How to Pass a GSA Contract Negotiation
GSA Schedule pricing negotiations are a structured discussion between you (the offeror) and the GSA contracting officer over your proposed prices. Passing negotiation on the first round saves months of back-and-forth and gets your contract awarded faster. The key is preparation: knowing your numbers, knowing GSA's expectations, and having documentation ready to support your position.
What GSA Is Looking for in Pricing
The CO is trying to confirm that the government will receive pricing at least as good as your best commercial customer. They will compare your proposed Schedule prices against the Most Favored Customer (MFC) discount you disclosed in your CSP. They may also compare your prices against similar items on existing Schedule contracts, commercial market data, and any published price lists you have provided. Prices that are significantly higher than comparable Schedule offerings without clear justification will generate negotiation questions.
Preparing Your Negotiation Documentation
Before any negotiation discussion, have ready: recent commercial invoices showing actual prices charged to your BOA customer, a price comparison showing your proposed Schedule prices versus MFC prices (the discount relationship), market data supporting your price level if your prices are above comparable Schedule offerings, and a written narrative explaining your pricing methodology. For services: labor rate build-ups showing how your hourly rates are constructed (wages, benefits, overhead, G&A, fee, IFF). For products: manufacturer suggested retail prices versus your commercial selling prices versus your proposed GSA price.
| Negotiation Round | Typical Outcome |
|---|---|
| Round 1: Complete, well-priced offer | Minor clarifications, award at or near proposed prices |
| Round 1: Prices above MFC | Written request for reduction, documentation request |
| Round 2: Counter-proposal | CO may accept, request BAFO, or negotiate further |
| BAFO requested | Final offer submitted; CO awards or rejects |
What Not to Do in Negotiation
Do not ignore a negotiation letter or respond past the deadline — this is treated as a failure to prosecute your offer and can result in offer rejection. Do not make unsupported claims that your prices are already below market without providing documentation. Do not offer larger reductions than necessary hoping to end the negotiation quickly — this may actually prompt the CO to request even more. Present a reasonable, well-documented position and stand by it with supporting evidence.