined products and services with predictable deliverables.
- Time-and-Materials (T&M) — allows for payment based on hourly labor rates plus material costs. Used when it is not possible to estimate the extent or duration of the work. Requires close oversight and justification from the ordering agency.
- Labor-Hour (LH) — similar to T&M but excludes reimbursement for materials. Labor is billed at established hourly rates for time actually worked. Used when scope is not fully known and deliverables are labor-intensive.
- Fixed-Price with Economic Price Adjustment (EPA) — used when vendors include escalation clauses tied to commercial pricing indexes. The EPA clause allows price adjustments based on approved criteria over the life of the contract.
- Blanket Purchase Agreements (BPAs) — not a standalone contract type but a flexible tool that allows agencies to place repeat orders under pre-established terms. BPAs can use any of the above contract types depending on how they are structured.
Agencies must comply with FAR guidance when selecting a contract type and must document the rationale, especially when using T&M or LH structures due to the higher risk to the government.
Factors Influencing Contract Type Selection
Contract type selection is not arbitrary—it is based on procurement planning, market research, risk assessment, and the level of detail available in the statement of work (SOW). GSA provides acquisition guidance to help agencies choose the most appropriate structure for their task orders under MAS contracts.
Typical factors that influence the selection of a contract type include:
- Clarity of requirements — FFP is preferred when the scope, deliverables, and performance standards are well-defined
- Risk tolerance — agencies may use T&M or LH contracts when requirements are uncertain and risk must be shared
- Pricing data availability — FFP is easier to apply when pricing is stable and comparable, while T&M may be used when historical data is limited
- Urgency and flexibility needs — short-term or rapidly changing needs may be better served with LH or BPA arrangements
- Budgetary constraints — FFP provides more predictable cost control, which is preferred for tightly budgeted programs
GSA contracting officers and agency buyers are encouraged to justify their choice of contract type and ensure it aligns with the acquisition strategy, funding, and oversight mechanisms available.
Implications for Contractors
Contractors must understand how each contract type affects their responsibilities, pricing models, and profit margins. While FFP contracts may offer greater certainty and faster payment cycles, they also place more risk on the vendor. T&M and LH orders require more documentation and may expose the contractor to additional oversight, but they offer flexibility for evolving requirements.
It’s also important for contractors to ensure their GSA-approved pricing is suitable for use across different contract types and to clearly state any pricing assumptions in their GSA contract and proposals.
Invoicing, timekeeping, and compliance requirements will vary based on the structure of the awarded task order, so administrative processes must be aligned accordingly.
Conclusion
GSA MAS Contract Types define how pricing and performance are structured at the order level and have a direct impact on project delivery, compliance, and contractor profitability. Understanding the characteristics and strategic implications of Firm-Fixed-Price, Time-and-Materials, Labor-Hour, and other contract types is essential for both agencies and vendors operating within the GSA Schedule program. With the right approach to contract type selection and execution, agencies can mitigate risk and vendors can successfully deliver value in the federal marketplace.
