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I am faced with the following scenario:

The agency would like to award a BPA under the FSS. The current option period under the schedule contract will expire in 2013, although it may be renewed. The options on the BPA would extend through 2015. I know that we cannot exercise the options on the BPA if the schedule contract is not renewed, but my question pertains to pricing.

Can the prices for years 2014 and 2015 under the BPA exceed the maximum pricing for 2013 under the schedule contract?

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Yes - put a caveat in your pricing section that the pricing for those years will be the rates in the order or the rates in the underlying schedule, whichever is lower.

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What if the pricing schedule has already gone out without such a statement? What can we do at that point if an offeror proposed pricing for 2014 and 2015 that exceeds the 2013 rates?

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Your RFP went out? Or offers came in? If RFP went out but offers not back yet, post amendment to RFP and add it. If offers already back, the vendors may have included an assumption about out year pricing and escalation for those years. If they did, you may be covered. If not, ask them to clarify/revise. Just be careful that if you ask for revision (which puts you in discussions), you open discussions with all.

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Guest carl r culham

Two thoughts regarding comments made by Woops....

Hopefully the method of solicitation was a RFQ and not a RFP?

Wouldn't extension beyond the contractor being on schedule constitute a open market procurement rather than a FSS procurement? Suggest writing the BPA to be the same as the schedule to avoid confusion.

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A couple of points on this topic.

Please remember that a GSA Schedules Contract is a 5yr contract with 3-5yr option periods, so it is highly likely that the contract you reference will have its option exercised and will run beyond 2013. This should eliminate the "open market" scenario. If the option is not exercised, then no further task orders could be executed or task-order-options exercised under the contract.

A GSA Contractor can not charge a price as part of a Delivery/Task Order that is higher than their negotiated price on their schedule contract. To do so would be in violation of their contract and if caught they would have to refund the government, with interest. If they quote prices for 2013/2014 and those prices end up being higher than what is on their schedule contract, they are required to reduce the amounts to be no more than what is in their schedule contract.

If you have any concerns with the GSA Schedule Contract, I would recommend contacting the contracting officer who administers the contract. They should be able to help you.

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For more information about ordering from a Schedule contract for a timeframe beyond the expiration date, I have pasted the below from the site http://www.gsa.gov/portal/content/101193:

Options may be included on orders placed against GSA Multiple Award Schedule (MAS) contracts, provided that the options are clearly stated in the requirement and are evaluated as part of the ordering activity's best value determination. Such options may be exercised on GSA Schedule contract orders, provided that:

Funds are available;

The requirement covered by the option fulfills an existing government need;

Prior to exercising an option, the ordering activity ensures that it is still in the government's best interest; i.e., that the option is the most advantageous method of fulfilling the government's need, price and other factors considered; and

The options do not extend beyond the period of the Schedule contract, including option year periods.

Under the preceding conditions, Blanket Purchase Agreements (BPAs) under Schedule contracts may be established with options that extend beyond the end of the basic Schedule contract period. The length of the order and the risk to the ordering activity could be considered as part of the overall evaluation of best value.

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