Vendors have responded negatively to the GSA pricing data proposal released earlier this year. The proposal would require that contractors report data on prices paid for every contract vehicle. Though part of the proposal included reducing a related burden on contractor pricing known as the price reduction clause, vendors have responded that the new pricing data proposal would add a significant burden equal to or greater than the current burden. Learn more about vendors’ responses to the GSA proposal, below.
GSA Pricing Data Proposal See Backlash from Vendors
The proposal would require that vendors report the prices the government pays for goods and services purchased through federal contracts. These prices would be reported electronically and would go into a database that GSA and other federal agencies would be able to use in order to compare pricing data. This would allow agencies to make better decisions when it comes to contract purchases, and save taxpayers money.
Another component of the proposal was that GSA would remove the price reduction clause, which has long been disliked by vendors. This clause says that vendors must give the government the same discounts they give commercial customers, which requires vendors to monitor pricing or face lawsuits if it’s discovered they are not giving the government the same discounts.
Vendor Response to GSA Pricing Data Proposal
Vendors have not taken a favorable position on the proposal. While the GSA found that the new proposal would add a burden of 6 hours per company, vendors conducted their own independent estimates and found this figure to be misguided.
“The Coalition for Government Procurement surveyed its members and estimated that for small business members, it would take 232 hours to set up the initial requirement and 38 hours a month to do the reporting. For its large business members, CGP said the rule would be even more burdensome, taking almost 1,200 hours of set up and 68 hours a month,” according to Federal News Radio.
The GSA responded that it recognizes concerns vendors have over this increased burden, and that it also understands that an increased burden will lead to price increases. GSA Commissioner of the Federal Acquisition Tom Sharpe has stated that GSA is working with the industry to come to an understanding, and has also noted that “We have an interest in keeping the burden as low as possible because it is price bearing.”
DHA Group, Inc.
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