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FAR Subpart 8.4 allows three
circumstances under which you can limit competition from what the ordering
procedures for schedules requires. Now these three instances are that
there's an urgent and compelling need and following the ordering
procedures with result in unacceptable delays. Two, that only one source is capable
of providing the supplies or service, because they're so unique or highly
specializes or three, because in the interest of economy and efficiency, the
new work is a logical follow-on to an original Schedule BPA as long as that
original BPA was awarded in accordance with the competitive procedures.
If the original BPA was issued with a limited sources justification then you
cannot also limit sources for a logical follow-on. You can't use that as a
reason - a valid reason. Now limited sources justification.
On BPA's below the SAT, the FAR doesn't really say what should go in the
justification. It just says that the document must explain reasons for not
seeking broader competition. On orders or BPA's above the SAT, there
is a detailed justification required and FAR Subpart 8.405-6, Paragraph C2,
outlines all the items that need to be addressed in the content of a limited
sources justification and this justification has to be approved in
accordance with the chain that's listed in 8.405-6. That basically says whether
the CO can approve it or it has to go above the CO to the competition advocate
or the head of contracting activity. This usually depends on the dollar value
of the requirement. Now these justifications over the SAT
must be posted on FedBizOpps and on the ordering agency's website. The web site
hosting may simply provide a link to the FedBizOpps posting and this posting
needs to happen within 14 days after establishing a BPA under a limited
sources justification. This posting has to be up for a minimum 30 days on
FedBizOpps. Now the reason for you limiting sources is because there was an
urge and a compelling need. That justification doesn't have to be posted
on FedBizOpps until 30 days after establishment of the BPA.
Another instance of limiting sources under schedules in addition to the three
described in the previous slide is when your requirement is for an item peculiar
to one manufacturer. Now the most common occurrence of this are basically
requirements that are brand name specific. Agencies restrict the pool of
schedule contractors considered for a BPA to those that offer a certain brand
name product. Note that brand name or items peculiar
to one manufacturer, that's the terminology used in FAR, it's not the
same as a brand name or equal requirement. A brand name or equal
requirement, they're considered to be fully competitive, since it allows for
the offer of products that meet the saline, physical, functional performance
characteristics of the brand name item. Now for RFQ's over $25,000 that
contains brand name specifications, that RFQ has to be posted on eBuy. Now if
the RFQ is between $25,000, but isn't over the SAT, the basis for restricting
competition must also be posted on eBuy with RFQ. So from $25,000 to $150,000,
along with the RFQ, you need to post on eBuy the basis for your certain
competition to that brand name. If your RFQ exceeds the SAT, then
there's the whole limited source justification with all of the content
that's required by FAR 8.4 and that's been approved by the appropriate person.
That approval, that justification needs to be posted along with the RFQ in eBuy.
Now BPA's - Scheduled BPA's are established by determining best value,
which takes into account price and other factors. Other factors may be considered.
Some of the ideas are on this screen, like past performance is
always a good thing to include. Socioeconomic status can also be used
as an evaluation factor, except now, ordering agencies have the option to
just set aside a BPA in its entirety, but it's basically - it can be tailored
to what is important to making sure the agency gets - meets the requirement,
gets what they need in the best possible way.
The evaluations and rationales involved in establishing BPA's . Well, your
evaluation methodology needs to be stated in your RFQ. Contractors who are
looking to compete for that order need to know exactly how the ordering agency
is going to establish best values - going to determine best value.
Typical evaluation factors, as I mentioned earlier; technical capability,
socioeconomic status, past performance, price is obviously always considered and
if there's going to be a trade off analysis. If you're saying there's
going to be, technical capability is going to be more important than price -
that also needs to be identified in the RFQ.
As far as price reasonableness goes, while the prices on scheduled contracts
have already been determined to be fair and reasonable, when you have quotes for
a BPA that's for services that require statement of work, contracting officers
still need to do a price reasonableness determination.
Now quotes may offer lower prices than what is on the schedule contract, they
just can't go above. When considering a firm for a BPA, the contracting officer
can review the findings of other CO's within their agency to see if there have
been any performance problems. They can review Peepers now since that is a
requirement. Limited sources rational; we just spent
quite some time discussing it, but if you still have questions, feel free to
ask me at the end of the BPA presentation.
One last thing to make a note of, the hourly basis rational. Now you can do
time and materials and labor hour task orders against a BPA - a Schedule BPA
and a schedule contract, but the FAR requires that when you are using a time
and materials or labor hour order, the contracting officer needs to document as
to why the hourly basis is required. Basically, a determination and findings
document to say why it's in the best interest of the government to pursue a
contract type that is a little bit more risky than from fixed price.