Frequently Asked Questions

Legal Corner
  1. What should be done about documenting a best value selection?
  2. Where a contractor submits a drastically higher price, can the agency ask that one contractor to look at its quotation and revise it?
  3. Does the Economy Act apply to agencies' use of the GSA Multiple Award Schedules Program?
  4. Can a company that does not hold a Schedule contract protest an agency's determination to conduct a limited competition among Federal Supply Schedule contractors for an order?
Legal Corner
  1. What should be done about documenting a best value selection?

    The terms "best value" and "lowest overall cost alternative" are not mutually exclusive. A best value analysis lends itself to determining the "lowest cost alternative." Best value procurements involve tradeoffs between cost and technical. For example, if one vendor offers a high end computer at a higher price, while another vendor offers a lower end computer at a lower price, the higher price computer may, in fact, be the best value and result in the lowest overall costs to the agency, if the greater computing power of the high end computer increases the efficiency of the agency's operations, thereby saving the agency money when compared to the capability of the lower end, lower priced computer. The agency should document its files to demonstrate that its evaluation of vendors' responses to a Request for Quotation (RFQ) was reasonable and in accordance with the criteria outlined in the RFQ. There is no legal requirement that the agency somehow quantify any cost/technical tradeoffs in dollars. An agency should use whatever evaluation approach (e.g., narrative, quantification) best suits its needs, while at the same time being sensitive to the streamlined nature of the Federal Supply Schedules process. For example, agencies can use narrative explanations or cost/technical tradeoffs so long as the evaluation is reasonable and consistent with the criteria identified in the RFQ.

  2. Where a contractor submits a drastically higher price, can the agency ask that one contractor to look at its quotation and revise it?

    No. While an agency may solicit additional clarifying information from only one contractor without affording another Federal Supply Schedule contractor the same opportunity, the agency may not engage in "defacto discussions" with only one Schedule contractor.

    The critical distinction in determining whether an agency has held "discussions" is the nature of the discourse with the contractors. Clearly, agencies can seek additional clarifying information from only one contractor regarding its contract schedule of items and terms and conditions as part of the Request for Quotation (RFQ) process (See Intelligent Decisions Inc., B-274626.2, December 23, 1996, 97-1 CPD 19; ViON Corporation, B-283804.2, January 24, 2000). However, an agency runs a significant risk of protest if it uses an RFQ with evaluation criteria that allows one contractor to make material revisions to its quotation without affording the same opportunity to other contractors submitting quotations.

  3. Does the Economy Act apply to agencies' use of the GSA Multiple Award Schedules Program?

    No. The Economy Act, 31 U.S.C. 1535, applies to the interagency acquisition of goods and services absent more specific statutory authority.

    GSA provides goods and services to federal agencies pursuant to specific statutory authority other than the Economy Act. Examples of interagency acquisitions to which the Economy Act does not apply include acquisitions from required sources of supply prescribed in Federal Acquisition Regulation (FAR) Part 8, which have separate statutory authority. See FAR 17.500(b). Section 201 of the Federal Property and Administrative Services Act of 1949, (the Property Act), authorizes GSA to procure and supply personal property and nonpersonal services for the use of executive agencies. See 40 U.S.C. 481(a)(3). Further, Section 309 of the Property Act, 41 U.S.C. 259(b)(3), specifically authorizes GSA's Multiple Award Schedules Program. Thus, since the GSA Multiple Award Schedules Program is specifically authorized by statute, the Economy Act does not apply to agencies' use of the program.

  4. Can a company that does not hold a Schedule contract protest an agency's determination to conduct a limited competition among Federal Supply Schedule contractors for an order?

    No. GAO has held that a protester who does not have a Federal Supply Schedule contract is not an interested party to challenge an agency's determination as to the agency's minimum needs and its decision to conduct a limited competition among Schedule contractors for a particular order. See Sales Resources Consultants, Inc., B-284943; B-284943.2, June 9, 2000, 2000 CPD.

    Section 259(b)(3) of title 41 of the United States Code provides that the procedures established under GSA's Multiple Award Schedules Program satisfy the general requirement in 41 U.S.C. 253(a)(1) for the use of competitive procedures if:

    (A) participation in the program has been open to all responsible sources; and (B) orders and contracts under such procedures result in the lowest cost alternative to meet the needs of the government.

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