Just like my Quick Hitter series on the FAR, my Quick Hitter series on the GSAR is meant to simplify contracting business with the government. This time with GSA.
GSAR 514.270 Aggregate Awards
This concept is specific to GSA. This is a form of bundleing. I didn’t say it was called bundling. It is when two or more line-items are combined into one line-item with one price.
You know when you buy a shelf or a chair and you get that bag of nuts, bolts, fasteners, and a wrench? Although separate things are considered their own line–item. Well, that bag of stuff would be considered its own line–item with its own price.
The use of an aggregate award must be justified. Such instances include when users desire a uniform finished product (think IKEA), the unit is custom with no interchangeable parts, certain items of a set are in demand (socket wrenches), combining low demand items with high demand items (think a box buy at an auction), the delivery points vary in requirements from low to high and administrative burden must be eased.
The CO must consider the capability of bidders to produce the aggregate, how grouped delivery points will effect bidders and which combination(s) will be the most fair and reasonable to the government. Aggregate awards must not be used if the process constricts bidders.
The solicitation must specifically state the intent for aggregate award, how they will be evaluated and how a reasonable price-point is calculated and notify that failure to obey the construct deems the bidder ineligible.
How do COs group items? Full-and-open-competition must be the goal even if this form of bundling does leave some bidders out. The CO must group related items pertinent to to the commercial struction of sale and purchase. Delivery can have multiple geographic points with multiple methods of shipping and drop-off styles. An RFI might be wise. Transportation and tariffs might have a drastic effect on the fully-loaded price, but some companies might ship small items for one price.
How is an aggregate award evaluated? For definite quantity contracts without options, the CO just compares prices from the bidding pool, but GSA has its own methodologies to evaluate indefinite quantity and requirements buys as well as options.
Assign a weighted multiplier to a group (1, 2, 3) and multiply the price times the multiplier for a rough gauge of how time will effect pricing. Think the CPI variations specific to your good or service buy. This is called the weighted factors methodology. How original!
The price list method consists of a proposed base price accompanied by a suggested percentage as to the projection of price fluctuation over time. Remember, the percentage is the same for each line-item.
In the weight factors methodology, lowest product wins. Whereas, the price list method may use tradeoffs.
I’ve never done this type of contracting, and I’ve never worked at GSA, but contracting, is contracting, is contracting. It is an easy concept to conceptualize and explain if you know the craft. I know the craft.
If you think I can help you then email nicholas.s.robertson@outlook.com for your introductory email and free consultation.