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Evaluating GSA schedule order out years pricing when the schedule option hasn't been exercised?

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I'm evaluating a quote under GSA Schedule and their schedule option period ends in 2028 while my requirement goes through 2030. They have an ultimate contract end date for their schedule in 2038 though. They said they've including pricing for 2029 and 2030 based on their anticipated pricing if their schedule option is exercised. I thought they couldn't propose rates that exceed their current awarded rates. What if GSA exercises their schedule and they renegotiated the rates to below what I awarded on my order? How could I even verify that the rates they're proposing are consistent with their (unexercised) schedule rates? Normally, I go to elibrary and review what's there but I can't do that for the unexercised periods.

  • Author
11 hours ago, C Culham said:

So you only have one quote to evaluate?

No I have a few quotes but this one has the highest technical ratings.

17 hours ago, Freyr said:

I'm evaluating a quote under GSA Schedule and their schedule option period ends in 2028 while my requirement goes through 2030. They have an ultimate contract end date for their schedule in 2038 though. They said they've including pricing for 2029 and 2030 based on their anticipated pricing if their schedule option is exercised. I thought they couldn't propose rates that exceed their current awarded rates.

Your thoughts are correct. GSA states in several documents that orders may extend past the contract period but only at rates not exceeding current contract. You can verify that in the MAS Ordering Guide. The contractor needs to adjust pricing for 2029 and 2030 to match what’s contained in the contract for 2028.

12 minutes ago, Freyr said:

No I have a few quotes but this one has the highest technical ratings.

Thanks.

So @formerfed has offered a response that I do not disagree with.

My additional thoughts are these.

Why is the contractor in the running IF you have responses from contractors whose pricing is verified through 2030? Does your RFQ allow you to do so?

GSA FSS is a IDIQ is it not. Reference 52.216-22 most likely in the parent GSA FSS. So wouldn't offering pricing beyond priced options be like open market prices?

Overall like you I would be nervous on selecting the contractor and awarding the order based on hoped for prices in the two out years that the contractor does not have confirmed pricing.

Have you posed your concern to the GSA CO for the parent contract?

  • Author
1 hour ago, C Culham said:

Thanks.

So @formerfed has offered a response that I do not disagree with.

My additional thoughts are these.

Why is the contractor in the running IF you have responses from contractors whose pricing is verified through 2030? Does your RFQ allow you to do so?

GSA FSS is a IDIQ is it not. Reference 52.216-22 most likely in the parent GSA FSS. So wouldn't offering pricing beyond priced options be like open market prices?

Overall like you I would be nervous on selecting the contractor and awarding the order based on hoped for prices in the two out years that the contractor does not have confirmed pricing.

Have you posed your concern to the GSA CO for the parent contract?

Like formerfed mentioned, the mas ordering guide led me to think they need to not exceed the rates in schedule, similar to if their schedule didn't have any future ordering period available. I'm keeping them in the running because I'm not entirely sure I'm right in my thinking. What if I kick them out and they protest and say they based their pricing on their schedule pricing that's not exercised yet but was evaluated and agreed to by GSA when the schedule was awarded?

Our RFQ said we would verify their rates don't exceed their schedule rates. What's giving me pause for kicking them out is that in a practical sense it doesn't really make sense to me. If a contractor is in the final year of their current schedule period then every order they get is locked in at the final year pricing? Even though they potentially have new rates coming up with a new option period on schedule. Really removes the incentive for them to bid. Do companies really just bid those final year rates for multiple order option years?

I did reach out to the CO on Monday but haven't gotten a response.

1 hour ago, Freyr said:

I did reach out to the CO on Monday but haven't gotten a response.

Hopefully you do get a response and it will be of interest for a post here.

To the concern of a protest talk to the contractor. Find out why they think their offer is appropriate pursuant to their GSA FSS. Could be they are on solid ground and give you a sound reason as to why or just quoting to keep themselves in the running.

Lots of luck getting a response from GSA. The governments been shut down for six weeks.

Carl’s suggestion about contacting the contractor is good. Show the contractor the info in the bullets at top of page 54 in the MAS Schedule Desk Reference and ask why they feel their quote isn’t in conflict.

Multiple%20Award%20Schedules%20Desk%20Re

  • Author
On 11/14/2025 at 12:49 PM, C Culham said:

Hopefully you do get a response and it will be of interest for a post here.

To the concern of a protest talk to the contractor. Find out why they think their offer is appropriate pursuant to their GSA FSS. Could be they are on solid ground and give you a sound reason as to why or just quoting to keep themselves in the running.

The contractor responded over the weekend, GSA told them they can propose whatever they want but once their new option is exercised they'll have to ensure those rates are higher than what they've been awarded in their orders or else the orders will need to be modified to reduce the price. They provided a copy of the GSA email for verification. This seems like a pretty wild approach for GSA to take, I guess if this contractor is chosen for award then we'd be potentially reducing the prices at each order option exercise?

1 hour ago, Freyr said:

This seems like a pretty wild approach for GSA to take, I guess if this contractor is chosen for award then we'd be potentially reducing the prices at each order option exercise?

GSA has said this before and it slipped my mind. The idea is your order can exceed the term of the current GSA Schedule contract period. But the GSA contract has additional 5 year option periods which likely will be exercised at a later date. GSA is saying your order can extend beyond the existing Schedule contract period with the condition your order prices will be adjusted to reflect the new Schedule contract rates..

From your original explanation, you only make option price adjustments one time - late 2028 or early 2029.

4 hours ago, Freyr said:

They provided a copy of the GSA email for verification.

3 hours ago, formerfed said:

GSA has said this before

Well I guess an email and "said" trumps a contracts terms and conditions. Sheesch!

If me I would add a condition to the order based on the email. I would title it "Do anything you want".

Thanks for sharing!

It’s simply an order with 2029 and 2030 pricing conditioned upon GSA exercising the next Schedule contract option.

@Freyr What you can do is put language in your order that 2029 and 2030 pricing is contingent upon GSA exercising the option and will be adjusted from the order estimate based upon finalization with GSA. In the event GSA fails to exercise the option, prices will revert to 2027 prices consistent with terms of the GSA contract including FAR 52.216-22.

18 hours ago, formerfed said:

It’s simply an order with 2029 and 2030 pricing conditioned upon GSA exercising the next Schedule contract option.

It could be that the OP has moved on, but as it goes I can not. "Simply" seems to apply a laissez-faire approach in my view. I appreciate the OP's inquiry and concern. Why? I believe a Order against a IDIQ (aka GSA FSS) is not subject to the FAR/GSAM but the contract rerms and conditions its self. In giving more thought to the matter my first step would be to review the parent contract in detail and look at all its terms and conditions to determine if awarding an Order with essentially unpriced options is in keeping with the contract. Of note does GSA award the future upriced options based on price (take a look at GSAM Clause 552.217-71) or something else. If not price how is the OP in this case suppose to determine "fair and reasonable price" for award of the Order? One might also raise the matter of the order needing a justification of limited source when going beyond priced options of the GSA FSS?

Beyond my concerns I did find this reference on GSA's website. https://www.gsa.gov/buy-through-us/purchasing-programs/multiple-award-schedule/help-with-mas-buying/exercising-options-on-mas-orders#:~:text=Federal%20agency%20buyers%20can%20include%20options%20on,the%20ordering%20period%20of%20the%20MAS%20contract

My conclusion - I not sure I would depend solely on a email or even the concept of "we have always done it that way". Slippery slope as to when some one would raise the their hand and say hey wait a minute. Hopefully the thread has given the OP good information to help them move forward in the most appropriate way. And I am not saying the OP cannot consider the contractor but if the OP does they better have more ducks in a row that just an email!

  • Author
3 hours ago, C Culham said:

It could be that the OP has moved on, but as it goes I can not. "Simply" seems to apply a laissez-faire approach in my view. I appreciate the OP's inquiry and concern. Why? I believe a Order against a IDIQ (aka GSA FSS) is not subject to the FAR/GSAM but the contract rerms and conditions its self. In giving more thought to the matter my first step would be to review the parent contract in detail and look at all its terms and conditions to determine if awarding an Order with essentially unpriced options is in keeping with the contract. Of note does GSA award the future upriced options based on price (take a look at GSAM Clause 552.217-71) or something else. If not price how is the OP in this case suppose to determine "fair and reasonable price" for award of the Order? One might also raise the matter of the order needing a justification of limited source when going beyond priced options of the GSA FSS?

Beyond my concerns I did find this reference on GSA's website. https://www.gsa.gov/buy-through-us/purchasing-programs/multiple-award-schedule/help-with-mas-buying/exercising-options-on-mas-orders#:~:text=Federal%20agency%20buyers%20can%20include%20options%20on,the%20ordering%20period%20of%20the%20MAS%20contract

My conclusion - I not sure I would depend solely on a email or even the concept of "we have always done it that way". Slippery slope as to when some one would raise the their hand and say hey wait a minute. Hopefully the thread has given the OP good information to help them move forward in the most appropriate way. And I am not saying the OP cannot consider the contractor but if the OP does they better have more ducks in a row that just an email!

Wouldn't exactly say I've moved on, still mulling over options but I'm likely going to lean towards what @formerfed has suggested. I'd like my order to be as self-contained as possible considering the potential unknowns of the future of their schedule. That link for exercising options is one of the bases for my skepticism on keeping them in the running and my past (less than fantastic) experience with GSA COs giving advice on order issues makes me pause even longer. Ultimately, I'm probably going to go with the solution that gives us what I and my team feel to be the greatest benefit, covers me the most, and just makes sense to me (in a way that I am comfortable putting into writing and including in a file). I might not be able to square the circle but a rectangle might be my next best option. A former CO of mine used to close their eyes when they signed certain awards, I think I'm in a better position than that...

@Freyr

Sound thinking to me.

I still wonder. One would think that per the email (albeit I have not read it) schedule option period ends in 2025, requirement goes through 2030, contractor has an ultimate contract end date for their schedule in 2038, you could just go ahead and award! Crazy to me.

Sometimes a contracting officer has to just make a decision considering everything and move on.

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