If there was a mutually agreed reduction in GSA hourly prices moving forward, does it impact the existing Firm Fixed Price Contract? i.e. Are we required to renegotiate for the on-going and remaining two option years?
ANSWER: The basic contract does not need to be renegotiated. You can certainly try to renegotiate the current effort if the contractor will agree- be aware the company has no reason to do so.
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The options do need to be renegotiated. Since you are aware that there are lower rates available, the current option (higher priced) rates are not fair and reasonable, which should be reflected in you market research.