Proposed Rule2023-25221
General Services Administration Acquisition Regulation; Federal Supply Schedule Economic Price Adjustment
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
November 16, 2023
Issuing agencies
General Services Administration
Abstract
The General Services Administration is proposing to amend the General Services Administration Acquisition Regulations to standardize and simplify the Multiple Award Schedule (Schedule) clauses for economic price adjustments. This rule removes certain economic price adjustment requirements within these clauses to better align with commercial standards and practices.
Full Text
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<title>Federal Register, Volume 88 Issue 220 (Thursday, November 16, 2023)</title>
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[Federal Register Volume 88, Number 220 (Thursday, November 16, 2023)]
[Proposed Rules]
[Pages 78710-78714]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-25221]
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GENERAL SERVICES ADMINISTRATION
48 CFR Parts 501, 502, 538, and 552
[GSAR Case 2020-G510; Docket No. GSA-GSAR-2023-0025; Sequence No. 1]
RIN 3090-AK20
General Services Administration Acquisition Regulation; Federal
Supply Schedule Economic Price Adjustment
AGENCY: Office of Acquisition Policy, General Services Administration
(GSA).
ACTION: Proposed rule.
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SUMMARY: The General Services Administration is proposing to amend the
General Services Administration Acquisition Regulations to standardize
and simplify the Multiple Award Schedule (Schedule) clauses for
economic price adjustments. This rule removes certain economic price
adjustment requirements within these clauses to better align with
commercial standards and practices.
DATES: Interested parties should submit written comments to the
Regulatory Secretariat Division at the address shown below on or before
January 16, 2024 to be considered in the formation of the final rule.
ADDRESSES: Submit comments in response to GSAR Case 2020-G510 to:
<a href="https://www.regulations.gov">https://www.regulations.gov</a> via the Federal eRulemaking portal by
searching for ``GSAR Case 2020-G510''. Select the link ``Comment Now''
that corresponds with GSAR Case 2020-G510. Follow the instructions
provided at the ``Comment Now'' screen. Please include your name,
company name (if any), and ``GSAR Case 2020-G510'' on your attached
document. If your comment cannot be submitted using <a href="https://www.regulations.gov">https://www.regulations.gov</a>, call or email the points of contact in the FOR
FURTHER INFORMATION CONTACT section of this document for alternate
instructions.
Instructions: Please submit comments only and cite GSAR Case 2020-
G510, in all correspondence related to this case. Comments received
generally will be posted without change to <a href="https://www.regulations.gov">https://www.regulations.gov</a>,
including any personal and/or business confidential information
provided. To confirm receipt of your comment(s), please check <a href="https://www.regulations.gov">https://www.regulations.gov</a>, approximately two to three days after submission
to verify posting.
FOR FURTHER INFORMATION CONTACT: For clarification of content, contact
Mr. Thomas O'Linn, Procurement Analyst at <a href="/cdn-cgi/l/email-protection#afc8dccedddfc0c3c6ccd6efc8dcce81c8c0d9"><span class="__cf_email__" data-cfemail="8fe8fceefdffe0e3e6ecf6cfe8fceea1e8e0f9">[email protected]</span></a> or 202-
445-0390. For information pertaining to status or publication
schedules, contact the Regulatory Secretariat Division at
<a href="/cdn-cgi/l/email-protection#7a3d293b281f1d291f193a1d091b541d150c"><span class="__cf_email__" data-cfemail="692e3a283b0c0e3a0c0a290e1a08470e061f">[email protected]</span></a> or 202-501-4755. Please cite GSAR Case 2020-G510.
SUPPLEMENTARY INFORMATION:
I. Background
The General Services Administration (GSA) conducts routine reviews
of its acquisition regulations and acquisition policies and procedures.
The review indicated a need to standardize and simplify the Schedule
clause for economic price adjustments.
The Schedule program, also known as the Federal Supply Schedule
(FSS) program, establishes long-term governmentwide contracts with
commercial companies. Schedule contracts routinely last up to 20 years
and are issued as fixed price with economic price adjustment (EPA)
Indefinite Delivery Indefinite Quantity (IDIQ) contracts. Schedule
contracts provide access to commercial products, services, and
solutions at fair and reasonable pricing to the Federal Government and
other authorized customers (e.g., state and local governments).
The use of EPA provides for upward and downward revision of
contract pricing upon the occurrence of specified conditions over the
anticipated 20 year contract period of performance. The Schedule
program has a long history of providing the ability for Schedule
contractors to submit EPA requests (e.g., see 47 FR 50242 dated
November 5, 1982).
Currently, Schedule contracts contain at least one of the following
EPA clauses (i.e., a Schedule contract may include more than one EPA
clause based on their offering and participation in Transactional Data
Reporting (TDR)): (1) Alternate I of GSAR clause 552.216-70, Economic
Price Adjustment-FSS Multiple Award Schedule Contracts; (2) an
authorized deviation of GSAR clause 552.216-70; (3) clause I-FSS-969,
Economic Price Adjustment-FSS Multiple Award Schedule; or (4) an
Alternate to clause I-FSS-969. The primary focus of these EPA clauses
is the establishment of the procedures, including, but not limited to
specific procedural limits (e.g., timing and frequency) around the
submission of EPA price increase requests. In terms of price decrease
requests, all four clauses require such requests to be handled in
accordance with GSAR clause 552.238-81, Price Reductions. Altogether,
for the most part these four Schedule EPA clauses are very similar,
with only minor differences, most of which are related to the EPA
mechanism(s) proposed by the contractor (e.g., annual fixed increases
or increases based on their published or publicly available commercial
price list) and the applicability of TDR.
In March 2022, in response to the highest level of inflation in
over 40 years as well as other factors (e.g., supply chain
disruptions), GSA issued Acquisition Letter MV-22-02 to provide a
temporary moratorium on the enforcement of certain procedural limits
contained in the Schedule EPA clauses. The moratorium relaxes the
limits on the frequency, timing, and number of EPA price increase
requests.
Since the issuance of Acquisition Letter MV-22-02, the Schedule
program has seen benefits. The relaxing of these procedural limits has
provided industry Schedule partners with greater flexibility and
agility in response to market changes and economic conditions that
impact their Schedule pricing. This flexibility has increased their
ability to support federal customers in acquiring critically needed
products, services, and solutions through a single contracting action.
In the absence of this flexibility, they would likely have chosen not
to respond to order-level solicitations and/or requested the removal of
the items from their Schedule contract to avoid selling them at a loss.
The loss of such items under such conditions, increases the
administrative costs and time for federal agencies and other customers
in meeting their needs.
The positive results of Acquisition Letter MV-22-02 underscore the
need for the Schedule program to continually evolve and provide a
viable and
[[Page 78711]]
competitive vendor base for needed products, services, and solutions at
competitive prices. The absence of items from the competitive
marketplace increases the administrative cost for the Government,
customers, and Schedule contractors; reduces the efficacy of the
Schedule program; and undercuts objectives to support small business
especially in underserved communities.
GSA is seeking to standardize and simplify the Schedule clauses for
EPA. The revisions will result in the consolidation of the four
existing Schedule EPA clauses into a single Schedule EPA clause. The
revisions will also remove several procedural limits contained in these
clauses to better align with commercial standards and practices. GSA
anticipates these changes will increase the number and extent of
offerings available through the Schedule program, improve customer
satisfaction by ensuring needed products, services, and solutions are
initially offered and are not removed from the Schedule program, and
reduce administrative costs on Schedule contractors, particularly small
businesses and new entrants.
II. Discussion and Analysis
This proposed rule amends the GSAR to standardize and simplify the
Schedule clauses related to economic price adjustments. A summary of
the revisions is as follows:
A. GSAR clause 552.216-70, Economic Price Adjustment--FSS Multiple
Award Schedule Contracts, is being revised, renumbered, and renamed
552.238-118, Economic Price Adjustment--Federal Supply Schedule
Contracts. The clause is being renumbered to be consistent with the
numbering used for Schedule provisions and clauses. The current clause
number reflects the clause being located in GSAR part 516. This is
inconsistent with the current practice of locating Schedule provisions
and clauses within GSAR part 538, specifically section 538.273. The
clause is being renamed to remove the words ``Multiple Award Schedule''
since it is duplicative of the acronym ``FSS'' that is already included
in the clause title. The clause title is also being renamed in order to
spell out the acronym ``FSS''. Spelling out of the acronym ``FSS'' is
consistent with the current practice of using the words ``Federal
Supply Schedule'' in GSAR provision and clause titles where
appropriate.
The revisions to the clause itself provide for the: (1)
standardization and simplification of existing Schedule EPA
requirements; (2) retention of the Schedule Contracting Officer's
authority to reject, accept, or partially accept an EPA request; (3)
creation of a definition for ``economic price adjustment method'' for
the purpose of formalizing within resultant contracts offerors'
proposed EPA mechanism(s), the applicable pricing subject to EPA, and
any other agreed upon requirements; (4) clarification on what is not
covered by an EPA request; (5) ability for the EPA method to be revised
via mutual agreement during contract performance; and (6) establishment
of a single consolidated Schedule EPA clause.
Currently, the Schedule solicitation contains the following
provision: SCP-FSS-001, Instructions Applicable to All Offerors.
Paragraph (i)(3)(v) of this provision requests offerors propose an EPA
mechanism. The EPA mechanisms available within the Schedule
solicitation for offerors to choose from are: a published or publicly-
available commercial price list; a fixed annual escalation rate; and
relevant market indicator (e.g., the Bureau of Labor Statistics
Employment Cost Index (ECI)). Paragraph (c) of the clause I-FSS-969
also includes the ability to determine an appropriate mechanism in
response to unforeseeable major changes in market conditions.
Schedule contracts currently contain at least one of the following
clauses: (1) Alternate I of GSAR clause 552.216-70, Economic Price
Adjustment--FSS Multiple Award Schedule Contracts; (2) an authorized
deviation of GSAR clause 552.216-70; (3) clause I-FSS-969, Economic
Price Adjustment--FSS Multiple Award Schedule; or (4) an Alternate to
clause I-FSS-969. The incorporation of one or more of these clauses
into a Schedule contract is dependent on the EPA mechanism(s) proposed
by the offeror and whether the offeror elected to participate in TDR.
For example, the authorized deviation to GSAR clause 552.216-70 applies
to Schedule contracts subject to TDR that use published or publicly-
available commercial price lists as the EPA mechanism. These four
Schedule EPA clauses include essentially the same requirements (e.g.,
timing, number, and frequency of EPA price increase requests), with
only minor differences, most of which are related to the clause
prescription (i.e., type of EPA mechanism selected by the contractor
and applicability of TDR).
In consideration of the above existing requirements, the revised
clause seeks to consolidate the four existing EPA clauses into a single
clause. The new clause maintains GSA's responsibility to: ensure
schedules operate at the lowest overall cost alternative and feature
fair and reasonable pricing at the Schedule level throughout contract
performance; review, process, and, if necessary, negotiate EPA
requests. This could mean accepting, rejecting, or partially accepting
EPA requests. For example, paragraph (f) of the revised clause
maintains the Schedule contracting officer's options in response to an
EPA request. Currently, this requirement is found within each of the
four EPA clauses (e.g., see paragraph (f) of clause I-FSS-969).
The revised clause moves GSA closer to the commercial marketplace
and provides greater flexibility and agility in terms of responding to
market changes, economic conditions, and Government/customer
requirements. For example, due to the inflexibility of the existing
Schedule EPA clauses some Schedule contractors have removed items from
their Schedule contract to avoid selling those items at a loss. The
absence of such items has an unnecessary negative impact on the
Schedule program. The lack of items on the Schedule program directly
impacts competition and the availability of needed items; increases
administrative costs to the Government, customers, and Schedule
contractors; reduces the efficacy of the Schedule program; and
undercuts the objectives to support small businesses and new entrants.
B. Alternate I of GSAR clause 552.216-70, Economic Price
Adjustment--FSS Multiple Award Schedule Contracts, is being deleted in
its entirety. The Alternate is being deleted because it is no longer
necessary as a result of the aforementioned revisions. The newly
created GSAR clause 552.238-118, Economic Price Adjustment--Federal
Supply Schedule Contracts, addresses Schedule EPA requirements.
C. Section 538.273, FSS solicitation provisions and contract
clauses, is being revised to provide for the prescription of the newly
created GSAR clause 552.238-118, Economic Price Adjustment--Federal
Supply Schedule Contracts. Section 538.273 is the appropriate location
for the prescription of this new clause because this is the section
that provides the prescription for Schedule provisions and clauses.
D. GSAR clause 552.238-115, Special Ordering Procedures for the
Acquisition of Order-Level Materials, is being revised to update
paragraph (d)(10)(i) from ``552.216-70 Economic Price Adjustment--FSS
Multiple Award Schedule Contracts'' to ``552.238-118, Economic Price
Adjustment--Federal Supply Schedule Contracts.'' This revision is
appropriate because 552.238-118 is the GSAR clause that is
[[Page 78712]]
replacing the GSAR clause 552.216-70 under the proposed revisions.
E. Section 502.101 Definitions, is being revised to add the
definition for EPA method.
F. The table in section 501.106 OMB Approval under the Paperwork
Reduction Act, is being revised to reflect the proposed revisions and
existing requirements not currently shown in the table.
III. Expected Impact of the Rule
GSA believes that these changes benefit the Schedule program as a
whole. For example, GSA anticipates that these changes will increase
the number and extent of offerings available through the Schedule
program, improve customer satisfaction/reduce customer cost by ensuring
needed products, services, and solutions are not removed from the
Schedule program due to market volatility, and reduce administrative
costs on Schedule contractors, particularly small businesses and new
entrants.
GSA receives hundreds of modification requests each month from
contractors to remove items from their Schedule contracts or declined
orders due to price variability in the commercial market. By statute,
the procedures for the Schedule program are competitive so long as they
are open to all and contracts and orders results in the lowest overall
cost alternative. GSA anticipates this rule will help it ensure
customers experience the lowest overall cost alternative on their
orders by maximizing the chance that full solutions are available on
the Schedule contract, thus minimizing the need to conduct multiple
separate acquisitions to fulfill a requirement.
Currently, Schedule contracts include at least one of the following
four clauses related to the submission and processing of EPA requests
during contract performance: (1) an authorized deviation to GSAR clause
552.216-70; (2) Alternate I of GSAR clause 552.216-70; (3) clause I-
FSS-969; or (4) an Alternate of clause I-FSS-969. These changes
standardize and simplify the EPA requirements contained in these four
clauses. These changes will result in the consolidation of these
clauses into a single Schedule EPA clause. These changes do not alter
the way Schedule contractors conduct business, or their ability to
submit an EPA request.
The qualitative anticipated benefits include, but are not limited
to, the creation of a single standardized Schedule EPA clause; greater
flexibility around EPA requests; providing clarity around EPA within
the Schedule program; providing a connection between the Schedule
solicitation and resultant contracts; and greater flexibility and
agility for purposes of responding to changing conditions.
GSA anticipates the quantitative benefits to be related to improved
regulatory familiarization. GSA calculates the estimated total cost for
Schedule contractors to familiarize themselves with existing EPA
requirements as $3,251,640 (i.e., 3 hours * $77.42 \1\ (GS-12 Step 5
base pay plus ``Rest of US Locality Pay'' plus ``Fringe'') * 14,000
approximate number of current Schedule contractors)). After these
revisions: GSA estimates the total cost as $2,709,700 (i.e., 2.5 hours
* $77.42 (GS-12 Step 5 base pay plus ``Rest of US Locality Pay'' plus
``Fringe'') * 14,000 approximate number of current Schedule
contractors)). Resulting in a reduction in estimated total cost of
$541,940.
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\1\ 2023 Rest of US, 12 Step 5 x 2.0 fringe = $77.42; the rate
is adjusted upward by 100% to adjust for overhead and benefits.
---------------------------------------------------------------------------
IV. Executive Orders 12866, 13563, and 14094
Executive Order (E.O.) 12866 (Regulatory Planning and Review)
directs agencies to assess all costs and benefits of available
regulatory alternatives and, if regulation is necessary, to select
regulatory approaches that maximize net benefits (including potential
economic, environmental, public health and safety effects, distributive
impacts, and equity). E.O. 13563 (Improving Regulation and Regulatory
Review) emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. E.O. 14094 (Modernizing Regulatory Review) supplements and
reaffirms the principles, structures, and definitions governing
contemporary regulatory review established in E.O. 12866 and E.O.
13563. OIRA has determined that this rule is not a significant
regulatory action, and, therefore, is not subject to review under
section 6(b) of E.O. 12866, Regulatory Planning and Review, dated
September 30, 1993.
V. Regulatory Flexibility Act
GSA does not expect this proposed rule to have a significant
economic impact on a substantial number of small entities within the
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.,
because this rule is to standardize and simplify existing EPA
requirements related to Schedules (e.g., revise GSAR clause 552.216-70,
Economic Price Adjustment-FSS Multiple Award Schedule Contracts). The
underlying purpose of the changed text remains the same (i.e.,
supporting the submission and processing of EPA requests), and
therefore any burden would have been identified previously. However, an
Initial Regulatory Flexibility Analysis (IRFA) has been prepared
consistent with 5 U.S.C. 603.
The Regulatory Secretariat Division will be submitting a copy of
the IRFA to the Chief Counsel for Advocacy of the Small Business
Administration. A copy of the IRFA may be obtained from the Regulatory
Secretariat Division. GSA invites comments from small business concerns
and other interested parties on the expected impact of this rule on
small entities.
GSA will also consider comments from small entities concerning the
existing regulations in subparts affected by the rule in accordance
with 5 U.S.C. 610. Interested parties must submit such comments
separately and should cite 5 U.S.C. 610 (GSAR Case 2020-G510), in
correspondence.
The analysis is summarized as follows:
The objective of the rule is to standardize and simplify the
clauses for Schedule related to EPA. These revisions will result in
the consolidation of the four existing Schedule clauses into a
single Schedule EPA clause. These revisions also remove certain
procedural limits contained in these clauses to better align with
commercial standards and practices. GSA anticipates that these
changes will increase the number and extent of offerings available
through the Schedule program, improve customer satisfaction/reduce
customer costs by ensuring needed products, services, and solutions
are not removed from the Schedule, and reduce administrative costs
on Schedule contractors, particularly small businesses and new
entrants.
Title 40 of the United States Code (U.S.C.) Section 121
authorizes GSA to issue regulations, including the GSAR, to control
the relationship between GSA and contractors. In addition, 41 U.S.C.
152 provides GSA authority over the Schedule program.
The rule applies to both large and small businesses, which are
awarded Schedule contracts. Information obtained from FAS as well as
the recent renewal of Information Collections 3090-0235 and 3090-
0306 were used as the basis for estimating the number of Schedule
contractors that this rule may impact. For Fiscal Year 2022 there
were approximately 14,000 Schedule contractors, of which over 12,000
(85 percent) were small business entities. In addition, according to
the recent renewal of Information Collections 3090-0235 and 3090-
0306, GSA processes approximately 2,561 EPA requests annually. GSA
anticipates this rule will not significantly impact this number.
The rule does not implement new or changed reporting,
recordkeeping, or other
[[Page 78713]]
compliance requirements for Schedule contracts. The rule merely
updates and clarifies existing EPA requirements currently used in
Schedule contracts.
The rule does not duplicate, overlap, or conflict with any other
Federal rules.
There are no known alternatives to this rule which would
accomplish the stated objectives. This rule does not initiate or
impose any new administrative or performance requirements on small
business contractors because the requirements prescribed in existing
Schedule EPA clauses are already being followed. The rule merely
updates and clarifies these existing requirements so as to reduce
burden for both the government and contractors as it relates to EPA
within Schedule contracts.
VI. Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. chapter 3501) does apply;
however, these changes do not impose additional information collection
requirements to the burden previously approved under the Office of
Management and Budget (OMB) Control Number 3090-0235, titled: Federal
Supply Schedule Pricing Disclosures and Sales Reporting and OMB Control
Number 3090-0306, titled: Transactional Data Reporting. Both OMB
information collections, however, will be updated to reflect the change
in the clause title and number from 552.216-70, Economic Price
Adjustment--FSS Multiple Award Schedule Contracts, to 552.238-118,
Economic Price Adjustment--Federal Supply Schedule Contracts.
List of Subjects in 48 CFR Parts 501, 502, 538, and 552
Government procurement.
Jeffrey A. Koses,
Senior Procurement Executive, Office of Acquisition Policy, Office of
Government-wide Policy, General Services Administration.
Therefore, GSA proposes to amend 48 CFR parts 501, 502, 538, and
552 as set forth below:
0
1. The authority citation for 48 CFR parts 501, 502, 538, and 552
continues to read as follows:
Authority: 40 U.S.C. 121(c).
PART 501--GENERAL SERVICES ADMINISTRATION ACQUISITION REGULATION
SYSTEM
0
2. In section 501.106 amend Table 1 by--
0
a. Revising the entry for ``516.506'';
0
b. Removing the entry for ``552.216-70 and its corresponding OMB
Control No.; and
0
c. Adding in numerical order, entries for ``552.238-83'' and ``552.238-
118''.
The revision and additions read as follows:
------------------------------------------------------------------------
GSAR reference OMB control No.
------------------------------------------------------------------------
* * * * ............................
516.506................................... 3090-0248, 3090-0306.
* * * * ............................
552.238-83................................ 3090-0235, 3090-0306.
* * * * ............................
552.238-118............................... 3090-0235.
* * * * ............................
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PART 502--DEFINITIONS OF WORDS AND TERMS
0
3. Amend section 502.101 by adding in alphabetical order, the
definition of ``Economic Price Adjustment (EPA) Method'' to read as
follows:
502.101 Definitions.
* * * * *
Economic Price Adjustment (EPA) method means the agreed upon
procedure by which pricing may be adjusted throughout the contract
period to include, but not limited to, the mechanism(s) to be used to
adjust pricing (e.g., adjustments based on established pricing), the
pricing subject to adjustment, and any other requirements (e.g.,
timing, frequency, limits on increases.
* * * * *
PART 538--FEDERAL SUPPLY SCHEDULE CONTRACTING
0
4. Amend section 538.273 by adding paragraph (d)(38) to read as
follows:
538.273 FSS solicitation provisions and contract clauses.
* * * * *
(d) * * *
(38) 552.238-118, Economic Price Adjustment--Federal Supply
Schedule Contracts. Use in Federal Supply Schedule solicitations and
contracts.
* * * * *
PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
552.216-70 [Removed]
0
5. Remove section 552.216-70.
0
6. Amend section 552.238-115 by revising the date of the clause and
paragraph (d)(10)(i) to read as follows:
552.238-115 Special Ordering Procedures for the Acquisition of Order-
Level Materials.
* * * * *
Special Ordering Procedures for the Acquisition of Order-Level
Materials (DATE)
* * * * *
(d) * * *
(10) * * *
(i) 552.238-118, Economic Price Adjustment--Federal Supply
Schedule Contracts.
* * * * *
0
7. Add section 552.238-118 to read as follows:
552.238-118 Economic Price Adjustment--Federal Supply Schedule
Contracts.
As prescribed in 538.273(d), insert the following clause:
552.238-118 Economic Price Adjustment--Federal Supply Schedule
Contracts (DATE)
(a) Definition.
Economic price adjustment method, as used in this clause, means
the agreed upon procedures by which pricing may be adjusted
throughout the contract period to include, but not limited to, the
mechanism(s) to be used to adjust pricing (e.g., adjustments based
on established pricing), the pricing subject to adjustment, and any
other requirements (e.g., timing, frequency, limits on increases).
(b) General. This contract provides for economic price
adjustment (EPA) to contract pricing based on the established EPA
method. EPA provides for the increase and decrease to stated
contract pricing upon the occurrence of specified conditions
described in the EPA method, such as market index changes or
unforeseeable significant changes in market conditions.
(c) Exceptions. This clause does not cover--
(1) Adjustments based on statute, Executive Order, or regulation
(e.g., Service Contract Labor Standards (41 U.S.C. chapter 67) and
AbilityOne procurements (FAR subpart 8.7));
(2) Adjustments based on a change clause (e.g., paragraph (c) of
GSAR clause 552.212-4, Contract Terms and Conditions--Commercial
Products and Commercial Services (FAR DEVIATION 52.212-4));
(3) Price reductions made under GSAR clause 552.238-81, Price
Reductions;
(4) Adjustments based on GSAR clause 552.238-117, Price
Adjustment-Failure to Provide Accurate Information; and
(5) Adjustments based on a contract clause that authorizes an
adjustment based on specified actions or conditions.
(d) Economic price adjustment method. The EPA method may be
revised through mutual agreement of the parties. In the event of a
conflict between the EPA method and this contract, the contract
shall control.
(e) Submission requirements. The Contractor shall submit EPA
requests to the Federal Supply Schedule (FSS) Contracting Officer
pursuant to the EPA method. EPA requests shall fully conform to the
requirements of the EPA method and include sufficient information to
support the request.
[[Page 78714]]
The FSS Contracting Officer may request additional information from
the Contractor.
(f) Contracting Officer responsibilities. The FSS Contracting
Officer will--
(1) Review the EPA request to ensure conformance with the EPA
method,
(2) Make a determination. The FSS Contracting Officer may use
any information (e.g., market research) deemed necessary to support
their determination. The FSS Contracting Officer may determine to--
(i) Accept the EPA request either in whole or in part,
(ii) Reject the EPA request either in whole or in part, or
(iii) Take any other action deemed to be in the best interest of
the Government (e.g., negotiate a more favorable EPA).
(3) Notify the Contractor of their determination, and
(4) Modify the contract, as applicable, to reflect the
determination. Contract items that need to be removed from the
contract as a result of rejection or an inability to reach agreement
are to be removed in accordance with 552.238-79, Cancellation.
(g) Effective date. EPA requests approved by the FSS Contracting
Officer under this clause shall apply to orders issued on or after
the effective date of the contract modification. Blanket Purchase
Agreements (BPAs) may be modified by the ordering agency in
accordance with the terms and conditions of the BPA.
(h) Update of contract pricing and catalog data. The Contractor
shall update its FSS pricing and any other FSS catalog data in
accordance with the terms and conditions of this contract.
(End of clause)
[FR Doc. 2023-25221 Filed 11-15-23; 8:45 am]
BILLING CODE 6820-61-P
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