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IMPORTANT UPDATE: GSA Publishes GSAR Final Rule for Commercial Supplier Agreements (CSAs) on Federal Register

Today, the General Services Administration (GSA) published a final rule to amend the General Services Administration Acquisition Regulation (GSAR) to address common Commercial Supplier Agreement terms that are inconsistent with, or create ambiguity with, Federal Law. The rule addresses these common unenforceable terms within GSA deviated Commercial Items Clause 552.212-4.

This approach decreases the time needed for legal review prior to contract formation, significantly reduces costs to both the government and contractors, and further clarifies expectations for all parties. This rule is an important step to improve the acquisition process, and ensures that GSA's contracting vehicles remain the best-value solution for both federal agency customers and industry partners.

Below is a list of common Commercial Supplier Agreement (CSA) terms & conditions affected:

  • Definition of contracting parties
  • Contract formation
  • Vendor indemnity (vendor assumes control of proceedings)
  • Automatic renewals of term-limited agreements
  • Future fees or penalties
  • Taxes
  • Payment terms or invoicing (late payment)
  • Automatic incorporation/deemed acceptance of third party terms
  • State/foreign law governed contracts
  • Equitable remedies, injunctions, binding arbitration
  • Unilateral termination of supplier agreement by supplier
  • Unilateral modification of supplier agreement by supplier
  • Assignment of supplier agreement or Government contract by supplier
  • Confidentiality of supplier agreement terms and conditions
  • Audits (automatic liability for payment)

Attached is a fact sheet with frequently asked questions. As always, thank you for your continued partnership.

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