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MAS now allows upfront payment for agencies buying software licenses as Software as a Service
WASHINGTON – The U.S. General Services Administration (GSA) announced an update to the Multiple Award Schedule (MAS) which allows for upfront payments for software licenses, a move that could save taxpayer dollars while supporting small businesses. The change – which applies to software licenses delivered as Software as a Service (SaaS) under the Information Technology Category (ITC) Special Item Numbers (SINs) – aligns government practices with existing commercial practices and offers more flexibility for agencies purchasing software through the MAS.
“By giving the option of one invoice on a purchase that’s immediately delivered, we’re eliminating another administrative burden for our vendor and agency partners. This is a major milestone that reflects our strong commitment to helping agencies save money, advance their mission, and support small business at the same time,” said GSA Federal Acquisition Service Acting Commissioner Tom Howder. “Modernizing our approach to payment methods will reduce barriers and help agencies as they enhance and improve their IT operations in service of American taxpayers.”
The update comes after GSA conducted research and gathered input from agency buyers and vendors.
With the update, GSA is also providing a path for more small business resellers to sell software licenses delivered as Software as a Service. Previously, those firms may have lacked the ability and funding to sustain operations while waiting months for payments from government contracts.