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  • Question

    Is it mandatory to have a new approved price list from the contractor every year despite the period of performance is until 2022? Thank you for your assitance.


    Answer

    1. The FAR references quoted below in pertinent part are applicable to this response.

    FAR 4.803 -- Contents of Contract Files
    The following are examples of the records normally contained, if applicable, in contract files:
    (a) Contracting office contract file.
      (17) Data and information related to the contracting officer’s determination of a fair and reasonable price. This may include— (ii) Data other than certified cost or pricing data.

    FAR 13.106-3 -- Award and Documentation.
    (a) Basis for award. Before making award, the contracting officer must determine that the proposed price is fair and reasonable.
      (1) Whenever possible, base price reasonableness on competitive quotations or offers.

    FAR 13.303-6 -- Review Procedures
    (b) The contracting officer that entered into the BPA shall --
      (1) Ensure that each BPA is reviewed at least annually and, if necessary, updated at that time; and
      (2) Maintain awareness of changes in market conditions, sources of supply, and other pertinent factors that may warrant making new arrangements with different suppliers or modifying existing arrangements.

    2. As contemplated by FAR 13.303-6(b)(2), our opinion is that the contracting officer (KO) should also determine during the annual review of the current BPA whether the prices in this BPA are still considered to be fair and reasonable as required by FAR 13.106-3(a) in light of current market conditions, sources of supply, or other pertinent factors. The results of this pricing review should then be documented in the BPA file as expected by FAR 4.803(a)(17).

    3. If the prices in the current BPA are no longer considered to be fair and reasonable, and assuming that market conditions indicate that there are no other available sources of these supplies, then the KO should determine whether the new approved price list from the contractor is fair and reasonable and modify the existing PBA arrangement accordingly. However if the annual review indicates that there other sources of these supplies that could offer lower prices, then pursuant to FAR 13.106-3(a)(1), the KO should issue a competitive solicitation that could result in a new BPA arrangement with the same or a different supplier.



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