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Understanding MAP Policy in Schedule 73 Contracts: Compliance Guidelines

Explore Minimum Advertised Pricing Policy, Trade Agreement Act compliance, Letters of Supply, and Contract Maintenance in Schedule 73 contracts. Learn about MAP Policy impact, TAA compliance, and the importance of contract maintenance. Stay informed and compliant.

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Understanding MAP Policy in Schedule 73 Contracts: Compliance Guidelines

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  1. Schedule 73 Breakout Session MAP Policy / TAA / Contract Maintenance February 25, 2016

  2. Discussion Points Discuss Minimum (Manufacturer’s) Advertised Pricing Policy and the Schedule 73 position. Trade Agreement Act Compliance / Letters of Supply Return/Restocking/Damaged product disclosure Contract Maintenance Q & A

  3. What is MAP Policy? • Policy (typically established and enforced by a manufacturer) that establishes the lowest allowable advertised price for a product but does not place limits upon the actual selling price. • An effort to maintain pricing integrity and brand/product positioning which has become more prevalent in response to the growth of internet based retailing. • There have been conflicting rulings by the courts on the legality of MAP, but they are generally not considered to be price fixing or collusion.

  4. MAP Policy and Schedule 73 • MAP Policy has been discussed in house since at least 2011. • The primary ways in which a MAP Policy issue is brought up is through a contractor request to raise prices to MAP Policy levels by decreasing the basic discount and thus increasing the price offered to the Government. Secondly, contractors will submit a SIP file asking the CO to approve a MAP price but state they will sell at the approved contract price. • A Fundamental disconnect between MAP Policy and the GSA MAS contract. GSA Schedule contractors are not allowed to sell at prices which exceed the contractually established basis of award pricing. GSA Advantage pricing (except in cases of temporary price reductions) must mirror the approved pricing.

  5. MAP Policy and Schedule 73 cont. • MAP Policy requires a dual pricing system ( advertised and selling price) GSA MAS contracts and GSA Advantage do not allow for this dual system and are by nature Firm Fixed Price contracts. • GSA Advantage! while a publicly visible forum, is closed to the public for use. • MAP policy is not a justification for requesting Economic Price Adjustments. These do not represent real cost increases to the contractor which therefore cannot be passed on to the Government customer. • GSA will not allow GSA Advantage! pricing to reflect any price which exceeds the contractually agreed upon price.

  6. MAP Policy Impact and Action • GSA recognizes that the implementation of a MAP Policy may result in the removal of brands from the schedule contract thus limiting options for customers and reducing sales. • Schedule 73 Leadership has and continues to invite dialogue on MAP. • Schedule 73 will support our contract partners in discussing this policy and GSA’s position on it with you and with your supplier/manufacturer. • As our schedule partner you know the uniqueness of the program and together we should be able to explain the inherent conflict with MAP and the Schedules program so that manufacturers and suppliers know that MAP policy will limit if not completely eliminate a proven sales channel.

  7. TAA Compliance • Within the last 12 months TAA inquires have become more frequent. • Ultimately, the Schedule Contract holder guarantees the compliance of offered products with TAA. • Receiving a TAA inquiry from your GSA CS/CO. • What is the frequency and/or method established for checking compliance?

  8. Letters of Supply • Increased Number of FOIA requests in the past 12 months. • LOS required each time you add previously non-awarded products or brands to schedule OR your source of supply changes for products on schedule. • Updated LOS template under the Schedule 73 Post Award Documents. • If you have not updated LOS within the last 5 or more years it may be advisable to do so. Voluntarily submitting updated LOS at time of option is a good practice.

  9. Contract Maintenance Routine Maintenance ( an ounce of prevention) Authorized Negotiators. POC Changes ( Address, Phone, Fax). Do not let your GSA Advantage or Elibrary files lapse. Utilize the latest templates Tune-Up ( running smoothly for the long haul) Work with your CO to put your contract in order in advance of the Option. Stay aware of your pricing in the context of the Schedule. Review your Government sales regularly. Is what you’re selling on Schedule? Why not?

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