GSA EPA (Price Increase) Moratorium

In response to the current state of the economy GSA released the Acquisition Letter MV-22-02 announcing temporary flexibility regarding price increases to GSA contract products and services. These new flexible guidelines will be in effect until September 30, 2022 December 31, 2024. During this time, this memorandum will implement the following changes:

Modifications requesting an increase above the normal allowable EPA Ceiling stated in 552.216-70 for each industry, will no longer have to be approved by the contracting director, but instead to just one level above the contracting officer (It will be a bit easier to get these requests through)

Relaxes time limitations on EPA increases (Normally, price increases are prohibited in the first year of a contract, but this relaxes that rule)

Relaxes limitations on the number of EPA increases a contractor may request (Typically, vendors can only request a price increase 3x a year, this removes that limitation)

If you have previously removed an item, you may add that item back at a higher price point (This is not allowed under normal circumstances)

**It is up to each reviewing Contracting Officer to determine what requests are reasonable/eligible and may negotiate, accept, or remove items at their discretion.**

If you are finding that your current offerings on GSA are not keeping pace with the current inflation rates, now is the time to submit a modification to request those increases you need to keep your contract functioning properly. You should be aware that GSA may request supporting documentation to show that you have also increased your rates to your commercial (non-GSA) customers as well. This may mean showing invoices that reflects the percent increase you are trying to get your GSA rates raised by. It is up to each CO to determine what they deem reasonable to process these requests.

Should you want to read more you can find the full update here.

As always if you have any questions at all regarding the EPA moratorium, or general management of your GSA contract, please don’t hesitate to reach out at info@elevategsa.com.