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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? 

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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.

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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 $$.

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