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  • Question

    Is it required that the life cycle cost be itemized for a best value or can the life scycle cost be included in the technical evaluation along with other technical factors?


    Answer

    In accordance with DFARS 215.101-70 Best value when acquiring tents or other temporary structures and section 368 of the National Defense Authorization Act for Fiscal Year 2012 (Pub. L. 112-81) states:

    When acquiring tents or other temporary structures for use by the Armed Forces, the contracting officer shall award contracts that provide the best value. Determination of best value includes consideration of the total life-cycle costs of such tents or structures, including the costs associated with any equipment, fuel, or electricity needed to heat, cool, or light such tents or structures (see
    FAR 7.105(a)(3)(i) and PGI 207.105(a)(3)(i)).

    However, if you intend to consider life-cycle costs in offer evaluation, the solicitation must advise prospective offerors how life-cycle costs will be considered in making the contract award decision. Award may be based on lowest evaluated cost, including life-cycle costs or life-cycle costs may be considered as a factor in an award decision that also considers other characteristics of the item or system. 


    In accordance with the aforementioned statutory/regulatory guidance, when determining best-value utilizing life-cycle costs, there are no requirements that the life-cycle costs must be itemized.


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