Code of Federal Regulations Title 48. Federal Acquisition Regulations System 48.538.272 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 552.238–81 and agrees to report all price reductions to the Contracting Officer as provided for in the clause.