The General Services Administration (GSA)’s Office of Inspector General (OIG) published a report on March 21, 2017, titled “Audit of Price Evaluations and Negotiations for the Professional Services Schedule Contracts.” According to the IG audit, GSA’s process to consolidate eight pre-existing schedules into the Professional Services Schedule (PSS) resulted in the award of new contracts without establishing price reasonableness. Contracting officers also used a combined “Pre and Price Negotiation Memorandum” template that does not conform to Federal Acquisition Regulations (FAR) and Federal Acquisition Service (FAS) policy. Finally, contract files lack sufficient documentation to determine fair and reasonable pricing. In February 2017, GSA’s FAS initiated price reevaluations for all 322 migrated contracts to ensure prices awarded were fair and reasonable.
At a recent industry event, Kevin Youel Page, the deputy commissioner of GSA’s Federal Acquisition Service (FAS), made a surprising revelation – GSA is considering making participation in its controversial Transactional Data Reporting (TDR) pilot program completely optional. Currently, only existing contractors can choose whether they want to participate, and even they have to participate if they add a Special Item Number (SIN) to their contract or renew it. Mandatory participation also applies to all new offers against Schedules included the pilot.
On February 7, the General Services Administration (GSA) hosted a roundtable panel event to discuss its pilot program under the Transactional Data Reporting (TDR) rule. The discussion included Kevin Youel Page, the Deputy Commissioner of GSA’s Federal Acquisition Service (FAS); Judith Zawatsky, the Director of GSA’s Multiple Award Schedule (MAS) Program Management Office; Elliott Branch, the Deputy Assistant Secretary of the Navy (Acquisition & Procurement); and Larry Allen, the President of Allen Federal Business Partners.
On June 23, 2016, the General Services Administration (GSA) released the final rule launching its highly anticipated – and controversial – Transactional Data Reporting (TDR) pilot program. The TDR pilot, coupled with the new Formatted Pricing Tool (FPT), aims to radically alter the way prices on GSA Schedule contracts are negotiated. Rather than rely on contractors’ disclosures regarding their commercial pricing practices, GSA will eliminate the Commercial Sales Practices (CSP) disclosuresaltogether. Further, contractors will no longer have to monitor a basis of award discount relationship for the purposes of price reductions.
On June 23rd, GSA will release its final rule regarding the Transactional Data Reporting (TDR) pilot program that could radically change how the government negotiates pricing on the GSA Schedules and orders thereunder. Under the pilot, certain Schedule holders will be required to provide monthly sales reports, including prices paid information, to serve as the basis for pricing negotiations. In exchange, GSA will eliminate the requirements for those contractors to provide a Commercial Sales Practices (CSP) format and track commercial prices to a Basis of Award customer for price reductions.