GSA takes hard line on price negotiations

Government contract specialists are taking a tough stance in price negotiations with many information technology vendors in the wake of several high-profile investigations involving allegations of deceptive pricing, reports Federal Times.

Since last year, four large IT firms ? Sun Microsystems, Canon, EMC and Cisco ? have either walked away from contract talks with the government's primary contracting agency, the General Services Administration, or had their contracts canceled. All of the companies except Canon were under investigation by either the GSA inspector general or the Justice Department over alleged deceptive pricing.

Before many large contracts are signed by GSA, auditors from the agency's IG office conduct so-called pre-award audits of those vendors' proposed prices to ensure they are fair and reasonable. The audits often recommend what the contracting officers should ask for regarding price.

GSA contracting officers are increasingly asking the agency's inspector general's office for pre-award pricing audits to see what discounts companies are giving to their commercial customers, said one source.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
close

Trending

  • POWER TRAINING: How to engage your customers

    Don't miss our Aug. 2 Washington Technology Power Training session on Mastering Stakeholder Engagement, where you'll learned the critical skills you need to more fully connect with your customers and win more business. Read More

  • PROJECT 38 PODCAST

    In our latest Project 38 Podcast, editor Nick Wakeman interviews Tom Romeo, the leader of Maximus Federal about how it has zoomed up the 2019 Top 100. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.