General Services Administration (GSA) made the following announcement regarding inflationary price increases, effective through September 30, 2022:
“…Jeff Koses, GSA’s Senior Procurement Executive, and Mark Lee, Assistant Commissioner for FAS Office of Policy and Compliance, jointly issued GSA Acquisition Letter MV-22-02 (https://www.gsa.gov/cdnstatic/MV-22-02.pdf) on March 17, 2022.
This Acquisition Letter places a temporary moratorium on a number of limitations contained in certain GSA economic price adjustment (EPA) contract clauses.
Specifically during this time, this policy moratorium:
• Relaxes time limitations on EPA increases.
• Relaxes the limit on the number of EPA increases 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.
These changes empower FAS Contracting Officers awarding and administering MAS contracts to respond to current market conditions. This flexibility makes it easier for firms to do business with the government through the MAS Program as it provides more choice, competition and value for our federal customers….”
For more information: https://www.gsa.gov/cdnstatic/MV-22-02.pdf