Tariffs and Your GSA Schedule: How to Protect Your Margins in 2026

Tariffs Are Hitting GSA Contractors Hard — Here's What to Do About It

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If you sell products on your GSA Schedule, the latest round of tariffs is probably keeping you up at night. Costs are rising, supply chains are shifting, and your GSA pricing — which is locked into a government contract — doesn't automatically adjust when your costs go up.

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I've been getting calls from contractors every week asking the same question: "How do I raise my GSA prices without getting flagged or losing my contract?" The answer isn't as complicated as you think, but it does require you to understand the rules and act strategically.

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Why Tariffs Hit GSA Contractors Differently

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When you're selling commercially, you can adjust prices in real time. If your cost of goods goes up 15% because of a tariff, you raise your commercial price and move on. But on a GSA Schedule, your pricing is governed by your contract terms, your Commercial Sales Practices (CSP) disclosures, and the Price Reductions Clause (PRC).

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This creates a squeeze: your costs go up, but your GSA prices stay flat unless you take action. And if you wait too long, you're eating into margins that may already be thin.

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The EPA Clause Is Your Best Friend Right Now

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GSA recently overhauled the Economic Price Adjustment (EPA) clause under MAS Refresh #29. The new clause is actually more contractor-friendly than the old one. Here's what changed:

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• Single Unified Clause — GSA replaced multiple EPA clauses with one streamlined version that applies across all SINs.
• Removed Cap Restrictions — The old clause had restrictions on how often and how much you could increase prices. Those are gone. You can now request price increases more flexibly.
• Simplified Process — The modification process for price adjustments has been streamlined, which means faster turnaround from your Contracting Officer.

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If you haven't submitted an EPA modification since the new clause took effect, now is the time. Document your cost increases, tie them directly to tariff impacts, and submit a well-supported request to your CO.

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GSA's Temporary Price Flexibility — Don't Miss the Window

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GSA also introduced temporary price flexibilities specifically to address inflation and tariff-driven cost increases. This is a limited-time measure that allows contractors to request price adjustments outside the normal EPA cycle. Here's what you need to know:

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• You Must Provide Documentation — GSA wants to see evidence that your cost increases are real and directly related to tariffs or supply chain disruptions. Invoices from suppliers, published tariff schedules, and cost comparison spreadsheets are all fair game.
• It's Not Automatic — You still need to submit a contract modification request through eMod. Don't assume GSA will proactively adjust your prices.
• Your CO Has Discretion — As a former CO, I can tell you that the strength of your documentation matters. A well-organized, clearly justified request gets approved faster than a vague "costs went up" email.

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Pricing Strategy Tips for Tariff Season

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• Don't Wait Until You're Losing Money — Submit your EPA request as soon as you have documented cost increases. The longer you wait, the more margin you burn.
• Review Your Basis of Award Pricing — Make sure your commercial price list still reflects reality. If your commercial prices have gone up, your GSA prices should follow.
• Consider Your TDR Obligations — If you're on Transactional Data Reporting, your pricing data is being compared against your commercial sales. Make sure your GSA price adjustments are consistent with your commercial pricing changes.
• Talk to Your Supply Chain — If you're a reseller or distributor, work with your manufacturers to understand their tariff mitigation strategies. Some are absorbing costs, some are passing them through, and some are shifting production. Know where your products stand.

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The Bottom Line

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Tariffs are a reality of the current market, and they're not going away anytime soon. But they don't have to destroy your GSA Schedule margins. The tools are there — EPA clauses, temporary price flexibilities, and eMod — you just have to use them.

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If you're unsure how to navigate a price increase on your GSA Schedule, Blackfyre can help. We've guided contractors through dozens of EPA modifications and pricing strategy sessions. Don't leave money on the table.