---
kind: "section"
citation: "48 C.F.R. § 538.272"
title: "48"
number: "538.272"
heading: "FSS price reductions."
url: "https://uscodex.org/cfr/48/538.272"
---

# §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](/cfr/48/552.238-81.md) and agrees to report all price reductions to the Contracting Officer as provided for in the clause.

## Notes

### Amendments

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

### Authority

Authority: 40 U.S.C. 121(c).

### Source

Source: 64 FR 37227, July 9, 1999, unless otherwise noted.

### Amendments

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