Introduction: Provided to VA MSPV staff to highlight the issues facing SDV-MPG members brought on by VA’s failure to timely and reasonable deal with BPA price increase submissions.
SDV-MPG CONCERNS WITH PRICING OF PRODUCTS FOR VA’S MSPV PROGRAM
February 2023
BACKGROUND: Almost 3 years ago, VA negotiated and awarded Blanket Purchaser Agreements (BPAs) for products to be provided to VA through VA’s MSPV program. Most of the BPAs were awarded to SDVOSBs. Awards were based on “fair and reasonable” pricing in a competitive bidding process. To develop their bid price suppliers used their latest manufacturer’s price, added markups to cover business expenses, MSPV program costs (specific to the MSPV program) and a modest profit. Over the past three years, due to COVID demands and high inflation rates, product prices have risen, in some cases substantially.