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FAR 8.405-4 says we may request a price reduction at any time before placing an order. I'm wondering about the opinion of WIFCON readers on requesting a price reduction to a specific price. For example, imagine I receive three quotes at $101,000, $100,000, and $99,000, all three with a perfect and identical level of effort and skill mix and all three at reasonable prices, in comparison to my government estimate and available budget of $98,000. I already know I may ask all quoters for non-specific price reductions and cross my fingers and hope that at least one comes back at $98,000 or lower. But here is the question: May I specifically ask the contractors for a price reduction to an amount not exceeding a specific dollar figure, here $98,000? I am aware of a 2009 GAO Bid Protest decision B-400777, OPTIMUS Corp., wherein the GAO clearly tells us that seeking a price reduction under FAR 8.405-4 from all quoters does not constitute discussions pursuant to FAR Subpart 15.3, and also a 2015 decision B-410636, Sapient Government Services, wherein the GAO tells us the same thing. Your thoughts?
I work for a wholesale company that is considering applying for a GSA contract. The most favored customer clause in the schedule is a major concern for us because we have recently (last 6 months) begun selling products to a very small group of local customers at a significantly higher (30% higher) discount than our standard in an effort to help stimulate our local economy and specifically local small businesses. The sales to these customers represent less than 10% of our sales. Because we have now sold products at the steeper discount, does that mean that we must give at least the same discount as part of our GSA offer? If yes, could we immediately discontinue offering our products at that discount to avoid listing them as our most favored customer? What historical time frame does GSA consider at in reference to MFC? Thank you for your help!