MAIL BAG: STATE SALES CAN IMPACT YOUR FEDERAL PRICING

Dedicated reader M. Obama of Washington D.C. writes, “My new company sells to state governments in addition to our federal business.  Our state prices are all over the map.  Could this impact our GSA federal business?”  Indeed they can, M.  Making it worse is that state reps can fail to understand why their business is your business.  When a company obtains a GSA Schedule contract it must usually tell GSA about its discounting practices, including those to state governments.  While prices that are “all over the map” can pose a challenge, taking the time to accurately tell GSA about your standard and non-standard discounts practices can mitigate that riskFurther, your company may want to recommend a Basis of Award customer class that is not state governments for purposes of complying with the Schedules Price Reductions Clause. Trying to keep track of unfettered discounting for Price Reduction Clause compliance is a nightmare and puts you at a high risk for fines and penalties from non-compliance.  Your senior management should insist on regular, thorough communication inside your company so that the GSA Schedule contracts manager knows about all of your current discounting practices, state or otherwise.  It should also be clear that fines your company pays for non-compliance will be borne equally by the federal team and whatever division caused the miscommunication.  GSA Schedule compliance is everyone’s business.