Updated_Ordering_Procedures.pdf

FAIR OPPORTUNITY ORDERING PROCEDURES

AWARDING ORDERS UNDER MULTIPLE AWARD CONTRACTS

A) All future delivery orders will be placed in accordance with these ordering procedures.

Split percentages will be awarded based on the proposed total per NSN or CLIN amount, with the exception that CLINs for any FMS countries will be grouped together per country.

Contractors shall submit a response to a request for order proposal (RFOP) per order to be considered for that award. The split percentages identified below will be effective for all delivery orders against the basic contract throughout all ordering periods of the contract. The total dollar amount of future delivery orders will be based on the available budget at the time each delivery order is placed.

B) All multiple award contractors will be provided a fair opportunity to be considered for each order in excess of $3,500 pursuant to these procedures and in accordance with FAR

16.505(b)(1), unless the contracting office determines that one of the exceptions at FAR

16.505(b)(2) applies.

C) The basis for the split award amounts on future delivery orders will be difference between contractor quotes per CLIN/ NSN amount as described in the following:

a. In the event three offers are submitted in response to a RFOP, the lowest

NSN/CLIN amount offer (#1) will be awarded 51% of the overall order award with the remainder being split between offeror #2 and #3. The split in this situation will be based upon the percent difference in NSN/CLIN amount between offeror #2 and #3 and are delineated in Table 1.

Difference in CLIN/NSN Amount*

Split

<5% 55% 45%

≤5%__<10% 60% 40%

≤10%__<15% 65% 35%

≤15%__<20% 70% 30%

≤20%__<25% 75% 25%

≤25%__≤40% 85% 15%

>40% 100% 0%

Table 1: Split of remaining 49% (only applicable if three offers received)

Three Offer Example:

Offeror #1 NSN/CLIN amount: $1,000 Offeror #2 NSN/CLIN amount: $1,100 Offeror #3 NSN/CLIN amount: $1,199

Offeror #1 is the lowest and therefore receives 51% of the overall order amount.

The remaining 49% is split according to Table 1. The difference in NSN/ CLIN amount between offeror #2 and #3 is 9% (($1199-$1100)/$1100*100) which would result in a 60/40 (see Table 1) split with offeror #2 receiving 60% of the remaining budgeted dollars and offeror #3 receiving 40% of the remaining budgeted dollars.

In this example, if the total budgeted dollars equals $1,000,000, the order amounts would be as follows:

Offeror #1: $510,000 Offeror #2: $294,000 Offeror #3: $196,000

*NOTE: Percent difference in NSN/ CLIN amount is determined as follows: ((next lowest price - lowest price)/lowest price)*100. Percent difference in NSN/ CLIN amount will be rounded to the nearest whole number.

b. In the event two offers are submitted in response to a RFOP, the split order award amounts will be based on the percent difference in NSN/ CLIN amount between the two, as illustrated in Table 2 below.

Difference in NSN/CLIN amount

Split

<6% 55% 45%

≤6%__<15% 60% 40%

≤15%__<20% 65% 35%

≤20%__<30% 70% 30%

≤30%__<35% 75% 25%

≤35%__≤40% 85% 15%

>40% 100% 0%

Table 2: Split of award if two offers received

Two Offer Example:

Offeror #1 NSN/CLIN amount: $1,150 Offeror #2 NSN/CLIN amount: $1,000

The difference in NSN/CLIN amount between offeror #1 and offeror #2 is 15% (($1150-$1000)/$1000*100) which would result in a 65/35 (see Table 2) split with offeror #1 receiving 65% of the total budgeted dollars and offeror #2 receiving 35% of the total budgeted dollars. In this example, if the total budgeted dollars equals $1,000,000, the order amounts would be as follows:

Offeror #1: $650,000 Offeror #2: $350,000

*NOTE: Percent difference in NSN/CLIN amount is determined as follows: ((next lowest price - lowest price)/lowest price)*100. Percent difference in NSN/CLIN amount will be rounded to the nearest whole number.

c. In the event only one offer is submitted in response to a RFOP, the procuring contracting officer (PCO) will, at his or her discretion, extend the response time on the RFOP, issue a new RFOP, or conduct negotiations in accordance with FAR 15 with the sole offeror.

d. If there is a situation where both contractors quoted or proposed the same prices, awards will be made using a 50/50 split. In the event that the above happens and there is an odd number of required units either due to the total number of assets or due to FMS requirements needing to all go to one source per country, the contracting officer or buyer will request that the contractors submit their best and final offer.

D) Performance can be authorized under this contract only by issuing individual orders signed by the PCO. Order modifications thereto may be issued only by the PCO or by the administrative contracting officer (ACO).

E) Orders shall be issued by the PCO in writing and shall be dated and numbered. Orders will set forth as applicable (1) the supplies, data, or other items being ordered and include attachments, (2) the quantities to be furnished, (3) delivery dates, (4) packing and shipping instructions, and (5) funds obligated. An order is considered “issued” when the government signs by hand or electronically distributes the order into the Electronic

Document Access (EDA) System. The issued order will then be electronically delivered to the contractor’s representative via email or AMRDEC SAFE.

F) These ordering procedures do not guarantee the contractor issuance of any delivery order above the minimum award amount guarantee for this contract.

G) In the event only one adequate offer is submitted in response to this five year IDIQ

Request for Proposal (RFP), The Government reserves the right, at the PCO’s discretion to extend the response time on the RFP, issue a new RFP, or conduct negotiations in accordance with FAR 15 with the sole offeror and award the Basic IDIQ as a single award IDIQ with a set Section B Schedule and award the basic IDIQ to the sole offer.