[Federal Register Volume 88, Number 220 (Thursday, November 16, 2023)]
[Proposed Rules]
[Pages 78710-78714]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-25221]


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GENERAL SERVICES ADMINISTRATION

48 CFR Parts 501, 502, 538, and 552

[GSAR Case 2020-G510; Docket No. GSA-GSAR-2023-0025; Sequence No. 1]
RIN 3090-AK20


General Services Administration Acquisition Regulation; Federal 
Supply Schedule Economic Price Adjustment

AGENCY: Office of Acquisition Policy, General Services Administration 
(GSA).

ACTION: Proposed rule.

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SUMMARY: The General Services Administration is proposing to amend the 
General Services Administration Acquisition Regulations to standardize 
and simplify the Multiple Award Schedule (Schedule) clauses for 
economic price adjustments. This rule removes certain economic price 
adjustment requirements within these clauses to better align with 
commercial standards and practices.

DATES: Interested parties should submit written comments to the 
Regulatory Secretariat Division at the address shown below on or before 
January 16, 2024 to be considered in the formation of the final rule.

ADDRESSES: Submit comments in response to GSAR Case 2020-G510 to: 
https://www.regulations.gov via the Federal eRulemaking portal by 
searching for ``GSAR Case 2020-G510''. Select the link ``Comment Now'' 
that corresponds with GSAR Case 2020-G510. Follow the instructions 
provided at the ``Comment Now'' screen. Please include your name, 
company name (if any), and ``GSAR Case 2020-G510'' on your attached 
document. If your comment cannot be submitted using https://www.regulations.gov, call or email the points of contact in the FOR 
FURTHER INFORMATION CONTACT section of this document for alternate 
instructions.
    Instructions: Please submit comments only and cite GSAR Case 2020-
G510, in all correspondence related to this case. Comments received 
generally will be posted without change to https://www.regulations.gov, 
including any personal and/or business confidential information 
provided. To confirm receipt of your comment(s), please check https://www.regulations.gov, approximately two to three days after submission 
to verify posting.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
Mr. Thomas O'Linn, Procurement Analyst at [email protected] or 202-
445-0390. For information pertaining to status or publication 
schedules, contact the Regulatory Secretariat Division at 
[email protected] or 202-501-4755. Please cite GSAR Case 2020-G510.

SUPPLEMENTARY INFORMATION:

I. Background

    The General Services Administration (GSA) conducts routine reviews 
of its acquisition regulations and acquisition policies and procedures. 
The review indicated a need to standardize and simplify the Schedule 
clause for economic price adjustments.
    The Schedule program, also known as the Federal Supply Schedule 
(FSS) program, establishes long-term governmentwide contracts with 
commercial companies. Schedule contracts routinely last up to 20 years 
and are issued as fixed price with economic price adjustment (EPA) 
Indefinite Delivery Indefinite Quantity (IDIQ) contracts. Schedule 
contracts provide access to commercial products, services, and 
solutions at fair and reasonable pricing to the Federal Government and 
other authorized customers (e.g., state and local governments).
    The use of EPA provides for upward and downward revision of 
contract pricing upon the occurrence of specified conditions over the 
anticipated 20 year contract period of performance. The Schedule 
program has a long history of providing the ability for Schedule 
contractors to submit EPA requests (e.g., see 47 FR 50242 dated 
November 5, 1982).
    Currently, Schedule contracts contain at least one of the following 
EPA clauses (i.e., a Schedule contract may include more than one EPA 
clause based on their offering and participation in Transactional Data 
Reporting (TDR)): (1) Alternate I of GSAR clause 552.216-70, Economic 
Price Adjustment-FSS Multiple Award Schedule Contracts; (2) an 
authorized deviation of GSAR clause 552.216-70; (3) clause I-FSS-969, 
Economic Price Adjustment-FSS Multiple Award Schedule; or (4) an 
Alternate to clause I-FSS-969. The primary focus of these EPA clauses 
is the establishment of the procedures, including, but not limited to 
specific procedural limits (e.g., timing and frequency) around the 
submission of EPA price increase requests. In terms of price decrease 
requests, all four clauses require such requests to be handled in 
accordance with GSAR clause 552.238-81, Price Reductions. Altogether, 
for the most part these four Schedule EPA clauses are very similar, 
with only minor differences, most of which are related to the EPA 
mechanism(s) proposed by the contractor (e.g., annual fixed increases 
or increases based on their published or publicly available commercial 
price list) and the applicability of TDR.
    In March 2022, in response to the highest level of inflation in 
over 40 years as well as other factors (e.g., supply chain 
disruptions), GSA issued Acquisition Letter MV-22-02 to provide a 
temporary moratorium on the enforcement of certain procedural limits 
contained in the Schedule EPA clauses. The moratorium relaxes the 
limits on the frequency, timing, and number of EPA price increase 
requests.
    Since the issuance of Acquisition Letter MV-22-02, the Schedule 
program has seen benefits. The relaxing of these procedural limits has 
provided industry Schedule partners with greater flexibility and 
agility in response to market changes and economic conditions that 
impact their Schedule pricing. This flexibility has increased their 
ability to support federal customers in acquiring critically needed 
products, services, and solutions through a single contracting action. 
In the absence of this flexibility, they would likely have chosen not 
to respond to order-level solicitations and/or requested the removal of 
the items from their Schedule contract to avoid selling them at a loss. 
The loss of such items under such conditions, increases the 
administrative costs and time for federal agencies and other customers 
in meeting their needs.
    The positive results of Acquisition Letter MV-22-02 underscore the 
need for the Schedule program to continually evolve and provide a 
viable and

[[Page 78711]]

competitive vendor base for needed products, services, and solutions at 
competitive prices. The absence of items from the competitive 
marketplace increases the administrative cost for the Government, 
customers, and Schedule contractors; reduces the efficacy of the 
Schedule program; and undercuts objectives to support small business 
especially in underserved communities.
    GSA is seeking to standardize and simplify the Schedule clauses for 
EPA. The revisions will result in the consolidation of the four 
existing Schedule EPA clauses into a single Schedule EPA clause. The 
revisions will also remove several procedural limits contained in these 
clauses to better align with commercial standards and practices. GSA 
anticipates these changes will increase the number and extent of 
offerings available through the Schedule program, improve customer 
satisfaction by ensuring needed products, services, and solutions are 
initially offered and are not removed from the Schedule program, and 
reduce administrative costs on Schedule contractors, particularly small 
businesses and new entrants.

II. Discussion and Analysis

    This proposed rule amends the GSAR to standardize and simplify the 
Schedule clauses related to economic price adjustments. A summary of 
the revisions is as follows:
    A. GSAR clause 552.216-70, Economic Price Adjustment--FSS Multiple 
Award Schedule Contracts, is being revised, renumbered, and renamed 
552.238-118, Economic Price Adjustment--Federal Supply Schedule 
Contracts. The clause is being renumbered to be consistent with the 
numbering used for Schedule provisions and clauses. The current clause 
number reflects the clause being located in GSAR part 516. This is 
inconsistent with the current practice of locating Schedule provisions 
and clauses within GSAR part 538, specifically section 538.273. The 
clause is being renamed to remove the words ``Multiple Award Schedule'' 
since it is duplicative of the acronym ``FSS'' that is already included 
in the clause title. The clause title is also being renamed in order to 
spell out the acronym ``FSS''. Spelling out of the acronym ``FSS'' is 
consistent with the current practice of using the words ``Federal 
Supply Schedule'' in GSAR provision and clause titles where 
appropriate.
    The revisions to the clause itself provide for the: (1) 
standardization and simplification of existing Schedule EPA 
requirements; (2) retention of the Schedule Contracting Officer's 
authority to reject, accept, or partially accept an EPA request; (3) 
creation of a definition for ``economic price adjustment method'' for 
the purpose of formalizing within resultant contracts offerors' 
proposed EPA mechanism(s), the applicable pricing subject to EPA, and 
any other agreed upon requirements; (4) clarification on what is not 
covered by an EPA request; (5) ability for the EPA method to be revised 
via mutual agreement during contract performance; and (6) establishment 
of a single consolidated Schedule EPA clause.
    Currently, the Schedule solicitation contains the following 
provision: SCP-FSS-001, Instructions Applicable to All Offerors. 
Paragraph (i)(3)(v) of this provision requests offerors propose an EPA 
mechanism. The EPA mechanisms available within the Schedule 
solicitation for offerors to choose from are: a published or publicly-
available commercial price list; a fixed annual escalation rate; and 
relevant market indicator (e.g., the Bureau of Labor Statistics 
Employment Cost Index (ECI)). Paragraph (c) of the clause I-FSS-969 
also includes the ability to determine an appropriate mechanism in 
response to unforeseeable major changes in market conditions.
    Schedule contracts currently contain at least one of the following 
clauses: (1) Alternate I of GSAR clause 552.216-70, Economic Price 
Adjustment--FSS Multiple Award Schedule Contracts; (2) an authorized 
deviation of GSAR clause 552.216-70; (3) clause I-FSS-969, Economic 
Price Adjustment--FSS Multiple Award Schedule; or (4) an Alternate to 
clause I-FSS-969. The incorporation of one or more of these clauses 
into a Schedule contract is dependent on the EPA mechanism(s) proposed 
by the offeror and whether the offeror elected to participate in TDR. 
For example, the authorized deviation to GSAR clause 552.216-70 applies 
to Schedule contracts subject to TDR that use published or publicly-
available commercial price lists as the EPA mechanism. These four 
Schedule EPA clauses include essentially the same requirements (e.g., 
timing, number, and frequency of EPA price increase requests), with 
only minor differences, most of which are related to the clause 
prescription (i.e., type of EPA mechanism selected by the contractor 
and applicability of TDR).
    In consideration of the above existing requirements, the revised 
clause seeks to consolidate the four existing EPA clauses into a single 
clause. The new clause maintains GSA's responsibility to: ensure 
schedules operate at the lowest overall cost alternative and feature 
fair and reasonable pricing at the Schedule level throughout contract 
performance; review, process, and, if necessary, negotiate EPA 
requests. This could mean accepting, rejecting, or partially accepting 
EPA requests. For example, paragraph (f) of the revised clause 
maintains the Schedule contracting officer's options in response to an 
EPA request. Currently, this requirement is found within each of the 
four EPA clauses (e.g., see paragraph (f) of clause I-FSS-969).
    The revised clause moves GSA closer to the commercial marketplace 
and provides greater flexibility and agility in terms of responding to 
market changes, economic conditions, and Government/customer 
requirements. For example, due to the inflexibility of the existing 
Schedule EPA clauses some Schedule contractors have removed items from 
their Schedule contract to avoid selling those items at a loss. The 
absence of such items has an unnecessary negative impact on the 
Schedule program. The lack of items on the Schedule program directly 
impacts competition and the availability of needed items; increases 
administrative costs to the Government, customers, and Schedule 
contractors; reduces the efficacy of the Schedule program; and 
undercuts the objectives to support small businesses and new entrants.
    B. Alternate I of GSAR clause 552.216-70, Economic Price 
Adjustment--FSS Multiple Award Schedule Contracts, is being deleted in 
its entirety. The Alternate is being deleted because it is no longer 
necessary as a result of the aforementioned revisions. The newly 
created GSAR clause 552.238-118, Economic Price Adjustment--Federal 
Supply Schedule Contracts, addresses Schedule EPA requirements.
    C. Section 538.273, FSS solicitation provisions and contract 
clauses, is being revised to provide for the prescription of the newly 
created GSAR clause 552.238-118, Economic Price Adjustment--Federal 
Supply Schedule Contracts. Section 538.273 is the appropriate location 
for the prescription of this new clause because this is the section 
that provides the prescription for Schedule provisions and clauses.
    D. GSAR clause 552.238-115, Special Ordering Procedures for the 
Acquisition of Order-Level Materials, is being revised to update 
paragraph (d)(10)(i) from ``552.216-70 Economic Price Adjustment--FSS 
Multiple Award Schedule Contracts'' to ``552.238-118, Economic Price 
Adjustment--Federal Supply Schedule Contracts.'' This revision is 
appropriate because 552.238-118 is the GSAR clause that is

[[Page 78712]]

replacing the GSAR clause 552.216-70 under the proposed revisions.
    E. Section 502.101 Definitions, is being revised to add the 
definition for EPA method.
    F. The table in section 501.106 OMB Approval under the Paperwork 
Reduction Act, is being revised to reflect the proposed revisions and 
existing requirements not currently shown in the table.

III. Expected Impact of the Rule

    GSA believes that these changes benefit the Schedule program as a 
whole. For example, GSA anticipates that these changes will increase 
the number and extent of offerings available through the Schedule 
program, improve customer satisfaction/reduce customer cost by ensuring 
needed products, services, and solutions are not removed from the 
Schedule program due to market volatility, and reduce administrative 
costs on Schedule contractors, particularly small businesses and new 
entrants.
    GSA receives hundreds of modification requests each month from 
contractors to remove items from their Schedule contracts or declined 
orders due to price variability in the commercial market. By statute, 
the procedures for the Schedule program are competitive so long as they 
are open to all and contracts and orders results in the lowest overall 
cost alternative. GSA anticipates this rule will help it ensure 
customers experience the lowest overall cost alternative on their 
orders by maximizing the chance that full solutions are available on 
the Schedule contract, thus minimizing the need to conduct multiple 
separate acquisitions to fulfill a requirement.
    Currently, Schedule contracts include at least one of the following 
four clauses related to the submission and processing of EPA requests 
during contract performance: (1) an authorized deviation to GSAR clause 
552.216-70; (2) Alternate I of GSAR clause 552.216-70; (3) clause I-
FSS-969; or (4) an Alternate of clause I-FSS-969. These changes 
standardize and simplify the EPA requirements contained in these four 
clauses. These changes will result in the consolidation of these 
clauses into a single Schedule EPA clause. These changes do not alter 
the way Schedule contractors conduct business, or their ability to 
submit an EPA request.
    The qualitative anticipated benefits include, but are not limited 
to, the creation of a single standardized Schedule EPA clause; greater 
flexibility around EPA requests; providing clarity around EPA within 
the Schedule program; providing a connection between the Schedule 
solicitation and resultant contracts; and greater flexibility and 
agility for purposes of responding to changing conditions.
    GSA anticipates the quantitative benefits to be related to improved 
regulatory familiarization. GSA calculates the estimated total cost for 
Schedule contractors to familiarize themselves with existing EPA 
requirements as $3,251,640 (i.e., 3 hours * $77.42 \1\ (GS-12 Step 5 
base pay plus ``Rest of US Locality Pay'' plus ``Fringe'') * 14,000 
approximate number of current Schedule contractors)). After these 
revisions: GSA estimates the total cost as $2,709,700 (i.e., 2.5 hours 
* $77.42 (GS-12 Step 5 base pay plus ``Rest of US Locality Pay'' plus 
``Fringe'') * 14,000 approximate number of current Schedule 
contractors)). Resulting in a reduction in estimated total cost of 
$541,940.
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    \1\ 2023 Rest of US, 12 Step 5 x 2.0 fringe = $77.42; the rate 
is adjusted upward by 100% to adjust for overhead and benefits.
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IV. Executive Orders 12866, 13563, and 14094

    Executive Order (E.O.) 12866 (Regulatory Planning and Review) 
directs agencies to assess all costs and benefits of available 
regulatory alternatives and, if regulation is necessary, to select 
regulatory approaches that maximize net benefits (including potential 
economic, environmental, public health and safety effects, distributive 
impacts, and equity). E.O. 13563 (Improving Regulation and Regulatory 
Review) emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. E.O. 14094 (Modernizing Regulatory Review) supplements and 
reaffirms the principles, structures, and definitions governing 
contemporary regulatory review established in E.O. 12866 and E.O. 
13563. OIRA has determined that this rule is not a significant 
regulatory action, and, therefore, is not subject to review under 
section 6(b) of E.O. 12866, Regulatory Planning and Review, dated 
September 30, 1993.

V. Regulatory Flexibility Act

    GSA does not expect this proposed rule to have a significant 
economic impact on a substantial number of small entities within the 
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., 
because this rule is to standardize and simplify existing EPA 
requirements related to Schedules (e.g., revise GSAR clause 552.216-70, 
Economic Price Adjustment-FSS Multiple Award Schedule Contracts). The 
underlying purpose of the changed text remains the same (i.e., 
supporting the submission and processing of EPA requests), and 
therefore any burden would have been identified previously. However, an 
Initial Regulatory Flexibility Analysis (IRFA) has been prepared 
consistent with 5 U.S.C. 603.
    The Regulatory Secretariat Division will be submitting a copy of 
the IRFA to the Chief Counsel for Advocacy of the Small Business 
Administration. A copy of the IRFA may be obtained from the Regulatory 
Secretariat Division. GSA invites comments from small business concerns 
and other interested parties on the expected impact of this rule on 
small entities.
    GSA will also consider comments from small entities concerning the 
existing regulations in subparts affected by the rule in accordance 
with 5 U.S.C. 610. Interested parties must submit such comments 
separately and should cite 5 U.S.C. 610 (GSAR Case 2020-G510), in 
correspondence.

    The analysis is summarized as follows:

    The objective of the rule is to standardize and simplify the 
clauses for Schedule related to EPA. These revisions will result in 
the consolidation of the four existing Schedule clauses into a 
single Schedule EPA clause. These revisions also remove certain 
procedural limits contained in these clauses to better align with 
commercial standards and practices. GSA anticipates that these 
changes will increase the number and extent of offerings available 
through the Schedule program, improve customer satisfaction/reduce 
customer costs by ensuring needed products, services, and solutions 
are not removed from the Schedule, and reduce administrative costs 
on Schedule contractors, particularly small businesses and new 
entrants.
    Title 40 of the United States Code (U.S.C.) Section 121 
authorizes GSA to issue regulations, including the GSAR, to control 
the relationship between GSA and contractors. In addition, 41 U.S.C. 
152 provides GSA authority over the Schedule program.
    The rule applies to both large and small businesses, which are 
awarded Schedule contracts. Information obtained from FAS as well as 
the recent renewal of Information Collections 3090-0235 and 3090-
0306 were used as the basis for estimating the number of Schedule 
contractors that this rule may impact. For Fiscal Year 2022 there 
were approximately 14,000 Schedule contractors, of which over 12,000 
(85 percent) were small business entities. In addition, according to 
the recent renewal of Information Collections 3090-0235 and 3090-
0306, GSA processes approximately 2,561 EPA requests annually. GSA 
anticipates this rule will not significantly impact this number.
    The rule does not implement new or changed reporting, 
recordkeeping, or other

[[Page 78713]]

compliance requirements for Schedule contracts. The rule merely 
updates and clarifies existing EPA requirements currently used in 
Schedule contracts.
    The rule does not duplicate, overlap, or conflict with any other 
Federal rules.
    There are no known alternatives to this rule which would 
accomplish the stated objectives. This rule does not initiate or 
impose any new administrative or performance requirements on small 
business contractors because the requirements prescribed in existing 
Schedule EPA clauses are already being followed. The rule merely 
updates and clarifies these existing requirements so as to reduce 
burden for both the government and contractors as it relates to EPA 
within Schedule contracts.

VI. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. chapter 3501) does apply; 
however, these changes do not impose additional information collection 
requirements to the burden previously approved under the Office of 
Management and Budget (OMB) Control Number 3090-0235, titled: Federal 
Supply Schedule Pricing Disclosures and Sales Reporting and OMB Control 
Number 3090-0306, titled: Transactional Data Reporting. Both OMB 
information collections, however, will be updated to reflect the change 
in the clause title and number from 552.216-70, Economic Price 
Adjustment--FSS Multiple Award Schedule Contracts, to 552.238-118, 
Economic Price Adjustment--Federal Supply Schedule Contracts.

List of Subjects in 48 CFR Parts 501, 502, 538, and 552

    Government procurement.

Jeffrey A. Koses,
Senior Procurement Executive, Office of Acquisition Policy, Office of 
Government-wide Policy, General Services Administration.

    Therefore, GSA proposes to amend 48 CFR parts 501, 502, 538, and 
552 as set forth below:

0
1. The authority citation for 48 CFR parts 501, 502, 538, and 552 
continues to read as follows:

    Authority:  40 U.S.C. 121(c).

PART 501--GENERAL SERVICES ADMINISTRATION ACQUISITION REGULATION 
SYSTEM

0
2. In section 501.106 amend Table 1 by--
0
a. Revising the entry for ``516.506'';
0
b. Removing the entry for ``552.216-70 and its corresponding OMB 
Control No.; and
0
c. Adding in numerical order, entries for ``552.238-83'' and ``552.238-
118''.
    The revision and additions read as follows:

------------------------------------------------------------------------
              GSAR reference                       OMB control No.
------------------------------------------------------------------------
 
                                 * * * *    ............................
516.506...................................  3090-0248, 3090-0306.
 
                                 * * * *    ............................
552.238-83................................  3090-0235, 3090-0306.
 
                                 * * * *    ............................
552.238-118...............................  3090-0235.
 
                                 * * * *    ............................
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PART 502--DEFINITIONS OF WORDS AND TERMS

0
3. Amend section 502.101 by adding in alphabetical order, the 
definition of ``Economic Price Adjustment (EPA) Method'' to read as 
follows:


502.101  Definitions.

* * * * *
    Economic Price Adjustment (EPA) method means the agreed upon 
procedure by which pricing may be adjusted throughout the contract 
period to include, but not limited to, the mechanism(s) to be used to 
adjust pricing (e.g., adjustments based on established pricing), the 
pricing subject to adjustment, and any other requirements (e.g., 
timing, frequency, limits on increases.
* * * * *

PART 538--FEDERAL SUPPLY SCHEDULE CONTRACTING

0
4. Amend section 538.273 by adding paragraph (d)(38) to read as 
follows:


538.273   FSS solicitation provisions and contract clauses.

* * * * *
    (d) * * *
    (38) 552.238-118, Economic Price Adjustment--Federal Supply 
Schedule Contracts. Use in Federal Supply Schedule solicitations and 
contracts.
* * * * *

PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


552.216-70  [Removed]

0
5. Remove section 552.216-70.
0
6. Amend section 552.238-115 by revising the date of the clause and 
paragraph (d)(10)(i) to read as follows:


552.238-115   Special Ordering Procedures for the Acquisition of Order-
Level Materials.

* * * * *

Special Ordering Procedures for the Acquisition of Order-Level 
Materials (DATE)

* * * * *
    (d) * * *
    (10) * * *
    (i) 552.238-118, Economic Price Adjustment--Federal Supply 
Schedule Contracts.
* * * * *
0
7. Add section 552.238-118 to read as follows:


552.238-118   Economic Price Adjustment--Federal Supply Schedule 
Contracts.

    As prescribed in 538.273(d), insert the following clause:

552.238-118 Economic Price Adjustment--Federal Supply Schedule 
Contracts (DATE)

    (a) Definition.
    Economic price adjustment method, as used in this clause, means 
the agreed upon procedures by which pricing may be adjusted 
throughout the contract period to include, but not limited to, the 
mechanism(s) to be used to adjust pricing (e.g., adjustments based 
on established pricing), the pricing subject to adjustment, and any 
other requirements (e.g., timing, frequency, limits on increases).
    (b) General. This contract provides for economic price 
adjustment (EPA) to contract pricing based on the established EPA 
method. EPA provides for the increase and decrease to stated 
contract pricing upon the occurrence of specified conditions 
described in the EPA method, such as market index changes or 
unforeseeable significant changes in market conditions.
    (c) Exceptions. This clause does not cover--
    (1) Adjustments based on statute, Executive Order, or regulation 
(e.g., Service Contract Labor Standards (41 U.S.C. chapter 67) and 
AbilityOne procurements (FAR subpart 8.7));
    (2) Adjustments based on a change clause (e.g., paragraph (c) of 
GSAR clause 552.212-4, Contract Terms and Conditions--Commercial 
Products and Commercial Services (FAR DEVIATION 52.212-4));
    (3) Price reductions made under GSAR clause 552.238-81, Price 
Reductions;
    (4) Adjustments based on GSAR clause 552.238-117, Price 
Adjustment-Failure to Provide Accurate Information; and
    (5) Adjustments based on a contract clause that authorizes an 
adjustment based on specified actions or conditions.
    (d) Economic price adjustment method. The EPA method may be 
revised through mutual agreement of the parties. In the event of a 
conflict between the EPA method and this contract, the contract 
shall control.
    (e) Submission requirements. The Contractor shall submit EPA 
requests to the Federal Supply Schedule (FSS) Contracting Officer 
pursuant to the EPA method. EPA requests shall fully conform to the 
requirements of the EPA method and include sufficient information to 
support the request.

[[Page 78714]]

The FSS Contracting Officer may request additional information from 
the Contractor.
    (f) Contracting Officer responsibilities. The FSS Contracting 
Officer will--
    (1) Review the EPA request to ensure conformance with the EPA 
method,
    (2) Make a determination. The FSS Contracting Officer may use 
any information (e.g., market research) deemed necessary to support 
their determination. The FSS Contracting Officer may determine to--
    (i) Accept the EPA request either in whole or in part,
    (ii) Reject the EPA request either in whole or in part, or
    (iii) Take any other action deemed to be in the best interest of 
the Government (e.g., negotiate a more favorable EPA).
    (3) Notify the Contractor of their determination, and
    (4) Modify the contract, as applicable, to reflect the 
determination. Contract items that need to be removed from the 
contract as a result of rejection or an inability to reach agreement 
are to be removed in accordance with 552.238-79, Cancellation.
    (g) Effective date. EPA requests approved by the FSS Contracting 
Officer under this clause shall apply to orders issued on or after 
the effective date of the contract modification. Blanket Purchase 
Agreements (BPAs) may be modified by the ordering agency in 
accordance with the terms and conditions of the BPA.
    (h) Update of contract pricing and catalog data. The Contractor 
shall update its FSS pricing and any other FSS catalog data in 
accordance with the terms and conditions of this contract.
(End of clause)
[FR Doc. 2023-25221 Filed 11-15-23; 8:45 am]
BILLING CODE 6820-61-P