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Tag: GSA

FY26 NDAA Delivers a Turning Point for the GSA Price Reductions Clause

A provision in the proposed Fiscal Year 2026 National Defense Authorization Act (FY26 NDAA) signals another decisive step in GSA’s long-running effort to move away from the Price Reductions Clause (PRC) in the Multiple Award Schedule (MAS) program. The House has already passed the bill, and if enacted, it would further weaken a clause that contractors and GSA alike have long viewed as overly burdensome and a barrier to participation in the MAS marketplace. (JD Supra December 17, 2025)

How the Price Reductions Clause Has Worked

GSA uses the PRC to ensure MAS pricing remains fair and reasonable. Under this approach, contractors disclose their Most Favored Customer (MFC), negotiate a Basis of Award (BOA) customer or group, and agree to give MAS customers pricing that is equal to or better than the BOA. If a contractor later gives the BOA better pricing, the PRC requires that reduction to flow to all MAS customers. (ibid)

In practice, this structure has created significant compliance risk. A single commercial discount, sometimes granted by an individual salesperson, can trigger sweeping price reductions across the MAS contract. Contractors have long described the PRC as one of the most complex requirements in federal contracting. (ibid)

Why GSA Has Tried to Move Away From the PRC

GSA has increasingly acknowledged that the PRC discourages participation in the MAS program, particularly for small businesses. To reduce this burden, GSA introduced the Transactional Data Reporting (TDR) pilot in 2016. Under TDR, contractors no longer track BOA pricing or comply with the PRC. Instead, they report detailed sales and pricing data monthly, allowing GSA to assess price reasonableness through market data rather than rigid price controls. (ibid)

GSA has repeatedly asked Congress to clarify its authority to abandon the PRC, noting that MAS pricing requirements represent its most burdensome information collection and can slow the addition of new products and services agencies need. (ibid)

Why the PRC Has Persisted Until Now

The primary obstacle has been a longstanding disagreement between the GSA and its Office of Inspector General (OIG). The OIG has argued that federal law requires MAS contracts to result in the “lowest overall cost alternative,” effectively mandating the PRC. GSA has disagreed and has pushed Congress to replace that standard with a “best value” approach. (ibid)

What the FY26 NDAA Changes

Section 812 of the FY26 NDAA adopts GSA’s position by changing the statutory standard for MAS contracts under Title 10 from “lowest overall cost alternative” to “best value.” This change aligns MAS contracting with broader federal acquisition principles and removes a key statutory argument for retaining the PRC, at least for defense agencies. (ibid)

What This Means for Contractors

The shift to a “best value” standard strengthens GSA’s ability to fully retire the PRC and expand TDR across the MAS program. GSA has already announced plans to make TDR mandatory for all Special Item Numbers beginning in FY26 and has confirmed its intent to transition all Schedule contractors away from the PRC within the next year. (ibid)

Price will still matter, but GSA will likely rely on reported transactional data and market research rather than automatic price reductions. Contractors with legacy PRC-based contracts should evaluate whether transitioning to TDR makes operational sense and engage early with their contracting officers. Companies considering entry into the MAS program should prepare to demonstrate price reasonableness even under TDR, as GSA can still request supporting pricing data when needed. (ibid)

Looking Ahead

While the NDAA provision applies directly to Title 10 acquisitions, similar language exists in Title 41 for civilian agencies. Congress may ultimately align both statutes to avoid a split standard. As GSA continues this transition, contractors can expect reduced PRC-related audit exposure; however, new compliance expectations regarding data accuracy, pricing support, and documentation will take its place. The era of the Price Reductions Clause is not over yet, but FY26 brings it closer than ever to an end. (ibid)

Do you have questions about how your contract will meet the new guidelines if the Most Favored Customer rules change? Give us a call.

GSA and Perplexity Sign First Direct-to-Government OneGov Deal for AI Services

The General Services Administration has finalized its first direct OneGov agreement with frontier AI firm Perplexity, giving federal agencies steeply discounted access to advanced AI technology. (NEXTGOV/FCW November 19, 2025)

Under this groundbreaking contract, agencies can obtain Perplexity Enterprise Pro for Government for just $0.25 per agency over 18 months through a direct purchase on the GSA Multiple Award Schedule (MAS). Unlike previous OneGov agreements, Perplexity can now sell directly to federal buyers without a reseller, supporting the administration’s push for tighter engagement with original tech developers and lower acquisition costs. (ibid)

Federal Acquisition Service Commissioner Josh Gruenbaum emphasized the importance of the deal:

“This OneGov agreement, directly with Perplexity, offers the federal government an additional pathway to leverage the transformative advantages of AI.”

Perplexity’s AI-powered search platform has grown rapidly in 2025, now serving more than 30 million monthly users with real-time, cited answers. Demand within federal agencies has surged, especially during this year’s 43-day government shutdown. (ibid)

The company’s Enterprise Pro Platform lets government users query multiple leading AI models—including OpenAI and Anthropic—within one interface while adding enhanced, mission-focused security features. (ibid)

Perplexity CEO Aravind Srinivas celebrated the partnership, saying:

“Accurate AI serves America. We’re proud to support President Trump’s AI Action Plan by giving federal employees cited, verifiable answers across every major AI model.”

To bring its services to government buyers quickly, Perplexity participated in FedRAMP’s accelerated 20x authorization pilot and secured AI prioritization under GSA criteria. (ibid)

Jerry Ma, Perplexity’s VP of Policy and Global Affairs, noted the urgency of the effort:

“This Administration has made clear that agencies should have the best of American AI not in 2028, 2027, or 2026—but right now, in 2025.”

With this agreement, Perplexity becomes the first multimodel AI platform tailored specifically to federal needs and directly accessible via the GSA MAS, marking a new era in procuring mission-critical AI. (ibid)

Questions about Perplexity? Give us a call.

Transactional Data Reporting gets really big

GSA Expands TDR to Boost Transparency and Smarter Federal Buying

The U.S. General Services Administration is expanding its Transactional Data Reporting (TDR) program to provide federal buyers and industry partners with clearer insight into what the government purchases and how much it pays. Starting in June 2025, GSA will extend TDR to 62 additional product and cloud service Special Item Numbers (SINs), with full expansion to all SINs by the end of fiscal year 2026. Moving forward, TDR participation will be mandatory for all SIN holders. (U.S. General Services Administration June 9, 2025)

“GSA is leveraging technology to drive innovation, create a more efficient government, and improve citizen experiences. Data is central to these efforts to deliver the best outcomes and reduce costs in federal acquisition,” said GSA Acting Administrator Stephen Ehikian. “Expanding our use of Transactional Data Reporting will provide critical insights into pricing and procurement, ultimately ensuring taxpayer dollars are spent wisely.” (ibid)

TDR captures pricing and purchasing data for goods and services sold through GSA’s Multiple Award Schedule (MAS). It eliminates outdated sales tracking requirements, reduces contractor reporting burdens, and provides actionable data that drives smarter buying decisions. (ibid)

“Comprehensive data on purchased items and corresponding prices will empower our contracting officers to negotiate effectively and secure the best value for taxpayer dollars,” said Federal Acquisition Service Commissioner Josh Gruenbaum. “Much like our private industry partners, GSA depends on data to make the best decisions about procurement. Transactional Data Reporting will provide the federal government with the critical and essential market intelligence to help aid the government’s effort to create a transparent, optimized and streamlined marketplace for goods and services.” (ibid)

GSA designed the expanded TDR program to streamline operations, lower administrative costs, and make it easier for small businesses to participate in federal contracting. (ibid)

TDR Delivers Key Benefits:

  • Drives Best Value: Shared pricing insights sharpen competition and improve government-wide procurement results.
  • Reduces Burdens: Simplified reporting saves vendors thousands of hours annually.
  • Unlocks Market Intelligence: Agencies and suppliers gain valuable data for smarter planning and stronger supply chains. (ibid)

This expansion marks a major step toward a more data-driven, efficient, and inclusive federal marketplace. If you have questions concerning any part of the TDR expansion, give us a call.

A New and Improved FAR coming your way

GSA Hosts Webinar on Transformative Federal Procurement Changes

The General Services Administration (GSA) hosted a live webinar last week to discuss major reforms reshaping the future of federal acquisition. The session focused on two recent Executive Orders EO 14240, which consolidates federal procurement under GSA, and EO 14275, which launches a sweeping overhaul of the Federal Acquisition Regulation (FAR). Together, these changes aim to streamline buying, cut waste, and open government contracting to more innovation and efficiency. (GSA webinar to discuss executive orders) May 28, 2025)

Consolidating Federal Procurement: EO 14240

Jeff Koses, GSA’s Senior Procurement Executive, explained how EO 14240 shifts common goods and services procurement under GSA’s leadership. This move will eliminate redundancy, reduce cost, and enable agencies to concentrate on mission delivery. GSA will now act as the Executive Agent for all Governmentwide Acquisition Contracts (GWACs), aligning those currently managed by NASA and NIH into GSA’s centralized procurement strategy. (ibid)

GSA will collaborate with OMB, NASA, and NIH to assess current GWACs, resources, and commitments, building a cohesive transition plan. The 10 key spending categories, Information Technology, Professional Services, Security & Protection, Facilities & Construction, Industrial Products & Services, Office Management, Transportation & Logistics, Travel, Medical, and
Human Capital will fall under GSA’s streamlined acquisition umbrella. (ibid)

FAR Overhaul: EO 14275

The second half of the webinar focused on EO 14275, which calls for a modernized, intuitive, and mission-focused FAR. Koses highlighted that the current FAR is too complex and deters many businesses, especially small and innovative firms, from entering the federal marketplace. (ibid)

The FAR rewrite dubbed the Revolutionary FAR Overhaul (RFO), is being implemented through a series of deviations and will remove low-value administrative burdens while maintaining key protections against waste and fraud. New resources, including a FAR Companion Guide, Practitioner Albums, and Buying Guides, will support acquisition professionals and contractors as the rewrite rolls out. (ibid)

Parts of the revised FAR are already available on Acquisition.gov, and the public can comment directly on proposed changes. GSA also announced new training efforts in partnership with FAI and DAU to support the acquisition workforce in adopting the changes. (ibid)

What This Means for Industry

These changes signal a major shift for contractors:

  • Greater opportunity for innovative and small businesses to compete.
  • Streamlined acquisition timelines and reduced barriers to entry.
  • Increased emphasis on commercial buying and mission-first contracting. (ibid)

What’s Next

GSA will continue collecting agency implementation plans and begin analyzing them with OMB. The agency stressed the importance of collaboration with stakeholders and the acquisition workforce during this transitional period. (ibid)

To stay informed, stakeholders can sign up for RFO updates, download new FAR parts and guides, and share feedback directly on Acquisition.gov. (ibid)

This marks a new chapter in federal acquisition—one aimed at making government buying faster, smarter, and more accessible.

Questions concerning the FAR and the overhaul? Give us a call.