M3.02.pdf

M3.02 EVALUATION OF OFFERS WHERE ALTERNATE ESCALATORS ARE USED (DLA ENERGY March 2021)

(a) FOR EVALUATION PURPOSES ONLY, when any offeror proposes alternate escalators as a basis for economic price adjustment for any line item, an evaluation factor will be applied to the Final Proposal Revision (FPR) prices for all offers on such line items. The evaluation factor will ensure that all offerors are evaluated on an equal basis by determining the offerors’ average prices for the full 12-month period preceding the base reference date.

(b) The offeror's margin (plus or minus) will be established as the difference between the FPR price and the base reference price for the posting or publication being used for each offer. The base reference price is the price in effect on the base reference date in the posting or publication being used for the offer. The margin will then be added to the 12-month average of the posting or publication used for that offer to determine the offeror’s evaluated price. The 12-month average will be calculated over the most recent complete 12-month period prior to the established reference date (i.e., if reference date is August 22, 2020, then the 12-month period would be August 2019 - July 2020).

M3.02 Formula:

FPR Price – Base Reference Price (BRP) = Margin

Margin + 12-Month Avg. = Offeror’s Evaluation Price

Example:

DLA Recommended Escalator

Alternate Escalator

BRP $ 1.00 BRP $ 1.10

12 month Average $ 1.50 12 month Average $ 1.58

FPR Price Margin (FPR Price – BRP) Evaluated Price (Margin + 12- Month Avg)

Offer Price A (using DLA Recommended Escalator) $1.11 $1.11 - $1.00 = $0.11 $0.11 + $1.50 = $1.61 Offer Price B (using Alternate Escalator) $1.12 $1.12 - $1.10 = $0.02 $0.02 + $1.58 = $1.60