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  • Question

    The requirement is to provide Budget Execution Financial Management and Acquisition support as stated in PWS. Can the "Competitive Average of all quotes (proposals) received be used as one of the basis in the fair and reasonable pricing decision for source selection process? Please respond ASAP. Thank you very much


    Answer

    See FAR 8.404(d), which has a DoD Deviation attached to it, stating, "d) Pricing. (DEVIATION) Supplies offered on the schedule are listed at fixed prices. Services offered on the schedule are priced either at hourly rates, or at a fixed price for performance of a specific task (e.g., installation, maintenance, and repair). GSA has determined the prices of supplies and fixed-price services, and rates for services offered at hourly rates, to be fair and reasonable for the purpose of establishing the schedule contract. GSA's determination does not relieve the ordering activity contracting officer from the responsibility of making a determination of fair and reasonable pricing for individual orders, BPAs, and orders under BPAs, using the proposal analysis techniques at 15.404-1. The complexity and circumstances of each acquisition should determine the level of detail of the analysis required."

    Furthermore, FAR 15.404-1, gives price analysis techniques for commercial and non-commercial services.  The first technique is a comparison of proposed prices received in response to the solicitation.  Normally adequate price competition establishes a fair and reasonable price. We recommend you use this comparison in your situation of having competitive quotes.

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