Non-compliance with the Price Reduction Clause (PRC) clause (violating disclosed discounting practices) can result is return of money to GSA and the dollar amount can pile up if the non-compliance is caught late in the contract period. PRC problems have resulted in huge, multi-million dollar GSA claw backs from GSA contractors and most could have been avoided with an understanding of the PRC clause and tight compliance procedures in place, including sales force education programs.

Don't get caught with your PRC pants down.

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