As your products and services evolve, and new ones are introduced, your GSA Contract pricing and catalog should change as well. There are inflation and market indicators (like gas, steel, copper, etc.) that are always in fluctuation, and it is often necessary to adjust your commercial prices to keep your profit margin as steady and predictable as possible. But how does this affect your GSA Contract prices?
Note: This blog entry relates to GSA Contract pricing after a GSA Schedule Contract is awarded. If you would like to see the Plans that GSA Focus offers for our Services: Click GSA Contract Pricing.
A GSA Contractor is obligated by the Price Reductions Clause to keep their GSA Contract pricing offered (and discounts) in line with those of the Basis of Award customer. If you change your prices commercially, you definitely want to ask the question: is this change going to put my company at risk of non-compliance with my GSA Contract?
3 types of Economic Price Adjustments
- Clause 552.216-70 – Contractor maintains a price list of all services/products offered, available to the public in a published catalog. The Contractor acknowledges that economic price adjustments (EPAs) under their GSA Contract must go through the modification process to raise their prices. If the most recently negotiated GSA prices are not followed – the Price Reduction Clause is triggered.
- Clause I-FSS-969, (b)(1) – Contractor Maintains Commercial Market Pricing and Economic Price Adjustments are based on annual escalation rates negotiated as a percentage prior to GSA Contract award.
- Clause I-FSS-969, (b)(2) – Contractor Maintains Commercial Market Pricing and Economic Price Adjustments are based on an agreed-upon publicly available market indicator negotiated prior to GSA Contract award (Examples: The Euro, Steel Prices, Gas Prices).
The GSA Modification Process
If your GSA Contract pricing relates to the 2nd or 3rd option above, then this does not apply to you because your price adjustments are reactionary to pre-negotiated conditions. However, you do still have to be careful with your commercial practices with your Basis of Award customer.
However, most GSA Contractors have the first method, and this means they must go through a formal document preparation and submission process to the GSA – called a modification. Here are the major details of a GSA modification:
- A Modification (Mod) is any revision to your GSA Contract after Award, Including:
- Adding Products/Services
- Deleting Products/Services
- Price Increases/Decreases
- Administrative Changes
- More …
- The process involves the preparation of a small document package, usually 5-8 documents.
- Mods are submitted through E-Offer, and are reviewed by your GSA Contracting Officer
- After a Mod is approved, you must make changes on GSAAdvantage! shortly after.
GSA Contract Pricing Resources
Related Article: GSA Contract Pricing After Award
GSA Focus has helped countless companies modify their GSA Contract Pricing, add products or services, and many other types of modifications. We offer affordable solutions to outsource GSA Contract maintenance so you can focus on winning contracts and keeping your company profitable. If you are interested in our GSA Maintenance Services, please CLICK HERE and complete the webform, or call us at (866) 916-6484.