GSA Issues Acquisition Letter to Reduce Restrictions on EPA Modifications

On March 17, 2022, the General Services Administration (GSA) announced a temporary moratorium on a number of limitations contained in certain GSA economic price adjustment (EPA) contract clauses. The flexibility should make it easier for contractors to better adjust to changing market conditions while still allowing them to continue to support their federal customers’ requirements. 

Specifically, during this time, this policy moratorium: 

  • Relax time limitations on EPA increases allows Contracting Officers (CO) to: 
  • May allow more than three EPA mods in a contract period 
  • Consider EPA mod that exceeds ceiling clause 
  • CO still must obtain approval on increases. However, there is a lower level of approval. Just one level above the CO is needed for price increases above the EPA clause ceiling 
  • Clarifies that if a contractor has removed an item from their MAS contract, the CO may add the same item back at a higher price if the higher price can be determined fair and reasonable 
  • CO’s can still reject mod if they determine the price not fair and reasonable  

This temporary moratorium of the EPA restrictions went into effect on March 17, 2022 and will continue through the GSA’s fiscal year end of September 30, 2022. GSA may decide to extend the date. we will keep you posted.  

Need assistance with you GSA price increase? Reach out to our team today to save time and reduce the chance of rejection.

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