GSA Releases Temporary Moratorium To Address The Impact Of Inflation By Reducing The Restrictions On GSA Price Increases

GSA released an Acquisition Letter March 17, 2022 putting in place a temporary moratorium on the enforcement of certain GSA Economic Price Adjustment (EPA) limitations to address the impact of inflation on GSA contractors, increase in EPA modification requests and contractors ability to support federal agencies.

The changes are effective immediately through Sept 30, 2022 and allow for greater flexibility for GSA Contract price increases. The acquisition letter:

1. Lowers the approval for price increases above the EPA clause ceiling in 552.216-70, from the contracting director to one level above the contracting officer;

2. Relaxes time limitations on EPA increases;

3. Relaxes limitations on the number of EPA increases a contractor may request; and

4. Clarifies that if a contractor has removed an item from their Schedule contract, GSA will not enforce the limitation on adding the same item back at a higher price.

The moratorium on the EPA Clause applies to GSA FSS Contracts that include clauses (1) GSAR 552.216-70 Economice Price Adjustment – FSS Multiple Award Schedule Contracts; Alternate I and Deviation II; (2) I-FSS-969, Economic Price Adjustment – FSS Multiple Award Schedule; and Alternate II; or (3) GSAR 552.216-71, Economic Price Adjustment – Special Order Program Contracts; Alternate I; and Alternate II.

The application of the Letter is discretionary on the FA FSS contracts. 

NEXT STEPS:

Review GSA’s Acquisition Letter MV-22-02 and Attachment A.

For questions on how this impacts your current or proposed Economic Price Adjustment (EPA) Modification request, please contact BH Sky.