How to Change the Priceson Your GSA Schedule?

Understanding the Dynamics of GSA Schedule Pricing in aChanging Economy

In recent years, we've all witnessed how the cost of livingand business expenses have surged. This economic shift has particularlyimpacted those holding GSA Schedules. Fixed ceiling prices on the GSA Schedulepose a unique challenge when commercial pricing undergoes significant changes.In this blog, we'll delve into the essential steps and considerations forupdating your GSA Schedule pricing through GSA Schedule modifications.

The Role of Economic Price Adjustment (EPA) Clauses

Firstly, let's address the EPA clauses that govern your GSASchedule pricing changes. These clauses are specified in your Final ProposalRevision document and determine your path for requesting a pricingmodification.

1. EPA Clause 552-216-70

This clause typically applies to product or training courseproviders. It allows for up to a 10% increase in line with your commercialpricelist changes. Eligibility for this clause requires a public commercialprice list.

2. EPA Clause I-FSS-969 (b)(1)

Ideal for services with predictable cost increases, thisclause offers a fixed annual escalation based on BLS Employment Cost Indexdata. The escalation is automatically applied each anniversary of yourcontract, negating the need for a modification submission.

3. EPA Clause I-FSS-969 (b)(2)

This clause ties your pricing to a specific marketindicator, allowing for an annual adjustment based on that indicator'sperformance. Here, you'll need to submit a GSA Schedule modification annually.

Price Increase Restrictions

Even with these EPA clauses, there are limitations:

·     A 12-month waiting period post-contract awardbefore requesting a price increase.

·     A maximum of three price increase requests per12-month period.

·     No price increase requests in the final 60 daysof the contract period without an extension modification.

·     A mandatory 30-day gap between each priceincrease request.

·     Category-specific caps on annual priceincreases.

·     If you aim for an increase beyond these caps,provide detailed justifications and relevant documentation, like the impact ofnew tariffs.

Temporary Relaxation of Restrictions

Notably, until at least March 2024, GSA has relaxed some EPArestrictions. However, this doesn't eliminate the need for thorough pricejustification to ensure fairness and reasonableness.

Addressing Price Reductions

In certain scenarios, such as offering deeper discounts tocommercial customers or adjusting your commercial pricelist downwards, you mayneed to proportionally reduce your GSA Schedule pricing. This reduction shouldbe reported within 15 days of the commercial price change.

Submitting a Price Modification

For any price change, whether an increase or decrease, theprocess involves:

·     A detailed cover letter explaining the pricechange reasons.

·     A completed Mod Price Proposal Template withrelevant EPA information.

·     Updated Commercial Sales Practicesdocumentation, if applicable.

·     Current Commercial Price List or Market RateSheet.

·     Invoices that prove your rates have increased.

·     For increases, pricing support documents ormarket indicator details.

·     A revised GSA Schedule Price List.

·     Remember, if you're reselling products, includemanufacturer documentation regarding price changes.

Spot Discounts and Final Thoughts

Always keep in mind that your GSA Schedule pricing is themaximum rate. You're free to offer lower rates to individual GSA customerswithout needing a modification. However, the Industrial Funding Fee stillapplies.

Need Expert Guidance?

Adjusting your GSA Schedule pricing can be complex. Ifyou're unsure about any aspect of this process or need professional advice,consider reaching out to Blackfyre. Our team of seasoned MAS consultants isadept at navigating the intricacies of GSA Schedules and can provide you withpersonalized support to ensure your pricing strategy aligns with both yourbusiness goals and GSA requirements. Let us help you maintain a competitiveedge on your GSA Schedule! Our cost is $150 an hour to perform an escalationmod and it usually takes up to 3 hours to complete.