<?xml version="1.0" encoding="UTF-8"?>
<!DOCTYPE dita
  PUBLIC "-//OASIS//DTD DITA Composite//EN" "ditabase.dtd">
<dita xmlns:ditaarch="http://dita.oasis-open.org/architecture/2005/"
      ditaarch:DITAArchVersion="1.2">
   <concept id="GSAM_514_270_4"
            audience="GSAR"
            ditaarch:DITAArchVersion="1.2"
            class="- topic/topic concept/concept ">
      <title class="- topic/title " xtrc="GSAR">
         <ph class="- topic/ph " props="autonumber">514.270-4</ph> Grouping line items for aggregate award.</title>
      <conbody class="- topic/body  concept/conbody ">
         <ol id="d253e13" class="- topic/ol ">
            <li audience="GSAR" class="- topic/li ">
               <p id="d250e17" audience="GSAR" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(a)</ph>
                  <i class="+ topic/ph hi-d/i ">Supplies
and services</i>. This subsection applies to acquisitions of supplies
and services.</p>
            </li>
            <li audience="GSAR" class="- topic/li ">
               <p id="d250e29" audience="GSAR" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(b)</ph>  Effect on competition.
Provide for full and open competition when grouping items for award.
Grouping items for award may preclude a significant number of firms
from bidding. This occurs if firms are unable to provide all the
types or quantities of supplies or services, or make deliveries
to the various delivery points included in the prospective aggregate group.</p>
            </li>
            <li audience="GSAR" class="- topic/li ">
               <p id="d250e38" audience="GSAR" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(c)</ph>  Grouping different articles.
Include only related articles in an aggregate group. Related articles
are those normally manufactured or produced by a majority of prospective
bidders. Grouping unrelated articles often restricts competition unnecessarily.</p>
            </li>
            <li audience="GSAR" class="- topic/li ">
               <p id="d250e47" audience="GSAR" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(d)</ph>  Grouping geographic
locations or delivery points. Consider the following guidelines
before deciding to group different geographic locations or delivery
points:</p>
               <ol id="d253e53" class="- topic/ol ">
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d250e57" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(1)</ph>  A
delivery point may have sufficient requirements so that individual
shipments involve economic production runs and carload or truckload
quantities. In this case, list it as a separate line item.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d250e66" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(2)</ph>  The types of bidders
(i.e.,small or large firms, manufacturers or distributors, etc.)
who responded to previous solicitations can provide important information.
For example, if previous bidders are distributors with franchises
in certain territories, grouping different territories could tend
to restrict competition.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d250e75" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(3)</ph>  Transportation costs
can affect competition and pricing. They may constitute a significant
portion of the total delivered cost. Obtain the advice and assistance
of transportation specialists before grouping geographic locations
or delivery points. Depending upon the supplies being acquired:</p>
                     <ol id="d253e81" class="- topic/ol ">
                        <li audience="GSAR" class="- topic/li ">
                           <p id="d250e85" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(i)</ph>  Grouping
widespread geographic locations or delivery points may reduce competition
or result in higher prices. It can cause the loss of “area pricing”
advantages provided by a supplier with a single production point.</p>
                        </li>
                        <li audience="GSAR" class="- topic/li ">
                           <p id="d250e94" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(ii)</ph>  Conversely, for many
small commercial products(hand
tools, locks), manufacturers may quote the same price for delivery
anywhere in the U.S.</p>
                        </li>
                        <li audience="GSAR" class="- topic/li ">
                           <p id="d250e103" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(iii)</ph>  Tariff boundaries
can also affect how manufacturers price deliveries to different
areas.</p>
                        </li>
                     </ol>
                  </li>
               </ol>
            </li>
         </ol>
      </conbody>
   </concept>
</dita>
