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FAR 8.404(d) - Best Value and Lowest Overall Cost


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#1 Weno2

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Posted 28 September 2011 - 08:37 AM

The government is placing a GSA Task Order to the offeror who has the highest overall rating (i.e meets the special features), but isn't the lowest priced offeror. FAR 8.405-2(d) reads

The ordering activity is responsible for considering the level of effort and the mix of labor proposed to perform a specific task being ordered, and for determining that the total price is reasonable. Place the order with the schedule contractor that represents the best value (see 8.404(d) and 8.405-4), .

FAR 8.404(d) reads

Therefore, ordering activities are not required to make a separate determination of fair and reasonable pricing, except for a price evaluation as required by 8.405-2(d). By placing an order against a schedule contract using the procedures in 8.405, the ordering activity has concluded that the order represents the best value (as defined in FAR 2.101) and results in the lowest overall cost alternative (considering price, special features, administrative costs, etc.) to meet the Government's needs

When awarding the GSA task order to the offeror who doesn't have the lowest overall price, should the KO use the wording "The KO concludes the order represents best value to the government", or "The KO concludes the order represents best value to the government and resilts in the lowest overall cost alternative."

#2 Vern Edwards

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Posted 28 September 2011 - 09:17 AM

Yes.

#3 Weno2

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Posted 28 September 2011 - 09:39 AM

Yes.



One phrase in particular, or either phase is suffice?

#4 Vern Edwards

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Posted 28 September 2011 - 10:50 AM

"Is suffice"?

#5 napolik

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Posted 28 September 2011 - 02:28 PM

When awarding the GSA task order to the offeror who doesn't have the lowest overall price, should the KO use the wording "The KO concludes the order represents best value to the government", or "The KO concludes the order represents best value to the government and resilts in the lowest overall cost alternative."


Use the same words you used in your solicitation when you stated the basis for your award (e.g. The Agency will award a contract to that firm presenting the offer representing the best value to the government considering price and other factors).

#6 Weno2

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Posted 28 September 2011 - 02:40 PM

"Is suffice"?


Is acceptable to use:

"The KO concludes the order represents best value to the government";
"The KO concludes the order represents best value to the government and resilts in the lowest overall cost alternative."

Or is either phrase acceptable.

#7 Vern Edwards

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Posted 29 September 2011 - 07:01 AM

Weno:

Let's think this through.

Are both statements true? You wouldn't want to make a false statement, would you? I hope not. So, if one statement is true and the other false, use the true one.

If both statements are true, then which of the two represents the better outcome for the government?

It seems pretty obvious to me that the second statement, if true, is a better outcome for the government than the first, since best value with lowest overall cost is better than best value without lowest overall cost. Wouldn't you agree?

Therefore, if both statements are true, use the second statement.

Let's let this be the end of your inquiry. Okay?




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