duke38 Posted November 1, 2016 Report Share Posted November 1, 2016 Hello all I am putting together a solicitation for commodities and I have a situation i would like to clarify first. The situation is the program office initially submitted a PR for a quantity of two but has informed me since that they will be ordering an addition 40 in the near future. I initially told them we could continue forward with the initial 2 then put the additional 40 on the same solicitation as an optional quantity. However FAR 17.207 states: Quote Solicitations that require the offering of an option at prices no higher than those for the initial requirement shall -- (2) Limit option quantities for additional supplies to not more than 50 percent of the initial quantity of the same contract line item. In unusual circumstances, an authorized person at a level above the contracting officer may approve a greater percentage of quantity. My questions is since we are not requiring the vendor to offer us a option "prices no higher than those for the initial requirement" can I move forward with having the optional quantity of 40 in this solicitation, am I interpreting this correctly? Link to comment Share on other sites More sharing options...
Matthew Fleharty Posted November 1, 2016 Report Share Posted November 1, 2016 Duke, You're interpreting the FAR correctly (though the reference is actually FAR 17.203(g)). Link to comment Share on other sites More sharing options...
Jamaal Valentine Posted November 1, 2016 Report Share Posted November 1, 2016 Yes, your interpretation is correct. Note: If you were to limit the option price you would need a level above the CO to approve the limitation. Remember the FAR 15.404-1(g)(2) requirement too check (analyze) for unbalanced pricing. This is a textbook situation were unbalanced pricing could occur. Link to comment Share on other sites More sharing options...
Todd Davis Posted November 1, 2016 Report Share Posted November 1, 2016 I agree with the others. However, if funding is available now and there is a bona fide need for the additional quantity, I would consider ordering them all now and just schedule delivery of the additional 40 for a later date. Lower pricing may be received if the prospective quoters/bidders/offerors are guaranteed an order for the total quantity needed, saving taxpayers $$. Link to comment Share on other sites More sharing options...
duke38 Posted November 2, 2016 Author Report Share Posted November 2, 2016 Thanks for your opinions Link to comment Share on other sites More sharing options...
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