Price Reductions

Ordering activities may request additional pricing discounts or concessions from Schedule contractors at any time before placing an order or establishing a BPA. Price reductions may also be requested in conjunction with the annual BPA review. Also note that ordering activities should seek a price reduction whenever the supply or service is available elsewhere at a lower price or when estimated quantities/amounts under a BPA have been exceeded.

Additionally, ordering activities MUST seek a price reduction whenever placing an order or establishing a BPA that exceeds the simplified acquisition threshold.

In response, a Schedule contractor can give an ordering activity a discount without passing the discount on to other authorized ordering activities (refer to FAR Subpart 8.4). The provision, in essence, allows the Schedule contractor to offer, and the government to accept, spot-pricing available in the commercial market.

This mechanism enhances competition and allows Schedule contractors to react more immediately to the commercial marketplace, move inventory and increase sales through promotional marketing.

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“On-the-Spot Discounting” allows the Schedule contractor to reduce the GSA price at any time, regardless of the dollar amount.
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Ordering activities are required to ask for a price reduction for orders against Schedules and BPAs above the SAT.