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  • Question

    Since the initial competition was held and only one vendor submitted pricing that was found to be fair and reasonable, is there any further requirement to compete BPA calls over the micro purchase threshold?


    Answer

    There is no requirement to have multiple BPAs for the same supplies or services, but there is a requirement to ensure the price paid is fair and reasonable.  The FAR addresses this situation in FAR 13.305-5 (d) which states:
    (d) If, for a particular purchase greater than the micro-purchase threshold, there is an insufficient number of BPAs to ensure maximum practicable competition, the contracting officer shall --
    (1) Solicit quotations from other sources (see 13.105) and make the purchase as appropriate; and
    (2) Establish additional BPAs to facilitate future purchases if --
    (i) Recurring requirements for the same or similar supplies or services seem likely;
    (ii) Qualified sources are willing to accept BPAs; and
    (iii) It is otherwise practical to do so.

    Part of the intent of ensuring adequate competition is to ensure the price is fair and reasonable.  FAR 15.404-1 (b)(2) lists seven price analysis techniques which can be used to make a fair and reasonable price determination.  Any, or several of these techniques can be used to make this determination.  Those techniques are:
    1.  Comparison of proposed prices received in response to the solicitation.


    2.  Comparison of proposed prices to historical prices paid, whether by the Government or other than the Government, for the same or similar items.


    3.  Use of parametric estimating methods/application of rough yardsticks (such as dollars per pound or per horsepower, or other units) to highlight significant inconsistencies that warrant additional pricing inquiry.


    4.  Comparison with competitive published price lists, published market prices of commodities, similar indexes, and discount or rebate arrangements.


    5.  Comparison of proposed prices with independent Government cost estimates.


    6.  Comparison of proposed prices with prices obtained through market research for the same or similar items.


    7.  Analysis of data other than certified cost or pricing data provided by the offeror.
     


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