Thank You for Joining Us, The Webinar Will Begin Shortly. Demystifying the Price Reduction Clause

Transcription

1 SBA S NEW SMALL BUSINESS MENTOR-PROTÉGÉ PROGRAM Thank You for Joining Us, The Webinar Will Begin Shortly Demystifying the Price Reduction Clause Presented by: Jody Franklin Accounts Director, Global Services While you are waiting please check out the Upcoming Webinars on

2 SBA S NEW SMALL BUSINESS MENTOR-PROTÉGÉ PROGRAM Before we begin just a few notes: During the presentation lines will be muted so only presenters can be heard. While you are listening please also put your phone on mute Do NOT put your phone on hold please hang up and call back If having trouble viewing the presentation please close out and log in using a different browser If your slides are not moving please refresh or log out & then log back in If you have any questions during the presentation, please feel free to enter them into the discussion box on the bottom left of your screen

3 Demystifying the Price Reduction Clause Presented by: Jody Franklin Accounts Director, Global Services

4 SBA S NEW SMALL BUSINESS MENTOR-PROTÉGÉ PROGRAM Women Impacting Public Policy (WIPP) is a nonprofit, membership organization working to increase the economic power and public policy clout of women entrepreneurs by providing essential business skills education, leadership opportunities for business and personal growth, and a seat at the table among policymakers in Washington, D.C. WIPP was founded in 2001 and is recognized as a national, nonpartisan voice for women business owners, advocating on behalf of its coalition 79 business organizations. WIPP identifies important trends and opportunities and provides a collaborative model for the public and private sectors to advance the economic empowerment of women.

5 SBA S NEW SMALL BUSINESS MENTOR-PROTÉGÉ PROGRAM GIVE ME 5 National program from WIPP & American Express OPEN designed to educate women business owners on how to apply for and secure federal procurement opportunities. Give Me 5 works to increase the representation of Women Business Owners that win government contracts. We provide accessible business education tools to assist both new and experienced federal contractors.

6 Demystifying the Price Reduction Clause Presented by: Jody Franklin Accounts Director, Global Services

7 2013 Course Instructor Jody Franklin Accounts Director

8 Demystifying the Price Reduction Clause

9 GSA s Pricing Goal Offeror acknowledges GSA s pricing goal is to obtain equal to or better than the offeror s Most Favored Customer pricing under the same or similar terms and conditions. Pricing that is not determined by the Government to be highly competitive will not be determined to be fair and reasonable and will not be accepted.

10 Who is my Most Favored Customer? Program Manager 200 $150 Prime A $125 Prime B Hourly Rate $105 Subcontractor A $100 Subcontractor B 0

11 MFC vs. BOA Most Favored Customer Who receives your best pricing/best concessions? A Customer or a Class of Customer? Basis of Award Set at the time of award Used to track your GSA discount relationship Not always the same as MFC Be sure to check your Final Proposal Revision letter!

12 GSA Discount Relationship Program Manager 150 $100 Non-GSA/Commercial Floor Hourly Rate $90 Awarded GSA (Ceiling) Rate Established Discount Relationship (10%) 0

13 Price Reduction Clause All MAS contracts remain subject to contract clauses GSAR , Price Reductions ; and , Price Adjustment -- Failure to Provide Accurate Information: Before award of a contract, the Contracting Officer and the Contractor will agree upon the customer (or category of customers) which will be the basis of award, and the Government s price or discount relationship to the identified customer (or category of customers)

14 Price Reduction Clause This relationship shall be maintained throughout the contract period. Any change in the Contractor s commercial pricing or discount arrangement applicable to the identified customer (or category of customers) which disturbs this relationship shall constitute a price reduction The Contractor shall notify the Contracting Officer of any price reduction subject to this clause as soon as possible, but not later than 15 calendar days after its effective date

15 Price Reduction Clause Program Manager 150 $100 Non-GSA/Commercial Floor Hourly Rate Established Discount Relationship (10%) $95 New Commercial Rate New Discount Relationship (10%) 5% $90 Awarded GSA (Ceiling) Rate $85.50 New GSA Ceiling Rate 5% 0

16 Spot Discounting Spot Discount Pricing One-time discounts to an ordering activity using the GSA FSS Schedule Discounts do not need to be offered to all activities If discounts are offered continuously, lower prices may be negotiated when option periods are exercised Check with your PCO/ACO if unsure

17 GSA Discount Relationship Program Manager 150 $100 Non-GSA/Commercial Floor Hourly Rate 0 $90 Awarded GSA (Ceiling) Rate $85 Spot Discount Established Discount Relationship (10%)

18 Remaining Compliant Does the contractor have a system in place to monitor the basis of award customer discount relationship? Check and Balances Manual Scrutiny Automated System Commercial Sales Practices Current Accurate Complete

19 Transactional Data Reporting Transactional Data Reporting (TDR) Rule Produces market intelligence that GSA and its partner agencies can use to make smarter acquisition decisions and save even more taxpayer dollars Removes burdensome tracking and reporting supplier requirements from the price reduction clause (PRC) and commercial sales practices (CSP) For More Information FAQ: TDR Fact Sheet:

20 2013 Questions? Jody Franklin Accounts Director

21 SBA S NEW SMALL BUSINESS MENTOR-PROTÉGÉ PROGRAM THANK YOU FOR PARTICIPATING Following this call you will receive links to the podcast of this session. Be sure to register for all webinars in this series by going to And click on the calendar. For questions, please contact Lin Stuart at Lstuart@wipp.org

22 SBA S NEW SMALL BUSINESS MENTOR-PROTÉGÉ PROGRAM Get Involved! Join a policy issue committee and learn how policy can impact your business growth Make your voice heard - become a member of our national Instant Impact Advocacy Team Participate in our educational series unlimited opportunities for you and your staff Receive weekly policy updates and briefings WIPP Questions? Contact WIPP Staff Program & Education Coordinator: Lin Stuart LStuart@wipp.org (415) Membership Coordinator: Lynn Bunim LBunim@wipp.org (415)