DOCUMENT

Resolution - NIGP Resolution 1006 GSA Most Favored Customer 1995

  • YEAR CREATED: 1995
  • ENTITY TYPE: Chapter
  • TYPE OF DOCUMENT: POL - Policies/Procedures
The document is a resolution adopted by the Board of Directors of the National Institute of Governmental Purchasing (NIGP) on April 27, 1984. The resolution, numbered 1006, addresses the issue of "most favored customer" pricing practices used by the General Services Administration (GSA) and other governmental organizations in public purchasing. The resolution acknowledges that competitive bidding is considered to be in the public interest by federal, state, and local governments. However, it raises concerns about the use of "most favored customer" pricing practices, which establish fixed prices for all users and restrict other governmental purchasers from entering into supply contracts. The resolution also highlights that the Federal Supply and Services procurement regulations do not exempt schedule contractors who wish to submit bids to state and local governments from the requirements of the Price Reduction Clause. It suggests that some manufacturers may be using GSA contracts to maintain artificially high prices. In light of these concerns, the resolution requests the GSA to clarify its policy to manufacturers, stating that quoting lower prices to state and local governments is not prohibited by GSA policy or regulation and will not necessarily result in renegotiation of prices offered to GSA. The resolution was reviewed and ratified by the NIGP Board of Directors on November 11, 1995, as certified by J. E. Brinkman, the Executive Vice President and Secretary of NIGP.
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