Assignment 2: Competition Requirements
Assignment 2: Competition Requirements
The Federal Acquisition Regulations (FAR) notes that two intrinsic values, price reasonableness, and fairness are based on information that does not constitute of pricing data for accurate determination by a Contracting Official. In the event that an offeree fails to adhere to the provisions of submitting the information that a contracting official deems as necessary in relation to price reasonableness, then the application is deemed as disallowable for award, unless the project leader illustrates sufficiently that the award would be optimally beneficial for the government if provided to the offeror (Wolters, 2015).
A proposal should support the necessary levels of competition and need for the establishment of a source and reasonable pricing for all acquired order prices and sub-contractor pricing. According to the Department of Defense 215.317-1, which requires that only a single offer is obtained, then all appropriate actions are undertaken as a means of encouraging competition and ensuring that prices are deemed as fair and reasonable in adherence to the statutory provisions for pricing. In relation to the promotion of competition, the procedures applied, and solicitation delivers a period of less than a month for receipt of proposals (National Archives and Records Administration, 2015).
The Federal Acquisition Regulations 15.408, Section 2 Paragraph A1 provides a condition on the evaluation of proposals. It suggests that need to establish the level of support for a specific level of competition and the basis used for establishment of the reasonableness and source of pricing for subcontracts and purchase orders that are priced on a competitive basis more than the threshold established for pricing data and certified costs. Part 14 of 15.408 Table 15-2, Sec 2 Paragraph A provide conditions for materials and services provision (Wolters, 2015). It is paramount that a proposal contains an adequate listing of all services and materials. The materials and services section provides the basis for billing of the proposal or costing. The FAR refers this list as the Consolidated Bill of Materials (CBOM) (Wolters, 2015). It entails information such as the summary of parts, raw materials, and all services, which will be delivered by involved parties. Items 14 and 4 are critical to a proposal in that they provide the basis for pricing of services and materials featured (National Archives and Records Administration, 2015). Price remains critical to a proposal as it sets the basis for competition in bids for service delivery (proposal). The government requires a reasonable and fair price from a vendor. Fair and reasonable prices have a relatively high opportunity for success
The offeree is presented with two options in the event of such an occurrence, which is:
- The party (offeree) may reject the proposal based on the knowledge of the presence of errors
- Take advantage of the visible errors and accept the proposals, which would result in liability on part of the offeree based on the original terms and conditions laid out in the regulations
In the event that the offeror delivers a proposal to the offeree that has numerous errors, the offeree may inform the offeror of the presence of such errors, and propose submission of a request that is in written unless for such exceptions (National Archives and Records Administration, 2015). However, the offeror may grant any representative who is bound by the contract terms with the right for reviewing the proposal to establish the presence and materiality of the said errors. Additionally, liability charges that are founded on the said errors in the proposal would result in both offeror and offeree may be held liable. Furthermore, in the event that the offeror brings forth a proposal to the offeree that is marred with errors, the courts will presume the view that the identified offeree who is the recipient of the proposal is bound by the expressly stated terms and conditions, given the erroneous content inherent in the proposal. Moreover, the FAR 14.407 notes that it is possible for a contracts official to have a mistake or error corrected before or after an award if such errors are not identified until a contract is awarded (Wolters, 2015).
Judicial remedies would be commensurate with the complexity and severity of a violation. Terms and conditions for contracts provide remedies for areas such as warranties (implied and expressly stated), non-conformance, cost-reimbursement, unsatisfactory performance, unauthorized commitments, liquidation of damages and other remedies (National Archives and Records Administration, 2015).
Remedies for Non-Conformance
Remedies for nonconformance available to the government include strategies such as:
- Invoking the relative contract clause- cure notice, stop work, show cause, liquidated damages, termination and warranty
- Reduction or withholding award and incentive fees
- Invocation of inspection clauses, such that non-compliant work, is rejected
- Modification of the contractual obligations
- Suspension of progress payments
- Decline an extension for the contract’s term through refusal to exercise an option
- Address consideration issues and claims
- Take appropriate legal recourse as deemed necessary and appropriate
- Utilize Alternative Dispute Resolution (ADR)
- Document issues in past performance database to prevent future losses and possible engagements (Wolters, 2015).
The contracting officer is the party only responsible for authorization of acceptance of non-conforming services and supplies (Wolters, 2015). The government may deal with non-conformity using three primary means namely:
- Urge correction or rectification of the non-conforming services or supplies
- Acceptance of non-conforming services, if the deficiencies are minor. However, the COR is expressly urged to reject non-conforming services or supplies
- Rejection and subsequent termination of the contractual engagement with the contractor by the COR (Wolters, 2015).
National Archives and Records Administration. (2015). Code of Federal Regulations, Title 48, Chapters 15-28 (Acquisition Regulations System): Revised 10/14. Natl Archives & Record Service.
Wolters, K. L. A. B. (2015). Federal acquisition regulation, far: As of January 1, 2015. Place of publication not identified: Cch Incorporated.
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