Price Reduction Clause in GSA Contracts | PNWC’s Government Contracting Update

The General Services Administration Acquisition Regulations (GSAR, or sometimes referred to as GSAM) requires a price reduction clause (see GSAR 552.238-75) be included in each GSA Schedule contract. Just as the Government is assured that it secures the most favorable pricing during negotiations, the price reduction clause ensures that it continues to receive “best pricing” throughout the life of the contract. In effect, the clause ensures that the most favorable relationship that existed at the time of negotiations continues throughout the life of the contract.

Source: Price Reduction Clause in GSA Contracts | PNWC’s Government Contracting Update