**MOBIS SCHEDULE 874**

**Instructions for requesting an Economic Price Adjustment**

**November 17, 2008**

PRIOR TO SUBMITTING A MODIFICATION REQUEST YOU MUST ENSURE THAT YOUR GSA
ADVANTAGE TEXT FILE IS CURRENT (AS OF YOUR LAST CONTRACT MODIFICATION)
OR YOUR MODIFICATION REQUEST MAY BE DENIED.

Before submitting a modification request for an Economic Price
Adjustment (EPA), check your contract award document for the method,
rate, and timing of that EPA. Contracts based on a fixed escalation
(e.g. 3% per year on the contract anniversary date) applicable for the
entire 20-year duration of the contract DO NOT require a modification
for an Economic Price Adjustment (EPA), as your prices are automatically
escalated every year at the fixed percentage rate awarded in your
contract.

For all other EPA requests, continue to follow the instructions in this
document.

**Instructions for submitting a Request for Economic Price Adjustment**

Submit the following information via one of the following methods:

> 1\. E-mail at
> [[msc.mods@gsa.gov]{.underline}](mailto:msc.mods@gsa.gov). [Ensure
> that the subject line reads your Schedule Name, Contract Number and
> Company Name (e.g. MOBIS, GS-10F-0007X, ABC Company).]{.underline}
>
> 2\. Submittal by E-mod. For information on enabling e-mod submittal
> capability go to <http://www.eoffer.gsa.gov/>[.]{.underline}

**[Cover Letter]{.underline}**

1.  Submit a cover letter signed by an authorized negotiator (as shown
    in your contract) stating that you are requesting an Economic Price
    Adjustment (EPA) in accordance with one of the following clauses:

    a.  For contract prices based on a Commercial Price List (CPL), EPA
        Clause 552.216-70 (b) (1) applies.

    b.  For contract prices based on other than a CPL, EPA Clause
        I-FSS-969 (b) (2) applies.

2.  State whether **[or not]{.underline}** new labor
    categories/items/classes/fixed price services are being added as a
    result of this EPA request. [If new labor
    categories/items/classes/fixed price services are being proposed,
    then you must also follow the submittal instructions for adding new
    labor categories/items/classes/fixed price services available for
    download in a separate document at]{.underline}
    [www.gsa.gov/mobis](http://www.gsa.gov/mobis) [or your request will
    be rejected.]{.underline} You may include all requested changes in a
    single modification request document.

3.  Discuss the rationale for your increase in prices (i.e. higher
    salaries to retain a quality workforce, market conditions, etc.).

**[Pricing Support]{.underline}**

> [Contracts based on a Commercial Price List (CPL)]{.underline}
> (Economic Price Adjustment Clause 552.216-70 is incorporated -- Check
> the SF1449 page 1a in your contract documents).

1.  Submit a new dated copy of the CPL. Please review your contract file
    for the most recent copy of the last CPL you submitted for contract
    award or modification. Then submit the most recent dated CPL that
    your company has maintained. Your CPL must be dated.

2.  Submit supporting documentation validating the new commercial prices
    on your CPL (Appropriate documentation that **must** be submitted
    would include. invoices/signed contracts showing utilization of the
    new commercial prices).

> [Contracts based on Other than a CPL]{.underline} (Economic Price
> Adjustment Clause I-FSS-969 is incorporated -- Check the SF1449 page
> 1a in your contract documents).

1.  Submit a copy of the index that was agreed to at time of award
    clearly stating the escalation percentage.

[Commercial Price List Spreadsheet]{.underline}

> On a separate spreadsheet, show the previous commercial prices at time
> of award or at the time of your last Economic Price Adjustment, show
> the new commercial prices (based on the commercial price list you will
> be submitting with your documentation, and the percent increase for
> each labor category, class or product. Here is an example spreadsheet:

+-------------------+----------------+----------------+--------------+
| **Labor           | **Old          | **New          | **Percent**  |
| Category**        | Commercial     | Commercial     |              |
|                   | Price**        | Price**        | **Increase** |
+-------------------+----------------+----------------+--------------+
| ** **             | ** **          | ** **          | ** **        |
+-------------------+----------------+----------------+--------------+
| **Consultant**    | **\$ 100.00**  | **\$ 104.00**  | **4.00%**    |
+-------------------+----------------+----------------+--------------+
| **Senior          | **\$ 150.00**  | **\$ 155.00**  | **3.33%**    |
| Analyst**         |                |                |              |
+-------------------+----------------+----------------+--------------+

[Contracts Based on a Commercial Price List]{.underline}

> On a separate spreadsheet, show the previous GSA price, the proposed
> GSA price increase price and the percent increase. Note that the
> percent increase cannot be greater than the cap in the contract (see
> your contract's EPA clause 552.216-70 or I-FSS-969 for the percent
> cap) regardless of the increase in CPL or increase in an index.
> Additionally note that the price increase cannot affect the discount
> relationship with the Most Favored Customer (MFC) established at time
> of award in such a way that negatively affects GSA. Here is a
> spreadsheet example.

+---------------------+-----------------+----------------+-------------+
| **Labor Category**  | **Current**     | **Proposed**   | **Percent** |
|                     |                 |                |             |
|                     | **GSA Price**   | **GSA Price**  | *           |
|                     |                 |                | *Increase** |
+---------------------+-----------------+----------------+-------------+
| ** **               | ** **           | ** **          | ** **       |
+---------------------+-----------------+----------------+-------------+
| **Consultant**      | **\$ 90.00**    | **\$93.50**    | **3.89%**   |
+---------------------+-----------------+----------------+-------------+
| **Senior Analyst**  | **\$ 140.00**   | **\$ 145.00**  | **3.57%**   |
+---------------------+-----------------+----------------+-------------+

**[GSA Price List]{.underline}**

1.  Show the new proposed GSA price list on a separate Excel spreadsheet
    that will be incorporated to a Modification if accepted by the
    government. Here is an example spreadsheet:

+---------------------------+------------------------------------------+
| **Labor Category**        | **New**                                  |
|                           |                                          |
|                           | **GSA Price**                            |
+---------------------------+------------------------------------------+
| ** **                     | ** **                                    |
+---------------------------+------------------------------------------+
| **Consultant**            | **\$ 93.50**                             |
+---------------------------+------------------------------------------+
| **Senior Analyst**        | **\$ 145.00**                            |
+---------------------------+------------------------------------------+

**[Commercial Sales Practices Format (CSP) (starts on the following
page)]{.underline}**

1.  You **must** submit a revised CSP.

2.  Ensure you complete **all** of the price comparison spreadsheet
    showing MFC and GSA pricing. Example spreadsheets are provided in
    the CSP document, below. Tailor it to show all your labor
    categories/items/classes/fixed price services. **[This information
    shall be submitted even if it has not changed since the last CSP was
    submitted because it will be incorporated into the modification as
    part of the current CSP.]{.underline}**

# COMMERCIAL SALES PRACTICES FORMAT

Name of Offeror\
SIN(s)

Note: Please refer to clause 552.212-70, PREPARATION OF OFFER (MULTIPLE
AWARD SCHEDULE), for additional information concerning your offer.
Provide the following information for each SIN (or group of SINs or
SubSIN for which information is the same).

\(1\) Provide the dollar value of sales to the general public/state or
local government at or based on market prices, cost build up or an
established catalog or market price during the previous 12‑month period
or the offerors last fiscal year: \$\_\_\_\_\_\_\_\_\_\_\_. State
beginning and ending of the 12-month period.
Beginning\_\_\_\_\_\_\_\_Ending\_\_\_\_\_\_\_\_\_\_\_\_\_\_. In the
event that a dollar value is not an appropriate measure of the sales,
provide and describe your own measure of the sales of the item(s). In
the event sales are made only to state or local governments, identify
such sales accordingly.

\(2\) Show your total projected annual sales to the Government under
this contract for the contract term, excluding options, for each SIN
offered. If you currently hold a Federal Supply Schedule contract for
the SIN the total projected annual sales should be based on your most
recent 12 months of sales under that contract.

  ----------- ----------- ----------- ----------- ----------- -----------
  **SIN**     **\$**      **SIN**     **\$**      **SIN**     **\$**

                                                              

                                                              

                                                              

                                                              
  ----------- ----------- ----------- ----------- ----------- -----------

\(3\) Based on your written discounting policies (standard commercial
sales practices in the event you do not have written discounting
policies), are the prices (discounts, concessions, terms and conditions
in any combination) which you offer the Government equal to or better
than that offered to any customer acquiring the same items regardless of
quantity or terms and conditions? YES\_\_\_\_ NO\_\_\_\_\_. (See
definition of "concession" and "discount" in 552.212-70.)

**[(4) (a) Based on your written pricing policies (standard commercial
sales practices in the event you do not have written pricing policies),
provide information as requested for each SIN (or group of SINs for
which the information is the same). The information should be provided
in the chart below or in an equivalent format developed by the offeror.
Rows should be added to accommodate as many customers as
required.]{.underline}**\*See sample attached Most Favored Customer
(MFC) pricing comparison spreadsheet.

  -------------- ---------------------- ----------------- -----------------
  Column 1 --    Column 2 --Price\*\    Column 3 --       Column 4 --
  Customer       (\*Disclosures should  Quantity/Volume   Discounts,
                 be made on a separate                    Concessions,
                 sheet)                                   Terms and
                                                          Conditions

  See attached   See attached pricing   See attached      See attached
  pricing        comparison spreadsheet pricing           pricing
  comparison                            comparison        comparison
  spreadsheet                           spreadsheet       spreadsheet
  -------------- ---------------------- ----------------- -----------------

(b) Identify prices offered to GSA in response to this solicitation for
    services using the table below:

  ----------------- ----------------- ----------------- -----------------
  Column 5 -- Price Column 6 -- Unit  Column 7 --       Column 8 --
  Offered to GSA    of Issue (e.g.,   Quantity/Volume   Discount,
                    per hour, per                       Concessions,
                    day)                                Terms and
                                                        Conditions
                                                        Offered to GSA

  See attached      See attached      See attached      See attached
  pricing           pricing           pricing           pricing
  comparison        comparison        comparison        comparison
  spreadsheet       spreadsheet       spreadsheet       spreadsheet
  ----------------- ----------------- ----------------- -----------------

\(c\) Do any deviations from your written policies or standard
commercial sales practices disclosed in the chart in paragraph 4(a) ever
result in better prices than indicated? YES \_\_\_\_ NO\_\_\_\_\_. If
YES, explain deviations in accordance with the instructions at Figure
515.4-2, which is provided in this solicitation for your convenience.

Figure 515.4-2---Instructions for Commercial Sales Practices Format

If you responded "YES" to question (3), on the COMMERCIAL SALES
PRACTICES FORMAT, complete the chart in question (4)(a) for the
customer(s) who receive your best price. If you responded "NO" complete
the chart in question (4)(a) showing your written policies or standard
sales practices for all customers or customer categories to whom you
sell at a price that is equal to or better than the price(s) offered to
the Government under this solicitation or with which the Offeror has a
current agreement to sell at a price which equals or exceeds the
price(s) offered under this solicitation. Such agreement shall be in
effect on the date the offer is submitted or contain an effective date
during the proposed multiple award schedule contract period. If your
offer is lower than your price to other customers or customer
categories, you will be aligned with the customer or category of
customer that receives your best price for purposes of the Price
Reduction clause at 552.238-75. The Government expects you to provide
information required by the format in accordance with these instructions
that is, to the best of your knowledge and belief, current, accurate,
and complete as of 14 calendar days prior to its submission. You must
also disclose any changes in your price list(s), discounts, prices
and/or policies that occur after the offer is submitted, but before the
close of negotiations. If your pricing practices vary, the variations
should be explained clearly to include a description of the
circumstance, frequency, and selling terms and conditions. You may limit
the information reported to those services that exceed 75% of actual
historical Government sales (commercial sales may be substituted if
Government sales are unavailable) value of the special item number
(SIN).

**Column 1**---**Identify the applicable customer or category of
customer**. A \"customer\" is any entity which acquires supplies or
services from the Offeror. The term customer includes, but is not
limited to state and local governments, educational institutions (an
elementary, junior high, or degree granting school which maintains a
regular faculty and established curriculum and an organized body of
students), national accounts, and end users. In any instance where the
Offeror is asked to disclose information for a customer, the Offeror may
disclose information by category of customer if the offeror\'s pricing
policies or practices are the same for all customers in the category.
(Use a separate line for each customer or category of customer.)\
**Column 2---Identify the price.** Indicate the best price (based on
your written pricing policies or standard commercial pricing practices
if you do not have written pricing policies) at which you sell to the
customer or category of customer identified in column 1, without regard
to quantity; terms and conditions of the agreements; and whether the
agreements are written or oral. If the price is a combination of various
discounts (prompt payment, quantity, etc.), each type of discount should
be fully identified and explained. If the price lists which are the
basis of the discounts given to the customers identified in the chart
are different than the price list submitted upon which your offer is
based, identify the type or title and date of each price list. The
contracting officer may require submission of these price lists. To
expedite evaluation, offerors may provide these price lists at the time
of submission. If market prices are used, provide documentation to
substantiate pricing (e.g., agreements with corporate customers,
internal policies, market prices, quote sheets, pricing agreements and
invoices, etc.) and identify the effective period, pricing and any other
terms and conditions clearly. If prices are based on cost, provide
information other than certified cost or pricing data to show how the
offeror arrived at the proposed price. A price certification is not
required. If rates are audited by a Federal Agency, include this
information in the narrative. Disclosures should be made on a separate
sheet.\
**Column 3---Identify the quantity or volume of sales.** Insert the
minimum quantity or sales volume which the identified customer or
category of customer must either purchase/order, per order or within a
specified period for the best price. When purchases/orders must be
placed within a specified period to get the best price, indicate the
time period.\
**Column 4---Indicate concessions regardless of quantity granted to the
identified customer or category of customer.** Concessions are defined
in solicitation clause 552.212-70, Preparation of Offers (Multiple Award
Schedule). If the space provided is inadequate, the disclosure should be
made on a separate sheet by reference.\
**Columns 5-8---Fill in the requested information.\
**If you respond "YES" to question 4 (c) in the Commercial Sales
Practices Format, provide an explanation of the circumstances under
which you deviate from your written policies or standard commercial
sales practices disclosed in the chart on the Commercial Sales Practices
Format and explain how often they occur. Your explanation should include
a discussion of situations that lead to deviations from standard
practice, an explanation of how often they occur, and the controls you
employ to assure the integrity of your pricing. If deviations from your
written policies or standard commercial sales practices disclosed in the
chart on the Commercial Sales Practices Format are so significant and/or
frequent that the Contracting Officer cannot establish whether the
price(s) offered is fair and reasonable, then you may be asked to
provide additional information. The Contracting Officer may ask for
information to demonstrate that you have made substantial sales of the
item(s) in the commercial market consistent with the information
reflected on the chart on the Commercial Sales Practice Format, a
description of the conditions surrounding those sales deviations, or
other information that may be necessary in order for the Contracting
Officer to determine whether your offered price(s) is fair and
reasonable. In cases where additional information is requested, the
Contracting Officer will target the request in order to limit the
submission of data to that needed to establish the reasonableness of the
offered price.

**COMMERCIAL** **PRICE LIST** MFC PRICE COMPARISON

SAMPLE SPREADSHEET FOR AN OFFER **[BASED ON A COMMERCIAL PRICE
LIST]{.underline}** OFFERING LABOR, SUPPORT ITEMS AND TRAINING

**[To show the information required in the Commercial Sales Practices
Format paragraph 4(a) & (b) (Columns 1-8)]{.underline}**, a spreadsheet
such as the one below can be used and tailored by the offeror (for
example, if not offering training or other support items etc. you would
not show these items) to show the commercial price, the Most Favored
Customer (MFC) price and resulting % discount off the commercial price,
the price offered to GSA and its corresponding discount off the
commercial price list. Ensure that you identify who the MFC(s) is/are
for each item. **Note: Identify the Quantity/Volume of sales (Columns 3
& 7 on the CSP) as stated in the instructions under Figure 515.4-2,
Instructions for Commercial Sales Practices Format on a separate
sheet/document.**

![](media/image1.wmf)

**OTHER THAN A COMMERCIAL PRICE LIST** MFC PRICE COMPARISON

SAMPLE SPREADSHEET FOR AN OFFER **[BASED ON OTHER THAN A COMMERCIAL
PRICE LIST]{.underline}**

**[To show the information required in the Commercial Sales Practices
Format paragraph 4(a) & (b) (Columns 1-8)]{.underline},** a spreadsheet
such as the one below can be used and tailored by the offeror to show
the Most Favored Customer (MFC) price and the GSA Price and its discount
% off the MFC price. Ensure that you identify who the MFC(s) is/are for
each category.

**Note: Identify the Quantity/Volume of sales (Columns 3 & 7 on the CSP)
as stated in the instructions under Figure 515.4-2, Instructions for
Commercial Sales Practices Format on a separate sheet/document.**

![](media/image2.wmf)