What triggers the price reduction clause?
The PRC is triggered when the contractor makes a pricing change that disturbs the relationship between the government’s pricing and the pricing offered to the customer or customers whose pricing terms are established as the “basis of award.”
What is the GSA price reduction clause?
The Price Reduction Clause ensures a fixed relationship between the discounting practices offered by a contractor to GSA, and the discounts offered by the same contractor to its “Basis of Award customer.” The Basis of Award customer represents the customer that is used as the representative benchmark.
What is most favored customer pricing?
(Editor’s Note. The Most Favored Customer (MFC) clause is a common arrangement in many commercial contracts intended to ensure the customer receives the best price the company provides to its other customers. …
What is a basis of award customer?
Basis of award (BOA) – The customer or customer class that most resembles the purchasing habits of the federal government upon which GSA pricing was negotiated.
What is a reduction in price?
price reduction – the act of reducing the selling price of merchandise. discount, deduction. reduction, step-down, diminution, decrease – the act of decreasing or reducing something. Based on WordNet 3.0, Farlex clipart collection.
What is most favored nation clause in a contract?
Most favored nation clauses (MFNs), sometimes also referred to as most favored customer clauses, are agreements in which a supplier agrees to treat a particular customer no worse than all other customers (see Standard Clause, General Contract Clauses, Most Favored Customer (www.practicallaw.com/8-510-7389)).
What does most favored customer mean in a contract?
A Most-Favoured-Customer Clause (MFC) is a contractual arrangement between vendor and customer that guarantees the customer the best price the vendor gives to anyone. The MFC prevents a company from treating different customers differently in negotiations.
Are GSA rates fully burdened?
The rates that follow include the Fully Burdened Labor Rates, inclusive of overhead, profit, and the GSA Industrial Funding Fee (IFF) of 0.75%. All rates for Construction Management and Consulting Services are FFP and T&M.
What is the most Favoured nation clause of WTO?
“Most-Favoured-Nation” (“MFN”) treatment — requires Members to accord the most favourable tariff and regulatory treatment given to the pro- duct of any one Member at the time of import or export of “like products” to all other Members. This is a bedrock principle of the WTO.
Can I sell to the federal government without a GSA Schedule?
Attempting to sell to the federal government without using GSA Schedule contracts may make your company less appealing to federal government buyers and can lengthen the procurement process. Items that are not on a GSA Schedule contract may be included on a Schedule order, but only under certain circumstances.
Are the GSA Schedules commercial?
GSA Schedules (also referred to as Multiple Award Schedules (MAS) and Federal Supply Schedules) are long-term governmentwide contracts with commercial firms providing federal, state, and local government buyers access to more than 11 million commercial supplies (products) and services at volume discount pricing.
How do I get a GSA Schedule contract?
Download the solicitation package
What is a GSA Schedule contract?
A GSA Schedule Contract is a formal agreement between the Federal Government and a commercial business that allows the General Services Administration (GSA) to purchase a wide range of products and/or services with convenience and ease. This is normally a long-term government contract that has a base period…