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MAY-D-FAR-B-WIT-U

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About MAY-D-FAR-B-WIT-U

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  1. My agency is in the process of awarding a part 8 BPA along with the first two TOs. The BPA-PWS is so general and reads more like a SOW and we are worried all offerors will simply restate all the task/services listed in their quotes and say, yeah we can do that --no real discriminator for a technical factor. For instance, one of the services listed is PMO support and the BPA-PWS simply lists all the activities in the PMBOK. The two task orders on the other hand have some meat and will allow us to identify those who can truly perform the work. Our plan is to evaluate the task orders first and award the BPA to 3 - 5 of the highest rated quotes. My goal here is to obtain some feedback on the potential pitfalls of not evaluating the BPA at all, or maybe having 3 evaluation factors TO1, TO2 and BPA with the BPA being the least important factor. Another possibility is to perhaps eliminate technical as an evaluation factor in the BPA and really drill down on PP and experience but this is not favored by many. If any one has gone this route and has a sample ITO that would be very helpful.
  2. Informal Price Analysis for Options

    Thanks to everyone for your input. I think Joel highlighted what I was missing, I was fixated on the price part that I wasn't really using non-price factors in my reasoning and justification.
  3. Informal Price Analysis for Options

    @ Todd Davis, thanks for the knowledge. I talked to another CO who just told me the story of a CO who exercised the option on salt without a price analysis only to find out the price of salt had dropped significantly. @ Vern, What kind of hourly rates do you have? Direct labor rates (employee payment), which don't include indirect costs and profits, or burdened rates, which do include indirects costs and profits? If burdented rates, what do they include beside direct labor rates? Vern, These are fully burdened rates (discounted GSA prices) and are FFP contracts. We negotiate how many hours will be needed for the requirement and generally use the changes clause to add more hours if needed.
  4. Informal Price Analysis for Options

    Vern, My first thought was that a formal analysis requires following the requirement in 15.404-1(b) while an informal is more of a simple price check, less detailed. After reading through that section of the FAR, I believe the difference is simply the level of detail and the techniques describe can 15.404-1(b)(2) can be used with varying detail. Looking forward to your input.
  5. Informal Price Analysis for Options

    Joel, My problem is I can always find prices higher and lower than the option pricing for the labor categories, which is why I think the GSA CALC may be an option showing the option price is within 1 SD of the average pricing of the labor category. I always use the higher prices in my memo to justify the option pricing is the most advantageous offer but I can't help but think this memo is BS. Let me also add that price is almost never the most important evaluation factor. Thanks for your input.
  6. Informal Price Analysis for Options

    Some contractors are more efficient than others, have a better solution or approach to the service, or are willing to reduce market pricing to obtain more work or keep a labor force employed, etc. Todd Davis, Thank for your response, Based on the highlighted response, do some Contracting Officers require their technical personnel to re-evaluate the technical proposal to see if the solution is still cost effective? i.e. do we have an Engineer IV preforming a task that could be performed by an Engineer II. Another question that comes to mind, how can the CO/KO determine if other identified source can perform the work without getting some detailed information about their capabilities especially when price was not the most important evaluation factor during award. This sounds like determination (1), which I know I need to avoid if possible. My idea was to use the ECI to support determination (2). I think I may be over analyzing as usual, options must be exercised in accordance with the terms of the BPA and the procedures of FAR Subpart 17.2, I must make a determination based in (1) (2) or (3) and (2) & (3) seem to be the more logical options. Thanks for the input.
  7. Informal Price Analysis for Options

    My contracting office requires an informal price analysis before the exercise of all option. About 90% of all our actions are BPAs and TOs against FSS, and 99% of all actions are for services (professional services not subject to SCLS). I intend to make an argument that memos documenting the informal analysis is not necessary for a majority of our actions based on the following reasons. 1. These options were competed at the time of award and considered fair and reasonable 2. Options prices are generally discounted GSA pricing which has been determined to be fair and reasonable 3. Hourly labor rates for professional services rarely go down based on Employment Cost Index (ECI) table on the BLS site. O ur informal price analysis generally involves going on GSA to find hourly rates that are lower than the rates negotiated for the option periods, and using this information to satisfy 17.207. I understand why this would be necessary when buying products, especially commodities that could fluctuate in pricing but I am struggling to see why this is necessary for FSS professional services hourly rates. I have been an 1102 for only one year and I do not want to come-off as an idiot when I make this argument, this is why I am hoping wifconers can pick apart my argument and provide me with some missing points. The best answer I got from my Contracting Officer is that we once had a Group Manager(Branch Head) who came from another agency and required an informal price analysis for all options. I also think GSA CALC may be a better option for an informal price analysis as it provided an average price and standard deviation for a labor category. All comments will be very much appreciated. ECI.pdf
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