GSA Schedule contracting has always been plagued by the impracticality of the "most favored customer pricing" concept and the restrictiveness of the Price Reduction Clause. Yet both haven't kept nearly 20,000 contractors from pursuing the award of a GSA Schedule contract.

The Ugly
GSA wants its cake and then wants to eat it too. Why? Because it can and it makes good sense from a political standpoint. Politically, the government must get a hefty return (on paper at least) if it is going to allow a quick and inherently noncompetitive purchase. This is understandable seeing as GSA has Congress and government auditors watching over its back. In return for a reduction in competition, GSA created the concepts of "commercial sales practices," "standard" discounting policies," and "most favored customer pricing."

The Bad
Now, throw in the sometimes impractical restriction of "Give us money back if you lower your commercial prices too much" and you have the bad.

The Good
GSA Schedules work. They reduce competition (usually to the point that it doesn't take place) so that a purchase can be made expeditiously and federal buyers love them for their efficiency and cost effectiveness. The process may not be easy and clean but thousands of contractors have made GSA Schedule contracts their most effective closing mechanism. These same contractors thrive in GSA's sometimes unreal world.