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GSA Feedback on Inflation on Supply Chain

GSA has heard from contractors regarding concerns about the impacts of inflation on the supply chain and the ability of GSA’s pricing policies to appropriately respond. As such, GSA is seeking your feedback to gather information to create a robust business case to justify future more lasting changes of the Economic Price Adjustment (EPA) process. Your responses to any and/or all of the questions below are valuable in GSA’s understanding of the challenges industry is experiencing with the current clause, the impact on businesses, and the potential consequences for GSA’s customers. Please provide responses to gsaombudsman@gsa.gov by COB Monday, March 14, 2022.
  1. What are the main sectors that you believe have been impacted by inflation?
  2. How is inflation impacting your business in terms of labor, materials, and transportation costs?
  3. Are you experiencing issues with your lower tiers? Are the issues related to price increases, supply chain disruptions, workforce shortages, or other factors? How are you solving these issues?
  4. Did you submit an EPA request in the last two years due to changes in the market? What was the outcome (approved/denied)? How long was the process from the time you submitted the request until you received notification of the decision?
  5. EPA ceiling rates set an aggregate limit on price increases per 12-month period based on the applicable MAS large category, and are indicated under General Services Administration Acquisition Regulation (GSAR) clause 552.216-70 EPA – FSS Multiple Award Schedule Contracts and FAS clause I-FSS-969 EPA – FSS Multiple Award Schedule (and alternates). How does this 12-month period requirement impact your business and ability to stay in the MAS program?
  6. According to the EPA clause, increases are only allowed on or after the first 12 months of the contract period, and no more than three price increases will be considered during each succeeding 12-month period of the contract. Under what circumstances do you need to request increases during the first 12 months, or more than three increases each 12-month period thereafter? Please provide examples. How does this limitation impact your ability to do business with GSA?
  7. How is the inflation issue being addressed under other commercial IDIQs?

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