Awarding BPAs under FAR Part 8 without actual pricing

[kointhemaking]

I am trying attempting to craft evaluation criteria to award a multiple award FAR Part 8 BPA for products requiring a Statement of Work. My intent is to award at discount percentages equal to or greater than established GSA Discounts. So, here are my questions:

1) Since GSA has already determined pricing at the Schedule level as fair and reasonable, can I make award at a discount % rather than receiving actual pricing? In other words, not obtaining line by line pricing, instead awarding a discount % off the GSA catalog (obviously, the discount is equal to or greater than the GSA discounts)

2) Since I am not asking for a total price, what happens in a scenario where I get 10 responses to the RFQ? What can I do to eliminate my pool since I am not awarding on price but discount %? 

 

 

[Guest PepeTheFrog]

If you're in the DoD, don't forget that you can't rely on GSA's determinations of fair and reasonable, see DoD Class Deviation 2014-O0011- Determination of Fair and Reasonable Prices When Using Federal Supply Schedule Contracts, dated March 13, 2014.

Question 2 suggests why this isn't a great idea. If you're buying a case of beer, what's the better deal: 50% discount from $18.99 or 30% discount from $12.50?

PepeTheFrog thinks this question is inappropriate for "Contracting Workforce" and should be moved to "Contract Award Process" or maybe "Contract Pricing."

[metteec]

1) Yes, GSA has already determined the prices fair and reasonable, though Pepe makes a good point for DOD.

2) In addition to asking for a discount from their FSS price, also include a labor category(ies) that you anticipate purchasing and provide estimated quantities for evaluation purposes only.  Have each Vendor propose their labor category from their GSA FSS that meets your requirements and compare competitive prices.

I respectfully disagree with PepeTheFrog that discounts from the FSS contract are a bad idea, provided this is a true multiple-award BPA.  Per FAR 8.405-3(b), you need to provide fair opportunity for each call order over the MPT.  If you have a mini-competition each time you have a requirement, the discount percentage only serves as a maximum price.  The competition between BPA holders will ensure prices remain fair and reasonable.