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  • Question

    Can escalation be applied to proposed GSA rates, even when discounted, if your schedule does not include a schedule of escalated rates -- for multi year awards (BPAs, Task Orders, etc.). (Please assume with the question that the proposed escalation does not increase your GSA rate above the schedule "list" price). Thanks.


    Answer

    When submitting a proposal under a current schedule, a vendor may adjust their proposed rates as long as those rates fall at or below the schedule rates. Often, vendors will have "established schedule rates" and then subsequently propose at discounted rates.  As long as the proposed rates do not exceed the schedule rates, you are allowed to "escalate" your proposed rates.  The only way to increase those rates above the schedule rates is through a modification by the GSA Contracting Officer.
     
    Rate escalation is sometimes allowed at the time the schedule rates are negotiated, but this is difficult to negotiate and the GSA Contracting Officer will likely require submission of additional data to support the method of future period escalation.  Generally, this method is based on Bureau of Labor Statistics indices or an agreed upon fixed escalation rate.
     
    It is always best to communicate with the GSA Contracting Officer when questions arise pertaining to the use of a GSA schedule.

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