Chip14 Posted June 5, 2014 Report Share Posted June 5, 2014 My command is looking at doing a Multiple Award IDIQ solicitation under which we expect to utilze multiple contract type Task and Delivery orders (CPFF, CPFF/LOE, FFP/LOE & FFP). The Program Office is expecting to use Cost Reimbursable LOE Service Task Orders for Studies and Development requirements, and then Fixed Price Delivery Orders for Production Unit buys. We anticipate around 8 potential offerors at the IDIQ level and expect to succesfully downselect and award to 3 or 4 of these firms. The Government is looking at a minimum of around $2M and a maximum of $150M under the IDIQ. My question is what is the significance of "Cost" in a Multiple Award IDIQ downselect? I realize that under FAR 15.304 "Cost" must be evaluated but what is the significance of cost at the IDIQ level when the true competition on cost/price is not really established until the Task or Delivery Orders are competed from among the successful IDIQ awardees. Would like your thoughts... Link to comment Share on other sites More sharing options...
Don Mansfield Posted June 5, 2014 Report Share Posted June 5, 2014 When the pricing occurs at the task order level, there is not much significance in the evaluation of cost when awarding the IDIQ. It's done to comply with law. We operate under the legal fiction that the costs/prices proposed for these IDIQ contracts represent the amount the Government will actually pay. Link to comment Share on other sites More sharing options...
Chip14 Posted June 9, 2014 Author Report Share Posted June 9, 2014 What approach have you seen used to establish a significance to "Cost". On the fixed price issues you have something you can put in the contract with a financial cap that the Government can hang its hat on, but the cost venues you have nothing. Have you seen any approaches used to try and place a relationship on the contractor for his proposed costs to performance? Link to comment Share on other sites More sharing options...
here_2_help Posted June 9, 2014 Report Share Posted June 9, 2014 Chip14, I'm not Don but I have seen sample Task Orders used to evaluate both technical approach and price. In your case, perhaps one sample TO for studies and one for Production Units? Hope this helps. Link to comment Share on other sites More sharing options...
Guest Vern Edwards Posted June 9, 2014 Report Share Posted June 9, 2014 How many times has this question been asked and answered? I think Bob should set up a FAQ page. Link to comment Share on other sites More sharing options...
Don Mansfield Posted June 9, 2014 Report Share Posted June 9, 2014 What approach have you seen used to establish a significance to "Cost". On the fixed price issues you have something you can put in the contract with a financial cap that the Government can hang its hat on, but the cost venues you have nothing. Have you seen any approaches used to try and place a relationship on the contractor for his proposed costs to performance? I can think of a couple of things. You could cap the rates at the proposed rates (or within some fixed % of the proposed rates). Or, you could make the proposed fee (stated as a percentage of estimated cost) a maximum for pricing task orders. Link to comment Share on other sites More sharing options...
Chip14 Posted July 22, 2014 Author Report Share Posted July 22, 2014 Vern or Bob - If this has been asked and answered numerous times could you please direct me to those prior responses? Thank you! Link to comment Share on other sites More sharing options...
mm6ch Posted July 23, 2014 Report Share Posted July 23, 2014 google: "wifcon IDIQ price evaluation" (hat tip to Bob for his "Try This Search Procedure" post) 1. http://www.wifcon.com/discussion/index.php?/topic/1881-price-evaluation-of-idiq-contract/ 2. http://www.wifcon.com/discussion/index.php?/topic/747-use-of-illustrative-task-orders-for-pricecost-analysis/ Link to comment Share on other sites More sharing options...
joel hoffman Posted July 23, 2014 Report Share Posted July 23, 2014 What approach have you seen used to establish a significance to "Cost". On the fixed price issues you have something you can put in the contract with a financial cap that the Government can hang its hat on, but the cost venues you have nothing. Have you seen any approaches used to try and place a relationship on the contractor for his proposed costs to performance? Is this a generic question or are you asking concerning some specific ID/IQ type or scope? It might depend upon the type of product or service that would be the scope of task orders and the extent of geographical area covered by the ID/IQ. When using an ID/IQ for construction, for instance, there are so many job specific variables that it is not practical or prudent (in my opinion) to tie down prices for future tasks in the base pool award. However, this is often possible (at least for capped unit prices) in many types of service or supply multiple award task order contracts. As stated in the links above, the GAO has consistently held that the use of sample task orders is not a valid method of meaningful price competition unless the proposers would be bound to perform at those prices. My organization has done that in the initial base pool awards using a "seed task". The seek task is awarded to one firm as the first task order at the same time as making award to that and other firms for inclusion in the base contract pool or pools. At any rate, mm6ch has identified two threads that likely covered your questions. Is your question specific to a cost reimbursement type ID/IQ? Link to comment Share on other sites More sharing options...
.gif)
Recommended Posts