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br549dewey

BPA - supporting documents - two local firms, can't compete head to head

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  • I need to stand up two BPAs - both for repairs in our local area.  Probably up to $150K each for a year. We can get rates from each firm, but the calls (NTE when issued) can't be definitively priced until the heavy equipment(s) are taken apart.  Anticipate two BPAs with only two local firms that do this sort of repair work.   I am more accustomed to "C" type contracts and IDIQ contracts, vice BPAs   What can I use for standing up two single award BPAs (can do multiple award, since we can't compete individual calls - i.e. can't price until they are taken apart)?  That is, do I draft a J&A that explains that these two firms are the only available sources?  Having two BPAs will indirectly give us some quasi-competition benefits, since each firm will be aware the other is in Agreement with us....      Need advice on the soundest way to document that we need to awards to local firms that cannot be 'head to head' competed.

Regards, Dewey

 

 

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Set up the two BPA’s, that simple. – REF:  FAR 13.303-2

Each need over the micro purchase level is then competed amongst the two BPA holders and if you think the BPA’s DO NOT provide for adequate competition for a particular call then you follow FAR Part 5.  REF: FAR 13.303-5(d)

Absent other information and if “with only two local firms that do this sort of repair work.” is in fact a very limiting factor on getting other competition it might be true that every time you have a need and competing with the two firms is adequate competition.

Only other thought would be doing a “Sources Sought” synopsis to assure yourself that the 2 firms are the only game in town.   If you find additional firms then you could have more BPAs if you very that there are no other firms it will support that the 2 firms are the only game in town and the adequate competition policy.

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16 hours ago, br549dewey said:
  • We can get rates from each firm, but the calls (NTE when issued) can't be definitively priced until the heavy equipment(s) are taken apart.

The pricing of repairs fascinates me. I've often wondered why the parties can't identify the types of repairs up front and develop a fixed-price catalog of services -- i.e., for this repair, FFP of $X, for that repair, FFP of $Y. Would it cover 100% of all activities? No. But I bet you could cover 80-90% of expected activities. (See: how any auto repair company prices its services.)

Instead, we seem to approach these individual repairs in multiple steps in order to prove price reasonableness. There is an initial action that essentially covers inspection and then another action (possibly based on a contractor proposal or other estimate) that covers the actual repair. If expensive parts are involved, the contractor may have to obtain multiple quotes to support its pricing.

I don't know. Maybe I'm missing something fundamental. I just seems so complicated to me. Can't we figure out how to streamline something that the commercial marketplace provides in abundance (even if in this case only two local firms can do the work)?

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I think you also need to consider the expected range of the cost of repairs.  If they are tearing apart heavy equipment, will any orders be expected to exceed $25K?  If so, the existence of a Part 13 BPA wouldn't necessarily alleviate the need for a synopsis. That may change your strategy. I'm not sure I wouldn't just go with a single-award IDIQ unless you think the volume is too much for these shops or your afraid you are going to get cheated on the individual repairs.

If your calls are on a T&M basis, many repair shops use an "hourly shop rate" and that could be used in forming the basis of your competition.  But, I wonder if you have enough work to justify making more than one award.  If it's price based (on the shop rate) why wouldn't the same firm win each individual call?  Do you expect a repair shop to bid a different (lower) rate each time you have a requirement? That seems like a lot of effort for a small purchase. If these are Mom and Pop type firms, they aren't likely set up to submit technical proposals so a best value/tradeoff probably isn't practical.

Just my thoughts...

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An IDIQ would mean I have a contract with rates and a  supporting price memorandum.

A BPA would mean I don't have a contract, but I do have some rates, some prices, etc.

For either we would have to negotiate a final price for each call/order.  

I am leaning towards competing a BPA for firms that do such work in our metro area.

The BPA could be our test baby, so that we can know more about what is available in the area.

Thoughts?

 

 

 

 

 

 

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In your market sector, is tear-down-and-quote free?  Or is it customary for a repair shop to charge for it?

If the latter, you could do a few BPAs that include fixed prices for different tear-down-and-quote possibilities, fixed prices for certain types of common repairs, and labor rates or shop rates for uncommon repairs.  When a repair need arises, pick one based on the tear-down-and-quote price and your own prior price and quality experience with the vendors  -- when you get the quote, if you like the quote, authorize the work to occur since the price is reasonable and that is the only source reasonably available (time constraints and so forth) -- if you don't like the quote, have the first vendor box up the item and you take it to another vendor for tear-down-and-quote and repeat the process.  I assuming that your purchases (calls) will be under the threshold for synopsis.

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I think that most of the repairs will end up being Not-to-Exceed (NTE) until the shop is able to completely breakdown the problem area.   Your description of getting the prices for common repairs, akin to scenario pricing, along with labor rates, makes sense, though it could get a bit tedious.

 

Has anyone tried rotating the awards?   that is, if there are three firms that are BPA holders, rotating the calls to the three firms?  I suggest three, because I think that is the likely number for our locale.    Thanks and regards, Dewey

 

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Maybe the labor rates can be at fixed unit prices in the BPA and parts can be reimbursed at cost plus an fixed administrative fee percentage in the BPA. You can issue blanket POs that vendors can draw down against at these fixed prices.

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it won't work for this one, at least at this time, it does not appear it would. However, we are going to stand up a BPA for crane repair, and I think your suggestion is ON POINT.  Thanks, Dale

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