On March 2, a final rule implementing greater publication and competition requirements for the award of task and delivery orders under Multiple Award Schedule (“MAS”) contracts—including General Services Administration (“GSA”) Schedule contracts—was published in the Federal Register. More detail about this final rule is available in our client advisory here. A copy of the final rule itself is available here.
At the same time these additional competition requirements are being imposed, of course, GSA continues, at least as a matter of standard practice, to require the inclusion of the Price Reductions Clause (“PRC”) in Schedule contracts. This clause, as Schedule contractors are well aware, typically imposes a significant compliance burden to track commercial sales during contract performance. Of course, the entire point of the PRC is to ensure that Schedule prices remain reasonable over time so that ordering agencies need not worry about conducting anything like a full-and-open competition to ensure that they are obtaining good prices. This final rule, however, will force them to do pretty much exactly that.
And this is the system that is supposed to be so “commercial”?