# 25.504-4 Group award basis.

Key: |  |
DO | = | Domestic end product
EL | = | Eligible product
NEL | = | Noneligible product

1. (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; selectB.

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.

1. (a) 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% | 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)).