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Contract management

A Quick Dive into GSA’s Game-Changing Proposed Economic Price Adjustment Clause

The General Services Administration’s (GSA) recently proposed to revise the General Services Acquisition Regulation (GSAR) Federal Supply Schedule Economic Price Adjustment (EPA) clauses. Issued on November 16, 2023, the rule aims to align with commercial standards and practices by eliminating specific EPA requirements and introducing a standardized clause: 552.238-118, Economic Price Adjustment, Federal Supply Schedule Contracts. (Federal News Network, January 12, 2024)

This new clause mirrors the principles outlined in GSA Acquisition Letter MV-22-02 from March 2022, which temporarily suspended certain procedural limits within FSS clauses. This move provided contractors with increased flexibility in processing EPAs, responding more effectively to shifts in the commercial market. The proposed rule extends this market-driven flexibility into the GSAR. (ibid)

The EPA proposed rule is defined as the “agreed-upon procedure” for adjusting pricing throughout a contract period.” The proposed clause empowers contracting officers and contractors to negotiate the mechanism, timing, and frequency of price adjustments. This streamlined, flexible approach is poised to enhance responsiveness to market changes. (ibid)

When contract prices are based on commercial catalog pricing, adjustments can align with changes in the catalog price. Similarly, if an index determines adjustments, changes in the index can dictate price adjustments. These mechanisms, being part of the contract, underscore the proposal’s pragmatic approach. (ibid)

For the success of this flexible EPA, implementation across the FSS program is crucial. Proper training for the acquisition workforce, focusing on pricing context and accurate data usage, is paramount. The proposed rule’s success depends on aligning the FSS program with the commercial market, necessitating revisions to current policies such as Federal Acquisition Service (FAS) Policy and Procedure (PAP) 2021-05. (ibid)

The PAP, as it stands, contains contradictory guidance inconsistent with the Federal Acquisition Regulation, escalating data submission burdens on FSS contractors. To streamline the EPA process effectively, reforming, revising, and reissuing the PAP in accordance with legal and operational goals is a logical starting point. (ibid)

Beyond reducing regulatory burdens, success hinges on comprehensive training, clear guidance, and accountability. Stakeholders, including coalition members, stand ready to assist the agency in operationalizing the rule successfully. (ibid)

Questions concerning price adjustments to your current contract? Give us a call.

A workflow for everyone


The Catalog Management Office (CMO) is actively finalizing the workflow for Multiple Award Schedule (MAS) services between eMod and the new FAS Catalog Platform (FCP). Simultaneously, they are completing the new Services Plus File for FCP use, marking progress towards launching MAS service functionality in FCP by fiscal year-end 2024 (refer to the attached file for the Services Plus file). (BUY.GSA.GOV NOVEMBER 30, 2023)

The Services Plus file, formerly the Service File, will now accommodate all service contract and catalog data from the Services and Training, and the Language Services Price Proposal Templates. Vendors will also utilize it for non-GSA Advantage! publishable products, such as highly customizable items. (ibid)

Vendors can categorize their offerings in the new template under eight catalog item types:

  1. Commercial Labor Categories: Vendor-defined labor categories, using the hour (HR) unit of measure.
  2. Service Contract Labor Standards (SCLS) labor categories: Governed by Service Contract Act laws and regulations, using the HR unit of measure.
  3. Fixed Price Solutions: Services outside the labor category paradigm, using any unit of measure.
  4. Courses and Training: Sessions with minimum and maximum student constraints.
  5. Other Direct Costs (ODCs): Contract-level items sold, supporting public relations and marketing services.
  6. Language Services: Translation services, translating languages, one or both ways.
  7. Highly Customizable Products: Products with multiple options, that cannot be sold on GSA Advantage! Priced as a discount to a manufacturer group or family, as opposed to pricing products as a discrete set of line items.
  8. Ancillary Items: Products or services supporting the dominant service in the Services Plus File, and not sold on GSA Advantage! (ibid)

Questions about how to categorize your offerings? Give us a call.

SBA Halts New Applications for 8(a) Program: What You Need to Know

The Small Business Administration (SBA) has put a temporary hold on accepting new applications for the 8(a) small business program. This move comes in the aftermath of a significant court decision that found parts of the program unconstitutional. (Washington Technology August 21, 2003)

The crux of the matter lies in the SBA’s utilization of the “rebuttable presumption” process, which allowed many companies to be certified as small, disadvantaged businesses without substantiating their social disadvantage. However, a recent court case, involving Ultima Services, a non-8(a) company, challenged this process. The court ruled in favor of Ultima Services, asserting that the use of rebuttable presumption violated their Fifth Amendment rights. Consequently, the SBA has been compelled to halt the acceptance of new 8(a) program applications. (ibid)

If your company was certified through the rebuttable presumption process, there are specific actions you must take to continue in the 8(a) program. The newly released guidance requires affected businesses to submit a “Social Disadvantaged Narrative.” This narrative should encompass the identities forming the basis of your social disadvantage, detailed accounts of discriminatory incidents related to education, employment, or business history, including dates, locations, parties involved, conduct details, and motivations behind the bias or discrimination. You should also elucidate how these incidents impacted your business progression. (ibid)

Existing applicants can proceed with their applications, though additional information might be needed. For those already within the 8(a) program, the narrative submission is not obligatory if previously completed. (ibid)

SBA is closely collaborating with the Justice Department to chart the course ahead in response to this court decision. Despite the temporary suspension of new applications, the agency is working on directives for agencies to continue awarding contracts to 8(a) firms. (ibid)

Remember, this situation is evolving. A hearing on August 31st could bring about changes, and SBA’s forthcoming guidance for contract awards to 8(a) firms remains eagerly anticipated. Furthermore, it’s important to note that the court’s ruling doesn’t affect 8(a) firms owned by Alaska Native Corporations or tribally-owned entities. They can continue business as usual. (ibid)

Stay tuned for updates as this story unfolds, and ensure you’re up to speed on the latest developments in the 8(a) program landscape. Should you have questions concerning the newly released guidance requirements, give us a call.