[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR13.106-3]



[Page 213-214]

 

            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



[[Page 214]]



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 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]