As part of federal contracting, the total price of each award is disclosed. This is of course a great way to promote trust and transparency in federal contracting and in the handling of taxpayer dollars. But it also leads to other contractors scrutinizing an awardee’s price and thinking one of two things: (1) “That price is too low to do this work”; or (2) “that price is too high for this work.” Naturally contractors will consider protesting on one of those pricing intuitions, but often mix up how to properly frame or phrase that pricing concern. Thus, they find themselves at the crossroad of “price realism” vs. “price reasonableness.” This installment of our Back to Basics series will help you learn which is which and why that matters.
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FAR 52.222-46 Again? GAO Sustains Protest that Agency Price Evaluation was Unreasonable
Agencies get a lot of discretion when it comes to evaluating proposals. We’ve explored several different cases where GAO affirmed this principle. However, this principle is not absolute. Contrary to what some might think, there are limits on an agency’s discretion when it comes to how it evaluates proposals. Recently, the Air Force was reminded of this fact in a GAO protest concerning a price evaluation. We explore that decision here.
Continue readingException to the Rule: Evaluating Price at IDIQ Versus Order Level Is a Limited Exception
A recent COFC decision yielded some important insights about government contracting. We already wrote about some joint venture aspects of the decision. But the decision also touched on whether GSA’s solicitation violated federal procurement law by excluding price as an evaluation factor at the indefinite delivery indefinite quantity (IDIQ) level for a procurement.
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