You can and should ask for discounts
Our fixed prices for supplies and hourly rates or fixed prices for services are not-to-exceed ceilings. We determined that the prices were fair and reasonable before awarding the contracts.
You should seek price reductions any time before you place orders.
Here are some specific reasons to ask for a discounts:
- You have found a supply or service elsewhere at a lower price.
- You are establishing a blanket purchase agreement, and the volume of orders is going to be large, even if the size of individual orders aren’t.
- Your order is above the maximum order threshold.
Contractors may be motivated to give discounts when they are experiencing competition, technological changes, labor conditions, sales goals, and inventory reductions.
You must seek a discount if your order is over the simplified acquisition threshold
For all orders or BPAs over the simplified acquisition threshold, you must ask for a price reduction. This is regardless of how much competition there is, how many discounts were offered at the MAS contract level, what service or product you are acquiring, or any other reason.
You can still place orders if you don’t receive a discount
If you don’t get a discount after you’ve asked, you can still place your order, because we already determined the contract price to be fair and reasonable, and MAS contractors aren’t obligated to give us discounts.
Best practices to secure discounts
Do market research
For all acquisitions, you should do market research to know what discounts might be appropriate. Examine prices paid data, current commercial prices, and industry trends. One source for this info is our Acquisition Gateway site.
Maximize competition
Engage contractors early in your acquisition planning process to give them adequate time to prepare for upcoming competitions. Post your RFQs to eBuy — even when the FAR doesn’t require it — to widen your pool of interested contractors. When the environment is more competitive, contractors are more likely to give discounts.
Ask multiple times
Request a price discount in:
- Your initial RFQ.
- After you receive and evaluate quotes.
Here is potential language to use for your RFQ:
GSA is seeking price reductions from the awarded Multiple Award Schedule pricing according to FAR 8.405-4. Quotes should include the offeror’s best pricing, including all discounts, as there may not be another opportunity to offer further discounts.
Even if you only get one quote, request a discount before you place the order. The contractor may give you a discount at that point to secure the award.
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