[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: 48CFR3.501-2]



[Page 53]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 3_IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST--Table of Contents

 

              Subpart 3.5_Other Improper Business Practices

 

Sec. 3.501-2  General.



    (a) Buying-in may decrease competition or result in poor contract 

performance. The contracting officer must take appropriate action to 

ensure buying-in losses are not recovered by the contractor through the 

pricing of (1) change orders or (2) follow-on contracts subject to cost 

analysis.

    (b) The Government should minimize the opportunity for buying-in by 

seeking a price commitment covering as much of the entire program 

concerned as is practical by using--

    (1) Multiyear contracting, with a requirement in the solicitation 

that a price be submitted only for the total multiyear quantity; or

    (2) Priced options for additional quantities that, together with the 

firm contract quantity, equal the program requirements (see subpart 

17.2).

    (c) Other safeguards are available to the contracting officer to 

preclude recovery of buying-in losses (e.g., amortization of 

nonrecurring costs (see 15.408, Table 15-2, paragraph A., column (2) 

under ``Formats for Submission of Line Item Summaries) and treatment of 

unreasonable price quotations (see 15.405).



48 FR 42108, Sept. 19, 1983, as amended at 62 FR 51270, Sept. 30, 1997]