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yankees2009

Determining Low Bidder

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DFARS 252.236-7007 states ....

(2) The low offeror shall be the Offeror that—

(i) Is otherwise eligible for award; and

(ii) Offers the lowest aggregate amount for the first or base bid item, plus or minus (in the order stated in the list of priorities in the bid schedule) those additive or deductive items that provide the most features within the funds determined available.

(3) The Contracting Officer shall evaluate all bids on the basis of the same additive or deductive items.

(i) If adding another item from the bid schedule list of priorities would make the award exceed the available funds for all offerors, the Contracting Officer will skip that item and go to the next item from the bid schedule of priorities; and

(ii) Add that next item if an award may be made that includes that item and is within the available funds.

( B ) The Contracting Officer will use the list of priorities in the bid schedule only to determine the low offeror. After determining the low offeror, an award may be made on any combination of items if—

(1) It is in the best interest of the Government;

(2) Funds are available at the time of award; and

(3) The low offeror's price for the combination to be awarded is less than the price offered by any other responsive, responsible offeror.

I understand the example provided at the end of this DFARS clause that describes the low in that case but that example doesn't provide for a great explanation. Different example: Example. The amount available is $100,000. Offeror A's base bid and four additives (in the order stated in the list of priorities in the bid Schedule) are $85,000, $17,000, $7,000, $4,000, and $3,000. Offeror B's base bid and four additives are $80,000, $16,000, $9,000, $7,000, and $5,000.

Who is the low bidder? Is it offeror B because it is low on the base bid and ABI #1 whereas offeror A is over budget for base and ABI #1?

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DFARS 252.236-7007 states ....

(2) The low offeror shall be the Offeror that—

(i) Is otherwise eligible for award; and

(ii) Offers the lowest aggregate amount for the first or base bid item, plus or minus (in the order stated in the list of priorities in the bid schedule) those additive or deductive items that provide the most features within the funds determined available.

(3) The Contracting Officer shall evaluate all bids on the basis of the same additive or deductive items.

(i) If adding another item from the bid schedule list of priorities would make the award exceed the available funds for all offerors, the Contracting Officer will skip that item and go to the next item from the bid schedule of priorities; and

(ii) Add that next item if an award may be made that includes that item and is within the available funds.

(
B)
The Contracting Officer will use the list of priorities in the bid schedule only to determine the low offeror. After determining the low offeror, an award may be made on any combination of items if—

(1) It is in the best interest of the Government;

(2) Funds are available at the time of award; and

(3) The low offeror's price for the combination to be awarded is less than the price offered by any other responsive, responsible offeror.

I understand the example provided at the end of this DFARS clause that describes the low in that case but that example doesn't provide for a great explanation. Different example: Example. The amount available is $100,000. Offeror A's base bid and four additives (in the order stated in the list of priorities in the bid Schedule) are $85,000, $17,000, $7,000, $4,000, and $3,000. Offeror B's base bid and four additives are $80,000, $16,000, $9,000, $7,000, and $5,000.

Who is the low bidder? Is it offeror B because it is low on the base bid and ABI #1 whereas offeror A is over budget for base and ABI #1?

Yes, I believe so.

The Contracting Officer will use the list of priorities in the bid schedule only to determine the low offeror (bidder). Firm B is the lower bidder for the base bid plus Additive No. 1, which cannot be awarded to Firm A because its bid for that combination exceeds the funds available for award.

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DFARS 252.236-7007 states ....

(2) The low offeror shall be the Offeror that—

(i) Is otherwise eligible for award; and

(ii) Offers the lowest aggregate amount for the first or base bid item, plus or minus (in the order stated in the list of priorities in the bid schedule) those additive or deductive items that provide the most features within the funds determined available.

(3) The Contracting Officer shall evaluate all bids on the basis of the same additive or deductive items.

(i) If adding another item from the bid schedule list of priorities would make the award exceed the available funds for all offerors, the Contracting Officer will skip that item and go to the next item from the bid schedule of priorities; and

(ii) Add that next item if an award may be made that includes that item and is within the available funds.

(
B)
The Contracting Officer will use the list of priorities in the bid schedule only to determine the low offeror. After determining the low offeror, an award may be made on any combination of items if—

(1) It is in the best interest of the Government;

(2) Funds are available at the time of award; and

(3) The low offeror's price for the combination to be awarded is less than the price offered by any other responsive, responsible offeror.

I understand the example provided at the end of this DFARS clause that describes the low in that case but that example doesn't provide for a great explanation. Different example:
Example.
The amount available is $100,000. Offeror A's base bid and four additives (in the order stated in the list of priorities in the bid Schedule) are $85,000, $17,000, $7,000, $4,000, and $3,000. Offeror B's base bid and four additives are $80,000, $16,000, $9,000, $7,000, and $5,000.

Who is the low bidder? Is it offeror B because it is low on the base bid and ABI #1 whereas offeror A is over budget for base and ABI #1?

I have never reviewed a contract with this provision, but I am not certain the suggested evaluation is correct. My evalation of Offeror A is as follows:

  • Base of $85,000
  • Exclude first option because total of $102,000 exceeds funding. Go to next option (see para 3(i) of the provision).
  • Base of $85,000 plus second option = $92,000. Go to next option.
  • Base of $85,000 plus second and third options = $96,000. Go to next option.
  • Base of $85,000 pluse second, third, and fourth options = $99,000.

My evaluation of Offeror B is as follows:

  • Base of $80,000.
  • Base of $80,000 plus first option = $96,000. Go to next option.
  • Base of $80,000 plus first option plus any other option exceeds available funding.

Offeror A has three features within the available funding, with an aggregate price of $99,000. For those features, Offeror B's aggregate price would be $101,000.

Why not award to Offeror A?

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DFARS 252.236-7007 states ....

(2) The low offeror shall be the Offeror that—

(i) Is otherwise eligible for award; and

(ii) Offers the lowest aggregate amount for the first or base bid item, plus or minus (in the order stated in the list of priorities in the bid schedule) those additive or deductive items that provide the most features within the funds determined available.

(3) The Contracting Officer shall evaluate all bids on the basis of the same additive or deductive items.

(i) If adding another item from the bid schedule list of priorities would make the award exceed the available funds for all offerors, the Contracting Officer will skip that item and go to the next item from the bid schedule of priorities; and

(ii) Add that next item if an award may be made that includes that item and is within the available funds.

(
B)
The Contracting Officer will use the list of priorities in the bid schedule only to determine the low offeror. After determining the low offeror, an award may be made on any combination of items if—

(1) It is in the best interest of the Government;

(2) Funds are available at the time of award; and

(3) The low offeror's price for the combination to be awarded is less than the price offered by any other responsive, responsible offeror.

I understand the example provided at the end of this DFARS clause that describes the low in that case but that example doesn't provide for a great explanation. Different example:
Example.
The amount available is $100,000. Offeror A's base bid and four additives (in the order stated in the list of priorities in the bid Schedule) are $85,000, $17,000, $7,000, $4,000, and $3,000. Offeror B's base bid and four additives are $80,000, $16,000, $9,000, $7,000, and $5,000.

Who is the low bidder? Is it offeror B because it is low on the base bid and ABI #1 whereas offeror A is over budget for base and ABI #1?

I have never reviewed a contract with this provision, but I am not certain the suggested evaluation is correct. My evalation of Offeror A is as follows:

  • Base of $85,000
  • Exclude first option because total of $102,000 exceeds funding. Go to next option (see para 3(i) of the provision).
  • Base of $85,000 plus second option = $92,000. Go to next option.
  • Base of $85,000 plus second and third options = $96,000. Go to next option.
  • Base of $85,000 pluse second, third, and fourth options = $99,000.

My evaluation of Offeror B is as follows:

  • Base of $80,000.
  • Base of $80,000 plus first option = $96,000. Go to next option.
  • Base of $80,000 plus first option plus any other option exceeds available funding.

Offeror A has three features within the available funding, with an aggregate price of $99,000. For those features, Offeror B's aggregate price would be $101,000.

Why not award to Offeror A?

Because you said that Option 1 is the most important to the Government. "The Contracting Officer shall evaluate all bids on the basis of the same additive or deductive items" . Firm B has the lowest awardable price for base plus option 1.

Firm B "(o)ffers the lowest aggregate amount for the first or base bid item, plus (in the order stated in the list of priorities in the bid schedule) those additive or deductive items that provide the most features within the funds determined available."

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Thank you. After rereading the provision I now see what I missed before. An additive item is skipped only when adding it would make the award exceed the available funds for all offerors.

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