GSA Extends Moratorium on EPA Increases and Minimum Sales Requirements

GSA recently released an update to their previously published moratoriums on certain EPA increases as well as the minimum sales requirements.

Update regarding EPA increases:

On September 12, 2022, GSA released the Acquisition Letter MV-22-02, Supplement 1, in order to extend the temporary moratorium on the enforcement of certain GSA Economic Price Adjustment (EPA) limitations until March 31, 2023.

For EPA increases exceeding the ceiling percentage established in the solicitation, the Acquisition Letter MV-22-02 initially lowered the approval level from the contracting director to one level above the contracting officer. However, this Supplement removes the requirement to obtain additional approvals, allowing contracting officers the ability to approve EPA modification requests for increases both above and below the ceiling percentage established in the solicitation.

This Supplement also extends the temporary moratorium on enforcing ceiling percentages, time-based limitations, and other specific limitations, such as the number of requests within a certain time period.

Update regarding Minimum Sales Requirements:

On August 3, 2022, GSA released the Acquisition Letter MV-20-09, Supplement 5 in order to extend the temporary moratorium on the enforcement of the minimum sales requirements until September 30, 2023.

In the wake of COVID-19 and the ongoing economic impacts felt by businesses as a result of the pandemic, Executive Order 13924 directed agencies to “identify regulatory standards that may inhibit economic recovery” and take action toward removing or suspending such regulations. As a result, GSA continues to stay their enforcement of the minimum sales requirements outlined in FAS Clause I-FSS-639 – Contract Sales Criteria, which stipulates that the Government may cancel any contract whose sales do not meet or exceed $25,000 within the first 24 months following contract award, and $25,000 every year thereafter.

More Information:

For more information, please see our blog post “GSA Releases Temporary Moratorium To Address The Impact Of Inflation By Reducing The Restrictions On GSA Price Increases” regarding the initial moratorium release from March 21, 2022.

Do you have questions on how the moratoriums might affect your GSA contract? Please contact BH Sky for further information.

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