25.504-4 Group award basis.
Key:
DO = Domestic end product
EL = Eligible product
NEL = Noneligible product
(a) Example 1.
OFFERS | |||
ITEM | A | B | C |
1 | DO = $55,000 | EL = $56,000 | NEL = 50,000 |
2 | NEL = 13,000 | EL = 10,000 | EL = 13,000 |
3 | NEL = 11,500 | DO = 12,000 | DO = 10,000 |
4 | NEL = 24,000 | EL = 28,000 | NEL = 22,000 |
5 | DO = 18,000 | NEL = 10,000 | DO = 14,000 |
$121,500 | $116,000 | $109,000 | |
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 | |||
ITEM | LOW OFFER | TENTATIVE AWARD PATTERN FROM A AND B | C |
1 | A | DO = $ 55,000 | NEL = $53,000* |
2 | B | EL = 10,000 | EL = 13,000 |
3 | B | DO = 12,000 | DO = 10,000 |
4 | A | NEL = 24,000 | NEL = 22,000 |
5 | B | NEL = 10,600* | DO = 14,000 |
$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 = $50,000 |
2 | NEL = 10,300 | NEL = 10,000 | EL = 10,200 |
3 | EL = 20,400 | EL = 21,000 | NEL = 20,200 |
4 | DO = 10,500 | DO = 10,300 | DO = 10,400 |
$91,200 | $91,800 | $90,800 | |
Problem: The solicitation specifies award on a group basis. Assume the Buy American Act 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% | 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% | 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)).