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Compliance Issues. Price Reduction Clause (PRC) PRC maintain relationship between 3 prices The GSA price, The BOA price, The commercial list price Changes to relationship subsequent to contract award trigger the clause, 15 days to notify GSA Trigger a “False Claims Charge”
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Compliance Issues • Price Reduction Clause (PRC) • PRC maintain relationship between 3 prices • The GSA price, The BOA price, The commercial list price • Changes to relationship subsequent to contract award trigger the clause, 15 days to notify GSA • Trigger a “False Claims Charge” • Treble Damages , up to $11K per invoice, ($1 overcharge on 100 invoices costs $300 in damages, plus $1,100,000 in penalties) • Economic Price Adjustment Clause (EPA) • Contract can be modified up to 6 times in a year with max. aggregate in crease of 15% • Snap-on typically does a yearly EPA • Trade Agreement Act (TAA) • Product on contract must be from an approved country • Small Business Participation • All GSA contractors have a goal to reach that shows what are spend is with SB • SB are categorized as WOSB, SDB, SDVOSB, HZSB
Pricing Update • Feb.2, 2008, load new 2008 prices to Baan, effective 2-4, 2008 • Most Industrial customers will be effected • We will honor quotes prior to Feb. 2, 2008 for 60 days (12-2-07 quote date) • We are holding Some customers 2006/2007 pricing until their contracts allow price changes • GSA/DOD EPA request is almost complete plan to submit by Feb. 8, 2008 • GSA/State Contracts • All wrenches and sockets will be capped at 6.9% ; 531 wrenches; 1013 sockets • All other product families will be capped as follows: • 9.9% if sales are greater > than $5,000; 56 products • 11.9% if sales are between $1,500 and $5,000; 42 products • 14.9% for sales less than $1,500K ; 134 products
National Stock Number Update • Qty. NSN dropped since year 2000 approximately. 1,850, 94 since 2006 • Qty, NSN superseded since 2006 135 –screwdriver, crowfoot, ratchet • Qty. NSN current Approximately 4,000 • Update i-GIRDER (DLA NSN catalog site) • Update GSA with new part number & price • Possible take over Sioux & ATI NSN listing and maintenance • Team established to research and address NSN activities • Look into reviving old NSN’s with new tools or possible suggested replacement tools • Review 9000 series Bill of Materials • Request in to GSA for complete NSN description for 9000 series sets, reply from GSA is for us to do a FOIA request to receive this info.
GSA/DLA Update • GSA GS-06F-0006L • NEW GSA SmartPay2 cards • Must use new cards by Nov. 30, 2008 • Current cards will not be valid after Nov. 29, 2008 • Push for more Women owned Small Business purchases • Disaster Recovery Program • State and Local governments may use GSA contract for disaster relief efforts • Purchases can be made in advance & in aftermath of disaster • Found in section 833 of the John Warner National Defense Authorization Act of 2007
GSA/DLA Update • DLA SPM4W1-06-D-E001 • Contract Overview • Five year value is $6.5M • One year value is $1.3M • Order maximum value is $100K • Once Maximum for year or contract is met contract is expired • Contract is for 1 year w/4 1 year extensions • We are currently in our 1st extension expires 8-20-08