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Learn More About Government Contracts and Awards
The General Services Administration’s (GSA) Multiple Award Schedule is one of the government’s primary contract vehicles for purchasing commercial products and services. The GSA Schedule is intended to mirror commercial practices, but there are significant obligations that a would-be contractor needs to consider when considering whether or not to seek a Schedule contract.
Applying for a GSA Schedule Contract
Applying for a Schedule contract requires a company to fully disclose its commercial pricing and practices. The government will then use the information to negotiate pricing and other terms (such as warranty and shipping) that are in line with those offered to the company’s best customer.
However, there are often circumstances that make providing a company’s products or services to a particular customer less expensive than providing them to the government. In such a case, the company should articulate to the government during negotiations why the pricing to a particular customer should not be considered.
Basis of Award
The customer or category of customers that are relied upon by the company and the government to establish pricing will become the “basis of award” for the contract. It is in a company’s best interest that the basis of award contains as few customers as possible.
All Schedule contracts include a price reduction clause that maintains the pricing relationship between the government and the customers that form the basis of award. So, if a company decreases the price to a company that forms the basis of award, the company will have to provide a decrease in price to the government that maintains the relationship.
Any price reductions must be reported to the government no later than 15 days after its effective date, and the price reduction will apply to the government retroactively to that effective date.
Contact a Washington, D.C. GSA Schedule Law Firm Today
If you are looking for legal guidance regarding the GSA schedule, contact the Whay Law Firm online or call (202) 448-9677 to schedule your initial consultation today.
