78710 Federal Register / Vol. 88, No. 220 / Thursday, November 16, 2023 / Proposed Rules 

The EPA will additionally identify 

and address environmental justice 

concerns by conducting outreach after 

signature of this proposed rule. The EPA 

will reach out to tribes through a 

monthly policy call and with 

consultation letters. The EPA will 

address this rule during the monthly 

Environmental Justice call for 

communities burdened by 

disproportionate environmental 

impacts. The information supporting 

this Executive Order review is 

contained in section V.F of this 

preamble. 

List of Subjects in 40 CFR Part 63 

Environmental protection, Air 

pollution control, Hazardous 

substances, Reporting and 

recordkeeping requirements. 

Michael S. Regan, 

Administrator. 

[FR Doc. 2023–25276 Filed 11–15–23; 8:45 am] 

BILLING CODE 6560–50–P 

GENERAL SERVICES 

ADMINISTRATION 

48 CFR Parts 501, 502, 538, and 552 

[GSAR Case 2020–G510; Docket No. GSA– 

GSAR–2023–0025; Sequence No. 1] 

RIN 3090–AK20 

General Services Administration 

Acquisition Regulation; Federal Supply 

Schedule Economic Price Adjustment 

AGENCY: Office of Acquisition Policy, 

General Services Administration (GSA). 

ACTION: Proposed rule. 

SUMMARY: The General Services 

Administration is proposing to amend 

the General Services Administration 

Acquisition Regulations to standardize 

and simplify the Multiple Award 

Schedule (Schedule) clauses for 

economic price adjustments. This rule 

removes certain economic price 

adjustment requirements within these 

clauses to better align with commercial 

standards and practices. 

DATES: Interested parties should submit 

written comments to the Regulatory 

Secretariat Division at the address 

shown below on or before January 16, 

2024 to be considered in the formation 

of the final rule. 

ADDRESSES: Submit comments in 

response to GSAR Case 2020–G510 to: 

https://www.regulations.gov via the 

Federal eRulemaking portal by 

searching for ‘‘GSAR Case 2020–G510’’. 

Select the link ‘‘Comment Now’’ that 

corresponds with GSAR Case 2020– 

G510. Follow the instructions provided 

at the ‘‘Comment Now’’ screen. Please 

include your name, company name (if 

any), and ‘‘GSAR Case 2020–G510’’ on 

your attached document. If your 

comment cannot be submitted using 

https://www.regulations.gov, call or 

email the points of contact in the FOR

FURTHER INFORMATION CONTACT section of 

this document for alternate instructions. 

Instructions: Please submit comments 

only and cite GSAR Case 2020–G510, in 

all correspondence related to this case. 

Comments received generally will be 

posted without change to https://

www.regulations.gov, including any 

personal and/or business confidential 

information provided. To confirm 

receipt of your comment(s), please 

check https://www.regulations.gov, 

approximately two to three days after 

submission to verify posting. 

FOR FURTHER INFORMATION CONTACT: For 

clarification of content, contact Mr. 

Thomas O’Linn, Procurement Analyst at 

gsarpolicy@gsa.gov or 202–445–0390. 

For information pertaining to status or 

publication schedules, contact the 

Regulatory Secretariat Division at 

GSARegSec@gsa.gov or 202–501–4755. 

Please cite GSAR Case 2020–G510. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The General Services Administration 

(GSA) conducts routine reviews of its 

acquisition regulations and acquisition 

policies and procedures. The review 

indicated a need to standardize and 

simplify the Schedule clause for 

economic price adjustments. 

The Schedule program, also known as 

the Federal Supply Schedule (FSS) 

program, establishes long-term 

governmentwide contracts with 

commercial companies. Schedule 

contracts routinely last up to 20 years 

and are issued as fixed price with 

economic price adjustment (EPA) 

Indefinite Delivery Indefinite Quantity 

(IDIQ) contracts. Schedule contracts 

provide access to commercial products, 

services, and solutions at fair and 

reasonable pricing to the Federal 

Government and other authorized 

customers (e.g., state and local 

governments). 

The use of EPA provides for upward 

and downward revision of contract 

pricing upon the occurrence of specified 

conditions over the anticipated 20 year 

contract period of performance. The 

Schedule program has a long history of 

providing the ability for Schedule 

contractors to submit EPA requests (e.g., 

see 47 FR 50242 dated November 5, 

1982). 

Currently, Schedule contracts contain 

at least one of the following EPA clauses 

(i.e., a Schedule contract may include 

more than one EPA clause based on 

their offering and participation in 

Transactional Data Reporting (TDR)): (1) 

Alternate I of GSAR clause 552.216–70, 

Economic Price Adjustment-FSS 

Multiple Award Schedule Contracts; (2) 

an authorized deviation of GSAR clause 

552.216–70; (3) clause I–FSS–969, 

Economic Price Adjustment-FSS 

Multiple Award Schedule; or (4) an 

Alternate to clause I–FSS–969. The 

primary focus of these EPA clauses is 

the establishment of the procedures, 

including, but not limited to specific 

procedural limits (e.g., timing and 

frequency) around the submission of 

EPA price increase requests. In terms of 

price decrease requests, all four clauses 

require such requests to be handled in 

accordance with GSAR clause 552.238– 

81, Price Reductions. Altogether, for the 

most part these four Schedule EPA 

clauses are very similar, with only 

minor differences, most of which are 

related to the EPA mechanism(s) 

proposed by the contractor (e.g., annual 

fixed increases or increases based on 

their published or publicly available 

commercial price list) and the 

applicability of TDR. 

In March 2022, in response to the 

highest level of inflation in over 40 

years as well as other factors (e.g., 

supply chain disruptions), GSA issued 

Acquisition Letter MV–22–02 to provide 

a temporary moratorium on the 

enforcement of certain procedural limits 

contained in the Schedule EPA clauses. 

The moratorium relaxes the limits on 

the frequency, timing, and number of 

EPA price increase requests. 

Since the issuance of Acquisition 

Letter MV–22–02, the Schedule program 

has seen benefits. The relaxing of these 

procedural limits has provided industry 

Schedule partners with greater 

flexibility and agility in response to 

market changes and economic 

conditions that impact their Schedule 

pricing. This flexibility has increased 

their ability to support federal 

customers in acquiring critically needed 

products, services, and solutions 

through a single contracting action. In 

the absence of this flexibility, they 

would likely have chosen not to 

respond to order-level solicitations and/ 

or requested the removal of the items 

from their Schedule contract to avoid 

selling them at a loss. The loss of such 

items under such conditions, increases 

the administrative costs and time for 

federal agencies and other customers in 

meeting their needs. 

The positive results of Acquisition 

Letter MV–22–02 underscore the need 

for the Schedule program to continually 

evolve and provide a viable and 


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competitive vendor base for needed 

products, services, and solutions at 

competitive prices. The absence of items 

from the competitive marketplace 

increases the administrative cost for the 

Government, customers, and Schedule 

contractors; reduces the efficacy of the 

Schedule program; and undercuts 

objectives to support small business 

especially in underserved communities. 

GSA is seeking to standardize and 

simplify the Schedule clauses for EPA. 

The revisions will result in the 

consolidation of the four existing 

Schedule EPA clauses into a single 

Schedule EPA clause. The revisions will 

also remove several procedural limits 

contained in these clauses to better align 

with commercial standards and 

practices. GSA anticipates these changes 

will increase the number and extent of 

offerings available through the Schedule 

program, improve customer satisfaction 

by ensuring needed products, services, 

and solutions are initially offered and 

are not removed from the Schedule 

program, and reduce administrative 

costs on Schedule contractors, 

particularly small businesses and new 

entrants. 

II. Discussion and Analysis 

This proposed rule amends the GSAR 

to standardize and simplify the 

Schedule clauses related to economic 

price adjustments. A summary of the 

revisions is as follows: 

A. GSAR clause 552.216–70, 

Economic Price Adjustment—FSS 

Multiple Award Schedule Contracts, is 

being revised, renumbered, and 

renamed 552.238–118, Economic Price 

Adjustment—Federal Supply Schedule 

Contracts. The clause is being 

renumbered to be consistent with the 

numbering used for Schedule provisions 

and clauses. The current clause number 

reflects the clause being located in 

GSAR part 516. This is inconsistent 

with the current practice of locating 

Schedule provisions and clauses within 

GSAR part 538, specifically section 

538.273. The clause is being renamed to 

remove the words ‘‘Multiple Award 

Schedule’’ since it is duplicative of the 

acronym ‘‘FSS’’ that is already included 

in the clause title. The clause title is 

also being renamed in order to spell out 

the acronym ‘‘FSS’’. Spelling out of the 

acronym ‘‘FSS’’ is consistent with the 

current practice of using the words 

‘‘Federal Supply Schedule’’ in GSAR 

provision and clause titles where 

appropriate. 

The revisions to the clause itself 

provide for the: (1) standardization and 

simplification of existing Schedule EPA 

requirements; (2) retention of the 

Schedule Contracting Officer’s authority 

to reject, accept, or partially accept an 

EPA request; (3) creation of a definition 

for ‘‘economic price adjustment 

method’’ for the purpose of formalizing 

within resultant contracts offerors’ 

proposed EPA mechanism(s), the 

applicable pricing subject to EPA, and 

any other agreed upon requirements; (4) 

clarification on what is not covered by 

an EPA request; (5) ability for the EPA 

method to be revised via mutual 

agreement during contract performance; 

and (6) establishment of a single 

consolidated Schedule EPA clause. 

Currently, the Schedule solicitation 

contains the following provision: SCP– 

FSS–001, Instructions Applicable to All 

Offerors. Paragraph (i)(3)(v) of this 

provision requests offerors propose an 

EPA mechanism. The EPA mechanisms 

available within the Schedule 

solicitation for offerors to choose from 

are: a published or publicly-available 

commercial price list; a fixed annual 

escalation rate; and relevant market 

indicator (e.g., the Bureau of Labor 

Statistics Employment Cost Index (ECI)). 

Paragraph (c) of the clause I–FSS–969 

also includes the ability to determine an 

appropriate mechanism in response to 

unforeseeable major changes in market 

conditions. 

Schedule contracts currently contain 

at least one of the following clauses: (1) 

Alternate I of GSAR clause 552.216–70, 

Economic Price Adjustment—FSS 

Multiple Award Schedule Contracts; (2) 

an authorized deviation of GSAR clause 

552.216–70; (3) clause I–FSS–969, 

Economic Price Adjustment—FSS 

Multiple Award Schedule; or (4) an 

Alternate to clause I–FSS–969. The 

incorporation of one or more of these 

clauses into a Schedule contract is 

dependent on the EPA mechanism(s) 

proposed by the offeror and whether the 

offeror elected to participate in TDR. For 

example, the authorized deviation to 

GSAR clause 552.216–70 applies to 

Schedule contracts subject to TDR that 

use published or publicly-available 

commercial price lists as the EPA 

mechanism. These four Schedule EPA 

clauses include essentially the same 

requirements (e.g., timing, number, and 

frequency of EPA price increase 

requests), with only minor differences, 

most of which are related to the clause 

prescription (i.e., type of EPA 

mechanism selected by the contractor 

and applicability of TDR). 

In consideration of the above existing 

requirements, the revised clause seeks 

to consolidate the four existing EPA 

clauses into a single clause. The new 

clause maintains GSA’s responsibility 

to: ensure schedules operate at the 

lowest overall cost alternative and 

feature fair and reasonable pricing at the 

Schedule level throughout contract 

performance; review, process, and, if 

necessary, negotiate EPA requests. This 

could mean accepting, rejecting, or 

partially accepting EPA requests. For 

example, paragraph (f) of the revised 

clause maintains the Schedule 

contracting officer’s options in response 

to an EPA request. Currently, this 

requirement is found within each of the 

four EPA clauses (e.g., see paragraph (f) 

of clause I–FSS–969). 

The revised clause moves GSA closer 

to the commercial marketplace and 

provides greater flexibility and agility in 

terms of responding to market changes, 

economic conditions, and Government/ 

customer requirements. For example, 

due to the inflexibility of the existing 

Schedule EPA clauses some Schedule 

contractors have removed items from 

their Schedule contract to avoid selling 

those items at a loss. The absence of 

such items has an unnecessary negative 

impact on the Schedule program. The 

lack of items on the Schedule program 

directly impacts competition and the 

availability of needed items; increases 

administrative costs to the Government, 

customers, and Schedule contractors; 

reduces the efficacy of the Schedule 

program; and undercuts the objectives 

to support small businesses and new 

entrants. 

B. Alternate I of GSAR clause 

552.216–70, Economic Price 

Adjustment—FSS Multiple Award 

Schedule Contracts, is being deleted in 

its entirety. The Alternate is being 

deleted because it is no longer necessary 

as a result of the aforementioned 

revisions. The newly created GSAR 

clause 552.238–118, Economic Price 

Adjustment—Federal Supply Schedule 

Contracts, addresses Schedule EPA 

requirements. 

C. Section 538.273, FSS solicitation 

provisions and contract clauses, is being 

revised to provide for the prescription of 

the newly created GSAR clause 

552.238–118, Economic Price 

Adjustment—Federal Supply Schedule 

Contracts. Section 538.273 is the 

appropriate location for the prescription 

of this new clause because this is the 

section that provides the prescription 

for Schedule provisions and clauses. 

D. GSAR clause 552.238–115, Special 

Ordering Procedures for the Acquisition 

of Order-Level Materials, is being 

revised to update paragraph (d)(10)(i) 

from ‘‘552.216–70 Economic Price 

Adjustment—FSS Multiple Award 

Schedule Contracts’’ to ‘‘552.238–118, 

Economic Price Adjustment—Federal 

Supply Schedule Contracts.’’ This 

revision is appropriate because 

552.238–118 is the GSAR clause that is 


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1 2023 Rest of US, 12 Step 5 × 2.0 fringe = $77.42; 

the rate is adjusted upward by 100% to adjust for 

overhead and benefits. 

replacing the GSAR clause 552.216–70 

under the proposed revisions. 

E. Section 502.101 Definitions, is 

being revised to add the definition for 

EPA method. 

F. The table in section 501.106 OMB 

Approval under the Paperwork 

Reduction Act, is being revised to reflect 

the proposed revisions and existing 

requirements not currently shown in the 

table. 

III. Expected Impact of the Rule 

GSA believes that these changes 

benefit the Schedule program as a 

whole. For example, GSA anticipates 

that these changes will increase the 

number and extent of offerings available 

through the Schedule program, improve 

customer satisfaction/reduce customer 

cost by ensuring needed products, 

services, and solutions are not removed 

from the Schedule program due to 

market volatility, and reduce 

administrative costs on Schedule 

contractors, particularly small 

businesses and new entrants. 

GSA receives hundreds of 

modification requests each month from 

contractors to remove items from their 

Schedule contracts or declined orders 

due to price variability in the 

commercial market. By statute, the 

procedures for the Schedule program 

are competitive so long as they are open 

to all and contracts and orders results in 

the lowest overall cost alternative. GSA 

anticipates this rule will help it ensure 

customers experience the lowest overall 

cost alternative on their orders by 

maximizing the chance that full 

solutions are available on the Schedule 

contract, thus minimizing the need to 

conduct multiple separate acquisitions 

to fulfill a requirement. 

Currently, Schedule contracts include 

at least one of the following four clauses 

related to the submission and 

processing of EPA requests during 

contract performance: (1) an authorized 

deviation to GSAR clause 552.216–70; 

(2) Alternate I of GSAR clause 552.216– 

70; (3) clause I–FSS–969; or (4) an 

Alternate of clause I–FSS–969. These 

changes standardize and simplify the 

EPA requirements contained in these 

four clauses. These changes will result 

in the consolidation of these clauses 

into a single Schedule EPA clause. 

These changes do not alter the way 

Schedule contractors conduct business, 

or their ability to submit an EPA 

request. 

The qualitative anticipated benefits 

include, but are not limited to, the 

creation of a single standardized 

Schedule EPA clause; greater flexibility 

around EPA requests; providing clarity 

around EPA within the Schedule 

program; providing a connection 

between the Schedule solicitation and 

resultant contracts; and greater 

flexibility and agility for purposes of 

responding to changing conditions. 

GSA anticipates the quantitative 

benefits to be related to improved 

regulatory familiarization. GSA 

calculates the estimated total cost for 

Schedule contractors to familiarize 

themselves with existing EPA 

requirements as $3,251,640 (i.e., 3 hours 

* $77.42 1 (GS–12 Step 5 base pay plus 

‘‘Rest of US Locality Pay’’ plus 

‘‘Fringe’’) * 14,000 approximate number 

of current Schedule contractors)). After 

these revisions: GSA estimates the total 

cost as $2,709,700 (i.e., 2.5 hours * 

$77.42 (GS–12 Step 5 base pay plus 

‘‘Rest of US Locality Pay’’ plus 

‘‘Fringe’’) * 14,000 approximate number 

of current Schedule contractors)). 

Resulting in a reduction in estimated 

total cost of $541,940. 

IV. Executive Orders 12866, 13563, and 

14094 

Executive Order (E.O.) 12866 

(Regulatory Planning and Review) 

directs agencies to assess all costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). E.O. 13563 (Improving 

Regulation and Regulatory Review) 

emphasizes the importance of 

quantifying both costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. E.O. 14094 

(Modernizing Regulatory Review) 

supplements and reaffirms the 

principles, structures, and definitions 

governing contemporary regulatory 

review established in E.O. 12866 and 

E.O. 13563. OIRA has determined that 

this rule is not a significant regulatory 

action, and, therefore, is not subject to 

review under section 6(b) of E.O. 12866, 

Regulatory Planning and Review, dated 

September 30, 1993. 

V. Regulatory Flexibility Act 

GSA does not expect this proposed 

rule to have a significant economic 

impact on a substantial number of small 

entities within the meaning of the 

Regulatory Flexibility Act, 5 U.S.C. 601, 

et seq., because this rule is to 

standardize and simplify existing EPA 

requirements related to Schedules (e.g., 

revise GSAR clause 552.216–70, 

Economic Price Adjustment-FSS 

Multiple Award Schedule Contracts). 

The underlying purpose of the changed 

text remains the same (i.e., supporting 

the submission and processing of EPA 

requests), and therefore any burden 

would have been identified previously. 

However, an Initial Regulatory 

Flexibility Analysis (IRFA) has been 

prepared consistent with 5 U.S.C. 603. 

The Regulatory Secretariat Division 

will be submitting a copy of the IRFA 

to the Chief Counsel for Advocacy of the 

Small Business Administration. A copy 

of the IRFA may be obtained from the 

Regulatory Secretariat Division. GSA 

invites comments from small business 

concerns and other interested parties on 

the expected impact of this rule on 

small entities. 

GSA will also consider comments 

from small entities concerning the 

existing regulations in subparts affected 

by the rule in accordance with 5 U.S.C. 

610. Interested parties must submit such 

comments separately and should cite 5 

U.S.C. 610 (GSAR Case 2020–G510), in 

correspondence. 

The analysis is summarized as 

follows: 

The objective of the rule is to standardize 

and simplify the clauses for Schedule related 

to EPA. These revisions will result in the 

consolidation of the four existing Schedule 

clauses into a single Schedule EPA clause. 

These revisions also remove certain 

procedural limits contained in these clauses 

to better align with commercial standards 

and practices. GSA anticipates that these 

changes will increase the number and extent 

of offerings available through the Schedule 

program, improve customer satisfaction/ 

reduce customer costs by ensuring needed 

products, services, and solutions are not 

removed from the Schedule, and reduce 

administrative costs on Schedule contractors, 

particularly small businesses and new 

entrants. 

Title 40 of the United States Code (U.S.C.) 

Section 121 authorizes GSA to issue 

regulations, including the GSAR, to control 

the relationship between GSA and 

contractors. In addition, 41 U.S.C. 152 

provides GSA authority over the Schedule 

program. 

The rule applies to both large and small 

businesses, which are awarded Schedule 

contracts. Information obtained from FAS as 

well as the recent renewal of Information 

Collections 3090–0235 and 3090–0306 were 

used as the basis for estimating the number 

of Schedule contractors that this rule may 

impact. For Fiscal Year 2022 there were 

approximately 14,000 Schedule contractors, 

of which over 12,000 (85 percent) were small 

business entities. In addition, according to 

the recent renewal of Information Collections 

3090–0235 and 3090–0306, GSA processes 

approximately 2,561 EPA requests annually. 

GSA anticipates this rule will not 

significantly impact this number. 

The rule does not implement new or 

changed reporting, recordkeeping, or other 


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compliance requirements for Schedule 

contracts. The rule merely updates and 

clarifies existing EPA requirements currently 

used in Schedule contracts. 

The rule does not duplicate, overlap, or 

conflict with any other Federal rules. 

There are no known alternatives to this 

rule which would accomplish the stated 

objectives. This rule does not initiate or 

impose any new administrative or 

performance requirements on small business 

contractors because the requirements 

prescribed in existing Schedule EPA clauses 

are already being followed. The rule merely 

updates and clarifies these existing 

requirements so as to reduce burden for both 

the government and contractors as it relates 

to EPA within Schedule contracts. 

VI. Paperwork Reduction Act 

The Paperwork Reduction Act (44 

U.S.C. chapter 3501) does apply; 

however, these changes do not impose 

additional information collection 

requirements to the burden previously 

approved under the Office of 

Management and Budget (OMB) Control 

Number 3090–0235, titled: Federal 

Supply Schedule Pricing Disclosures 

and Sales Reporting and OMB Control 

Number 3090–0306, titled: 

Transactional Data Reporting. Both 

OMB information collections, however, 

will be updated to reflect the change in 

the clause title and number from 

552.216–70, Economic Price 

Adjustment—FSS Multiple Award 

Schedule Contracts, to 552.238–118, 

Economic Price Adjustment—Federal 

Supply Schedule Contracts. 

List of Subjects in 48 CFR Parts 501, 

502, 538, and 552 

Government procurement. 

Jeffrey A. Koses, 

Senior Procurement Executive, Office of 

Acquisition Policy, Office of Governmentwide Policy, General Services Administration. 

Therefore, GSA proposes to amend 48 

CFR parts 501, 502, 538, and 552 as set 

forth below: 

■ 1. The authority citation for 48 CFR 

parts 501, 502, 538, and 552 continues 

to read as follows: 

Authority: 40 U.S.C. 121(c). 

PART 501—GENERAL SERVICES 

ADMINISTRATION ACQUISITION 

REGULATION SYSTEM 

■ 2. In section 501.106 amend Table 1 

by— 

■ a. Revising the entry for ‘‘516.506’’; 

■ b. Removing the entry for ‘‘552.216– 

70 and its corresponding OMB Control 

No.; and 

■ c. Adding in numerical order, entries 

for ‘‘552.238–83’’ and ‘‘552.238–118’’. 

The revision and additions read as 

follows: 

GSAR reference OMB control No. 

****

516.506 ..................... 3090–0248, 3090– 

0306. 

 

552.238–83 ............... 3090–0235, 3090– 

0306. 

** **

552.238–118 ............. 3090–0235. 

****

PART 502—DEFINITIONS OF WORDS 

AND TERMS 

■ 3. Amend section 502.101 by adding 

in alphabetical order, the definition of 

‘‘Economic Price Adjustment (EPA) 

Method’’ to read as follows: 

502.101 Definitions. 

* * * * * 

Economic Price Adjustment (EPA) 

method means the agreed upon 

procedure by which pricing may be 

adjusted throughout the contract period 

to include, but not limited to, the 

mechanism(s) to be used to adjust 

pricing (e.g., adjustments based on 

established pricing), the pricing subject 

to adjustment, and any other 

requirements (e.g., timing, frequency, 

limits on increases. 

* * * * * 

PART 538—FEDERAL SUPPLY 

SCHEDULE CONTRACTING 

■ 4. Amend section 538.273 by adding 

paragraph (d)(38) to read as follows: 

538.273 FSS solicitation provisions and 

contract clauses. 

* * * * * 

(d) * * * 

(38) 552.238–118, Economic Price 

Adjustment—Federal Supply Schedule 

Contracts. Use in Federal Supply 

Schedule solicitations and contracts. 

* * * * * 

PART 552—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

552.216–70 [Removed] 

■ 5. Remove section 552.216–70. 

■ 6. Amend section 552.238–115 by 

revising the date of the clause and 

paragraph (d)(10)(i) to read as follows: 

552.238–115 Special Ordering Procedures 

for the Acquisition of Order-Level Materials. 

* * * * * 

Special Ordering Procedures for the 

Acquisition of Order-Level Materials 

(DATE) 

* * * * * 

(d) * * * 

(10) * * * 

(i) 552.238–118, Economic Price 

Adjustment—Federal Supply Schedule 

Contracts. 

* * * * * 

■ 7. Add section 552.238–118 to read as 

follows: 

552.238–118 Economic Price 

Adjustment—Federal Supply Schedule 

Contracts. 

As prescribed in 538.273(d), insert the 

following clause: 

552.238–118 Economic Price 

Adjustment—Federal Supply Schedule 

Contracts (DATE) 

(a) Definition. 

Economic price adjustment method, as 

used in this clause, means the agreed upon 

procedures by which pricing may be adjusted 

throughout the contract period to include, 

but not limited to, the mechanism(s) to be 

used to adjust pricing (e.g., adjustments 

based on established pricing), the pricing 

subject to adjustment, and any other 

requirements (e.g., timing, frequency, limits 

on increases). 

(b) General. This contract provides for 

economic price adjustment (EPA) to contract 

pricing based on the established EPA 

method. EPA provides for the increase and 

decrease to stated contract pricing upon the 

occurrence of specified conditions described 

in the EPA method, such as market index 

changes or unforeseeable significant changes 

in market conditions. 

(c) Exceptions. This clause does not 

cover— 

(1) Adjustments based on statute, 

Executive Order, or regulation (e.g., Service 

Contract Labor Standards (41 U.S.C. chapter 

67) and AbilityOne procurements (FAR 

subpart 8.7)); 

(2) Adjustments based on a change clause 

(e.g., paragraph (c) of GSAR clause 552.212– 

4, Contract Terms and Conditions— 

Commercial Products and Commercial 

Services (FAR DEVIATION 52.212–4)); 

(3) Price reductions made under GSAR 

clause 552.238–81, Price Reductions; 

(4) Adjustments based on GSAR clause 

552.238–117, Price Adjustment-Failure to 

Provide Accurate Information; and 

(5) Adjustments based on a contract clause 

that authorizes an adjustment based on 

specified actions or conditions. 

(d) Economic price adjustment method. 

The EPA method may be revised through 

mutual agreement of the parties. In the event 

of a conflict between the EPA method and 

this contract, the contract shall control. 

(e) Submission requirements. The 

Contractor shall submit EPA requests to the 

Federal Supply Schedule (FSS) Contracting 

Officer pursuant to the EPA method. EPA 

requests shall fully conform to the 

requirements of the EPA method and include 

sufficient information to support the request. 


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The FSS Contracting Officer may request 

additional information from the Contractor. 

(f) Contracting Officer responsibilities. The 

FSS Contracting Officer will— 

(1) Review the EPA request to ensure 

conformance with the EPA method, 

(2) Make a determination. The FSS 

Contracting Officer may use any information 

(e.g., market research) deemed necessary to 

support their determination. The FSS 

Contracting Officer may determine to— 

(i) Accept the EPA request either in whole 

or in part, 

(ii) Reject the EPA request either in whole 

or in part, or 

(iii) Take any other action deemed to be in 

the best interest of the Government (e.g., 

negotiate a more favorable EPA). 

(3) Notify the Contractor of their 

determination, and 

(4) Modify the contract, as applicable, to 

reflect the determination. Contract items that 

need to be removed from the contract as a 

result of rejection or an inability to reach 

agreement are to be removed in accordance 

with 552.238–79, Cancellation. 

(g) Effective date. EPA requests approved 

by the FSS Contracting Officer under this 

clause shall apply to orders issued on or after 

the effective date of the contract 

modification. Blanket Purchase Agreements 

(BPAs) may be modified by the ordering 

agency in accordance with the terms and 

conditions of the BPA. 

(h) Update of contract pricing and catalog 

data. The Contractor shall update its FSS 

pricing and any other FSS catalog data in 

accordance with the terms and conditions of 

this contract. 

(End of clause) 

[FR Doc. 2023–25221 Filed 11–15–23; 8:45 am] 

BILLING CODE 6820–61–P 

DEPARTMENT OF COMMERCE 

National Oceanic and Atmospheric 

Administration 

50 CFR Part 300 

RIN 0648–BK85 

Magnuson-Stevens Fishery 

Conservation and Management Act; 

Seafood Import Monitoring Program 

AGENCY: International Affairs, Trade, 

and Commerce, National Oceanic and 

Atmospheric Administration (NOAA), 

Commerce. 

ACTION: Proposed rule; withdrawal. 

SUMMARY: The National Marine 

Fisheries Service (NMFS) withdraws the 

Seafood Import Monitoring Program 

(SIMP) proposed rule, which was 

published in the Federal Register on 

December 28, 2022. The SIMP proposed 

rule intended to add species to SIMP 

pursuant to the Magnuson-Stevens 

Fishery Conservation and Management 

Act. In addition, the proposed rule 

would have amended SIMP regulations 

to clarify the responsibilities and 

definitions, and make other necessary 

administrative modernizations. In light 

of the extensive public comments 

received regarding the December 2022 

proposed rule, NMFS has decided to 

conduct a comprehensive program 

review in order to strengthen the impact 

and effectiveness of SIMP. Critical 

aspects of that review will include 

better defining the problem that we are 

working to address and establishing 

clear, achievable goals through 

constructive engagement with our 

stakeholders. Comments received on the 

December 2022 proposed rule will also 

be taken into consideration as part of 

the review. While NMFS conducts this 

comprehensive review, SIMP will 

continue to operate in its current form, 

all existing requirements remain in 

force, and the list of priority species 

currently subject to SIMP requirements 

remains unchanged. In addition, NMFS 

will continue to support industry and 

other stakeholders in SIMP compliance 

during the review. 

DATES: The proposed rule published on 

December 28, 2022 (87 FR 79836) is 

withdrawn on November 16, 2023. 

FOR FURTHER INFORMATION CONTACT: 

Rachael Confair, Office of International 

Affairs, Trade, and Commerce, NMFS, 

301–427–8361, rachael.confair@

noaa.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

On December 28, 2022, NMFS issued 

its SIMP proposed rule (85 FR 58321). 

The proposed rule was initially open for 

90 days of public comment, and this 

period was extended for an additional 

30 days. It included a proposal to 

incorporate additional priority species 

in SIMP, as well as to make other 

administrative changes. 

SIMP has been in effect for more than 

1,100 unique species, representing 13 

species groups, for approximately 4 

years. SIMP was established as a 

screening tool to identify and deter 

products derived from Illegal, 

Unreported, and Unregulated (IUU) 

fishing, as well as misrepresented 

seafood from entering the U.S. market. 

The information required under SIMP 

can lead to the interdiction of IUU fish 

and fish products as they enter the 

United States, but it was not designed 

to achieve that outcome, nor has that 

been typically how it functions. It is 

primarily a permitting, reporting and 

recordkeeping program that conducts 

post-entry audits, and in some cases, 

enforcement inspections and, when 

potentially illegal imports are identified, 

follow-up investigations. 

Program Review 

It is clear, based on the comments 

received, combined with feedback 

received over the past few years, that 

this is the right time to review SIMP. 

There are a diverse array of viewpoints, 

and sometimes unrealistic expectations, 

on what SIMP should or could be doing. 

In order to strengthen our impact and 

effectiveness, it is important to better 

define our goals, and then identify clear 

mechanisms to achieve them. 

As an integral part of this 

undertaking, NMFS will actively seek 

engagement and input from all relevant 

stakeholder groups, including industry, 

non-governmental organizations, other 

Federal agencies, congressional 

representatives, and foreign 

governments. NMFS intends to bring 

together an informal interagency 

working group to review our approach 

and identify possible strategies for 

increasing the effectiveness and impact 

of SIMP on countering IUU fishing and 

seafood fraud. This collaborative effort 

will also explore alternative or 

complementary approaches available to 

address seafood traceability for NMFS 

and its interagency partners. Some 

questions that NMFS will consider 

during the review are: 

1. Determine the goals: What is the 

problem or problems that SIMP was 

designed to address? Are there changes 

that should be made to the goals? What 

do we want to achieve and what is the 

best way to do it? 

2. Determine whether the goals are 

achievable: Are the goals feasible? What 

does success look like? Are there 

limitations of resources, technology, or 

other elements that must be considered 

in determining whether the goals are 

achievable? 

3. Determine what is needed to 

achieve the goals: Are there additional 

authorities needed for NOAA or other 

agencies to achieve these goals? What 

new tools are needed to accomplish this 

goal? Are there existing tools that could 

be used more effectively? How can we 

use a whole-of-government approach to 

achieve these goals? 

NMFS will review and consider all 

aspects of the Program, including the 

initial constraints that shaped SIMP’s 

original framework. NMFS will use both 

the public comments received and 

internal and external program 

assessments to refine the areas of focus. 

NMFS also plans to conduct public 

listening sessions to solicit written and 

oral feedback from public stakeholders, 

as well as participating in other 


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