[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR13.106-3]

[Page 203-204]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 13_SIMPLIFIED ACQUISITION PROCEDURES--Table of Contents
 
                         Subpart 13.1_Procedures
 
Sec.  13.106-3  Award and documentation.

    (a) Basis for award. Before making award, the contracting officer 
must determine that the proposed price is fair and reasonable.
    (1) Whenever possible, base price reasonableness on competitive 
quotations or offers.
    (2) If only one response is received, include a statement of price 
reasonableness in the contract file. The contracting officer may base 
the statement on--
    (i) Market research;
    (ii) Comparison of the proposed price with prices found reasonable 
on previous purchases;
    (iii) Current price lists, catalogs, or advertisements. However, 
inclusion of a price in a price list, catalog, or advertisement does 
not, in and of itself, establish fairness and reasonableness of the 
price;
    (iv) A comparison with similar items in a related industry;
    (v) The contracting officer's personal knowledge of the item being 
purchased;
    (vi) Comparison to an independent Government estimate; or
    (vii) Any other reasonable basis.
    (3) Occasionally an item can be obtained only from a supplier that 
quotes a minimum order price or quantity that either unreasonably 
exceeds stated quantity requirements or results in an unreasonable price 
for the quantity required. In these instances, the contracting officer 
should inform the requiring activity of all facts regarding the 
quotation or offer and ask it to confirm or alter its requirement. The 
file shall be documented to support the final action taken.
    (b) File documentation and retention. Keep documentation to a 
minimum. Purchasing offices shall retain data supporting purchases 
(paper or electronic) to the minimum extent and duration necessary for 
management review purposes (see subpart 4.8). The following illustrate 
the extent to which quotation or offer information should be recorded:
    (1) Oral solicitations. The contracting office should establish and 
maintain records of oral price quotations in order to reflect clearly 
the propriety of placing the order at the price paid with the supplier 
concerned. In most cases, this will consist merely of showing the names 
of the suppliers contacted and the prices and other terms and conditions 
quoted by each.
    (2) Written solicitations (see 2.101). For acquisitions not 
exceeding the simplified acquisition threshold, limit

[[Page 204]]

written records of solicitations or offers to notes or abstracts to show 
prices, delivery, references to printed price lists used, the supplier 
or suppliers contacted, and other pertinent data.
    (3) Special situations. Include additional statements--
    (i) Explaining the absence of competition if only one source is 
solicited and the acquisition does not exceed the simplified acquisition 
threshold (does not apply to an acquisition of utility services 
available from only one source); or
    (ii) Supporting the award decision if other than price-related 
factors were considered in selecting the supplier.
    (c) Notification. For acquisitions that do not exceed the simplified 
acquisition threshold and for which automatic notification is not 
provided through FACNET or an electronic commerce method that employs 
widespread electronic public notice, notification to unsuccessful 
suppliers shall be given only if requested or required by 5.301.
    (d) Request for information. If a supplier requests information on 
an award that was based on factors other than price alone, a brief 
explanation of the basis for the contract award decision shall be 
provided (see 15.503(b)(2)).
    (e) Taxpayer Identification Number. If an oral solicitation is used, 
the contracting officer shall ensure that the copy of the award document 
sent to the payment office is annotated with the contractor's Taxpayer 
Identification Number (TIN) and type of organization (see 4.203), unless 
this information will be obtained from some other source (e.g., 
centralized database). The contracting officer shall disclose to the 
contractor that the TIN may be used by the Government to collect and 
report on any delinquent amounts arising out of the contractor's 
relationship with the Government (31 U.S.C. 7701(c)(3)).

[62 FR 64917, Dec. 9, 1997, as amended at 63 FR 58589, 58593, Oct. 30, 
1998; 64 FR 51836, Sept. 24, 1999]