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25.504-4 Group award basis.

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25.504-4 Group award basis.

25.504-4 Group award basis.

      (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

Key:

DO

=

Domestic end product
EL

=

Eligible product
NEL

=

Noneligible product

      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 statute 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 [percent] 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 [percent] Determination

A

N/A

Domestic

B

81,800/91,800 = 89.1%

Eligible

C

20,600/90,800 = 22.7%

Noneligible