Ask A Question
Before submitting a question, please…
- Use the menu on the left to review the questions that have been previously asked and answered.
- Search the Ask A Professor library by typing your question into the text box at the top of this (or any) page and clicking the Search button.
- After all that, if you’re sure no one has already asked and answered your question, then…
|
|
|
|
|
Question and Answer Detail
| |
|
Title - Multiple Award BOA using Sealed Bid?
Question -
Does the FAR prohibit competing a BOA using Sealed Bid competition procedures? Additionally, can a single BOA be written for multiple holders pursuant to FAR 52.214-22 with each CNH delineated as a different line item number?
With the original agreement having been competed, IAW FAR 16.703(d)(1)(ii) subsequent orders would have already satisfied competition requirements allowing the veteran freedom to choose any facility.
Scenario -
Procurement for Community Nursing Home (CNH) services. VHA (Veterans Health Administration) currently writes BOA's with every available State inspected CNH in a given geographic region IAW 38 U.S.C. 1703(a). The need is to have a facility readily available within proximity of where an eligible veteran may reside, allowing them the choice of where they receive care. Technical qualifications are certified by the state and reimbursement rates are also state approved. Selection criteria at the time an order is issued is based on the location of a facility which is a price related factor IAW FAR 14.201-8(a).
Posted - 8/16/2012 3:19:00 PM
Subject Area - Contracting - Source Selection
|
|
| |
|
1. The FAR references quoted below in pertinent part are applicable to this response.
FAR 6.401 -- Sealed Bidding and Competitive Proposals
(a) Sealed bids. (See Part 14 for procedures.) Contracting officers shall solicit sealed bids if --
(1) Time permits the solicitation, submission, and evaluation of sealed bids;
(2) The award will be made on the basis of price and other price-related factors;
(3) It is not necessary to conduct discussions with the responding offerors about their bids; and
(4) There is a reasonable expectation of receiving more than one sealed bid.
FAR 14.101 -- Elements of Sealed Bidding
Sealed bidding is a method of contracting that employs competitive bids, public opening of bids, and awards. The following steps are involved:
(e) Contract award. After bids are publicly opened, an award will be made with reasonable promptness to that responsible bidder whose bid, conforming to the invitation for bids, will be most advantageous to the Government, considering only price and the price-related factors included in the invitation.
FAR 15.101-2 -- Lowest Price Technically Acceptable Source Selection Process
(a) The lowest price technically acceptable source selection process is appropriate when best value is expected to result from selection of the technically acceptable proposal with the lowest evaluated price.
(b) When using the lowest price technically acceptable process, the following apply:
(1) The evaluation factors and significant subfactors that establish the requirements of acceptability shall be set forth in the solicitation. Solicitations shall specify that award will be made on the basis of the lowest evaluated price of proposals meeting or exceeding the acceptability standards for non-cost factors.
(2) Tradeoffs are not permitted
(3) Proposals are evaluated for acceptability but not ranked using the non-cost/price factors.
(4) Exchanges [with offerors] may occur
FAR Subpart 16.5 -- Indefinite-Delivery Contracts
FAR 16.500 -- Scope of Subpart
(a) This subpart prescribes policies and procedures for making awards of indefinite-delivery contracts and establishes a preference for making multiple awards of indefinite-quantity contracts.
FAR 16.504 -- Indefinite-Quantity Contracts
(a) Description. An indefinite-quantity contract provides for an indefinite quantity, within stated limits, of supplies or services during a fixed period. The Government places orders for individual requirements. Quantity limits may be stated as number of units or as dollar values.
(b) Application. Contracting officers may use an indefinite-quantity contract when the Government cannot predetermine, above a specified minimum, the precise quantities of supplies or services that the Government will require during the contract period, and it is inadvisable for the Government to commit itself for more than a minimum quantity. The contracting officer should use an indefinite-quantity contract only when a recurring need is anticipated.
(c) Multiple award preference—
(1) Planning the acquisition. (i) Except for indefinite-quantity contracts for advisory and assistance services as provided in paragraph (c)(2) of this section, the contracting officer must, to the maximum extent practicable, give preference to making multiple awards of indefinite-quantity contracts under a single solicitation for the same or similar supplies or services to two or more sources.
FAR 16.703 -- Basic Ordering Agreements
(a) Description. A basic ordering agreement is a written instrument of understanding, negotiated between an agency, contracting activity, or contracting office and a contractor, that contains
(1) terms and clauses applying to future contracts (orders) between the parties during its term,
(2) a description, as specific as practicable, of supplies or services to be provided, and
(3) methods for pricing, issuing, and delivering future orders under the basic ordering agreement. A basic ordering agreement is not a contract.
2. As indicated in FAR 14.101, sealed bidding is a “method of contracting”. Pursuant to FAR 16.703(a)(3) as stated above, a basic ordering agreement is not a contract. Therefore, sealed bidding is not an appropriate method authorized by the FAR for executing Basic Ordering Agreements. Furthermore, in accordance with FAR 16.703(a), a BOA is executed between the contracting office and a single contractor. Therefore, we believe that a single BOA document cannot be executed by the contracting office with multiple holders.
3. However, based on the information provided in this inquiry, we believe that the contracting office may wish to consider the use of multiple award, indefinite delivery/indefinite quantity (IDIQ) contracts in accordance with FAR 16.504 for this acquisition. Under this approach, all of the IDIQ contracts could delineate each CCH as different, separately-priced line item numbers. Additionally, sealed bidding procedures under FAR Part 14 could be also used to achieve competitive pricing for each CCH. However, pursuant to both FAR 6.401(a) and FAR 14.101(e), sealed bidding can only be used if award will be made on the basis of price and price related factors only. Additionally, discussions with any of the offerors would be prohibited under these procedures. Therefore, if more flexibility is needed, especially if discussions must be conducted with each offeror prior to contract awards, then the contracting office may wish to consider the use of Lowest Price Technically Acceptable (LPTA) negotiation procedures in accordance with FAR 15.101-2 in awarding the multiple award IDIQ contracts.
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
|
|
|
|
|
|
Warnings and Disclaimers
DISCLAIMER: The information contained with�in this server is not official United States Government policy and cannot be construed as official in any way.
NOTICE: Unauthorized attempts to upload information or change information on this service are strictly prohibited and may be punishable under the Computer Fraud and Abuse Act of 1986. All information contained within this server is considered public information and may be distributed or copied. Anyone using this system consents to monitoring of this use by system or security personnel.
DISCLAIMER OF LIABILITY: With respect to documents available from this server, the United States Government nor any of their employees, makes any warranty, express or implied, including the warranties of merchantability and fitness for a particular purpose, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights.
DISCLAIMER OF ENDORSEMENT:
Reference herein to any specific commercial products, process, or service by trade name, trademark, manufacturer, or otherwise, does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government. The views and opinions of authors expresses herein do not necessarily state or reflect those of the United States Government, and shall not be used for advertising or product endorsement purposes.
|
|