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Electronic Code of Federal Regulations

e-CFR data is current as of May 26, 2020

Title 48Chapter 5Subchapter FPart 538Subpart 538.2 → §538.272


Title 48: Federal Acquisition Regulations System
PART 538—FEDERAL SUPPLY SCHEDULE CONTRACTING
Subpart 538.2—Establishing and Administering Federal Supply Schedules


538.272   FSS price reductions.

(a) Applicability. This section applies when the contract contains the basic clause 552.238-80 Industrial Funding Fee and Sales Reporting.

(b) The basic clause and Alternate I of 552.238-81, Price Reductions, requires the contractor to maintain during the contract period the negotiated price/discount relationship (and/or term and condition relationship) between the eligible ordering activities and the offeror's customer or category of customers on which the contract award was predicated (see 538.271(c)). If a change occurs in the contractor's commercial pricing or discount arrangement applicable to the identified commercial customer (or category of customers) that results in a less advantageous relationship between the eligible ordering activities and this customer or category of customers, the change constitutes a “price reduction.”

(c) Ensure that the contractor understands the requirements of section 552.238-75 and agrees to report all price reductions to the Contracting Officer as provided for in the clause.

[81 FR 41137, June 23, 2016, as amended by 84 FR 17039, Apr. 23, 2019]

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