GSA Relaxes Price Adjustment Restrictions in Response to High Inflation

On March 17, GSA released a Memorandum outlining new, relaxed parameters for reviewing, negotiating, and awarding Economic Price Adjustments (EPAs) requested by GSA Vendors in response to extraordinarily high inflation.  

Per GSA’s solicitation and Modification guidelines, vendors are typically capped at the percentage of increases and how often an EPA can be requested per year.  

The existing EPA Ceiling Limit for MAS contracts is established as: 

• 4% for the Human Capital Category,  
• 5% for the Professional Services Category,  
• 5% for the Travel Category  
• 10% for all other Large Categories 
• No more than three increases will be considered during each succeeding 12-month period of the contract 

However, the Acquisition Memorandum immediately relaxes the limits and allows contracting officers more flexibility in approving increases. The Memorandum will remain in effect until September 30, 2022, unless otherwise extended. The Memorandum provides for the following temporary changes: 

• Lowers the approval for price increases above the EPA clause ceiling in 552.216-70, from the contracting director to one level above the contracting officer; 
• Relaxes time limitations on EPA increases. 
• Relaxes the limit on the number of EPA increases that a contractor may request.  
• Allows a lower level of approval, to one level above the Contracting Officer, for price increases above the EPA clause ceiling. 

• Clarifies that if a contractor has removed an item from their MAS contract, the Contracting Officer may add the same item back at a higher price if the higher price can be determined fair and reasonable.    

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 on this GSA MAS refresh, or anything else regarding the GSA MAS Solicitation, 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.