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  • Question

    Does an IGCE have to be revised after receipt of proposals to reflect the offeror's proposal or be within a certain percentage of the proposal amount?


    Answer

    The 10% rule must be a local contracting policy.  It is not in any regulations that we are aware of, but I understand why the contracting activity is concerned if the IGCE and the proposals are different by a margin of 100%!  Your bigger problem is that the Government has not done appropriate market research, or  has not clearly defined the requirements, or has a single requirement such as a unlimited data rights that is causing the company to raise their prices , or something else that is causing the huge gap.  The pricing organization, the program manager and the contracting activity should be very concerned about this gap. 

    Does the pricing organization agree with the program office explanation? Is the difference clearly documented so that the contracting office can make a determination of a "fair and reasonable price" when they complete the negotiation?  If I was a contracting officer doing a sole source negotiation (no benefit of competitive sources) I would not begin negotiations without some acknowledgement by the pricing community of the reasonableness of the gaps and the explanation provided by the technical evaluation. I would need this explanation in order to do my fair and reasonable determination.  If I thought the requirements were obviously unclear, I would modify the Gov't RFP and ask for a new proposal. Regarding the 10% policy.  This is something you must work internally. 

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