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Showing results for tags 'discounts'.
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Hello Everyone, Given the general acquisition climate and the concentration on contract value reduction through ceiling reductions and descoping, does it 1) make sense to simply ask our service contractors to propose volunteered discounts, and 2) is there anything in the regulations prohibiting just asking? I've found very little discussion on the topic other than a post from 25 years on none other than this site, https://www.wifcon.com/arc/forum527.htm and thought I'd recirculate a similar question. Thank you! -
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?