Government Contracting/Government Contracting

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Question
1)  You are evaluating an offer for the purchase of commercial items from Hayden Industries. Hayden typically sells the item by mail order (in quantities of less than 10 units per order) at the catalog price of $1,250 plus $20 shipping each. The catalog does not provide any quantity discount information. The offered price is $825,500 for 650 units (catalog price + shipping $1,270 x 650= $825,500). Should you determine that the price is fair and reasonable based on information available?
  


  No, commercial catalog prices should never be used as a basis for contract pricing.

  Yes, prices based on commercial catalog prices are always reasonable.

  Yes, this price is reasonable because of the competitive nature of acquisitions of this product.

  No, based upon the larger purchase quantity there is a need for further analysis.

Answer
Hi Shaun,

Are "you" participating in a test, if so try door #4.

If "you" is a federal government agency seeking a procurement, the items pricing is above the simple acquisition threshold amount it would typically be required to be advertised as a solicitation and placed out for bid.

If "you" is a commercial activity, then your wallet is your guide.

If "you" has access to the GSA catalog and the items are COTS, then by reviewing 2 additional / competitive GSA catalog offerings, "you" has performed required due diligence and can J&A the procurement.

If "you" is making a procurement and the Stafford Act applies, i.e. a federally declared emergency / disaster, then standard acquisition practices are suspended for the duration of the emergency.

Hope this helps, good luck &
Best Regards,
Gerry Caskey  

Government Contracting

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Gerry Caskey

Expertise

Questions relating to all aspects of Federal Government Contracting, Small Business, Prime and Subcontracting issues. Resources and references to aid navigation of CFRS, FARS, DFARS, DOSAR, DTAR, ITAR, UCP 500, etc. Request for Proposal (RFP/RFQ) outlines, writing and submission requirements. CCR Registrations, ORCA compliance and SBA submissions. Consultancy in relationship development and marketing to Federal, Foreign, State and Local Governments, corporate entities.

Experience

25 years as a Prime Contractor with the U.S. Department of Defense, Department of State, FEMA, DHS and additional Federal Agencies. 22 years independent consulting in business intelligence and continuity, program management, proposal development, GSA Schedules and Awards, copyright and trademark administration, international trade.

Past/Present Clients
Boeing Aerospace, Securitas, Triple Canopy, Raytheon, U.S. Dept. of State, U.S. Army (Europe), CENTCOM, U.S. Army, U.S. Navy, Department of Homeland Security, FEMA, Virginia and D.C. Air National Guard, Governments of Afghanistan, Australia, Jordan, , New Zealand, Saudi Arabia, Kuwait, Republic of China (Taiwan).

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