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  3. |The Fate of the Price Reduction Clause Remains Uncertain: GSA Extends, But Does Not Make Permanent, the Transactional Data Rule Pilot Program

The Fate of the Price Reduction Clause Remains Uncertain: GSA Extends, But Does Not Make Permanent, the Transactional Data Rule Pilot Program

Client Alert | 1 min read | 08.21.19

On August 19, 2019 the General Services Administration (GSA) announced that it will extend the Transactional Data Rule (TDR) Pilot Program, applicable to certain Federal Supply Schedule (FSS) contracts, through Fiscal Year 2020, while the agency focuses on the consolidation of the 24 GSA Schedules into one single schedule. The TDR pilot is intended to reduce the burden on contractors by eliminating two of the most complicated requirements of the FSS program – the requirement to submit commercial sales practices (CSP) disclosure and the requirement to track pricing to the basis of award customer(s) under the Price Reduction Clause (PRC) – and instead requires contractors submit monthly electronic reports of sales under the FSS contract. In terms of benefit to the Government, the goal of the TDR model is to provide the Government with transparency into the federal marketplace to produce market-driven pricing reductions throughout the contract lifecycle. While many contractors have been waiting to see whether the TDR program will be expanded or made permanent (in the face of significant criticism of the TDR pilot by the GSA Office of Inspector General (OIG)), for now, GSA has kicked the can down the road.

Insights

Client Alert | 6 min read | 03.26.24

California Office of Health Care Affordability Notice Requirement for Material Change Transactions Closing on or After April 1, 2024

Starting next week, on April 1st, health care entities in California closing “material change transactions” will be required to notify California’s new Office of Health Care Affordability (“OHCA”) and potentially undergo an extensive review process prior to closing. The new review process will impact a broad range of providers, payers, delivery systems, and pharmacy benefit managers with either a current California footprint or a plan to expand into the California market. While health care service plans in California are already subject to an extensive transaction approval process by the Department of Managed Health Care, other health care entities in California have not been required to file notices of transactions historically, and so the notice requirement will have a significant impact on how health care entities need to structure and close deals in California, and the timing on which closing is permitted to occur....