GSA Releases Guidance on Inflation

GSA released additional guidance today to address delays processing Economic Price Adjustments (EPAs) in response to inflation. We hope that members will attend a Coalition meeting with GSA on this critical issue for contractors this Thurs., Sept 15 at 9am ET. More details below.

1. Guidance on Addressing Inflation in GSA Contracts (9/12/22)

GSA released a memo for the GSA acquisition workforce providing guidance on addressing inflation in GSA Contracts. This guidance consists of some frequently asked questions regarding the topic and what tools and contacts are available through GSA to provide relief.

2. Supplement 1- Temporary Moratorium on Enforcement of Certain Limitations in EPA Clauses (9/12/22)

The memorandum follows a supplement released this morning extending and supplementing the flexibility granted on March 17, 2022, in Acquisition Letter MV-22-02 through March 31, 2023. The supplement removes the requirement to obtain additional approvals for an EPA beyond the contracting officer. In addition, the supplement also extends the moratorium on enforcing the following portions of the clauses:

• Ceiling percentages (note: additional or separate documentation beyond what is normally necessary for increases below the ceiling percentage established in the solicitation is not required for increases above ceiling);
• Time-based limitations (e.g., number of days between requested increases); and
• Other specific limitations (e.g., number of requests).

The supplement also notes the moratorium does not reduce the contracting officer’s responsibility for reviewing EPA requests and requesting further information to meet the requirements of what is “normally necessary” to fulfill EPA requests. GSA specifically notes:

• When the request is based on a previously agreed upon market indicator, the
justification should be straightforward, as the contract price and market indicator
have already been determined fair and reasonable.
• When the request is based upon a previously agreed upon catalog price, if the
contractor provides the updated pricelist showing the price increase and effective
date, certifies no changes to commercial sales practices and provides supporting
documentation, the modification should be straightforward.
Questions to GSA regarding this supplement can be directed to GSARPolicy@gsa.gov.

Coalition Meeting with GSA on EPAs and Inflation, Sept 15
The Coalition will be hosting a meeting with GSA officials to discuss these modifications and the impact of inflation on GSA vendors. The meeting will be on Thursday, September 15 from 9am to 11am at Mayer Brown (1999 K St NW, Washington, DC 20006).

Members may attend in person or virtually. To register, click here.