Addendum FAR 52.212-2 Evaluation--Commercial Items.pdf

Addendum to FAR 52.212-2 -- Evaluation – Commercial Items

1.0 Basis for Contract Award:

This acquisition will be conducted under the procedures of FAR Part 12 -- Commercial Items and FAR Part 13 -- Simplified Acquisition Procedures. This acquisition will utilize price as the only evaluated factor. Award will be made to the vendor with the lowest total evaluated price (TEP) and whose quotation conforms to the solicitation requirements (to include all stated terms, conditions, representations, and certifications). The Government intends to award without interchanges. However, the Government reserves the right to conduct interchanges if determined necessary by the Contracting Officer (ref. FAR 52.212-2 Addendum, section 1.3).

1.1 Solicitation Requirements (Terms and Conditions)

Vendors are required to meet all solicitation requirements, such as terms and conditions, representations and certifications, and Performance Work Statement requirements, in addition to the price factor. Failure to comply with the terms and conditions of the solicitation may result in the vendor being ineligible for award. Vendors must clearly identify any exception to the solicitation terms and conditions and must provide complete supporting rationale. The Government reserves the right to determine any such exceptions unacceptable, and the quotation, therefore, ineligible for award.

1.2 Number of Contracts to be Awarded:

The Government intends to select one contractor for this acquisition. However, the Government reserves the right not to award a contract at all, depending on the quality of the quotation, prices submitted, and the availability of funds.

1.3 Interchanges

In accordance with FAR 1.102-2(c)(3) the Government shall exercise discretion, use sound business judgement, and comply with applicable laws and regulations during the course of this acquisition. The Government intends to award without interchanges, but reserves the right to conduct interchanges if necessary. Therefore, it is imperative that vendors submit their best terms initially. If during the evaluation of quotations it is determined to be in the best interest of the Government to conduct interchanges, the Contracting Officer may conduct interchanges with one, some, or all vendors before issuing any purchase order.

Interchanges are information sharing between the Government and vendors after receipt of quotations which can be conducted to address any aspect of the quotation. Interchanges may be oral or written. Written interchanges take the form of Interchange Notices (IN)s. INs are used to accurately capture contemporaneous sharing of information. If interchanges are conducted, the Government may request final quotation revisions at the conclusion of interchanges.

2.0 Evaluation Factor:

The Government will evaluate for conformance concurrently for the three (3) lowest priced proposals. Should one of those three (3) proposals not be conforming to the solicitation, the next one (1) lowest priced offeror will be reviewed for conformance. Then, price will be evaluated and the proposals will be listed from lowest to highest price based on the total evaluated price either initially or as a result of discussions.

Award will be made to the lowest evaluated priced proposal meeting the acceptability standards for the non-cost factors.

2.1. Factor 1 – Price

Price quotations will be evaluated as follows:

2.1.1 Completeness

Quotations will be reviewed for completeness. Incomplete quotes will be considered ineligible for award.

2.1.2 Price Reasonableness

The proposed prices will be evaluated for reasonableness. Reasonableness must represent a price to the Government a prudent person would pay in the conduct of competitive business.

Normally, price reasonableness is established through adequate price competition, but may also be determined through price analysis techniques as described in FAR 15.404-1(b)(2).

2.1.3 Price Realism

The Government intends to determine price realism based on adequate price competition. In the event the Government cannot determine price realism based on adequate price competition, the Government reserves the right to conduct a more detailed price realism evaluation using one or more of the price analysis techniques described in FAR 15.404-1(b)(2). The Government may also use other evaluation techniques, as needed. To be realistic, the proposed price must demonstrate an adequate understanding of the requirement. Quoted prices that are determined to be unrealistically low due to an inadequate understanding of the requirement will make the quotation ineligible for award.

2.1.4 Unbalanced Pricing

Vendors’ quotations will be reviewed for unbalanced pricing. The Government will evaluate any supporting information provided by the vendor explaining variances that appear unbalanced.

Evaluated quotes that are determined to be unbalanced may be deemed ineligible for award by the Contracting Officer if a determination is made that lack of balance poses an unacceptable risk to the Government. Unbalanced pricing exists when, despite an acceptable total price, the price of one or more line items (including sub line items) is significantly over or understated as demonstrated by application of price analysis techniques, such that:

a) There is reasonable doubt the quote would result in the lowest overall cost to the

Government, even though it is the lowest priced quote; or

b) The quote is so grossly unbalanced; its acceptance would be tantamount to allowing an advanced payment.

2.1.5 Total Evaluated Price (TEP)

The TEP will be calculated as the sum of the total proposed prices for all separately priced line items (including sub line items). The total proposed price for each separately priced line item shall be calculated as the proposed unit price multiplied by the corresponding quantity

The total proposed price for all options will be added to the total proposed price for the basic requirement as a part of the TEP calculation.

The TEP will be used for evaluation purposes only. Evaluation of options shall not obligate the Government to exercise such options.

The TEP will be calculated as the sum of the vendor’s proposed prices for the base period and all option periods.

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