IF THE PRICE REDUCTIONS CLAUSE IS BEING CHANGED, WHY IS GSA SEEKING EXTENSION?
One part of GSA’s proposed “Prices Paid” database plan is to eliminate the need for contractors to track their Schedule prices against a Basis of Award customer, one of two triggers of the Price Reductions Clause. GSA, and OMB, officials have been adamant that they are serious about eliminating this trigger. Why, then, did the agency move forward in November with a request to extend the entire Price Reductions Clause data collection requirement? While such extensions have previously been seen as “routine”, Schedule contractors should have expected to see a modified extension request this time to reflect the change the agency says is coming. The reasons for an unchanged data collection request are unclear. Opposition to eliminating the “Basis of Award” PRC trigger among the IG community has been very strong. GSA may also have figured out that industry comments on the Prices Paid database are valid: the program has no chance of working correctly. Without a statement from the agency, however, the contractor community is left to guess GSA’s intent. This is never a good thing and really isn’t excusable in the era of multi-faceted communication and “transparency”. GSA officials should immediately clarify the reasoning behind the PRC collection request and whether it is tied in any way to the Prices Paid initiative.