(a) Example 1. ----------------------------------------------------------------------------------------------------------------
Offers
Item --------------------------------------------------------------------------
A B C----------------------------------------------------------------------------------------------------------------1.................................... DO = $55,000 EL = $56,000 NEL = $50,0002.................................... NEL = 13,000 EL = 10,000 EL = 13,0003.................................... NEL = 11,500 DO = 12,000 DO = 10,0004.................................... NEL = 24,000 EL = 28,000 NEL = 22,0005.................................... DO = 18,000 NEL = 10,000 DO = 14,000
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121,500 116,000 109,000----------------------------------------------------------------------------------------------------------------Key: DO = Domestic end product; EL = Eligible product; NEL = Noneligible product.
Problem: Offeror C specifies all-or-none award. Assume all offerors are large businesses. The acquisition is not covered by the WTO GPA . Analysis: (see 25.503)
STEP 1: Evaluate Offers A & B before considering Offer C and determine which offer has the lowest evaluated cost for each line item (the tentative award pattern):
Item 1: Low offer A is domestic; select A.
Item 2: Low offer B is eligible; do not apply factor; select B.
Item 3: Low offer A is noneligible and Offer B is a domestic offer. Apply a 6 percent factor to Offer A. The evaluated price of Offer A is higher than Offer B; select B.
Item 4: Low offer A is noneligible. Since neither offer is a domestic offer, no evaluation factor applies; select A.
Item 5: Low offer B is noneligible; apply a 6 percent factor to Offer B. Offer A is still higher than Offer B; select B.
STEP 2: Evaluate Offer C against the tentative award pattern for Offers A and B: ----------------------------------------------------------------------------------------------------------------
Offers
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Item Tentative award pattern
Low offer from A and B C----------------------------------------------------------------------------------------------------------------1.................................... A DO = $55,000 * NEL = $53,0002.................................... B EL = 10,000 EL = 13,0003.................................... B DO = 12,000 DO = 10,0004.................................... A NEL = 24,000 NEL = 22,0005.................................... B *NEL = 10,600 DO = 14,000
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111,600 112,000----------------------------------------------------------------------------------------------------------------* Offer + 6 percent.
On a line item basis, apply a factor to any noneligible offer if the other offer for that line item is domestic.
For Item 1, apply a factor to Offer C because Offer A is domestic and the acquisition was not covered by the WTO GPA . The evaluated price of Offer C, Item 1, becomes $53,000 ($50,000 plus 6 percent). Apply a factor to Offer B, Item 5, because it is a noneligible product and Offer C is domestic. The evaluated price of Offer B is $10,600 ($10,000 plus 6 percent). Evaluate the remaining items without applying a factor.
STEP 3: The tentative unrestricted award pattern from Offers A and B is lower than the evaluated price of Offer C. Award the combination of Offers A and B. Note that if Offer C had not specified all-or-none award, award would be made on Offer C for line items 1, 3, and 4, totaling an award of $82,000.
(b) Example 2. ----------------------------------------------------------------------------------------------------------------
Offers
Item --------------------------------------------------------------------------
A B C----------------------------------------------------------------------------------------------------------------1.................................... DO = $50,000 EL = $50,500 NEL = $50,0002.................................... NEL = 10,300 NEL = 10,000 EL = 10,2003.................................... EL = 20,400 EL = 21,000 NEL = 20,2004.................................... DO = 10,500 DO = 10,300 DO = 10,400
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91,200 91,800 90,800----------------------------------------------------------------------------------------------------------------
Problem: The solicitation specifies award on a group basis. Assume the Buy American statute applies and the acquisition cannot be set aside for small business concerns. All offerors are large businesses.
Analysis: (see 25.503(c))
STEP 1: Determine which of the offers are domestic (see 25.503(c)(1)): ------------------------------------------------------------------------
Domestic [percent] Determination------------------------------------------------------------------------
A 60,500/91,200 = 66.3%............ Domestic
B 10,300/91,800 = 11.2%............ Foreign
C 10,400/90,800 = 11.5%............ Foreign------------------------------------------------------------------------
STEP 2: Determine whether foreign offers are eligible or noneligible offers (see 25.503(c)(2)): ------------------------------------------------------------------------
Domestic + eligible [percent] Determination------------------------------------------------------------------------
A N/A.............................. Domestic
B 81,800/91,800 = 89.1%............ Eligible
C 20,600/90,800 = 22.7%............ Noneligible------------------------------------------------------------------------
STEP 3: Determine whether to apply an evaluation factor (see 25.503(c)(3)). The low offer (Offer C) is a foreign offer. There is no eligible offer lower than the domestic offer. Therefore, apply the factor to the low offer. Addition of the 6 percent factor (use 12 percent if Offer A is a small business) to Offer C yields an evaluated price of $96,248 ($90,800 + 6 percent). Award on Offer A (see 25.502(c)(4)(ii)). Note that, if Offer A were greater than Offer B, an evaluation factor would not be applied and award would be on Offer C (see 25.502(c)(3)). [64 FR 72419, Dec. 27, 1999; 65 FR 4633, Jan. 31, 2000; 69 FR 77875, Dec. 28, 2004; 79 FR 24209, Apr. 29, 2014]
Subpart 25.6_ American Recovery and Reinvestment Act_Buy American
Statute_Construction Materials
Source: 74 FR 14626, Mar. 31, 2009, unless otherwise noted.