Multiple Award Schedule Pricing Policy Time for Change or Status Quo The Coalition for Government Procurement Business Roundtable May 22, 2013
MAS Objectives • • • • •
Streamlined ordering Streamlined contracting Commercial services and products Commercial practices Best value, fair and reasonable prices
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State of the MAS • • • • •
Good tool for selling in the federal market “Brand” recognition by federal customers Hosts many services and products Small business friendly Contract pricing and procedures – Inconsistent, complex, government unique provisions increase contractor costs and prices
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Challenges to GSA Schedule Pricing • The Most Favored Customer (MFC) Pricing – Misunderstood
• MAS disclosure requirements – Unclear, inconsistently applied, exceeds negotiation needs
• The Price Reductions Clause – High risk and cost of compliance – Limits competition in government and commercial market – Task order competition obviates need
• Adaptation to the customized, fluid pricing models – Professional Services An opportunity to adapt to environmental changes 4
Current Acquisition Environment • Revised Schedule Ordering Procedures – Increased Task Order Competition
• Government – Increasing demand for services, solutions
• Commercial – Customized, transactional pricing Schedules Modernization – GSA Schedule Pricing Policy
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Opportunities for Change Recommendations •
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Delete “MFC” and “Best” from the pricing policy – Fair and Reasonable – Consider terms and conditions Focus CSP disclosure on transactions below $150,000 with description of commercial policies and practices over that amount – At minimum clarify commonly misunderstood terms Eliminate PRC – At a minimum limit applicability to orders below $150,000 Professional Services – Pilot Test - Contractor posted ceiling price; task order competition – Mechanism for pricing ODC Conform pricing policy to ordering procedures 6
Moving Forward Continuing the Dialogue
Coalition - GSA Schedules Pricing Policy Workgroup GSA – Rewrite GSAR Chapter 538