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More changes are coming for GSA Schedule contractors—GSA will introduce a new consolidated Economic Price Adjustment (EPA) clause in Multiple Award Schedule (MAS) Solicitation Refresh #29. Once added to the solicitation, this clause will replace and eliminate the legacy EPA clauses 552.216-70 and I-FSS-969. With this change, GSA hopes to make price changes more standard across the MAS Program, and give Contracting Officers (COs) as well as contractors more flexibility in GSA Schedule pricing.
This consolidation has been in the works for a few years since GSA proposed a rule to amend General Services Acquisition Regulation (GSAR) in 2023, and GSA has been temporarily allowing these flexibilities under Acquisition Letter MV-22-02. Since the letter is expiring September 30, 2025, and the new clause is going into effect by the end of August, let's review what this clause change means for your contract and what it will look like once it's added to the Solicitation.
What is an Economic Price Adjustment (EPA)?
You can have your GSA MAS contract for up to 20 years, so it’s inevitable that you’ll change your pricing. However, if you’ve gone through the GSA Schedule offer process before, you’ll remember that GSA is very particular about how you can price your products/services because they must be “fair and reasonable” and represent best value. EPAs ensure there’s a calculated way to increase contract pricing and have long since governed when and how contractors can change their rates.
Right now, there are are two main clauses that govern an EPA. These are 552.216-70 and I-FSS-969. I-FSS-969 is further broken down into two sections:
- 552.216-70: Under this clause, your proposed pricing is based on your commercial price list.
- I-FSS-969 (b) (1): This clause is based on a fixed escalation rate that is negotiated prior to contract award
- I-FSS-969 b2 (b) (2): In this clause, price increases are based on an agreed upon market indicator
The new clause, GSAR 552.238-210, will replace the ones above, but isn't necessarily changing the price adjustment mechanisms. We'll go into more detail on it below.
What is the New Economic Price Adjustment (EPA) Clause?
Clause GSAR 552.238-210, Economic Price Adjustment Federal Supply Schedule (FSS) Contracts, will make price adjustments more standardized across all FSS contracts. Just like the Acquisition Letter offering temporary price flexibilities, this clause does not include specific time-based limitations or ceiling percentage limits.
The mechanisms in the new EPA clause include:
- Adjustments based on fixed escalation rates
- Adjustments based on a market index or other basis
- Adjustment based on established pricing
- Pricing must be dated, existing, standalone, and not prepared solely for the government
- Adjustments based on unforeseeable significant changes in market conditions
It's important to note that EPA mods under a fixed rate or CPL mechanism do not need to determine fair and reasonable pricing.
How Does the New EPA Clause Affect Current GSA Schedule Holders?
Your current EPA method or mechanism will remain the same on your existing contract until one of the following triggering events occurs:
- Contract requires either an EPA or an add-items modification
- Exercise of an upcoming option
- Submission of a modification to propose a new EPA method/mechanism
Once it's triggered, the actions depend on the your current mechanism. If you have a fixed rate, you will continue as usual. Your fixed rate can only escalate once per year on the anniversary date of your contract. If your mechanism is based on an index or Commercial Price List (CPL), then you will need to submit a Terms & Conditions/Change Action modification before the price escalation or other changes such as an add items modification.
All contractors will have to accept the Mass Modification for Refresh #29 within 90 days of its release regardless of what EPA mechanism your contract holds.
How Does the New EPA Clause Affect New GSA Schedule Contractors?
New offerors will propose specific methods to apply (based on timing or frequency) and submit one or more mechanisms (Fixed, Index, or CPL). If you are submitting under a fixed rate, the pricing will be 20 years (with annual escalation). If you are submitting under index or established pricing, you can only submit one price (per offering). You must accept the Refresh #29 prior to contract award, and then you will most likely have to initiate a Terms and Conditions modification to incorporate your method and mechanism.
Preparing for Future MAS Program Changes
This new clause is expected to be added by the end of August when the Solicitation Refresh is released. With the most recent MAS Solicitation Refresh #29, there were several other updates that may affect your contract. We suggest you review the Refresh entirely before you accept the Mass Modification.
If you want to stay on top of the EPA clause updates and any other future changes within the MAS Program, you can subscribe to our blog and monthly government contracting insights newsletter. If you have questions about your GSA Schedule or are interested in getting one, feel free to reach out to one of our consultants.
