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GSA Releases Extension to Moratorium on EPA Increases until September 2023

GSA released an update to their previously published moratorium on certain EPA increases. On March 6, 2023, GSA released the Acquisition Letter MV-22-02, Supplement 2, in order to extend the temporary moratorium on the enforcement of certain GSA Economic Price Adjustment (EPA) limitations until September 30, 2023.

Various factors such as inflation, supply chain shortages, and price volatility continue to
significantly impact the global economy. Therefore GSA determined that there is a continued need for the temporary moratorium. The Supplement aims to streamline the processing of EPA requests through the removal of administrative barriers.

In recognition of price volatility in the market, the supplement removes the requirement for the Contracting Officer to obtain additional approvals. 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.

This Supplement applies to GSA contracts that include clauses 552.216-70, Economic Price Adjustment-FSS Multiple Award Schedule Contracts; Alternate I and Deviation II and I-FSS-969, Economic Price Adjustment-FSS Multiple Award Schedule; Alternate II.

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 as well as “GSA Extends Moratorium on EPA Increases and Minimum Sales Requirements” post from September 14, 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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