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  • Question

    Can a BPA be issued without a price list for fuel prices. If so, how can the contractor be help responsible for price reasonableness after delivery and is market research after delivery an acceptable way for the Government to establish price reasonableness?


    Answer

    FAR considers BPAs as a simplified method of filling anticipated repetitive needs for supplies or services by establishing “charge accounts” with qualified sources of supply.  They can be prepriced or unpriced.  In accordance with FAR 13.106-3 -- Award and Documentation.
    (a) Basis for award. Before making award, the contracting officer must determine that the proposed price is fair and reasonable.
    (1) Whenever possible, base price reasonableness on competitive quotations or offers.
    (2) If only one response is received, include a statement of price reasonableness in the contract file. The contracting officer may base the statement on --
    (i) Market research;
    (ii) Comparison of the proposed price with prices found reasonable on previous purchases;
    (iii) Current price lists, catalogs, or advertisements. However, inclusion of a price in a price list, catalog, or advertisement does not, in and of itself, establish fairness and reasonableness of the price;
    (iv) A comparison with similar items in a related industry;
    (v) The contracting officer’s personal knowledge of the item being purchased;
    (vi) Comparison to an independent Government estimate; or
    (vii) Any other reasonable basis.
    (3) Occasionally an item can be obtained only from a supplier that quotes a minimum order price or quantity that either unreasonably exceeds stated quantity requirements or results in an unreasonable price for the quantity required. In these instances, the contracting officer should inform the requiring activity of all facts regarding the quotation or offer and ask it to confirm or alter its requirement. The file shall be documented to support the final action taken.




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