GovWorks® acts as a prime contractor on behalf of the Federal customer for acquiring products and/or services using a variety of contracting methods (e.g., full and open competition, limited competition, sole source, simplified acquisition) and contracting vehicles (e.g., GSA Multiple Award Schedules, GWACs). Typically, the service fee is 4% of the contract amount and is negotiated up front.

Advantages to using GovWorks®:

• Federal customers receive streamlined and expert acquisition support throughout the
  full lifecycle of a project (sourcing through bill payment).
• GovWorks® does not need to return un-obligated funds at the end of the fiscal
  year. Funds are retained until expended and therefore can be carried over to the
  following fiscal year.
• No direct appropriation is made available for GovWorks®. The service-for-fee
  arrangement places the focus on customer satisfaction.

Process:

• Federal customer transfers funds to the Franchise Fund via any agreement the
  customer wishes to use (e.g., interagency agreement, MIPR), and provides a
  statement of work and an initial government cost estimate to GovWorks®.
• Working closely with the customer, GovWorks® handles all acquisition activities
  and performs all related contract administration and bill payment.
• Customer receives one monthly financial statement reporting out all procurement costs
  and contract bills.