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Cost and Pricing Data for Commercial Items


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Dr. Carter's Sept 10 Memorandum requires that we get cost and pricing data when we only receive one offer. I have a commercial items acquisition that was set aside for competition amongst small businesses but we only received one offer. I do not believe his memo applies and that, because we are using FAR Part 13 procedures, we can determine fair and reasonbleness of pricing using procedures in FAR Subpart 13.106-3. Has anyone had a similiar situation or does anyone think I am incorrect? Thanks!

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Guest Vern Edwards

Since acquisitions of commercial items are exempt from the requirement for certified cost or pricing data -- see FAR 15.403-1( c)(3), Dr. Carter's memo does not apply, even if you got only one offer.

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Since acquisitions of commercial items are exempt from the requirement for certified cost or pricing data -- see FAR 15.403-1( c)(3) --, Dr. Carter's memo does not apply, even if you got only one offer.

Thank you Vern!

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Dr. Carter's Sept 10 Memorandum requires that we get cost and pricing data when we only receive one offer. I have a commercial items acquisition that was set aside for competition amongst small businesses but we only received one offer. I do not believe his memo applies and that, because we are using FAR Part 13 procedures, we can determine fair and reasonbleness of pricing using procedures in FAR Subpart 13.106-3. Has anyone had a similiar situation or does anyone think I am incorrect? Thanks!

You need to look at the Shay Assad 27 April 2011 memo entitled "Improving Competition in Defense Procurement". Specifically, the second bullet in the third paragraph tells you to obtain either certified cost or pricing data or other than certified cost of pricing data if you believe you must enter into negotiations to obtain a fair and reasonable price.

You can find the memo here: Assad 27 April 11 memo

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  • 2 weeks later...

The guidance from Mr. Assad specifically excludes actions below the SAT.

For single offers below the SAT, go ahead and document price reasonableness using one or more of the techniques in FAR 13.106-3.

In the spirit of the memos from Dr. Carter and Mr. Assad, I recommend that you use a technique other than solely relying on competition as the justification for price reasonableness because there is a chance that the offeror knew that they were the only one that would be able to respond to your solicitation.

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