Our previous newsletter discussed the importance of identifying price reduction clause compliance early before the potential money claw back risk piles up.
Obviously, preventing violations by maintaining the capability to monitor discounting offers before-the-fact is far better than discovering violations after-the-fact. After-the-fact compliance violations should be reported to the GSA contracting officer as soon as they are found. This will allow you to either adjust the prices you're charging GSA now, or (if you're really lucky) to correct the problem, with the contracting officer's approval, without incurring a price reduction. In either case, it beats owing a multi-million dollar refund to GSA down the line. Boards of Directors hate surprises.
PRC compliance training is the key to avoiding financial risk. Training company management, sales management, and individual sales persons in PRC compliance procedures should be the responsibility of the GSA Compliance Officer. Suggested content for directives to the management and the company's sales staff is as follows:
- What is our GSA schedule and why do we have it?
- Use of schedules by state and local government and stimulus contracting.
- Price reduction Clause (PRC)
What is it?
How does it restrict discounting?
What are the consequences to the company of PRC violations?
What are the consequences to employees of PRC violations (if any)?
Price Compliance Database and its uses in developing price quotes
- Other compliance requirements impacting sales and operations
Trade Agreement Act
GSA Order Segregation
New! Fedmarket's GSA Schedule Contract Management Wizard is a proprietary software product that assists companies in reducing Price Reduction Clause compliance risks. Call 301 652 9504, press 2, to discuss the features and benefits of the software and how it can solve your contract management problems.
Atlanta Seminars
Fedmarket's back-to-back courses for government sales are coming to Atlanta, GA, February 18-19, 2010.
Federal Sales 101: "Winning Government Business" will teach you the secrets to successfully winning the deal and the keys to following the protocols of the contracting officers and determining the needs of your government customers.
Writing & Managing Winning Proposals will help you write a winning proposal for an opportunity you already SOLD to the government.
Call 301 652 9504, press 2, for more information or to register today.
Call Fedmarket's sales staff at 301 652 9504, press 2, if you have questions concerning these or any other products or services Fedmarket offers.
Regards,
Richard White
President
Fedmarket.com
rwhite@thefederalmarketplace.com
301 652 9504 Ext. 118 (office)
301 908 0546 (cell)
