GSA PROPOSED RULE IS A SMALL CARROT WITH A BIG STICK

GSA released its much-anticipated proposed rule last week that would require contractors to track and submit transactional data for every sale made through their Schedule contracts.  In exchange, contractors would no longer have to track sales made to a commercial tracking customer to ensure compliance with the Price Reductions Clause.  Liability for failing to provide accurate, current and complete data on a CSP sheet, the “defective data” trigger for the PRC, would still be in place.  GSA hopes that collecting information on every schedule transaction will further drive down Schedule prices.  The agency however, and its contractors, would be better off using the money it would take for companies to create and maintain such systems on economics classes for GSA officials.   Simply put, there are many factors that go into corporate pricing decisions.  In addition, transparency works both ways.  I.e., not everyone wants every detail of their business practices publicized.  As such, GSA’s proposal is just as likely to lead to higher actual prices paid on Schedule transactions as it is to generate additional pricing pressure.  So, while the proposed rule would remove one trigger for contractors, it would effectively replace it with at least two more:  An additional expense and a motivation to keep contract prices right where they are.  Companies are strongly advised to comment on the proposed rule and attend the April 17th public meeting.  Details are here: http://www.federalnewsradio.com/65/3811760/GSA-proposes-change-to-regulation-vendors-loathe