Price Analysis for new Subcontractor

Started by FAR Fetched · Jun 12, 2009 · 8 replies

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    FAR Fetched

    Jun 12, 2009 · 16y ago

    Original post

    We have a prime contract vehicle with a Government customer. We're bringing on another subcontractor - the subcontractor is using their GSA Schedule rates. Do we still need to submit Price Analysis if they're using their GSA rates?

  2. O

    Old-Dog

    Jun 15, 2009 · 16y ago

    We have a prime contract vehicle with a Government customer. We're bringing on another subcontractor - the subcontractor is using their GSA Schedule rates. Do we still need to submit Price Analysis if they're using their GSA rates?

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    Old-Dog

    Jun 15, 2009 · 16y ago

    What is the value of the subcontract?

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    FAR Fetched

    Jun 15, 2009 · 16y ago

    What is the value of the subcontract?

    About 100k. I see the FAR mentions a 650k threshold, I'm just not sure how that applies when it's a new task on an existing contract.

  5. j

    jeffh

    Jun 17, 2009 · 16y ago

    About 100k. I see the FAR mentions a 650k threshold, I'm just not sure how that applies when it's a new task on an existing contract.

    My understanding (2 cents)--

    For prime contract modifications, new subcontracts at any tier, and subcontract modifications, the applicable cost or pricing data threshold is established by the prime contract.

    If the prime exceeds the 650k threshold and no other exceptions apply, I believe the analysis will be required. In particular,

    "The award of a subcontract at any tier, if the contractor and each higher-tier subcontractor were required to submit cost or pricing data (but see waivers at 15.403-1©(4)). "

    seems to require it if the prime required it--again, unless a waiver or exception apply.

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    Buyerboy

    Jun 17, 2009 · 16y ago

    Submit "price analysis" to whom? At $100K you are talking about ?price? justification, not the submission and/or analysis of ?Cost or Pricing Data?.

    At $100K a valid GSA Schedule should be sufficient for price analysis of "Fair and Reasonable", but I'm not to sure where it would fit into any "competition" requirement. The GSA price is supposedly a good price, but it is not guaranteed to be the lowest price.

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    wiscco

    Jul 17, 2009 · 16y ago

    GSA pricing is considered to be competitive, so no price analysis is needed (see below excerpt from GSA website at http://www.gsa.gov/Portal/gsa/ep/contentVi...contentId=8106).

    Ordering From Schedules

    Orders placed against GSA Multiple Award Schedule (MAS) contracts, using the procedures in Federal Acquisition Regulation (FAR) 8.4, are considered to be issued using full and open competition (see FAR 6.102(d)(3)). ?[O]rdering activities are not required to make a separate determination of fair and reasonable pricing, except for the price evaluation required by FAR 8.405-2(d) when ordering services requiring a statement of work. By placing an order against a GSA Schedule contract using the procedures in this section, the ordering activity has concluded that the order represents the best value and results in the lowest overall cost alternative to meet the government's needs.

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    Don Mansfield

    Jul 17, 2009 · 16y ago

    wiscco,

    The question was whether the prime is required to analyze the subcontractor's price. The rule that you are quoting deals with whether a Government ordering activity has to analyze a GSA schedule price. Two different things.

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    joel hoffman

    Jul 17, 2009 · 16y ago

    Deleted - wrong thread.

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