Contractors should consider weighing benefits and burdens in making the election.
Last week, the US General Services Administration (GSA) announced that it will make participation in its Transactional Data Reporting pilot program (TDR Pilot) voluntary for all GSA contractors. Previously, for Schedules and Special Item Numbers (SINs) included in the TDR Pilot, participation was voluntary for most existing contractors but mandatory for new offerors and those existing contractors approaching exercise of a five-year option period.
As we discussed in our June 2016 LawFlash, as implemented, the TDR rule requires that government vendors electronically submit a monthly report containing line-item transactional data (e.g., part number, price paid) for direct sales to the government. GSA has previously opined that the TDR rule should significantly reduce burdens to contractors—in particular, by exempting participating contractors from the requirements of submitting Commercial Sales Practices (CSP) disclosures and complying with the tracking customer requirements of the Price Reductions Clause (PRC).
While most contractors would agree that being relieved of CSP disclosures and PRC monitoring would be a welcome event, the burdens associated with implementing TDR will make determining whether to participate in the TDR Pilot a company-by-company decision.
Key takeaways from GSA’s announcement on the TDR Pilot include the following:
If you have any questions or would like more information on the issues discussed in this LawFlash, please contact any of the following Morgan Lewis lawyers:
Dallas
Michael A. Cumming
Washington, DC
Katelyn M. Hilferty