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

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.