Disaster Response for Contractors

As a contractor to the US government, what should be our response to disasters? How can we help? We see pictures of the devastation, and it seems very far away. There is a hurricane approaching the coast of Florida. Baton Rouge needs rebuilding. Fires in California have been burning for weeks.

Helping as a contractor is simple: continue offering your products and services; specifically, reach out to state and local governments in regions that need assistance.

The federal government extends GSA pricing to state and local governments during times of emergency recovery. GSA Schedules offer the lowest rates and the least hassle for many  government entities in crisis. By buying through GSA, communities are able to recover sooner and with less expense. When there are serious emergencies, you don’t have to do something extraordinary. Simply being available and offering your business expertise may be the best thing you can do.  

There are certain indicators that we plan on: agency forecasts and contract cycles. But we should also be aware that every year there tragedies happen. Expected, yet unpredictable. These events can  motivate you to help rebuild the lives of others. Offering your products and services through the GSA to areas in need is a great way for you to help immediately.

GSA’s TDR rule changes EVERYTHING

Just over a month ago, GSA published the final Transactional Data Reporting (TDR) rule designed to expunge the Pride Reduction Clause (PRC), Most Favored Customer (MFC), and the Commercial Sales Practices. Starting 22 August, new Schedule awardees whose contract is part of the pilot roll-out will be evaluated against the TDR. Existing contract holders will be allowed to opt in, but it is a voluntary, bi-lateral move.

According to GSA, “This rule asks contractors to electronically report key procurement data; including prices paid, quantity, standard part number and product description for all purchases through GSA contract vehicles. The information collected through the TDR will help contracting officers make smarter purchasing decisions and provide data to assist in negotiating future contracts.”

The upside for vendors taking on this additional burden is that they will be spared from having to worry about violating the PRC, which states that if your commercial MFC price drops below the basis of award rates, an automatic price reduction is triggered. Failing to implement this price reduction may subject the vendor to the False Claims Act, under which they can be sued for fraud. This had been one of the leading complaints from contractors. And while there are new concerns accompanying this rule, it does seek to address a the difficulty of maintaining pricing compliance.

The TDR will require an entirely new way of dealing with GSA pricing and has some significant future effects. EZGSA is developing a white paper concerning the TDR and will post it’s link here in the next week.