Updated: February 2024 with Supplement  4 of the MC-22-02 memorandum

GSA Extends Moratorium on EPA Restrictions MV-22-02 to December 2024

GSA had recently decided to continue its relaxation of its Economic Price Adjustment requirements with the newly released supplement of its MV-22-02 memorandum.

With the original suspense date of September 2022 from its first iteration, GSA continues to enforce its relaxation of requirements found in the MAS solicitation’s Economic Price Adjustment clauses found within. Normally capped at an annual 10% increase for products (lower for services), contractors can continue to submit the same levels of price increases that are being received from manufacturers and suppliers due to the continued strain regarding price volatility and supply chain shortages.

Why is GSA is relaxing EPA Requirements?

GSA is citing continued inflation as the reason for this extension, but by no means is GSA ready to make this a standard just yet. This extension places MV-22-02 into effect for over a year now, however, GSA continues to label the moratorium as a temporary relaxation to relieve the impacts of an irregular and unpredictable state of economy.

Contractors are continuing to receive increased costs from their suppliers and therefore need to assess the rates of increase that need to be applied to the GSA Schedule contract. While not all proposed rates are accepted by GSA for various reasons after submission, the ability to submit continuous price modifications with no respect for any stated caps for the time being is what allows contractors to stay up to date with pricing.

GSA is also suggesting that the inflation rate is coming back down to normal levels. While this may or may not be true, contractors can breathe a bit easier knowing that they have until March 31st, 2024 to submit price modifications with the rates of increase that they need in order to stay afloat.

For over 20 years Coley GCS has provided a full range of services to GSA Schedule vendors, including obtaining, modifying, and marketing GSA Schedules.

If you have any questions about this GSA MAS memorandum, need help to submit an EPA Modification or anything else regarding Economic Price Adjustments (price increases), feel free to contact us directly at 210-402-6766, by email at hello@coleygsa.com or schedule a call to speak to one of our advisors on how we can support your government contracting needs.

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