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<!DOCTYPE dita
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<dita xmlns:ditaarch="http://dita.oasis-open.org/architecture/2005/"
      ditaarch:DITAArchVersion="1.2">
   <concept id="GSAM_514_270_7"
            audience="GSAR"
            ditaarch:DITAArchVersion="1.2"
            class="- topic/topic concept/concept ">
      <title class="- topic/title " xtrc="GSAR">
         <ph class="- topic/ph " props="autonumber">514.270-7</ph> Guidelines for using the price list method.</title>
      <conbody class="- topic/body  concept/conbody ">
         <ol id="d256e13" class="- topic/ol ">
            <li audience="GSAR" class="- topic/li ">
               <p id="d253e17" audience="GSAR" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(a)</ph>
                  <i class="+ topic/ph hi-d/i ">General</i>.
The price list method helps avoid unbalanced bidding when making
aggregate awards, but lack accurate estimates of anticipated quantities.
This method establishes base prices for bidders to use in preparing
their bids.</p>
            </li>
            <li audience="GSAR" class="- topic/li ">
               <p id="d253e29" audience="GSAR" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(b)</ph>
                  <i class="+ topic/ph hi-d/i ">Solicitation requirements</i>.
When using the price list method, in the solicitation:</p>
               <ol id="d256e38" class="- topic/ol ">
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d253e42" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(1)</ph>  Include
the price list.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d253e51" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(2)</ph>  Include an estimate
of requirements.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d253e60" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(3)</ph>  Require the bidder to
express its price as “net” or as a percentage added to or subtracted
from the list prices for each group. Require the bidder to quote
only one percentage factor for each group. This means that the bidder
provides one percentage factor that applies to every item in a group;
not a separate percentage for each item. “Net” indicates the bidder
chooses to submit the list prices as its bid.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d253e69" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(4)</ph>  Identify the percentage
factor in (3) above as a price-related evaluation factor.</p>
                  </li>
               </ol>
            </li>
            <li audience="GSAR" class="- topic/li ">
               <p id="d253e80" audience="GSAR" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(c)</ph>
                  <i class="+ topic/ph hi-d/i ">Developing list
prices</i>. Price lists may be developed using one or more of the
following sources:</p>
               <ol id="d256e89" class="- topic/ol ">
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d253e93" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(1)</ph>  Industry
published prices.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d253e102" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(2)</ph>  Industry surveys.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d253e111" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(3)</ph>  Government cost estimates
based on knowledge of the supplies or services and previous contract
prices.</p>
                  </li>
               </ol>
            </li>
            <li audience="GSAR" class="- topic/li ">
               <p id="d253e122" audience="GSAR" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(d)</ph>
                  <i class="+ topic/ph hi-d/i ">First time use for
an product or service</i>.
The first time the contracting officer uses list prices for a product or service, give
prospective bidders an opportunity to review the proposed list.
Also provide information on how GSA will use the list prices. This
information may be provided in a draft solicitation.</p>
            </li>
            <li audience="GSAR" class="- topic/li ">
               <p id="d253e134" audience="GSAR" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(e)</ph>
                  <i class="+ topic/ph hi-d/i ">Balanced prices</i>.
Ensure that the list prices for the grouped items bear a reasonable
and balanced relationship to one another. Prices may be used from
previous awards made using the weight factors method to develop
price lists. Review those prices first to ensure they did not result
from unbalanced bidding.</p>
            </li>
            <li audience="GSAR" class="- topic/li ">
               <p id="d253e147" audience="GSAR" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(f)</ph>
                  <i class="+ topic/ph hi-d/i ">Evaluation and award</i>.
Consider all price-related factors identified in the solicitation.
Award to the responsive and responsible bidder whose percentage
factor produces the most favorable price to the Government. This
represents the most advantageous bid.</p>
            </li>
            <li audience="GSAR" class="- topic/li ">
               <p id="d253e159" audience="GSAR" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(g)</ph>
                  <i class="+ topic/ph hi-d/i ">Example</i>. The
following illustrates a bidding schedule arrangement for a group
of items for aggregate award under the price list method:</p>
            </li>
            <li audience="GSAR" class="- topic/li ">
               <p id="d253e171" audience="GSAR" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(h)</ph>
                  <i class="+ topic/ph hi-d/i ">Special considerations
for contracts for store stock items</i>. Show estimated quantities
only if estimates of demand for each item within a group can be
derived from Government records or verified contractor sales reports.
Use only current estimates. If the Government’s needs cannot be
estimated, the solicitation may include past orders. (See CG Decision,
B-209037, 82-2 CPD para 323 (1982).)</p>
            </li>
            <li audience="GSAR" class="- topic/li ">
               <p id="d253e183" audience="GSAR" class="- topic/p ">
                  <ph props="autonumber" class="- topic/ph ">(i)</ph>
                  <i class="+ topic/ph hi-d/i ">Special considerations
for repair and alteration contracts</i>. In the solicitation:</p>
               <ol id="d256e192" class="- topic/ol ">
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d253e196" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(1)</ph>  List
the estimated quantities for work to be performed during both normal
working hours and outside of normal working hours.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d253e205" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(2)</ph>  State the percent of
work anticipated to be performed during normal working hours.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d253e214" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(3)</ph>  List the unit prices
for work to be performed during both normal working hours and outside
of normal working hours.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d253e223" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(4)</ph>  Define “normal” in terms
of hours and days of the week.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d253e232" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(5)</ph>  Advise bidders of the
previous year’s total expenditures or portions of that total attributable
to the listed items.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d253e242" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(6)</ph>  If providing quantity
estimates, state that the estimates are for information only and
do not constitute guarantees or commitments to order items under
the contract.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d253e251" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(7)</ph>  Solicit two percentage
factors for the line item unit prices listed: one for the unit prices
for work performed during normal working hours and the second for
the unit prices for work performed outside of normal working hours.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d253e260" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(8)</ph>  When the solicitation
further groups unit prices by trade or business category, multiple
percentages may be required.</p>
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d253e269" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(9)</ph>  For the evaluated bid
price, add together (i) and (ii):</p>
                     <ol id="d256e275" class="- topic/ol ">
                        <li audience="GSAR" class="- topic/li ">
                           <p id="d253e279" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(i)</ph>  The percentage of work
performed during normal work hours multiplied by the total estimate
adjusted by the bidder’s percentage factor for that portion of the
work, plus</p>
                        </li>
                        <li audience="GSAR" class="- topic/li ">
                           <p id="d253e288" audience="GSAR" class="- topic/p ">
                              <ph props="autonumber" class="- topic/ph ">(ii)</ph>  The percentage of work
performed during other than normal working hours multiplied by the
total estimate adjusted by the bidder’s percentage factor for that
portion of the work.</p>
                        </li>
                     </ol>  
                  </li>
                  <li audience="GSAR" class="- topic/li ">
                     <p id="d253e299" audience="GSAR" class="- topic/p ">
                        <ph props="autonumber" class="- topic/ph ">(10)</ph>  Consider other price-related
factors identified in the solicitation. Make award to the responsible
and responsive bidder submitting the lowest overall evaluated bid
price for the aggregate group. This represents the most advantageous bid.</p>
                     <table frame="all" colsep="0" rowsep="0" class="- topic/table ">
                        <tgroup cols="6"
                                colsep="0"
                                rowsep="0"
                                outputclass="ShadingNotitle_rule"
                                class="- topic/tgroup ">
                           <colspec colnum="1"
                                    colname="1"
                                    colwidth="16*"
                                    colsep="0"
                                    class="- topic/colspec "/>
                           <colspec colnum="2"
                                    colname="2"
                                    colwidth="30*"
                                    colsep="0"
                                    class="- topic/colspec "/>
                           <colspec colnum="3"
                                    colname="3"
                                    colwidth="14*"
                                    colsep="0"
                                    class="- topic/colspec "/>
                           <colspec colnum="4"
                                    colname="4"
                                    colwidth="16*"
                                    colsep="0"
                                    class="- topic/colspec "/>
                           <colspec colnum="5"
                                    colname="5"
                                    colwidth="9*"
                                    colsep="0"
                                    class="- topic/colspec "/>
                           <colspec colnum="6"
                                    colname="6"
                                    colwidth="16*"
                                    colsep="0"
                                    class="- topic/colspec "/>
                           <thead class="- topic/thead ">
                              <row rowsep="0" class="- topic/row ">
                                 <entry namest="1" nameend="6" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="CBottom" class="- topic/p ">Drills, Twist, High Speed, under Federal
Specification (no. and date)_ and Amendment (no. and date), Wiregauge
sizes, straight shank, short length, Type C</p>
                                 </entry>
                              </row>
                              <row rowsep="0" class="- topic/row ">
                                 <entry colname="1" colsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="CBottom" class="- topic/p ">Item No.</p>
                                 </entry>
                                 <entry colname="2" colsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="CBottom" class="- topic/p ">National Stock Number</p>
                                 </entry>
                                 <entry colname="3" colsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="CBottom" class="- topic/p ">Drill Size</p>
                                 </entry>
                                 <entry colname="4" colsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="CBottom" class="- topic/p ">Est. Quantity</p>
                                 </entry>
                                 <entry colname="5" colsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="CBottom" class="- topic/p ">Unit</p>
                                 </entry>
                                 <entry colname="6" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="CBottom" class="- topic/p ">List
Price</p>
                                 </entry>
                              </row>
                           </thead>
                           <tbody class="- topic/tbody ">
                              <row rowsep="0" class="- topic/row ">
                                 <entry namest="1" nameend="6" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" class="- topic/p ">Group1
(Items 1 through 5)</p>
                                 </entry>
                              </row>
                              <row rowsep="0" class="- topic/row ">
                                 <entry colname="1" colsep="1" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">1</p>
                                 </entry>
                                 <entry colname="2" colsep="1" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">5133-00-189-9246</p>
                                 </entry>
                                 <entry colname="3" colsep="1" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">1</p>
                                 </entry>
                                 <entry colname="4" colsep="1" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">2,800</p>
                                 </entry>
                                 <entry colname="5" colsep="1" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">Pkg</p>
                                 </entry>
                                 <entry colname="6" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">$11.16</p>
                                 </entry>
                              </row>
                              <row rowsep="0" class="- topic/row ">
                                 <entry colname="1" colsep="1" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">2</p>
                                 </entry>
                                 <entry colname="2" colsep="1" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">5133-00-189-9247</p>
                                 </entry>
                                 <entry colname="3" colsep="1" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">2</p>
                                 </entry>
                                 <entry colname="4" colsep="1" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">2,400</p>
                                 </entry>
                                 <entry colname="5" colsep="1" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">Pkg</p>
                                 </entry>
                                 <entry colname="6" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">$11.16</p>
                                 </entry>
                              </row>
                              <row rowsep="0" class="- topic/row ">
                                 <entry colname="1" colsep="1" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">3</p>
                                 </entry>
                                 <entry colname="2" colsep="1" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">5133-00-189-9248</p>
                                 </entry>
                                 <entry colname="3" colsep="1" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">3</p>
                                 </entry>
                                 <entry colname="4" colsep="1" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">2,800</p>
                                 </entry>
                                 <entry colname="5" colsep="1" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">Pkg</p>
                                 </entry>
                                 <entry colname="6" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">$10.44</p>
                                 </entry>
                              </row>
                              <row rowsep="0" class="- topic/row ">
                                 <entry colname="1" colsep="1" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">4</p>
                                 </entry>
                                 <entry colname="2" colsep="1" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">5133-00-189-9249</p>
                                 </entry>
                                 <entry colname="3" colsep="1" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">4</p>
                                 </entry>
                                 <entry colname="4" colsep="1" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">1,600</p>
                                 </entry>
                                 <entry colname="5" colsep="1" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">Pkg</p>
                                 </entry>
                                 <entry colname="6" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">$10.80</p>
                                 </entry>
                              </row>
                              <row rowsep="0" class="- topic/row ">
                                 <entry colname="1" colsep="1" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">5</p>
                                 </entry>
                                 <entry colname="2" colsep="1" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">5133-00-189-9250</p>
                                 </entry>
                                 <entry colname="3" colsep="1" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">5</p>
                                 </entry>
                                 <entry colname="4" colsep="1" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">2,000</p>
                                 </entry>
                                 <entry colname="5" colsep="1" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">Pkg</p>
                                 </entry>
                                 <entry colname="6" rowsep="1" class="- topic/entry ">
                                    <p audience="GSAR" outputclass="Ctr" class="- topic/p ">$10.80</p>
                                 </entry>
                              </row>
                              <row rowsep="0" class="- topic/row ">
                                 <entry namest="1" nameend="6" class="- topic/entry ">
                                    <p audience="GSAR" class="- topic/p ">The bid on
each item above is the list price shown minus/plus <u class="+ topic/ph hi-d/u "/>percent.
(Bidder, insert “net” or a single percentage amount in the blank
space and cross out minus or plus, as appropriate.)</p>
                                 </entry>
                              </row>
                           </tbody>
                        </tgroup>
                     </table>
                  </li>
               </ol>
            </li>
         </ol>
      </conbody>
   </concept>
</dita>
