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BOA cost estimate?

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#1 idio


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Posted 12 October 2011 - 02:52 PM

Here's the senario,

I'am setting up a BOA which will mostly include a large amount of commcercial items, and modified commercial items.

The quesiton being, what is required for the cost estimate? FAR 15.403-1 (3) makes me think it's not necessary, but is that for a BOA too? Also, since the exact requirements are not known, a cost estimate seems impossible. But, on the other hand the modifications to the commercial item would not meet the definition of commcerial, probably.

Or, would each individual order, not commercial, require a cost estimate.

Any direction?

#2 Vern Edwards

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Posted 12 October 2011 - 03:31 PM

You do not need a cost estimate for a BOA, because a BOA is not a contract and does not buy anything. A BOA is just a model set of terms for a contract, including an ordering procedure and a pricing formula. Each order is a contract and must be issued pursuant to FAR and the terms of the BOA.

#3 idio


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Posted 12 October 2011 - 04:02 PM

Thank you,

...and by pricing formula you mean?

Again, thanks.

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