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How to instruct offerors to submit price proposals in a solicitation for CPIF contract type


govt2310

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This is actually not my question. A DOD colleague of mine wants to know:

1__In putting together a solicitation for what will be a CPIF contract type, does the agency ask the vendors to provide optimistic and pessimistic costs? (I believe my colleague is referring to minimum, target, and maximum costs, which FAR 16.405-1 requires be in the CPIF contract). Or does the agency establish the optimistic and pessimistic costs and let the offerors decide their target costs?

2__How would the agency determine that the optimistic and pessimistic prices are reasonable?

3__How would the agency actually compare the prices offered? For example, would it be OK to state in the solicitation's evaluation criteria that the agency intends to take the maximum cost proposed by each offeror and compare these costs? If we are supposed to take into consideration for this comparison the offerors' minimum, target, and maximum costs together, is there a formula for doing this? How do we do this? If anyone has experience evaluating prices for a CPIF contract type, it would be great to see your solicitation as an example.

3__Because we need to develop a probable cost, what does the agency do when the probable cost is different from the proposed cost?

4__We are thinking about asking the vendor to identify the labor rates (and categories) and the cost elements that make up the labor rates. However, I think our biggest concern is with labor estimates, so I don?t know how material, indirect costs, etc. will help in a cost realism analysis. Thoughts?

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