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    They have a group of people (I think at the manufacturer's facility) who they say act as a dealer for Government contracts. They are refusing to provide data on sales to either their dealers or the public and also state that they give no discount from their price list (but it appears that they have at least two different lists.) They refuse to provide their pricing policy also. We are buying 5 years worth of repair/rebuild for several models of engines and we will be paying possibly 3 people to run a warehouse (that we provide) and they will run the diagnostics equipment (MFG owns software). The contractor personnel will assist the Government personnel in putting together a list of parts required for the repair/rebuild. We will also be paying the manufacturer for the kitting of the parts and providing the storage for the parts (essentially a warehouse operation run by the contractor). How do we resolve the issue of the contractor refusing to provide information? The regs don't seem to help us with this issue. Also, should we be getting source documents to support the price for which the dealers sell the items to the public? Or should we get support for the price at which manufacturer sells the items to the dealers? Or maybe we should get it for both and try to figure a price somewhere in between? (because we are paying some of the costs directly that the dealer would perform). Thanks, S


    Answer

    Assuming this acquisition is being conducted in accordance with FAR Part 12 procedures, the Government should do what a private company buying the parts from the supplier might do— try its best to obtain a fair and reasonable price using any leverage it has and employing one more types of price analysis (ref. FAR 15.404-1(b) for specific methods). Companies are not obligated to provide pricing documentation to the Government. Of course, the consequence of a supplier not doing so is delay or even loss of a contract award. However, if this company is essentially a sole-source for the items, the Government is in a precarious pricing situation for which it may have limited recourse. It's a contracting officer decision on how to obtain the pricing documentation and plan subsequent price negotiations, and beyond the scope of this forum.

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