GSA has long said that its aim was to collect enough information on pricing and sales trends to use as a tool to help them make pricing decisions.  Welcome to the future.  A recent agency webinar showed just how much data the agency collects and how it is being used to pressure companies into offering lower prices on Schedule contracts or risk having specific items, or an entire contract, terminated.  GSA analysts discussed the three factors that go into making Schedule pricing decisions:  the catalog or median price, the lowest catalog or commercial price, and price analysis of the same or similar items offered via TDR-based Schedule contracts. Each factor is given equal weight.  GSA made clear, though, that they will review lower prices more thoroughly for high-demand items, essentially placing pressure on companies to offer even lower prices for them.  While contractors can’t control what their competitors offer in terms of pricing, it is clear that each time a company offers a lower price than its Schedule contract price, it is opening itself to having to reduce its contract-level price.  This has long been a concern of contractors and is now a very real factor that companies will have to consider when they offer spot discounts.  Industry has warned GSA that such a dynamic may actually result in higher prices as companies become hesitant to give “one-off” discounts as they could start a downward price spiral that makes maintaining a Schedule contract prohibitive.  Time will tell whether this happens, but we are definitely at that juncture.  The bottom line for contractors is this:  GSA is armed with considerable data on pricing and you must be, too.  While this may add burdens to industry and result in longer Schedule negotiation cycles, contractors must be prepared to anticipate GSA requests for lower pricing and be prepared to show why the prices they offer are fair and reasonable.