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Michael11

Pricing EPA adjustments into Task Orders/BPAs

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Our GSA pricing is based on a commercial price list. We have no annual rate escalation built into our pricing. We're in the process of submitting a request for an EPA and the CO has made clear what they need to approve it. The CO has indicated they have no reason they don't expect to approve it. My question is, until the pricing is formally approved, can we price the adjustment factor into RFQs out on the street? Or ones that we will bid between now and when the new rates are approved?

Can we legitimately propose the new unapproved rates with the understanding that if they're not approved we will use our existing rates? Or can we propose our existing pricing but state that they will increase as approved under our schedule in accordance with the EPA clause?

Any help or guidance is greatly appreciated.

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Take a look at the FP-EPA clause in your contract, sometimes FAR Clause 52.216-2, Economic Price Adjustment-Standard Supplies. This will tell you when your adjustment is effective.

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Our GSA CO indicated that we could basically state in our proposal that our rates are under evaluation for an escalation and that we expect to receive it by the time the POP starts and will be charged accordingly. And suggested still using our current rates for the proposal. If we go that route, I imagine our budget or price would stay the same, but we could charge the escalated rates.

Alternatively, if we put together a bid using the escalated rates, and then for some reason they are not approved, we've basically bid for a task order where we don't have gsa rates to support the price which doesn't seem right either. Or could we price it to say these are the rates we expect to have by the beginning of the project, but if for some reason they're not approved, we will bill you our existing schedule rates?

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Michael - i would suggest using current rates for proposal because those rates are in your contract and are binding. Once PoP starts and provided that your new rates are approved, you can file a REA to justify your new rates.

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Michael - i would suggest using current rates for proposal because those rates are in your contract and are binding. Once PoP starts and provided that your new rates are approved, you can file a REA to justify your new rates.

I would advise you to be very careful about doing that unless it is very clear in the order that you have the right to increase your rates when the work begins.

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On 12/10/2015 at 11:00 AM, huwen119 said:

Michael - i would suggest using current rates for proposal because those rates are in your contract and are binding. Once PoP starts and provided that your new rates are approved, you can file a REA to justify your new rates.

Absent some action on the part of the government during performance which caused you to be harmed, I fail to see where an REA would come into play.  A belief that you're not charging enough is not 'harm'.

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Reference - http://www.gsa.gov/graphics/fas/Student_Guide_Two_Day_508_Compliant.pdf       Page 31

The document essentially provides the same advice that Joel has offered.   It suggests that a CO for a TO may insert a special provision in the TO to allow for an after award modification to allow increase in GSA FSS pricing captured in the TO.

In offering this reference I am reminded that the GSA FSS is like an IDIQ in that the guidelines, principles and rules of what can be done with regard to an issued TO is based on the GSA FSS contract itself and the administering agency, GSA.

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