Congress steps in to resolve GSA pricing dispute in contractors' favor?

Venable has excellent coverage of the significant dispute between GSA and its Inspector General over Multiple Award Schedule (MAS) contract pricing, which may soon be resolved by Congress. The debate centers on GSA's Transactional Data Reporting (TDR) program versus the traditional most-favored-customer pricing approach with Price Reductions Clause (PRC). While GSA sees TDR as a modernization effort that reduces contractor burden, the OIG argues it violates the Competition in Contracting Act's "lowest overall cost" requirement.

The recently introduced bipartisan Value Over Cost Act would allow GSA to use either "lowest overall cost" or "best value" standards for MAS pricing, potentially ending this long-standing disagreement. This change could make the MAS program more accessible to contractors by reducing administrative costs and compliance risks, though important requirements like the Trade Agreements Act would remain.