Changes to the administration of the Industrial Funding Fee (IFF)
The Industrial Funding Fee is a 0.5% administrative fee built into the pricing of all products offered under the Federal Supply Schedule (FSS).
On July 10th the VA announced two substantial changes to the program's reporting and payment:
- IFF will transition from the existing Sales Reporting Portal to the GSA's Federal Acquisition Service (FAS) FAS Sales Reporting Portal (SRP)
- Timing: TBD, by the end of calendar year 2023.
- Recommended Action: Look out for future notifications regarding the new portal. No other action items currently.
- Effective January 1, 2024, manufacturers will now be required to report and pay IFF within 30 days of the calendar quarter (previously, IFF was due 60 days after the quarter close). Effectively, this will mean that IFF will need to be filed/paid at the same time as the CMS government pricing quarterly calculations.
- Timing: Q1 2024 and after IFF reporting and payment will be due within 30 days.
- Recommended Action: Adjust internal business practices to accommodate shorter due dates, as necessary; Look out for the distribution of the Mass Modification implementing this change contractually (expected by the end of 2023).
Woven Data is here to assist with any questions you may have!
A few useful links:
- New Sales Reporting Portal FAQs
- VA Notification #1 (Transition to FAS SRP)
- VA Notification #2 (Reduction of IFF due date from 60 to 30 days)
Published on July 13, 2023 by Jenny Bulkin