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Price/Cost Eval required for SAP/Part 13???


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Hello - just trying to get a read on this. FAR 13.106-2(b)(1) states “… The procedures prescribed in parts 14 and 15 are not mandatory… (3) if using price and other factors, ensure that quotations or offers can be evaluated in an efficient way…”

 

The way I read this, it seems to state that a price or cost evaluation is not required when you doing something under Part 13. 

Has anyone had any experience in this?? Thanks

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I think that FAR 13.106-1(a)(2)(i) implies that price is a required evaluation factor when issuing a solicitation:

Quote

When soliciting quotations or offers, the contracting officer shall notify potential quoters or offerors of the basis on which award will be made (price alone or price and other factors, e.g., past performance and quality).

 

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4 hours ago, Linda1 said:

FAR 13.106-2(b)(1) states “… The procedures prescribed in parts 14 and 15 are not mandatory… (3) if using price and other factors, ensure that quotations or offers can be evaluated in an efficient way…”

The way I read this, it seems to state that a price or cost evaluation is not required when you doing something under Part 13.

This question is about regulatory interpretation so I encourage you to read Interpreting Regulations, Kevin M. Stack, 111 MICH. L. REV. 355 (2012). Available here.

Based on the guidance for regulatory interpretation, I stopped at the plain words and plain meaning of the imperative sentence. That is, keep simplified acquisitions - simple. This aligns with my perception of the regulatory purpose of FAR part 13 - implement the law streamlining how the government procures products and services. Keep SAP simple.

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18 hours ago, Linda1 said:

The way I read this, it seems to state that a price or cost evaluation is not required when you doing something under Part 13. 

Has anyone had any experience in this??

 A little different twist but I think I am saying the same thing as previous responses.   

Yes you do a price or cost evaluation for a procurement using Simplified Acquisition Procedures that are under the Simplified Acquisition Threshold for the purpose of determining prcie reasonablness.   That evaluation is a comparative evaluation to other costs or prices received from other quoters or offerors per the reference you have cited.  The exception is if you have stated something otherwise in the solicitation ( see FAR 13.106-2(a)(2).   

 

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If one is buying something for themself, they would normally do at least some “simple” form of “price analysis” to determine that the price is affordable and reasonable.

If one is a government professional buyer, it would seem obvious to me that they have a responsibility to their employer as well as them self and other taxpayers to perform at least some “simple” form of price analysis for purchases using simplified acquisition procedures. One shouldn’t have to dig through the regulations to determine if they have such a responsibility.

Even some form of cost analysis as “simple” as dividing the offered or quoted cost by an estimated number of hours to perform a service, then estimating the makeup of the price isn’t that hard to do.

If a buyer can’t do any of those “simple” procedures, then they are in the wrong occupation as far as I’m concerned.

It reminds me of a very recent thread in the Forum that addresses the order of acquisition procedures in the FAR, e.g., general requirements before specific requirements. Read the beginning of Nash and Cibinic books or the FAR for example. What are the basic responsibilities of government acquisition officials in the course of meeting the mission? 

During my career and lifetime, I’ve read books on successfully negotiating, which included the ideas that almost anything is negotiable. In one of my night school business law courses, I was taught that most listed prices are not set in stone and may well be negotiable if you bother to find someone in the company to negotiate with.

in many cultures, bargaining is the custom. One co-worker in my office in Saudi Arabia, who was Korean, once told me that Americans are too gullible and don’t bother negotiating, when almost any price is negotiable. 

For crying out loud, how hard is it to search for sample pricing on the Internet… seems “simple” enough to me. 

 

 

Edited by joel hoffman
Changed second person pronouns to third person.My comments aren’t directed at any specific person.
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1 hour ago, Jamaal Valentine said:

A price or cost evaluation factor is not always required. See FAR 13.106-1(a)(2)(iv). The subdivision is the original post seems to simply say keep SAP simple. Has not  SAT been

Details out of context?  Your assertion is only applicable if over the SAT by my read.  FAR 13.106(a)(2)(iv)((A)(1).  Has not under SAT been stipulated for this thread?

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49 minutes ago, C Culham said:

Details out of context?  Your assertion is only applicable if over the SAT by my read.  FAR 13.106(a)(2)(iv)((A)(1).  Has not under SAT been stipulated for this thread?

What thread? Where is under SAT mentioned in the original post?

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@joel hoffman,

Would you recommended evaluating prices on a multiple-award contract (e.g., multiple-award-task-order contract) for various construction services? Or is it generally preferable to price projects at the task-order level?

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Price construction projects at the task order level and include the first task in the competition for base award.

There is too much price/cost variation and market volatility to pre-price a variety of and/or multiple construction task orders for the same design.

I think that it is equally applicable to both single award and multiple award Indefinite Delivery/Indefinite Quantity, task order contracts.

Effective competition has been shown to produce reasonable pricing for construction task orders. The Army Corps of Engineers extensively used multiple award ID/IQ construction and design-build contracts, especially during the 50+ Billion dollar Army MILCON Transformation and Base Realignment and Closure Programs from around 2007-2016 era.

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3 hours ago, Jamaal Valentine said:

A price or cost evaluation factor is not always required. See FAR 13.106-1(a)(2)(iv). The subdivision in the original post seems to simply say keep SAP simple.

Would you say that is an exception to the rule?

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5 hours ago, C Culham said:

Details out of context?  Your assertion is only applicable if over the SAT by my read.  FAR 13.106(a)(2)(iv)((A)(1).  Has not under SAT been stipulated for this thread?

Thanks.  The OP did not, I did, should have clarified my post.  

A further read notes it is an exception only available to DOD, NASA and Coast Guard as further clarity on my part.

I will attempt better clarity in the future.

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@C Culham

 Collectively, we have given the OP some things to consider. This is one of the greatest benefits of Wifcon in my opinion. It’s a place to get varying opinions and perspectives. Juried information is some of the best information.

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Here is a link to a Naval Postgraduate School presentation concerning “Price Analysis on Commercial Item Purchases Within the Department of Defense”

It also specifically mentions the generality within FAR 13.1.

https://www.dair.nps.edu/bitstream/123456789/1180/1/SYM-AM-14-122.pdf

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