One of the most impactful GSA rules in decades was published in the Federal Register on June 23. The new transactional data reporting requirement is designed to lighten the burden on contractors by eliminating existing duplicative reporting requirements, providing increased price competition and price transparency, and to saving both the government and contractors hundreds of millions of dollars.
The Transactional Data Reporting ("TDR") rule will require contractors to report certain transactional data from orders placed under the Federal Supply Schedules, as well as other government-wide acquisition contracts ("GWAC") and government-wide indefinite delivery, indefinite quantity ("IDIQ") contracts, to the GSA on a monthly basis. It will not apply to contracts that already collect this data through other methods.
Contractors will no longer have to submit quarterly transaction reports. Instead, contractors will be required to provide more detailed data on monthly transactions. Pursuant to the TDR rule, contractors will electronically report procurement data such as prices paid for items, quantities sold, part numbers and item descriptions. The information reported is supposed to provide increased price transparency and reduce price variability, which will allow the government to make smarter purchasing decisions. How this information will actually be used and applied by the government is unknown.
A benefit of the TDR rule for contractors is the elimination of the GSA's commercial sales practice and price reduction clauses requirements. The commercial sales practice clause requires contractors to disclose discounts offered to commercial customers for similar products and services, and the price reductions clause requires contractors to give the government the same price reductions that the contractor gives to its commercial customers.
The TDR clause will be added to Federal Supply Schedule contracts in phases over the next year. The GSA intends to begin with a pilot program for certain Schedules and GSA Special Item Numbers so it can continue to work out any issues before the clause is applied across all multi-award, government-wide contracts.
This law update was co-authored by Taft partner Suzanne Sumner and Taft paralegal Christina Heidecker.