5 GSA Schedule Pricing Rules You Should Know
Setting prices is a fine balancing act, as you don’t want to sell yourself short or scare off potential customers. When it comes to setting your GSA price list, there is a lot at stake – both in the pre-award and post-award stages. What are the 5 GSA Schedule pricing rules you should know?
- Fair and reasonable prices. The U.S. Government leverages its purchasing power to obtain equal or better prices than a contractor’s Most Favored Customer (MFC). When potential contractors are negotiating their proposal, the GSA Contracting Officer reviews whether their proposed pricing is ‘fair and reasonable’, considering factors like labor, experience, location, Consumer Price Index, certifications, and more. For the best chances of success, you should:
- Compare your prices with those of similar GSA competitors
- Look at Independent Government Estimates
- Conduct market research independently or with assistance of GSA consultants
- Price increases. Increases on your GSA pricing list are determined by the Economic Price Adjustment clause on your contract; by the Large Category your business falls under (from 4-10% depending); and by time restrictions, i.e. how long you’ve had your Schedule, when it ends, and when the last increase took place.
- Price Reductions clauseFAR’s Price Reduction clause ensures that a GSA contractor offers the same or better discounts to government buyers as it does to their Basis of Award (BOA) customer, which is often the same as their MFC. The Price Reduction clause is triggered, if you either reduce the prices on your commercial price list or offer higher discounts to your BOA. You must inform your GSA Contracting Officer within 15 days, and your contract will be modified either permanently or temporarily.
- Electronic price list within 30 days of being awarded a Schedule, a contractor must publish their GSA price lists on GSA Advantage! This must include the Industrial Funding Fee and be updated to reflect any price changes. You cannot access eBuy and search for government opportunities until you upload an electronic price list.
- Transactional Data Reporting (TDR)GSA’s role is to save the government as much money as possible, and so they need as much data as possible. Contractors selling certain products or services have to provide monthly data on each transaction, detailing the contract, order number, product/service description, quantity sold, Universal Product Code, SIN, price, and other elements. This may seem extensive, but TDR requirements exempt you from the Price Reductions clause, as well as Commercial Sales Practices disclosure.
Familiarize yourself with GSA Schedule pricing rules
As we’ve explained, the GSA pricing rules are strict and numerous. Conducting careful market research is a crucial part of your GSA proposal, and non-compliance with post-award regulations could jeopardize your future success in the government market.
At Price Reporter, we can help. We offer a GSA pricing tool to evaluate your competition and our GSA experts can help build your pricing strategy and keep you compliant. Contact us today for a consultation.