I am currently working on a sole-source IDIQ. I have solicited multiple fixed price supply items (non-commercial). My RFP includes range pricing and a Best Estimated Quantity (BEQ) /Annual Demand Value (ADV). The BEQ/ADV is based upon forecast data provided by the customer tempered with common sense and buy history.
A CLIN on my RFP may look something like this
0001AA Antenna Widget
100-190 (BEQ/ADV – 150)
I expect discreet pricing for all ranges, for all years of the contract (5 in this instance).
My solicitation/RFP requires a FAR 15.408 table 15-2 compliant proposal. I state specifically that cost analysis must be performed by the offeror for subcontracts identified in the CBOM as having total proposed pricing that exceeds the regulatory threshold indicated in FAR Part 15.403-4 AND that Fair and reasonable subcontractor analysis in accordance with FAR 15.404-3(b) shall be provided.
What is the basis of the threshold for subcontract Cost Analysis (CAPA) for an IDIQ contract? Is it based on the max quantity you anticipate buying or the estimated quantity you believe you will buy…The BEQ/ADV or the Max?
In the example above, would you base the threshold on unit price x qty of 270 OR unit price x qty of 270…obviously very simplistic because on some of these RFP’s there are hundreds of items.
I ask this because I interpret the subcontractor CAPA threshold as being the anticipated maximum value of the contract (max value for all solicited items IDIQ). The problem is that we are asking for ranges above what we historically buy, because our customer anticipates that there could be a need for those higher quantities.
Contractors raise concerns on ROI and provide long lead time for proposal development when they interpret the RFP in that manner.
I believe there truly is a case to be made for limiting the CAPA threshold to what we plan to buy (ADV/BEQ), but do have concerns that high dollar value subcontracts will go unchallenged. Regardless of the CAPA threshold, contractors would still be required to provide subcontractor pricing for all ranges and typically provide a high % of firm quotes with their bid.
I would also like to add some additional context. I make a thorough evaluation of the ADV/BEQ we use and remove ranges (especially high ranges) when I have no reason to believe the Government will have a need to buy at that high a quantity.
Interested in your thoughts on the topic.