48 CFR § 538.272 - 538.272 FSS price reductions.

---
identifier: "/us/cfr/t48/s538.272"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "48 CFR § 538.272 - 538.272   FSS price reductions."
title_number: 48
title_name: "Federal Acquisition Regulations System"
section_number: "538.272"
section_name: "538.272   FSS price reductions."
chapter_number: 5
chapter_name: "GENERAL SERVICES ADMINISTRATION"
subchapter_number: "F"
subchapter_name: "SPECIAL CATEGORIES OF CONTRACTING"
part_number: "538"
part_name: "FEDERAL SUPPLY SCHEDULE CONTRACTING"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "40 U.S.C. 121(c)."
regulatory_source: "64 FR 37227, July 9, 1999, unless otherwise noted."
cfr_part: "538"
---


# 538.272 538.272   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.

[81 FR 41137, June 23, 2016, as amended by 84 FR 17039, Apr. 23, 2019; 85 FR 62613, Oct. 5, 2020]