What is the GSA price? Simply put, GSA spends billions of dollars a year to get the best possible price. If the price you offer to the GSA is not “fair and reasonable”, they will reject it and negotiate for a lower price. To do this, they negotiate prices in a very specific way. First, they set a commercial price for each product or service. They require billing to justify your price. Second, they establish a “Most Favored Customer” (MFC). It is a customer to whom you regularly give the best discount. Third, they set a GSA price, where their discount is higher than the MFC discount. GSA then uses the MFC as a tracking client. You compare the discount you give to your MFC.

If the difference between your GSA discount and the MFC discount changes, you are violating the price reduction clause (PRC). A violation of the PRC can cause your business to pay the government for the money you overcharged for it. This means that it is imperative to stay organized and make sure that the difference between your MFC and GSA price remains constant. What are the industry`s financing costs? These are the fees that the GSA charges for the management of the GSA Annex contracts. Currently, the BIF is 0.75%. The Schedule GSA holder should report its GSA sales through the 72A reporting system within 30 days of the end of the quarter. The Holder of Schedule GSA must also calculate and pay the BIF at the same time. There is no law requiring a contractor to keep a GSA schedule to do business with the federal government. However, many agencies only place orders through GSA calendar contracts. As a result, companies that do significant business with the federal government end up finding it necessary to enter into a schedule agreement. The federal government created the General Services Administration in 1949.

Since then, the GSA`s mandate has evolved to cover the constitution and management of assets for the government and the management of regulations and policies. However, its most important mission is to develop and manage the contract program for the GSA Annex or Multiple Schedule. The objective of this programme is to consolidate, rationalise and simplify public procurement of certain types of goods and services. It aims to reduce costs and public spending through leverage. By entering into competitive contracts for goods and services for multiple users, such as federal departments and agencies, the GSA has greater bargaining power and can lower the prices of these goods and services overall. Maximizing competition is another way for the government to use its purchasing power and encourage discounts. Procurement activities are encouraged to involve industry early in the procurement planning process to give contractors sufficient time to prepare for upcoming competitions. Contractual activities are also encouraged to send requests to eBuy, even if the FAR does not require it, in order to increase the visibility of tenders and the pool of interested entrepreneurs. Entrepreneurs may be more likely to offer discounts in a more competitive environment. Two documents are essential to the pricing of the Annex GSA contract. The first is the CSP (Commercial Sales Practices) format. Typically, this is document 9 in the prompt package.

The CSP has a form for services and another for products. Both forms must include the total projected annual sales to government for each Special Item Number (SIN) offered. SINs are the numbers under each GSA calendar that indicate the category of product or service offered. If the potential owner of the schedule is a distributor/reseller of a product, a commitment/delivery from the manufacturer is required. For all acquisitions, COs must conduct market research to get an idea of the prices they should expect, including reasonable discounts. Understanding the market by looking at prices, data paid, current commercial pricing practices, and other industry trends can help CO recognize when more discounts might be warranted. The acquisition gateway is a potential source of this information. Sometimes referred to as the GSA Annex, the GSA Contract, or the Multi-Term Contract, a GSA Annex Contract is designed to make it easier for federal employees to make the purchases necessary for the operation of government. Items as diverse as furniture, office paper products and professional services may be subject to a GSA schedule agreement. Once awarded, your negotiated prizes must be published electronically in GSA Advantage! within 30 days of the issuance by GSAM 552-238-77 of the submission and distribution of the Federal Authorized Supply Schedule (FSS) price lists.


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