Issue: Reform the MAS Pricing Policies. Specifically, eliminate the Price Reduction Clause (PRC), GSAR Clause 552.238-75.
The current MAS pricing policies do not reflect current practices in the commercial market place. The pricing policies are inconsistent with the statutory and regulatory mandates for competition at the order level. The increased transactional and contract administration costs for compliance with the PRC far outweigh any benefits. Moreover, the PRC restricts competition in the private sector by limiting the ability of contractors to offer price reductions to certain commercial customers. The PRC limits access to new technologies, services and solutions due to unacceptable contract compliance risk for companies introducing new products in the commercial market place.
Recommendation: Remove the PRC from all MAS contracts. Focus on competition at the task order level as the key driver of value for customer agencies.