GSA Panel Votes to Kill Price Reduction Clause A GSA advisory panel has recommended gradually eliminating the price reduction clause for purchases of products as well as services through GSA Schedules. At its Oct. 6 meeting, the Multiple Awards Schedule Advisory Panel said the clause for product purchases should be phased out as GSA implements new policies to ensure that the government gets fair and reasonable prices. Last month the panel proposed dropping the price reduction clause on services. The clause requires schedule contractors to offer the government at least the same discounts that are offered to the most favored commercial customers. The group recommended new rules to enhance competition for schedule task and delivery orders, such as requiring contracting officers to give all schedule contractors a chance to bid on task orders, or to take other steps to get at least three bids on each order. Congress has approved that policy in the 2009 Defense Authorization bill. The recommendations could run into some pushback from Congress. The House’s leading voice on contracting issues, House Oversight Committee Chairman Henry Waxman, D-CA, has expressed concern that dropping the price reduction clause could increase costs to the taxpayers. The panel was created by former GSA Administrator Lurita Doan. After she was forced to resign in April, Rep. Waxman questioned whether anyone left at GSA would pay attention to the group. Its recommendations will be submitted to the GSA administrator later this fall.