[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: 48CFR7.304] [Page 113-114] TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM CHAPTER 1--FEDERAL ACQUISITION REGULATION PART 7_ACQUISITION PLANNING--Table of Contents Subpart 7.3_Contractor Versus Government Performance Sec. 7.304 Procedures. (a) Work statement. When private commercial sources are available and a cost comparison is required, the Government's functional managers responsible for the comparison or another group shall prepare a comprehensive, performance work statement. The work statement must-- (1) Accurately reflect the actual Government requirement, stating adequately what is to be done without prescribing how it is to be done; (2) Include performance standards that can be used to ensure a comparable level of performance for both Government and contractor and a common basis for evaluation; and (3) Be reviewed by the contracting officer to ensure that it is adequate and appropriate to serve as a basis for solicitation and award. (b) Cost estimate. The agency personnel who develop the cost estimate for Government performance-- (1) Enter on a cost comparison form (see Part IV of the Supplement) the cost estimate and the other elements required to accomplish a cost comparison; (2) Review the estimate for completeness and accuracy and have the estimate audited; and (3) Submit to the contracting officer the completed form and all necessary detailed supporting data in a sealed, dated envelope, or electronic equivalent, not later than the time established for receipt of initial proposals or bid opening. If more time is needed to develop the Government's cost estimate, the contracting officer shall amend the opening date of the solicitation. (c) Solicitation. (1) The contracting officer shall issue a solicitation based on the performance work statement prepared in accordance with paragraph (a) of this section. Prepriced option prices in existing contracts will not be used instead of issuing a new solicitation [[Page 114]] when conducting a cost comparison under a new start. (2) Firm offers shall be required for the period covered by the cost comparison, by using (i) a base contract period and any applicable priced options to total the amount of time represented by the cost estimate for Government performance (see subpart 17.2), or (ii) a multiyear contract when appropriate (see subpart 17.1). (3) Solicitations shall not, unless a proper determination to the contrary is made, limit award to U.S. offerors. (d) Integrity of cost comparison. (1) The confidentiality of (i) the cost estimate for Government performance and (ii) the bids in sealed bid cost comparisons shall be maintained until the time of bid opening, to ensure that they are completely independent. (2) For cost comparisons conducted using the results of negotiation procedures, confidentiality and independence shall be maintained until after negotiations are completed and the most advantageous offer has been selected. (3) Personnel who have knowledge of the cost figures in the cost estimate for Government performance shall not participate in the offer- evaluation process unless the contract file is adequately documented to show that no other qualified personnel were available. [48 FR 42124, Sept. 19, 1983, as amended at 50 FR 1735, Jan. 11, 1985; 50 FR 52429, Dec. 23, 1985; 55 FR 25526, June 21, 1990; 57 FR 60575, Dec. 21, 1992; 60 FR 34737, July 3, 1995]