Optional quantities
Started by duke38 · Nov 1, 2016 · 4 replies
- dOriginal post
duke38
Nov 1, 2016 · 9y ago
Hello all
I am putting together a solicitation for commodities and I have a situation i would like to clarify first. The situation is the program office initially submitted a PR for a quantity of two but has informed me since that they will be ordering an addition 40 in the near future. I initially told them we could continue forward with the initial 2 then put the additional 40 on the same solicitation as an optional quantity. However FAR 17.207 states:
Quote
Solicitations that require the offering of an option at prices no higher than those for the initial requirement shall --
(2) Limit option quantities for additional supplies to not more than 50 percent of the initial quantity of the same contract line item. In unusual circumstances, an authorized person at a level above the contracting officer may approve a greater percentage of quantity.
My questions is since we are not requiring the vendor to offer us a option "prices no higher than those for the initial requirement" can I move forward with having the optional quantity of 40 in this solicitation, am I interpreting this correctly?
- M
Matthew Fleharty
Nov 1, 2016 · 9y ago
Duke,
You're interpreting the FAR correctly (though the reference is actually FAR 17.203(g)).
- J
Jamaal Valentine
Nov 1, 2016 · 9y ago
Yes, your interpretation is correct.
Note: If you were to limit the option price you would need a level above the CO to approve the limitation.
Remember the FAR 15.404-1(g)(2) requirement too check (analyze) for unbalanced pricing. This is a textbook situation were unbalanced pricing could occur.
- T
Todd Davis
Nov 1, 2016 · 9y ago
I agree with the others. However, if funding is available now and there is a bona fide need for the additional quantity, I would consider ordering them all now and just schedule delivery of the additional 40 for a later date. Lower pricing may be received if the prospective quoters/bidders/offerors are guaranteed an order for the total quantity needed, saving taxpayers $$.
- d
duke38
Nov 2, 2016 · 9y ago
Thanks for your opinions