Ch 4 - I dent i f yi ng Possi bl e Combi nat i ons f or Awar d

4. 0 - Chapt er I nt r oduct i on
4. 1 - Aggr egat e Awar d Of Al l Li ne I t ems To One
Cont r act or
4. 2 - Mul t i pl e Awar ds For Di f f er ent Li ne I t ems
4. 3 - Fami l y Or Gr oup Buys
4. 4 - Pr ogr essi ve Awar ds For Por t i ons Of Tot al Li ne
I t emRequi r ement
4. 5 - Mul t i pl e Awar ds For The Same Li ne I t em
4. 6 - Spl i t Awar ds
4. 7 - Par t i al Set - Asi de Awar ds

4.0 Chapter Introduction
Criteria Development Process. The f i gur e bel ow depi ct s t he
sequence of event s or st eps t hat you shoul d f ol l ow i n
devel opi ng cont r act awar d cr i t er i a f or cont r act pr i ci ng.


Identify Most Advantageous Award Strategy. As you pr epar e
any sol i ci t at i on, you must cl ear l y def i ne t he gr oupi ngs and
possi bl e awar d combi nat i ons t hat wi l l be consi der ed i n
eval uat i ng of f er s f or cont r act awar d. When you sol i ci t
of f er s t o pr ovi de one uni t of a si ngl e pr oduct , onl y one
f i r mcan r ecei ve a cont r act awar d t o pr ovi de t hat uni t .
However , as t he number of di f f er ent i t ems and t he number of
uni t s of each i t emi ncr ease, t he number of awar d
possi bi l i t i es al so i ncr eases. Theor et i cal l y, t he awar d
possi bi l i t i es coul d become al most i nf i ni t e.
Ther e i s no one met hod of gr oupi ng i t ems f or cont r act awar d
t hat wi l l al ways r esul t i n ef f ect i ve compet i t i on and
r easonabl e pr i ces. However , each met hod descr i bed i n t hi s
chapt er can i mpr ove compet i t i on and l ower pr i ces when used
i n t he appr opr i at e acqui si t i on si t uat i on.
As you deci de whi ch met hod t o use i n a par t i cul ar
acqui si t i on si t uat i on, consi der bot h t he pr oduct t hat you
ar e acqui r i ng and t he pot ent i al of f er or s. Use mar ket
r esear ch t o l ear n about t he cust omar y pr act i ces used by
Gover nment and i ndust r y.

4.1 Aggregate Award Of All Line Items To One Contractor
Aggregate Awards. The t abl e bel ow pr esent s descr i pt i ons
and pr i ci ng consi der at i ons f or maki ng aggr egat e awar ds.
Aggregate Awards
Description Use When...
Awar d t o t he si ngl e
r esponsi bl e of f er or whose
of f er pr ovi des t he best
val ue t o t he Gover nment .
Awar d on an " al l or none"
basi s woul d pr obabl y r esul t
i n a t ot al pr i ce t hat i s
l ower t han t he sumof l ow
of f er s f r oma l i ne- i t emby
l i ne- i t emcompet i t i on. Thi s
met hod woul d be especi al l y
appr opr i at e when f i r ms
r egul ar l y sel l t he cont r act
i t ems as an i nt egr at ed
package t o r eal i ze economi es
of scal e t hat ar e not
possi bl e when sel l i ng each
component i ndependent l y.
For example: Many f i r ms of f er
comput er syst ems t hat ar e
cheaper t han buyi ng t he
separ at e component s ( e. g.
di sk dr i ves, moni t or s,
pr i nt er s, et c. ) one by one.
Example of a Method of Award Provision:
Awar d wi l l be made i n t he aggr egat e f or al l i t ems. The
l ow aggr egat e of f er or wi l l be det er mi ned by mul t i pl yi ng
t he uni t pr i ce submi t t ed on each i t emby t he quant i t y
speci f i ed, and addi ng t he r esul t ant ext ensi ons. I n or der
t o qual i f y f or an awar d, pr i ces must be submi t t ed on al l
i t ems.

4.2 Multiple Awards For Different Line Items
Multiple Awards for Different Line Items ( FAR 52. 214- 22 and
52. 215- 1( f ) ( 6) ) . The t abl e bel ow pr esent s descr i pt i ons and
pr i ci ng consi der at i ons f or maki ng mul t i pl e awar ds f or
di f f er ent l i ne i t ems.
Multiple Awards
(Line Item by Line Item)
Description Use When...
Base awar d( s) on t he l i ne
i t ems or gr oups of l i ne
i t ems t hat pr ovi de t he
l owest aggr egat e cost t o t he
Gover nment , i ncl udi ng t he
assumed admi ni st r at i ve cost s
f or awar di ng and
admi ni st er i ng each cont r act .
Awar di ng l i ne i t emby l i ne
i t emi s l i kel y t o r esul t i n
a l ower t ot al pr i ce t han
awar di ng on an aggr egat e
" al l or none" basi s. Thi s
met hod woul d be especi al l y
appr opr i at e i f pr ospect i ve
of f er or s ar e l i kel y t o
per cei ve no si gni f i cant
economi es of scal e f r oman
aggr egat e awar d.
For example: Some f i r ms may
sel l comput er per i pher al s at
much l ower pr i ces t han ar e
t ypi cal l y of f er ed by
comput er manuf act ur er s.
However , such f i r ms mi ght
not be abl e t o compet e t o
pr ovi de t he per i pher al s i f
t he sol i ci t at i on r equi r es
awar d based on t he aggr egat e
pr i ce f or al l l i ne i t ems
( i ncl udi ng t he per i pher al s)
t hat compr i se a
mi cr ocomput er syst em.
Example 1 of a Method of Award Provision:
The Gover nment r eser ves t he r i ght t o make mul t i pl e
awar ds i f , af t er consi der i ng t he addi t i onal
admi ni st r at i ve cost s, i t i s i n t he Gover nment ' s best
i nt er est t o do so
Example 2 of a Method of Award Provision:
I n addi t i on t o ot her f act or s, bi ds wi l l be eval uat ed on
t he basi s of advant ages and di sadvant ages t o t he
Gover nment t hat mi ght r esul t f r ommaki ng mor e t han one
awar d ( mul t i pl e awar ds) . I t i s assumed, f or t he pur pose
of eval uat i ng bi ds, t hat $500 woul d be t he
admi ni st r at i ve cost t o t he Gover nment f or i ssui ng and
admi ni st er i ng each cont r act awar ded under t hi s
sol i ci t at i on, and i ndi vi dual awar ds wi l l be f or t he
i t ems or combi nat i ons of i t ems t hat r esul t i n t he l owest
aggr egat e cost t o t he Gover nment , i ncl udi ng t he assumed
admi ni st r at i ve cost .

4.3 Family Or Group Buys
Family or Group Buys ( FAR 52. 214- 22 and 52. 215- 1( f ) ( 6) ) .
The t abl e bel ow pr esent s descr i pt i ons and pr i ci ng
consi der at i ons f or f ami l y or gr oup buys.
Family or Group Buys
Description Use When...
Awar d f or i dent i f i ed
f ami l i es, or gr oups, of l i ne
i t ems t hat pr ovi de t he l owest
aggr egat e cost t o t he
Gover nment , i ncl udi ng t he
assumed admi ni st r at i ve cost s
of awar di ng each cont r act .
Of f er or s ar e l i kel y t o submi t
a t ot al pr i ce f or a gr oup of
l i ne i t ems t hat woul d be
l ower t han t he sumof t hei r
of f er s on t he i ndi vi dual
i t ems. Thi s met hod woul d be
especi al l y appr opr i at e i f
of f er or s ar e l i kel y t o
per cei ve si gni f i cant
economi es of scal e f r ombei ng
awar ded al l l i ne i t ems i n a
par t i cul ar gr oup as a
package.
For example: Fi r ms t hat
manuf act ur e i nk car t r i dges
f or pr i nt er s al so t end t o
manuf act ur e i nk car t r i dges
f or f ax machi nes. Li ne i t ems
f or di f f er ent i nk car t r i dges
mi ght be i ncl uded i n a si ngl e
f ami l y of i t ems.
Example of a Method of Award Provision:
Awar d wi l l be made i n t he aggr egat e f or each i dent i f i ed
gr oup of i t ems. The l ow of f er or f or t he gr oup wi l l be
det er mi ned by mul t i pl yi ng t he uni t pr i ce submi t t ed on each
i t emi n t he gr oup by t he est i mat ed quant i t y speci f i ed, and
addi ng t he r esul t ant ext ensi ons. I n or der t o qual i f y f or an
awar d on a gr oup of i t ems, an of f er or must submi t pr i ces
f or each i t emwi t hi n t he gr oup.

4.4 Progressive Awards For Portions Of Total Line Item
Requirement
Progressive Awards. The t abl e bel ow pr esent s descr i pt i ons
and pr i ci ng consi der at i ons f or maki ng pr ogr essi ve awar ds.
Progressive Awards
(Each Line Item)
Description Use When...
I f t he of f er or wi t h l owest
eval uat ed uni t pr i ce f or a
l i ne i t emof f er s l ess t han
t he t ot al quant i t y r equi r ed
by t he Gover nment , awar d up
t o t he quant i t y of f er ed.
Fol l ow t he same pr ocedur e
wi t h t he next l owest
eval uat ed uni t pr i ce and
cont i nue unt i l t he ent i r e
l i ne i t emr equi r ement i s
awar ded.
Some of t he pot ent i al
compet i t or s do not have t he
capabi l i t y t o suppl y t he
ent i r e quant i t y r equi r ed by
t he Gover nment , but mi ght be
i n a posi t i on t o of f er t he
l owest pr i ce f or some of t he
needed uni t s.
For example: Some f i r ms
speci al i ze i n r econdi t i oni ng
l aser pr i nt er car t r i dges and
of f er t hose car t r i dges at a
f r act i on of t he pr i ce of new
uni t s. I f such a f i r mdi d not
have enough r econdi t i oned
car t r i dges t o f i l l t he ent i r e
r equi r ement , a pr ogr essi ve
awar d woul d al l ow t he f i r mt o
compet e f or t he quant i t i es
t hat i t can suppl y - - wi t h
ot her f i r ms compet i ng f or t he
bal ance of t he r equi r ement .
Example of a Method of Award Provision:
a) Awar d wi l l be made on an i t em- by- i t embasi s t o t he
l owest r esponsi ve of f er or s up t o t hei r st at ed mont hl y
quant i t y al l ocat i ons. Awar ds t o any of f er or wi l l not be
made f or quant i t i es i n excess of t he f i r m' s st at ed mont hl y
quant i t y al l ocat i on.
b) I f t he l ow r esponsi ve of f er or of f er s a mont hl y quant i t y
al l ocat i on whi ch, when mul t i pl i ed by t he number of mont hs
r epr esent i ng t he cont r act per i od, t ot al s l ess t han t he
Gover nment ' s est i mat ed annual r equi r ement s, t he Gover nment
may make pr ogr essi ve awar ds t o t he ext ent necessar y t o meet
i t s est i mat ed annual r equi r ement s. I n such cases, awar ds
wi l l be made t o t he l ow r esponsi ve of f er or up t o t hat
of f er or ' s st at ed mont hl y quant i t y al l ocat i on, and t hen
pr ogr essi vel y t o ot her of f er or s t o t he ext ent necessar y t o
cover al l Gover nment r equi r ement s. Wi t hi n t he l i mi t s
pr escr i bed by t he of f er or , t he Gover nment wi l l appl y
of f er or ' s mont hl y quant i t y al l ocat i on t o any i t ems of f er ed,
as t he Gover nment ' s i nt er est s r equi r e.
c) I f pr ogr essi ve awar ds ar e made, or der s wi l l be pl aced
f i r st wi t h t he cont r act or of f er i ng t he l owest pr i ce on each
i t emnor mal l y up t o t he cont r act or ' s mont hl y quant i t y
al l ocat i on and t hen i n t he same manner , successi vel y t o
ot her cont r act or s. However , t o avoi d t he pl acement of
undul y smal l or der s or t he spl i t t i ng of a si ngl e
r equi r ement bet ween t wo cont r act or s, t he Gover nment
r eser ves t he r i ght t o pl ace or der s wi t h back- up cont r act or s
whenever t he or der s pl aced wi t h l ower pr i ced cont r act or s
equal or exceeds 95 per cent of t hei r mont hl y quant i t y
al l ocat i on f or t he i t emor gr oup of i t ems bei ng or der ed. I n
no case wi l l or der s be pl aced wi t h any cont r act or i n excess
of i t s mont hl y quant i t y al l ocat i on.

4.5 Multiple Awards For The Same Line Item
Multiple Awards for the Same Line Item ( FAR 16. 504( c) ) .
The t abl e bel ow pr esent s descr i pt i ons and pr i ci ng
consi der at i ons f or maki ng mul t i pl e awar ds f or t he same l i ne
i t emunder an i ndef i ni t e quant i t y cont r act .
Multiple Awards
(Estimated Requirements for Individual Line Items)
Description Use When...
Make mul t i pl e awar ds f or t he
same i ndef i ni t e r equi r ement
i n si t uat i ons wher e mul t i pl e
f i r ms ar e capabl e of
del i ver i ng si mi l ar , but not
necessar i l y i dent i cal ,
pr oduct s t o meet t he needs of
t he Gover nment and pr ovi de
al t er nat i ves f or or der i ng
of f i ces. Or der i ng of f i ces
t hen have t he choi ce of
sel ect i ng t he pr oduct and
f i r mt hat best meet t hei r
needs.
Appr opr i at e t o meet t he needs
of t he Gover nment . I f you ar e
usi ng an i ndef i ni t e quant i t y
cont r act f or :
Suppl i es or ser vi ces
ot her t han advi sor y and
assi st ance ser vi ces,
gi ve pr ef er ence t o
maki ng mul t i pl e awar ds,
unl ess you det er mi ne
t hat a si ngl e awar d i s
appr opr i at e.
Advi sor y and assi st ance
ser vi ces t hat wi l l not
exceed t hr ee year s and
$10 mi l l i on, i ncl udi ng
al l opt i ons, you may
gi ve pr ef er ence t o
maki ng mul t i pl e awar ds.
Advi sor y and assi st ance
ser vi ces t hat wi l l
exceed t hr ee year s and
$10 mi l l i on, you must
gi ve pr ef er ence t o
maki ng mul t i pl e awar ds,
unl ess:
The cont r act i ng of f i cer ,
or ot her per son
desi gnat ed by t he agency
head, det er mi nes i n
wr i t i ng pr i or t o
sol i ci t at i on t hat t he
ser vi ces ar e so uni que
or hi ghl y speci al i zed
t hat i t i s not pr act i cal
t o awar d mor e t han one
cont r act . Thi s
det er mi nat i on may al so
be appr opr i at e when
cont r act t asks ar e so
i nt egr al l y r el at ed t hat
onl y a si ngl e cont r act or
can r easonabl y per f or m
t he wor k, or
The cont r act i ng of f i cer ,
or ot her per son
desi gnat ed by t he agency
head, det er mi nes i n
wr i t i ng, af t er
eval uat i on of of f er s,
t hat onl y one of f er or i s
capabl e of pr ovi di ng t he
ser vi ces r equi r ed, or
You onl y r ecei ve one
of f er .
Example 1 of a Method of Award Provision:
The Gover nment may el ect t o awar d a si ngl e del i ver y or der
cont r act or t ask or der cont r act or t o awar d mul t i pl e
del i ver y or der cont r act s or t ask or der cont r act s f or t he
same or si mi l ar suppl i es or ser vi ces t o t wo or mor e sour ces
under t hi s sol i ci t at i on.
Example 2 of a Method of Award Provision:
The Gover nment i nt ends t o awar d mul t i pl e cont r act s f or t he
same or si mi l ar advi sor y and assi st ance ser vi ces under t hi s
sol i ci t at i on unl ess t he Gover nment det er mi nes, af t er
eval uat i on of of f er s, t hat onl y one of f er or i s capabl e of
pr ovi di ng t he ser vi ces at t he l evel of qual i t y r equi r ed.

4.6 Split Awards
Split Awards ( FAR 6. 202) . The t abl e bel ow pr esent s
descr i pt i ons and pr i ci ng consi der at i ons f or maki ng spl i t
awar ds.
Split Awards
(Estimated Requirements for Individual Line Items)
Description Use When...
Awar d of r equi r ement s f or an Mul t i pl e sour ci ng i s
i ndi vi dual l i ne i t emmay be
spl i t bet ween t wo or mor e
sour ces. The si ze of each
por t i on of t he spl i t or a
met hod f or cal cul at i ng t he
spl i t shoul d be est abl i shed
i n t he sol i ci t at i on. Ever y
possi bl e ef f or t shoul d be
made t o assur e t hat any
amount awar ded i s an economi c
pr oduct i on quant i t y.
necessar y t o mai nt ai n
compet i t i ve sour ces f or
a pr oduct t hat woul d
ot her wi se be avai l abl e
onl y f r omone sour ce.
The spl i t may be on a
per cent age shar e basi s,
wi t h t he most f avor abl e
of f er r ecei vi ng t he
l ar gest per cent age of
t he r equi r ement ; or
Mul t i pl e sour ce
devel opment wi l l be
f aci l i t at ed at
r el at i vel y l ow r i sk t o
t he Gover nment . For
exampl e, a par t i al set -
asi de i s a f or mof spl i t
awar d.
Example of Method of Award Provision:
The Gover nment i nt ends t o make spl i t awar ds f r omt hi s
sol i ci t at i on. Si xt y per cent of t he t ot al quant i t y wi l l be
awar ded t o t he of f er or t hat t he Gover nment det er mi nes t o
have submi t t ed t he pr oposal t hat of f er s t he best val ue t o
t he Gover nment , consi der i ng pr i mar i l y t echni cal scor es and
secondar i l y, of f er ed pr i ces. For t y per cent wi l l be awar ded
t o t he r emai ni ng compet i t or pr ovi ded t hat t he t echni cal
eval uat i on det er mi nes t hat t he t echni cal pr oposal i s
accept abl e and t he of f er ed pr i ces ar e det er mi ned t o be f ai r
and r easonabl e.

4.7 Partial Set-Aside Awards
Partial Set-Aside Awards ( FAR 19. 502- 3 and 52. 219- 7) . The
t abl e bel ow pr esent s descr i pt i ons and pr i ci ng
consi der at i ons f or maki ng par t i al set - asi de awar ds.
Partial Set-Aside Awards
Description Use When...
A por t i on of t he sol i ci t at i on
r equi r ement i s set - asi de f or
smal l busi ness. Any smal l
busi ness can submi t an of f er
Al l of t he f ol l owi ng ar e
t r ue:
A t ot al set - asi de i s not
t o pr ovi de t he set - asi de
por t i on, t he non- set - asi de
por t i on, or bot h.
Not e: I f a smal l busi ness i s
awar ded t he non- set - asi de
por t i on of t he r equi r ement ,
do not at t empt t o negot i at e a
l ower pr i ce wi t h t he f i r mf or
t he set - asi de por t i on.
However , accept vol unt ar y
r educt i ons.
appr opr i at e.
The r equi r ement i s
sever abl e i nt o t wo or
mor e economi c pur chase
l ot s.
One or mor e smal l
busi ness concer ns i s
expect ed t o have t he
t echni cal compet ence and
pr oduct i ve capaci t y t o
sat i sf y t he set - asi de
por t i on of t he
r equi r ement at a f ai r
mar ket pr i ce.
The acqui si t i on i s not
made under smal l
pur chase pr ocedur es.
Unl ess aut hor i zed by t he head
of t he cont r act i ng act i vi t y,
do not use a par t i al set -
asi de i f t her e i s a
r easonabl e expect at i on t hat
onl y t wo capabl e concer ns
( one l ar ge and one smal l )
wi l l r espond.
Method of Award Provision Requirements:
The set - asi de por t i on of t he r equi r ement s must be
speci f i cal l y i dent i f i ed. Any accept abl e met hod of awar d may
be used t o awar d t he set - asi de por t i on, i ncl udi ng
aggr egat e, l i ne i t emby l i ne i t em, or f ami l y buys.
Sol i ci t at i ons must i ncl ude FAR 52. 219- 7, Not i ce of Par t i al
Smal l Busi ness Set - Asi de.