You should worry about GSA Schedule audits from the perspective of the potential size of a refund you might owe the government. Violation of the Price Reduction Clause (PRC) is the profit-eating dragon of audit threats. This type of violation occurs as follows:

1. During contract negotiations you and GSA established that a group of customers and the discounting practices associated with them would be the basis for GSA's discount from your standard commercial prices. For example, you disclosed to GSA that you give a 10% discount to a select group of large commercial customers, and GSA listed these customers in your GSA contract as the Basis of Award group. GSA then negotiated a 12% discount from your commercial prices based on this disclosure. In other words, GSA sought and received a better discount than you give to your Basis of Award customer.
2. Shortly after contract award, you gave one of the customers named in your contract a 15% discount.
3. GSA audits your company and finds that you established a new discounting practice for the Basis of Award group without notifying them and without proportionately increasing GSA's discount through a contract modification.
4. GSA recalculates all your invoices based on the proportionately larger discount - 18% in this case - all the way back to when the violation occurred, and collects the adjusted amount in a lump sum. Based on the example above, you can see that less than full disclosure of your discounting practices is a mistake you don't want to make. Deciding not to disclose a change in your discounting practice that gives one of your customer groups better prices than what you negotiated with GSA will result in a violation of the Price Reduction Clause. When discovered, GSA will readjust your prices downward and collect the difference.

Single refunds to the government in the $100 million dollar range are not unheard of. GSA has collected refunds of this magnitude from large information technology contractors for price violations that occurred over many years. Can you name a few? Or give some specific examples? Although rare, these cases do illustrate the seriousness of PRC violations. Obviously, this is a profit-eating dragon that should keep you up at night if you suspect that your company has violated the PRC.