MAIL CALL: IF NO ONE TELLS ME, IS IT STILL A VIOLATION?

European contractor S. Schultz writes this week and asks, “Even though I am my company’s Schedule contract manager, the sales team doesn’t always tell me when they change our discount structure.  Is it a violation of our contract if I know nothing?”  We think you already know the answer to this one, Schultz.  Mere ignorance of pricing changes does not absolve your firm from liability if one or more of them violate the Price Reductions Clause.  Schedule contractors are obliged to have systems and procedures to ensure that changes in prices/discounts are clearly communicated to the responsible Schedule manager so they, in turn, can make any Schedule adjustments that might be required.  “I see nothing” will not work with an auditor and, in fact, may be viewed as reckless disregard by your firm.  Too much of that could land you, or the company, in the contracting clink.