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OnDemand Course

GSA Price Reduction Clauses (PRC) in Contracts

Understand how PRC works so you are able to intelligently negotiate a pricing and discount relationship that minimizes inherent risks.

General Services Administration Federal Supply Schedule (GSA FSS) contracts in particular contain the Price Reduction Clause (PRC) which is a potential minefield for the careless or unwary contractor. The PRC basically requires the GSA FSS contractor to offer the Federal Government the same pricing and discount terms the contractor offers to its Most Favored Customer(s) (MFC) at all times the FSS contract is in force. The contractor's MFC was identified at the time the contractor and GSA entered into negotiations and established the pricing and discount relationship that would govern the contract in accordance with the basis of award clause. The government is contractually entitled to the same pricing and discount terms the contractor offers to its MFC under similar terms and conditions. The PRC requires the contractor to maintain that relationship throughout the contract. If the contractor offers a lower price or deeper discount to its MFC during a set period of time, it must offer the same or equivalent lower price or deeper discount to the government during that period. If the contractor does not, especially with knowledge of its noncompliance with the PRC or with a reckless disregard for its compliance, especially over a protracted period of time, this subjects the contractor to a mandatory disclosure obligation or at least a voluntary one and consequently various government actions for recovery including termination for default and re-procurement costs, administrative offsets, false claims act charges leading to treble damages and per invoice fines, or worse, and debarment and suspension. It will also help existing GSA FSS contractors to take appropriate mitigation measures if an internal review indicates that they have not been in compliance with the PRC.

90 minutes
Course Exam
Certificate of Completion
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Agenda

Overview of GSA FSS Contracts for Supplies and Services

  • Basis of Award
  • History of Commercial Sales
  • Other Sales Categories
  • Determining the Tracking Customer or Class of Customer
  • The Most Favored Customer Under Similar Terms and Conditions
  • Negotiating the Pricing and Discount Relationship

Compliance With the Price Reduction Clause

  • What It Means to Disturb the Pricing and Discount Relationship
  • Examples of Disturbance/Non-Disturbance
  • Tracking Lower Prices and Deeper Discounts Offered to the Most Favored Customer or Class of Customer
  • Offering the Same to the Government to Ensure Compliance
  • Comprehensive Training of the Sales Force

Consequences of Noncompliance

  • Mandatory and Voluntary Disclosures
  • Calculation of Damages
  • Termination for Default and Re-Procurement
  • Administrative Offsets
  • False Claims Act Charges
  • Knowingly False or Reckless Disregard for the Truth or Falsity
  • Debarment and Suspension
  • Case Law Discussion
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Over 37 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Credits

OnDemand Course

This course was last revised on July 15, 2020.

Call 1-866-352-9540 for further credit information.

  • CA MCLE 1.5
     
  • Lorman Business Center, LLC. is a State Bar of California approved MCLE sponsor and this course qualifies for 1.5 CLE hours of participatory credit.
     

To earn each credit Lorman offers through the OnDemand learning platform, you need to watch 100% of the program. Also, for certain credits you will need to fulfill additional requirements which will be displayed on the "credits" tab when viewing the course.

This program does NOT qualify, nor meet the National Standard for NASBA accreditation.

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Why Lorman?

Over 37 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Faculty

Richard Moorhouse

Richard Moorhouse

Greenberg Traurig, LLP

  • Shareholder with Greenberg Traurig, LLP
  • More than 30 years of experience litigating procurement award and contract disputes at the federal, state, and local level
  • Practice also frequently involves the conduct of internal investigations, the preparation of comprehensive submissions to clients detailing the results of those investigations, and disclosures to the government in a variety of matters including those giving rise to potential debarments, suspensions, and other determinations of ineligibility to receive contract awards
  • Retained as an expert witness in complex civil litigation involving federal government contract issues
  • Achieved the highest rating with Martindale-Hubbell® Law Directory
  • J.D. and M.A. degrees, Suffolk University Law School; B.A. degree, University of Massachusetts at Amherst
  • Can be contacted at 703-749-1304 or [email protected]
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Product ID: 407899
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