ART - Contract Management: Opportunities to Improve Pricing of GSA Multiple Award Schedule Contracts 2006

The document is a reprint from the Journal of Public Procurement, Volume 6, Issue 3, in 2006. The document discusses the opportunities to improve the pricing of GSA (General Services Administration) multiple award schedules contracts. The GSA's multiple award schedules (MAS) contracts allow federal agencies to directly purchase a wider range of goods and services at competitive prices. Beginning in the late 1990s, MAS program sales increased significantly from $4 billion to $32 billion. The document highlights that the MAS program aims to simplify the procurement process and take advantage of the government's buying power. However, it points out that GSA has not always effectively used pricing tools and management controls to ensure fair and reasonable pricing. The GAO analysis found that nearly 60 percent of the selected fiscal year 2004 MAS contract files lacked the necessary documentation to establish that the prices were effectively negotiated. This documentation should demonstrate that negotiated prices were based on accurate, complete, and current vendor information, adequate price analyses, and reasonable price negotiations. Furthermore, the document mentions that GSA's efforts to ensure most favored customer pricing have been hindered by the decline in the use of pre-award and post-award audits of pricing information. These audits have helped GSA avoid or recover excessive pricing. The number of pre-award audits conducted by GSA has significantly decreased, and post-award audits were discontinued in 1997. In 2003, GSA established the Acquisition Quality Measurement and Improvement Program, but its effectiveness has been limited due to insufficient oversight. In conclusion, the document emphasizes the need for improvements in the pricing of GSA multiple award schedules contracts. It highlights the importance of effective pricing tools, management controls, and audits to ensure fair and reasonable pricing. The significant increase in MAS program sales and the aim to provide a wider range of goods and services at competitive prices make it crucial for GSA to address these weaknesses and enhance their pricing practices.