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<html lang="en"><head><meta http-equiv="Content-Type" content="text/html; charset=UTF-8"><meta charset="UTF-8"><meta name="copyright" content="(C) Copyright 2023"><meta name="DC.rights.owner" content="(C) Copyright 2023"><meta name="DC.Type" content="concept"><meta name="DC.Relation" scheme="URI" content="13.106.html"><meta name="DC.Format" content="XHTML"><meta name="DC.Identifier" content="FAR_13_106_3"><link rel="stylesheet" type="text/css" href="commonltr.css"><link rel="stylesheet" type="text/css" href="gsa-base.css"><title>13.106-3 Award and documentation.</title></head><body><main role="main"><article role="article" aria-labelledby="ariaid-title1"> |
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<article class="nested0" aria-labelledby="ariaid-title1" id="FAR_13_106_3"> |
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<h1 class="title topictitle1" id="ariaid-title1"> |
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<span class="ph autonumber">13.106-3</span> Award and documentation.</h1> |
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<div class="body conbody"> |
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<p class=" ListL1" id="FAR_13_106_3__d764e10"> |
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<span class="ph autonumber">(a)</span> |
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<em class="ph i">Basis for award.</em> Before |
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making award, the contracting officer must determine that the proposed |
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price is fair and reasonable.</p> |
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<p class=" ListL2" id="FAR_13_106_3__d764e18"> |
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<span class="ph autonumber">(1)</span> Whenever possible, |
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base price reasonableness on competitive quotations or offers.</p> |
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<p class=" ListL2" id="FAR_13_106_3__d764e23"> |
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<span class="ph autonumber">(2)</span> If only |
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one response is received, include a statement of price reasonableness |
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in the contract file. The contracting officer may base the statement |
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on-</p> |
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<p class=" ListL3" id="FAR_13_106_3__d764e29"> |
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<span class="ph autonumber">(i)</span> Market |
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research;</p> |
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<p class=" ListL3" id="FAR_13_106_3__d764e34"> |
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<span class="ph autonumber">(ii)</span> Comparison |
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of the proposed price with prices found reasonable on previous purchases;</p> |
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<p class=" ListL3" id="FAR_13_106_3__d764e39"> |
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<span class="ph autonumber">(iii)</span> Current |
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price lists, catalogs, or advertisements. However, inclusion of |
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a price in a price list, catalog, or advertisement does not, in |
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and of itself, establish fairness and reasonableness of the price;</p> |
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<p class=" ListL3" id="FAR_13_106_3__d764e44"> |
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<span class="ph autonumber">(iv)</span> A comparison |
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with similar items in a related industry;</p> |
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<p class=" ListL3" id="FAR_13_106_3__d764e49"> |
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<span class="ph autonumber">(v)</span> The contracting |
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officer’s personal knowledge of the item being purchased;</p> |
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<p class=" ListL3" id="FAR_13_106_3__d764e54"> |
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<span class="ph autonumber">(vi)</span> Comparison |
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to an independent Government estimate; or</p> |
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<p class=" ListL3" id="FAR_13_106_3__d764e59"> |
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<span class="ph autonumber">(vii)</span> Any other |
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reasonable basis.</p> |
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<p class=" ListL2" id="FAR_13_106_3__d764e64"> |
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<span class="ph autonumber">(3)</span> Occasionally |
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an item can be obtained only from a supplier that quotes a minimum |
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order price or quantity that either unreasonably exceeds stated |
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quantity requirements or results in an unreasonable price for the |
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quantity required. In these instances, the contracting officer should |
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inform the requiring activity of all facts regarding the quotation |
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or offer and ask it to confirm or alter its requirement. The file |
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shall be documented to support the final action taken.</p> |
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<p class=" ListL1" id="FAR_13_106_3__d764e69"> |
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<span class="ph autonumber">(b)</span> |
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<em class="ph i">File documentation |
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and retention.</em> Keep documentation to a minimum. Purchasing offices |
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shall retain data supporting purchases (paper or electronic) to |
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the minimum extent and duration necessary for management review |
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purposes (see <a class="xref fm:Subpart" href="Subpart_4.8.html#FAR_Subpart_4_8">subpart 4.8</a>). |
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The following illustrate the extent to which quotation or offer |
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information should be recorded:</p> |
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<p class=" ListL2" id="FAR_13_106_3__d764e80"> |
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<span class="ph autonumber">(1)</span> |
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<em class="ph i">Oral solicitations.</em> The |
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contracting office should establish and maintain records of oral |
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price quotations in order to reflect clearly the propriety of placing |
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the order at the price paid with the supplier concerned. In most |
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cases, this will consist merely of showing the names of the suppliers |
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contacted and the prices and other terms and conditions quoted by |
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each.</p> |
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<p class=" ListL2" id="FAR_13_106_3__d764e87"> |
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<span class="ph autonumber">(2)</span> |
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<em class="ph i">Written |
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solicitations</em> (see <a class="xref fm:ParaNumOnly" href="2.101.html#FAR_2_101">2.101</a>). |
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For acquisitions not exceeding the simplified acquisition threshold, |
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limit written records of solicitations or offers to notes or abstracts |
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to show prices, delivery, references to printed price lists used, |
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the supplier or suppliers contacted, and other pertinent data.</p> |
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<p class=" ListL2" id="FAR_13_106_3__d764e97"> |
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<span class="ph autonumber">(3)</span> |
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<em class="ph i">Special |
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situations.</em> Include additional statements, when applicable— |
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</p> |
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<p class=" ListL3" id="FAR_13_106_3__d764e105"> |
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<span class="ph autonumber">(i)</span> Explaining |
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the absence of competition (see <a class="xref fm:ParaNumOnly" href="13.106-1.html#FAR_13_106_1">13.106-1</a> for brand name |
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purchases) if only one source is solicited and the acquisition does |
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not exceed the simplified acquisition threshold (does not apply |
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to an acquisition of utility services available from only one source); |
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</p> |
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<p class=" ListL3" id="FAR_13_106_3__d764e113"> |
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<span class="ph autonumber">(ii)</span> Supporting |
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the award decision if other than price-related factors were considered |
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in selecting the supplier; |
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and |
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</p> |
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<p class=" ListL3" id="FAR_13_106_3__d764e118"> |
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<span class="ph autonumber">(iii)</span> |
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Except for DoD, when using |
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lowest price technically acceptable source selection process, justifying |
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the use of such process. |
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</p> |
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<p class=" ListL1" id="FAR_13_106_3__d764e123"> |
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<span class="ph autonumber">(c)</span> |
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<em class="ph i">Notification.</em> For |
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acquisitions that do not exceed the simplified acquisition threshold |
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and for which automatic notification is not provided through an |
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electronic commerce method that employs widespread electronic public |
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notice, notification to unsuccessful suppliers shall be given only |
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if requested or required by <a class="xref fm:ParaNumOnly" href="5.301.html#FAR_5_301">5.301</a>.</p> |
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<p class=" ListL1" id="FAR_13_106_3__d764e133"> |
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<span class="ph autonumber">(d)</span> |
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<em class="ph i">Request |
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for information.</em> If a supplier requests information on an award |
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that was based on factors other than price alone, a brief explanation |
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of the basis for the contract award decision shall be provided (see <a class="xref fm:ParaNumOnly" href="15.503.html#FAR_15_503">15.503</a>(b)(2)).</p> |
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<p class=" ListL1" id="FAR_13_106_3__d764e143"> |
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<span class="ph autonumber">(e)</span> |
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<em class="ph i">Taxpayer |
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Identification Number</em>. If an oral solicitation is used, the |
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contracting officer shall ensure that the copy of the award document |
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sent to the payment office is annotated with the contractor’s Taxpayer |
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Identification Number (TIN) and type of organization (see <a class="xref fm:ParaNumOnly" href="4.203.html#FAR_4_203">4.203</a>), unless this information |
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will be obtained from some other source (<em class="ph i">e.g.,</em> centralized |
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database). The contracting officer shall disclose to the contractor |
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that the TIN may be used by the Government to collect and report |
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on any delinquent amounts arising out of the contractor’s relationship |
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with the Government (<a class="xref" href="http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3" target="_blank">31 U.S.C. 7701(c)(3)</a>).</p> |
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</div> |
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<nav role="navigation" class="related-links"><div class="familylinks"><div class="parentlink"><strong>Parent topic:</strong> <a class="link FAR_13_106 FAR_Subpart_13_1 FAR_Part_13 FAR_3 FAR_Subchapter_CNoPropFAR_13_106.htmlsubtopic" href="13.106.html">13.106 Soliciting competition, evaluation of quotations or offers, award and documentation.</a></div></div></nav></article> |
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