Key:
DO = Domestic end product
EL = Eligible product
NEL = Noneligible product
(a) Example 1.
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Offers
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Item
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A
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B
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C
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1
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DO = $55,000
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EL = $56,000
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NEL = $50,000
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2
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NEL = 13,000
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EL = 10,000
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EL = 13,000
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3
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NEL = 11,500
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DO = 12,000
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DO = 10,000
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4
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NEL = 24,000
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EL = 28,000
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NEL = 22,000
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5
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DO = 18,000
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NEL = 10,000
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DO = 14,000
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$121,500
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$116,000
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$109,000
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Problem: Offeror C specifies all-or-none award. Assume all offerors are large businesses. The acquisition is not covered by the WTO GPA.
Analysis: (see 25.503)
STEP 1: Evaluate Offers A &; B before considering Offer C and determine which offer has the lowest evaluated cost for each line item (the tentative award pattern):
Item 1: Low offer A is domestic; select A.
Item 2: Low offer B is eligible; do not apply factor; select B.
Item 3: Low offer A is noneligible and Offer B is a domestic offer. Apply a 6 percent factor to Offer A. The evaluated price of Offer A is higher than Offer B; select B.
Item 4: Low offer A is noneligible. Since neither offer is a domestic offer, no evaluation factor applies; select A.
Item 5: Low offer B is noneligible; apply a 6 percent factor to Offer B. Offer A is still higher than Offer B; select B.
STEP 2: Evaluate Offer C against the tentative award pattern for Offers A and B:
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Item
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Offers
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Low offer
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Tentative award pattern from A and B
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C
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1
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A
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DO=$55,000
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NEL=$53,000*
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2
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B
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EL=10,000
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EL=13,000
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3
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B
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DO=12,000
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DO=10,000
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4
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A
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NEL=24,000
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NEL=22,000
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5
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B
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NEL=10,600*
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DO=14,000
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$111,600
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$112,000
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* Offer + 6 percent.
On a line item basis, apply a factor to any noneligible offer if the other offer for that line item is domestic.
For Item 1, apply a factor to Offer C because Offer A is domestic and the acquisition was not covered by the WTO GPA. The evaluated price of Offer C, Item 1, becomes $53,000 ($50,000 plus 6 percent). Apply a factor to Offer B, Item 5, because it is a noneligible product and Offer C is domestic. The evaluated price of Offer B is $10,600 ($10,000 plus 6 percent). Evaluate the remaining items without applying a factor.
STEP 3: The tentative unrestricted award pattern from Offers A and B is lower than the evaluated price of Offer C. Award the combination of Offers A and B. Note that if Offer C had not specified all-or-none award, award would be made on Offer C for line items 1, 3, and 4, totaling an award of $82,000.
(b) Example 2.
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Item
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Offers
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A
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B
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C
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1
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DO=$50,000
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EL=$50,500
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NEL=$50,000
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2
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NEL=10,300
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NEL=10,000
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EL=10,200
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3
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EL=20,400
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EL=21,000
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NEL=20,200
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4
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DO=10,500
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DO=10,300
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DO=10,400
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$91,200
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$91,800
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$90,800
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Problem: The solicitation specifies award on a group basis. Assume the Buy American Act applies and the acquisition cannot be set aside for small business concerns. All offerors are large businesses.
Analysis: (see 25.503(c))
STEP 1: Determine which of the offers are domestic (see 25.503(c)(1)):
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Domestic %
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Determination
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A
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60,500/91,200=66.3%
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Domestic
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B
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10,300/91,800=11.2%
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Foreign
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C
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10,400/90,800=11.5%.
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Foreign
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STEP 2: Determine whether foreign offers are eligible or noneligible offers (see 25.503 (c)(2)):
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Domestic + eligible %
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Determination
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A
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N/A
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Domestic
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B
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81,800/91,800=89.1%
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Eligible
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C
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20,600/90,800=22.7%
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Noneligible
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STEP 3: Determine whether to apply an evaluation factor (see 25.503(c)(3)). The low offer (Offer C) is a foreign offer. There is no eligible offer lower than the domestic offer. Therefore, apply the factor to the low offer. Addition of the 6 percent factor (use 12 percent if Offer A is a small business) to Offer C yields an evaluated price of $96,248 ($90,800 + 6 percent). Award on Offer A (see 25.502(c)(4)(ii)). Note that, if Offer A were greater than Offer B, an evaluation factor would not be applied and award would be on Offer C (see 25.502(c)(3)).
