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Economic Price Adjustments - How it works/what is expected of the contractor/seller?

All economic price adjustments (EPAs) in Schedule contracts are made in accordance with clause I-FSS-969 or clause 52.216-70, depending on whether the contract pricing is based on a commercial list price or not. Take a look at your Schedule contract to determine which clause applies to your contract. Once you determine which clause applies, read the clause to see what is expected under that clause (i.e. basis, frequency, and timing of EPAs). That should give you a good idea as to what is allowed and what the CO is looking for in terms of processing the EPA.

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I seek answer with respect to the following. Can GSA negotiate and approve IT Sch 70 contracts with fixed pricing for each labor category and allow respective labor category rate for five years (For the purpose of clarity - different rates for each labor category but allowing these for first five years of the contract. if yes, then what happens to yearly escalation clause. Or in other words can GSA allow one price table containing different labor rates for five years - I am trying to understand which FAR would permit that and where do I find that clause in the GSA contract or electronic catalog on GSA advantage. I look forward to your help. Ramesh
<p>Great response Ms. Reardon, what company do you work for ?&nbsp; I am planning on applying for a Schedule 84 contract and I&#39;ve been interviewing consultants.</p>
<p>Also, This is a ling to my blogpost on your <a href="http://www.gsascheduleservices.com/blog/price-escalation-and-your-gsa-contract/">Price Escalation options when acquring a GSA Contract</a>. This should be helpfule to many on this post becsaue the best way to handle your EPA is to be strategic from the beginning.</p>
<p>Hello everyone!</p><p>I assume my question may sound silly, but decided to ask it either way. We are a software manufacturing company (data vizualization) and we are now preparing to apply for Schedule 70. I spent countless hours reading all the information posted about it and finally started preparing our documentation. Some of you may recall what it is like facing all this for the first time in your life- well, this is exactly what I am going through. Reading about the Required Documentation of the Schedule I found the following sentence: Proposed EPA Mechanism. I tried and tried to understand what exactly do they mean by that, but it seems I am just not getting it. Does it need to be a separate document and if yes, is there any template I can use to prepare that?</p><p>I apologize for the silly question to all those people who figured this out themselves and thank in advance for any help.</p><p>&nbsp;</p>
patti reardon
<p>Hi,</p><p>Since you are applying for a group 70 schedule and are offering virtual data, the EPA should be based off your commercial list prices.&nbsp; Once you are awarded the contract&nbsp; under the EPA clause you can&#39;t raise your pricing until after the first 12 months of the contract.&nbsp; Under the clause you can propose price increases not to exceed 10% for the year.&nbsp; You can have up to three increases in a 1 year period, for instance a 2% increase, 3% increase but the total of the increase for the year can&#39;t exceed 10%.&nbsp; In order to get the increase you have to go in with a modification and request an EPA.&nbsp;</p><p>If you are offering IT Professional Services, SIN 132-51, the same thing would apply with the exception that if you do not have a commercial pricelist for services, you can base your EPA off of some other economic indicator.&nbsp; Normally they use the Department of Labor BLM Table 5. Compensation (Not Seasonally Adjusted) Employment Cost Index for total compensation, for private industry workers, by occupational group and industry.&nbsp; In this case you request the EPA on what ever this index indicates at the time.</p><p>For IT services under the Group 70, some CO&#39;s will allow you to negotiate your IT Professional Services pricing for the 5 years of the contract but most don&#39;t.&nbsp; I hope this helps but based on the information in your email, I would think that your pricing is based off your commercial list price and you would therefore address the EPA clause by inserting a paragraph in the Commercial Sales Practices chart that states that you are requesting EPA&#39;s under the contract to be based on Clause 552.216-70.&nbsp;</p><p>I&#39;ve been helping companies with these contracts for over 25 years and the data requirements change over time.&nbsp;</p>
<p>Ms. Reardon,</p><p>Thank you for your very clear response to this inquiry.&nbsp; I too have been going around and around trying to figure out what is expected for this line item for Schedule 70.</p>
MAS Blogger
<p>Thanks everyone for sharing your experiences. We&#39;re always looking to improve and help our customers get the information they need. Please let us know if there is anything else we can help clarify.</p>
<p>Thank you for your input!&nbsp; I&#39;m glad to hear that other contractors have had some of the same challenges that I have encountered.&nbsp; Since my initial post, I have received EXCELLENT communication and direction from GSA personnel.&nbsp; Additionally, I have been told that my MAS pricing will remain the same as it was when the contract was initially awarded.</p><p>Thanks again for your input!</p><p>&nbsp;</p>
<p>Hello Evanforce. In response to your inquiry about the C/O now requiring List price with your latest EPA request, I too experienced this same issue long after a contract was into it&#39;s 3rd renewal term and the award was based upon a mark-up from dealer.&nbsp; In that case we&nbsp; had to comply by backing into a list price from the dealer cost and then showing&nbsp;both the relationship to dealer and discount from created list price.&nbsp; In another contract the award was based on a&nbsp;the relationship to&nbsp;MFC price and that price is treated&nbsp;as the &quot;List&quot; since on some line items&nbsp;there is no &quot;list&quot;.&nbsp; The product was only sold to MFC.&nbsp;&nbsp;</p><p>As for&nbsp;your experience with lack of response to emails and calls, I too was having a hard time getting the attention of the contract specialist for months, and it was for an easy admin fix that would allow continued update to the schedule.&nbsp; I had no choice but to contact whomever I could to ask if anything could be done to ease the workload on the contracting specialist so an easy call or email could be answered (at least some kind of awarness that it was received).&nbsp; Thankfully, once we got on track, I&#39;ve had nothing but good communications with all the personnel.&nbsp; I feel you will too.</p>
<p>Thank you for your quick response!&nbsp; I am aware of what the contract expectation and requirements are however, I don&#39;t believe the C/O is.&nbsp; Please share the same information with him.&nbsp;</p><p>&nbsp;</p>
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