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Want a Discount? Just Ask!

Agencies are encouraged to seek discounts when ordering through GSA Schedules and GSA Schedule Blanket Purchase Agreements (BPAs). The Office of Management and Budget’s (OMB) Office of Federal Procurement Policy (OFPP) urges agencies to seek discounts in its memo, Achieving Better Value from Our Acquisitions.

When establishing a BPA to fulfill recurring needs, discounts should always be requested from vendors. To achieve best value, agencies must actively negotiate with Schedule vendors for better pricing, deeper discounts, and more favorable delivery terms. While ordering activities are encouraged to seek price reductions for any size Schedule contract order, they are required to seek price reductions if an order requirement, or the estimated total value of orders expected under a BPA, exceeds the simplified acquisition threshold.

GSA has determined that prices under GSA Schedule contracts are fair and reasonable. And while GSA has determined that labor hour rates for services are fair and reasonable, GSA has not determined that the level of effort or mix of labor categories proposed in response to a specific requirement represents best value. Therefore, when buying services that require a statement of work, you must consider the level of effort and the mix of labor categories proposed. Make a determination if the total price is reasonable and represents best value.

While vendors provide most discounts, they need not provide them to all other governmental ordering activities. Contractors’ ability to provide on-the-spot discounts to a particular BPA allows for a more fluid contracting atmosphere with flexible and dynamic pricing, allowing contractors to respond to discount requests quickly and for ordering activities to receive best value easily.

To learn more about seeking discounts, read the steps provided in the OFPP memo and visit the Schedule program’s page on price reductions.

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