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Negotiating GSA Schedule Price Lists

A GSA schedule cost offer and the subsequent telephone negotiations are just dreamy any business negotiation, e.g., buying a car. It's a give and take derive and the companies making the most convincing arguments supporting their price, both on paper and during telephone discussions, will obtain the best pricing.The General Services Administration (GSA) appears to be placing more emphasis on obtaining the lowest possible cost when negotiating GSA schedule contracts. According to the Schedule 00CORP Consolidated Schedule Request for Proposal, the General Accounting Office is referenced stating that the GSA has a fiduciary responsibility to the American taxpayers and to client agencies to take full advantage of the Government's leverage in the market in point to obtain the best amount for the taxpayer. Accordingly, the U.S. General Accounting Office has specifically recommended that "the price analysis GSA does to establish the Government's Multiple Award Schedule (MAS) negotiation objective should start with the best discount given to any of the vendor's customers." GSA seeks to obtain the offeror's best (i.e., Most Valued Customer) cost based on its evaluation of discounts, terms, conditions, and concessions offered to commercial customers.
Offerors check into often as to a means of facilitating the processing of their contract offers. There are many considerations involved, but all things being equal, an dawning MFC offer requires less review and analysis and is therefore more likely to be finalized rapidly. This policy could easily be interpreted as saying: "Cave in and give the government Most Favored Customer pricing even though it is not profitable because you will get your schedule faster." The federal acquisition regulations say the dominion should get fair and reasonable pricing. However, because of this new emphasis, the price GSA seeks may not be fair and reasonable.
When establishing negotiation objectives and important cost reasonableness, compare the terms and conditions of the MAS solicitation with the terms and conditions of agreements with the offeror's commercial customers. When determining the Government's price negotiation objectives, consider the following factors:Aggregate volume of anticipated purchases,
the purchase of a minimum amount or a pattern of historic purchases, prices (taking into consideration any combination of discounts and concessions offered to commercial customers), length of the contract period, and lastly, warranties, training, and/or maintenance included in the purchase cost or provided at additional price to the descendants prices.
You will also want to review the ordering and delivery practices along with documents other relevant information, including differences between the MAS solicitation and commercial terms and conditions that may warrant differentials between the bid and the discounts offered to the most favored commercial customer(s). For example, an offeror may incur more expense selling to the Government than to the client who receives the offeror's best price, or the client (e.g., dealer, distributor, original equipment manufacturer, other reseller) who receives the best price may perform definite value-added functions for the offeror that the Government does not perform. In such cases, some drop in the discount given to the Government may be appropriate. If the best price is not offered to the Government, you should ask the offeror to identify and interpret the reason for any differences. Do not need offerors to provide detailed cost breakdowns.
You may award a contract containing pricing which is less favorable than the best price the offeror extends to documents commercial client for similar purchases if you make a determination that the prices offered to the Government are fair and reasonable, even though comparable discounts were not negotiated, the bonus is otherwise in the best interest of the Government, and the regulations distinctly property that GSA should consider value and contract terms and conditions when determining fairness and reasonableness.
While it may seem difficult to understand how to negotiate a cost point that is both reasonable to GSA and profitable for your company, an expert can advise you on how to nourishment about this for your GSA Schedule, and review the fundamentals of GSA Schedules including all aspects of GSA pricing.

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