125-055-0030 Determination of Price (1) Under ORS 279.845(1)(a), the Department will determine the Price of Oregon Forward products and services placed on the Procurement List. (2) The Price determined by the Department will be a reasonable and adequate Price that will recover for the OFC the cost of: (a) Raw materials; (b) Labor; (c) Overhead that can be allocated to the particular product or service for which the Price determination is being made, including the actual, reasonable costs of complying with the independent audit requirements of OAR 125-055-0035; (d) Delivery costs, which include the transportation of a product to the site designated by the Agency or the transportation of workers to and from a site at which they will perform services for a customer; and (e) An amount held in reserve for inventory and equipment replacement. (3) The OFC must submit its proposed Price to the Department based on the volume or scope of the work and specifications acceptable to the Agency. The Department reserves the right to review and amend a Price determination in light of reductions in or additions to the number of Agencies served under a multiple agency contract. (a) In submitting its proposed Price, the OFC must make full disclosure of known costs. The disclosure must include documentation on a form prescribed by the Department. The Department may require additional information. The disclosed costs must reflect a Price that will permit the OFC to recover the amounts prescribed in subsection (2) and ORS 279.845(1)(a). (b) If the OFC and the Agency agree on the terms and conditions of a proposed contract and the Price for the products or services to be provided under the proposed contract, the OFC and the Agency must present the proposed contract (including the agreed Price) to the Department for review and a determination of the Price. (4) Based on the volume or proposed scope of work and the costs disclosed by the OFC under subsection (3), the Department will determine a Price for the products or services offered under the proposed contract. Based on the disclosed costs, the Department will determine a Price to be reasonable and adequate to permit the OFC to recover the amounts prescribed in subsection (2). The Department will notify the OFC and the Agency of the Price. (5) In determining a reasonable and adequate Price of a product or service, the Department may consider: (a) Prices of similar products or services purchased in comparable quantities by federal agencies under the Javits-Wagner-O'Day Act, 41 USC §§ 46 to 48c; (b) Prices of products or services of similar specifications and quantities previously purchased by Agencies from responsible contractors engaged in the business of selling similar products or services; (c) Prices that private businesses pay for similar products or services in similar quantities of comparable scope and specifications if purchasing from a reputable vendor engaged in the business of selling similar products or services; and (d) Prices of products or services of similar specifications and quantities purchased by Agencies from other OFCs. (6) OFCs and Agencies may not execute or implement any contract under the Oregon Forward Program until the Department has transmitted its notice of the Price determination. (7) Re-determination of Price. The Department may re-determine a Price at the request of an OFC, an Agency or at the discretion of the Department. Until the Department approves a new Price, the OFC must continue to provide the service or product at the existing Price. The Agency may not pay or agree to pay the OFC any amount other than the Price approved by the Department. The Department reserves the right to suspend the Price and set an interim Price. This re-determination may trigger a review of the suitability determination for the affected product or service under OAR 125-055-0025. (a) In re-determining Price, the Department may consider the factors in subsections (2) and (3). The Department also may take into consideration changes that have taken place since the last Price determination that are pertinent to re-determining Price. (b) Each re-determination of Price shall be based on changes in the scope of work, changes in the costs of producing the product or performing the service, or both. If the proposed re-determination is based on changes in OFC cost factors, the OFC must submit to the Department and the Agency a request for a Price change showing a breakdown of cost changes with appropriate documentation, as requested by the Department or Agency. (c) Agencies and OFCs may not make material changes to the specifications of a contract entered into under the Oregon Forward Program unless the changes are in writing and have been submitted to the Department for a re-determination of Price. (d) The Agency and OFC, in order to assist the Department in Price re-determinations, must submit to the Department the specific changes in the scope of work or other conditions which will be required during the contract period. (e) The OFC must submit a Price recommendation to the Agency and the Department for review and re-determination of Price as described in subsection (3). Statutory/Other Authority: ORS 279.845(1) & 184.340 Statutes/Other Implemented: ORS 279.015(1)(b) & 279.835 - 279.855 History: DAS 6-2020, amend filed 11/30/2020, effective 12/01/2020 DAS 3-2020, temporary amend filed 09/22/2020, effective 09/22/2020 through 03/20/2021 DAS 3-2010, f. & cert. ef. 10-8-10 DAS 8-2005, f. & cert. ef. 6-21-05 DAS 6-2004(Temp), f. & cert. ef. 12-28-04 thru 6-24-05 DAS 4-2003, f. & cert. ef. 9-8-03