Request for Quotation Problem

Yes. Quotes are not offers so there's nothing binding with a quote. The government makes the offer when it selects a source and issues a purchase order. What you have are quotes from sources that responded to your synopsis and another quote from your phone call/website referral. So evaluate the sources, select the most advantaheous, and issue the order.

Yes. Quotes are not offers so there's nothing binding with a quote. The government makes the offer when it selects a source and issues a purchase order. What you have are quotes from sources that responded to your synopsis and another quote from your phone call/website referral. So evaluate the sources, select the most advantaheous, and issue the order.

Ffed, I do not agree with your assessment and conclusion.

I assume that the RFQ basis for award stated that the Gov't would issue a purchase order to that firm submitting an acceptable written quote and the lowest price or best value.

How can the contracting officer award a purchase order to Company X if it failed to submit a quote with the information required to determine its acceptability and price? Apart from the discussion of Use of Standing Price Quotations, FAR Subpart 13.1 states that a contracting officer will evaluate quotes on the basis established in the solicitation. See FAR 13.106-2 (a)(2):

Quote

13.106-2 -- Evaluation of Quotations or Offers.

(a) General.

(1) The contracting officer shall evaluate quotations or offers --

(i) In an impartial manner; and

(ii) Inclusive of transportation charges from the shipping point of the supplier to the delivery destination.

(2) Quotations or offers shall be evaluated on the basis established in the solicitation.

Unquote

If the solicitation did not state that the contracting officer reserved the right to evaluate websites to determine acceptability and price, how can the contracting officer issue a PO to Company X?

If Company X is better and cheaper than the firms submitting quotes, it may be possible to cancel the solicitation, to establish different requirements for gathering and assessing contractor technical and price information, and to state a different basis for award. GAO has upheld the Gov?t?s right to cancel a solicitation when there is a prospect to obtain lower costs:

?In addition, while we have recognized that the potential for cost savings provides a reasonable basis for cancellation, RN Expertise, Inc., B-401020, Mar. 27, 2009, 2009 CPD para. 63 at 4?? JER 370 Third Street, LLC, B-402025.2; B-402541, June 1, 2010.

Without cancelling the RFQ and reissuing a modified one, I do not know how Company X can receive the purchase order.

Please provide a bit more support for your position.

Napolik, We didn't actually say that we would award to the quoter who submitted an acceptable quote. We said that we would evaluate quotes on the basis of X criteria. I can't quote the actual language because it may reveal who we are, but our RFQ does not say, "Gov't would issue a purchase order to that firm submitting an acceptable written quote." Does that make a difference?

Napolik, We didn't actually say that we would award to the quoter who submitted an acceptable quote. We said that we would evaluate quotes on the basis of X criteria. I can't quote the actual language because it may reveal who we are, but our RFQ does not say, "Gov't would issue a purchase order to that firm submitting an acceptable written quote." Does that make a difference?

1. Did the solicitation provide an exemption from a requirement to submit a quote?

2. Did you comply with FAR 13.106-2 (a)(2):"Quotations or offers shall be evaluated on the basis established in the solicitation."?

3. Did the solicitation state that the contracting officer reserved the right to evaluate websites to determine acceptability and price?

If the answer to any question is "No", I believe you would lose a protest.

Napolik, I'm no expert and have no practical experience on which to draw, but might FAR 13.103 on standing price quotations provide a potential hook?

Napolik, I'm no expert and have no practical experience on which to draw, but might FAR 13.103 on standing price quotations provide a potential hook?

Perhaps, it depends if there really is a mechanism in place describing the standing price quote and the procedures for using it. I doubt one can designate a website, on an ad hoc basis, to be a standing price quote.

Napolik, I'm no expert and have no practical experience on which to draw, but might FAR 13.103 on standing price quotations provide a potential hook?

BTW, I spent a fair amount of time yesterday and today trying to find a discussion of the standing price quote (SPQ). The Government Contracts Reference Book, Third Edition, refers you to page 996 of The Formation of Government Contracts, Third Edition. However, Formation basically cites the FAR and advises the reader that VA uses SPQs.

Via google, I was able to find some solicitations whose purpose was to create SPQs. Here is the best of the group: https://voa.marad.dot.gov/programs/ship_dis...p%20Disposa.pdf.

Here is some text from the solicitation issued to create SPQs:

Quote

Pool of Standing Quotations

1. MARAD issues RFQ DTMA1Q05006 requesting standing quotations for MARAD ship disposal contracts.

2. Vendors may submit a new quotation, including technical proposal, at any time from the date the RFQ is posted until six weeks

prior to December 31, 2005.

3. MARAD will continuously evaluate proposals. Taking into consideration its workload at the time, MARAD will try to evaluate

quotations as they are received. In any six-week period starting from the RFQ posting date, domestic vendors may expect an initial

evaluation of their quotation within six-weeks from the date the quotation is submitted. The evaluation period for quotations

involving vessel exports will be determined on a case by case basis.

4. Based on the criteria set forth in this RFQ, MARAD will evaluate each proposal to determine whether it is either technically

acceptable, technically unacceptable but susceptible to being made technically acceptable or technically unacceptable.

5. MARAD shall advise the vendor of its evaluation results.

(a) Technically unacceptable proposals - These proposals will receive no further consideration from MARAD.

( Technical proposals which are unacceptable but susceptible to being made technically acceptable - MARAD will initiate

discussions on these proposals to determine whether or not they can be made technically acceptable.

© Technically acceptable proposals - These proposals will be included in the pool of Standing Quotations and allowed to

submit revised price quotations for the disposal of specific obsolete vessels when requested by MARAD. These offerors will be asked

to submit completed Representation and Certifications (FAR clause 52.212-03)

Use of Standing Quotations to Select Awardees

1. MARAD selects ship(s) for dismantling (generally MARAD shall dispose of its high priority vessel first).

2. MARAD requests revised price quotations, schedule data and technical compliance plan updates from vendors in the pool of

standing quotations.

3. Vendors submit revised price quotation including maximum discounts and economies of scale as applicable along with their

proposed scheduling data, taking into account all existing and planned work in their facility during the proposed timeframe, and

updates to their technical compliance plan that provides new data to their original TCP submittal or provides processes and

methodology updates specific to their proposed offer.

4. MARAD evaluates the revised price quotations, schedule data and technical compliance plan updates in accordance with the

Evaluation Criteria to identify the quote or quotes that represents apparent best value to the Government.

5. MARAD may negotiate with the vendor(s) that represent apparent best value to the Government.

6. MARAD makes award to the selected vendor(s).

Unquote

In this case, the SPQ appears to be a BPA held by a contractor on a type of Qualified Products or Services List.

I did something similar years ago using BPAs. In those cases, we had standing price quotes for fresh fruits and vegetables to be delivered to Navy ships making port calls.

Ffed, I do not agree with your assessment and conclusion.

I assume that the RFQ basis for award stated that the Gov't would issue a purchase order to that firm submitting an acceptable written quote and the lowest price or best value.

How can the contracting officer award a purchase order to Company X if it failed to submit a quote with the information required to determine its acceptability and price? Apart from the discussion of Use of Standing Price Quotations, FAR Subpart 13.1 states that a contracting officer will evaluate quotes on the basis established in the solicitation. See FAR 13.106-2 (a)(2):

Please provide a bit more support for your position.

Napolik,

Sorry for taking so long to respond. Every time today I got on this site, I got an interuption.

I know I'm taking a liberal interpretation but I feel a phone call and a referral to a website constitutes a quote. The orginal poster said the comapny has a description on services and prices there. So why isn't printing a copy of what they see on the site and evaluating it okay?

1. Did the solicitation provide an exemption from a requirement to submit a quote?

2. Did you comply with FAR 13.106-2 (a)(2):"Quotations or offers shall be evaluated on the basis established in the solicitation."?

3. Did the solicitation state that the contracting officer reserved the right to evaluate websites to determine acceptability and price?

If the answer to any question is "No", I believe you would lose a protest.

1. No.

2. Yes. We evaluated Company X on the basis established in the solicitation.

3. No.

But how does issuance of a request for quotations prevent a KO from evaluating companies that did not submit a quote if the RFQ did not say that submission of a quote was necessary for consideration? We did not invoke Part 14 or 15. Where in FAR Part 13 does it prohibit a KO from considering firms that did not submit quotes?

1. No.

2. Yes. We evaluated Company X on the basis established in the solicitation.

3. No.

But how does issuance of a request for quotations prevent a KO from evaluating companies that did not submit a quote if the RFQ did not say that submission of a quote was necessary for consideration? We did not invoke Part 14 or 15. Where in FAR Part 13 does it prohibit a KO from considering firms that did not submit quotes?

You said two things that determine my response. First, you said "The agency posted a combined synopsis/solicitation asking for written quotes...". You said also that "The RFQ was very simple. It stated when quotes were due and the evaluation factors. It asked for a written response."

So, you issued a solicitation asking for "written quotes" and "a written response". If you issue a PO to a company that failed to submit the required written quote or response, have you complied with FAR 13.106-2 (a)(2):"Quotations or offers shall be evaluated on the basis established in the solicitation."?

Given the facts you have presented, it is my view that you have not.

I've been thinking about this, and it seems to me that it would be okay to consider the information at the website. But I'm still thinking it through.

I wouldn't bite on this one without seeing the full RFQ with a couple of thoughts that occur to me -

FAR Part 12 and its impact on use of FAR Part 13 procedures?

The form that was used, if any, to solicit the quotes. For that matter the whole of the solicitation matters but it seems that the cover form, if any was used, might set up the rules of the response as well?

Carl's right. I think it depends entirely on what the solicitation says.

Carl's right. I think it depends entirely on what the solicitation says.

If the solicitation did not state that the contracting officer reserved the right to evaluate websites to determine acceptability and price, how can the contracting officer issue a PO to Company X? How can the contracting officer assert that he or she complied with FAR 13.106-2 (a)(2):"Quotations or offers shall be evaluated on the basis established in the solicitation."?

In reviewing a half dozen GAO cases involving the evaluation of quotes submitted against FAR 13 solicitations, GAO seems to be consistent in the application of this standard: ?? an agency must conduct the procurement consistent with a concern for fair and equitable competition and must evaluate quotations in accordance with the terms of the solicitation.? National Aerospace Group, Inc., B-281958, May 10, 1999.

I thank everyone for their inputs. We've decided upon a course of action, but I can't disclose it here. I assure you that we intend to comply with FAR and the terms of the RFQ. Your inputs have been of assistance. Again, thanks.

Check out RFP Number: HSSS01-11-R-1001 from the Department of Homeland Security

G.7.Catalog-Based Competition

This section provides the use of the on-line catalogs described in Chapter B, Section C.4.2.7. DHS Pricing offered by the Contractor is set forth in their published commercial catalogs, GSA catalog, or schedule of list prices, in a form regularly maintained by the Contractor. Catalogs shall be accessed through a Contractor?s URL link which allows the DHS customer open access once signed onto the portal.

The D/TO CO or authorized user can search and select the products that best meet their needs and take advantage of the marketplace?s competitive forces. Request for competitive proposals are not required to fulfill the requirement of fair opportunity, nor is the conduct of negotiations required before award of a delivery order resulting from a catalog-based competition. Unless the D/TO CO concludes that the information in the catalog is insufficient to make an award, or based on the quantities required or other circumstances, TacCom catalog comparisons fulfill the FAR requirement to grant fair opportunity to all awardees.

Now merely looking at a vendor's catalogs meets CICA - cool.