How to handle inclusion/exclusion of clauses/provisions for IFBs for contruction valued close to the SAT?

Started by bja · Jun 5, 2012 · 1 replies

  1. b

    bja

    Jun 5, 2012 · 14y ago

    Original post

    In IFBs for construction that are valued very close to the SAT (either over or under) it seems confusing to me on how to best deal with inclusion/exclusion of clauses/provisions that are required based upon their relationship to the SAT.

    For example:

    The following FAR clauses do not apply if the bid amount exceeds $150,000:

    52.228-13 Alternative Payment Protections

    52.243-5 Changes and Changed Conditions

    52.249-1 Termination for Convenience of the Government (Fixed Price)(Short Form)

    The following FAR clauses do not apply if the bid is at or below $150,000:

    52.222-4 Contract Work Hours and Safety Standards Act-Overtime

    52.222-40 Notification of Employee Rights Under the National Labor Relations Act

    52.223-6 Drug-Free Workplace

    52.228-12 Prospective Subcontractor Request for Bonds

    52.228-14 Irrevocable Letter of Credit

    52.228-15 Performance and Payment Bonds - Construction

    52.243-4 Changes

    52.249-2 Termination for Convenience of the Government and Alt I (for construction)

    What is the best way to deal with a scenario where the IGE is $149,000 .....

    Include the clauses/provisions required under SAT?

    What if then the bids are received above the SAT?....execute a contract modification to remove those you thought would apply (under SAT) and add in those that now do apply (above SAT)?

    How do you deal with the issue of a bid guarantee (that would be required for bids above $150,000) if you originally believed the value to be below SAT and not required?

    This wasn't a concern when the SAT was $100,000 and the disclosure of magnitudes required by FAR 36.204 were in line with one another.

    The delimma seemed to become more complicated when the SAT was raised to $150,000 and the magnitude range remained "between $100,000 and $250,000".

    Any feedback is appreciated. Thanks.

  2. G

    Guest Vern Edwards

    Jun 5, 2012 · 14y ago

    Say in the IFB that if the low responsive bid from a responsible bidder exceeds the SAT you will award a contract containing clause set A, and if the bid is equal to or less than the SAT you will award a contract containing clause set B. State what dollar amount you are using for the SAT. Require all bidders to submit a only single bid price.

    It's not complicated.

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