Per, Federal Computer Week's article "GSA pricing policy could get the boot" http://www.fcw.com/online/news/152288-1.html, a new advisory panel will determine the fate of a price reduction clause that requires companies on
General Services Administration schedule contracts to match discount exceptions made to the class or classes of customers as negotiated in their Final Proposal Revision that are below their GSA rates.
GSA has always required offerors to be "most advantageous" (not defined), as well as being equal to or better than their most-favored customer (not defined either but should be restricted to end-user customers who used the products/services themselves vs. distributors, VARS, dealers or OEM's).
The price reduction clause does not state any quantity or time frame to invoke the price reduction clause. My position, is that the discounts and/or concessions made beyond those negotiated with GSA made to the class(es) negotiated under the price reduction clause need only be matched during the overlapping period of performance. For example, a commercial customers receives a 2% better price for an item and the order is received on Monday and ships out on Tuesday. GSA should only be granted the additional 2% improvement from the GSA price if an authorized federal ordering activity ordered the same product on Monday or before being shipped out on Tuesday. Many years ago, if an improved price or concession was made to a federal agency, GSA holders had to offer the same price/concession to all federal GSA ordering activities for the next 30 days.
I doubt there will be any substantive change to the price reduction clause, as it ensures GSA is continuing to receive pricing and concessions made by GSA holders throughout the life of the contract (5-20 years) vs. their commercial customers.
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