GSA-LetterofSupplyWhen GSA offer negotiations were completed, a Final Proposal Revision Letter or Best and Final Offer document was created, which summarized the basis of your contract award. GSA uses the Basis of Award, as outlined in your FPRL, to determine compliance with your GSA contract’s terms and conditions.

While often filed away and forgotten after contract award, this document warrants your full attention and strict adherence. Knowledge and understanding of your terms will assist you with avoiding contract non-compliance, which can result in fines, penalties, and possible cancellation of your GSA Schedule Contract.

The Final Proposal Revision Letter establishes the following terms of your contract:

  1. The Basis of Award and your Most Favored Customer,
  2. The price/discount relationship ratio between your Schedule pricing and your MFC that must be maintained throughout the term of your contract,
  3. FOB Shipping Terms (Origin or Destination),
  4. The specific Price Reduction clause that applies to your contract,
  5. Government discounts (base, quantity, volume, prompt payment, etc.), and
  6. Delivery terms
  7. Industrial Funding Fee (IFF) terms whether to be absorbed by contractor or added to the discounted price.

Anyone in your company involved in commercial and government sales needs to understand these terms and how one affects the other, especially when it comes to offering lower prices to your commercial customers.

For more information on this and other GSA Schedule Audit readiness related topics, please feel free to contact any of Coley’s GSA Expert consultants or call 210-402-6766.

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