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GSA pricing policy could get the boot

By Matthew Weigelt
Published on April 21, 2008

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Related story links

Waxman letter to Doan (pdf)

Federal Register notice on public meetings

Doan seeks advice on schedule program

Federal Register notice on the panel

Federal Register notice on panel’s public hearings


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Policy and Procurement

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GSA appoints advisory panel

A newly appointed Multiple Award Schedule Advisory Panel will help the General Services Administration update the policies and operations of its schedules program. The panel members include federal officials, GSA customers and leaders of industry associations.

A newly appointed Multiple Award Schedule Advisory Panel will help the General Services Administration update the policies and operations of its schedules program. The panel members include federal officials, GSA customers and leaders of industry associations.

Chairman: Elliott Branch Executive director for contracts Naval Sea Systems Command

Larry Allen President Coalition for Government Procurement

Alan Chvotkin Executive vice president and counsel Professional Services Council

David Drabkin Acting chief acquisition officer and senior procurement executive General Services Administration

Don Erickson Director of government relations Security Industry Association

Thomas Essig Chief procurement officer Homeland Security Department

Jeffrey Johnson Director of government operations International Facility Management Association

Jacqueline Jones Branch chief of consolidated and language services branch and contracting officer General Services Administration

Judith Nelson Industry specialist at the Office of Acquisition Management General Services Administration

Glenn Perry Senior acquisition executive Education Department

Lesa Scott Director of IT schedule contract operations of Integrated Technology Services General Services Administration

Thomas Sharpe Jr. Senior procurement executive Treasury Department

Debra Sonderman Director of the Office of Acquisition and Property Management Interior Department

April Stephenson Director Defense Contract Audit Agency

Thedlus Thompson Senior assistant general counsel General Services Administration


A new advisory panel will evaluate the relevance of a price reduction clause that requires companies on General Services Administration schedule contracts to offer the government their most deeply discounted prices.

The clause is likely to be at the center of debate for the panel, which is reviewing the schedules program, GSA’s most lucrative venture. The panel’s goal is to determine how the program can best adapt to changes in the market.

The clause requires contractors to give the government the same discount they they would give to their most favored customer. However, recent trends in task-order competition, reverse auctions and a surge in agencies buying services might make the clause obsolete, some experts say. GSA is looking to the Multiple Award Schedules Advisory Panel for an independent assessment of the issue and an overall review of the schedules program. It created the panel in March.

The panel will ask what the phrase “obtain lowest overall cost alternative” means in the context of getting the best value, said David Drabkin, GSA’s acting chief acquisition officer and a panel member.
Lurita Doan, GSA’s administrator, said she expects initial recommendations in several months and final recommendations in early fiscal 2009.

As the policy review begins, Rep. Henry Waxman (D-Calif.), chairman of the Oversight and Government Reform Committee, said the committee will be watching closely. In an April 18 letter to Doan, Waxman said the pricing clause is a powerful tool to ensure the government gets the best prices.

“An initiative to eliminate or weaken the clause could significantly increase costs to the taxpayer,” Waxman wrote. He requested more detailed information about the panel.

Bill Woods, director of acquisition and sourcing management at the Government Accountability Office, said the pricing clause merits review. It was established for commodities, but agencies are now buying more services than products. He also said the panel should examine roles and responsibilities in interagency agreements and procedures for getting accurate acquisition data.

Doan said she sees an opportunity to adapt GSA’s largest program to today’s market. She said the schedules program can be improved.


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October 15, 2008

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