Industrial Funding Fee
The Industrial Funding Fee (IFF) is a fee paid by contractors to GSA to cover the cost of operating the Schedule program. The fee is .75% of sales generated as a result of being on the Schedule, and is paid by each contractor to GSA on a quarterly basis. Government customers pay this fee when they purchase items from a Federal Supply Schedule contractor. The fee is included in the price of the item and is not a separate line item; therefore, the award prices or discounts that appear in contractors' GSA price lists already include the fee.
For example, if a contractor agrees to charge $100 for a product or service, the actual price appearing in their GSA catalogue - and which government customers ultimately pay - would be $100.75. The contractor receives the $100 he agreed to charge, and the $.75 would go to GSA. At the end of the quarter, each contractor prepares a report showing the total of its GSA Schedule sales for the period, as well as a calculation of the $.75 IFF. The report and the payment then go directly to GSA.