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Competitive GSA prices are required if you are really looking forward to a GSA contract award. But what does competitive pricing mean exactly? How does one build up a GSA pricing strategy without going broke, or losing a prospective opportunity? Let’s see.
GSA price list principles
The main rule-of-thumb principle underlying GSA pricing policy is the idea of the Most Favored Customer (MFC). MFC prices are such prices that you would offer to the most valued and most favored clients you currently service. Now, the government wants either exactly the same prices, or lower. This means that you cannot offer your products to the government for higher prices than you would to a commercial market MFC. The government wants the highest possible discount; however there are some narrowly- niched cases where this does not apply and a vendor would not have to offer the lowest possible price among all competitors.
Overall, you should follow these guidelines when constructing your GSA schedule pricing:
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Prices must be fair and reasonable. GSA contracting officers will evaluate dozens of factors when assessing whether your prices are adequate to the level of service you provide, quality, and delivery terms in comparison to the market.
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Remain competitive. Look for other companies aiming for a federal contract and make sure your prices are competitive. You don’t have to set the lowest bid, but you must provide some substantive ground for higher than average prices, i.e. faster delivery, better quality, longer service period, and so on. Use the GSA pricing tools to analyze competition.
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Take into account possible price adjustments. Both price reductions and price increases are possible. The 552.238-81 Price Reductions FAR clause requires contractors to contact their contracting officer if at any time their commercial price list (or rate) is reduced, either due to a bigger discount or due to price changes. Your GSA contract needs to be modified to reflect such reduced price. On the other hand, Economic Price Adjustment (EPA) allows you to request price increases based on I-FSS-969 Economic Price Adjustment or 216-70 Economic Price Adjustment – Multiple Award Schedule Contracts clauses. This allows you to compensate for changes in the current economic climate, avoid unnecessary losses, and remain profitable.
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Negotiating a better price is real. Indeed, you may need a seasoned GSA expert to accomplish the above changes, because price negotiation has its pitfalls and requires some serious preliminary groundwork. Price Reporter has been an active participant on the GSA market for a decade and a half, and we have successfully helped dozens of businesses to negotiate the more favorable GSA prices.
Conclusion
Building your GSA Pricing strategies requires in-depth understanding of GSA proposal preparation and review principles, as well as comprehensive market research and competition analysis. Price Reporter helps businesses minimize their expenses and win higher bid government contracts for more than 15 years. Call us to know more and our GSA consultants will be happy to answer your questions.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.