Unless otherwise specified, the per diem locality is defined as "all locations within, or entirely surrounded by, the corporate limits of the key city, including independent entities located within those boundaries." Traveler reimbursement is based on the location of the work activities and not the accommodations, unless lodging is not available at the work activity, then the agency may authorize the rate where lodging is obtained. Contractors may be willing to offer more discounts or concessions after submitting their initial quote to secure award. Quotes should include the offeror's best pricing, including all discounts, as there may not be another opportunity to offer further discounts."Įven when only one quote is submitted, COs should request a discount before placing the order. For example, in the the RFQ price submission instructions, the RFQ could state, "GSA is seeking price reductions from the awarded Schedule pricing according to FAR 8.405-4. The RFQ should always request that contractors offer their best pricing with their initial quotes, including all discounts. When issuing a written RFQ, it is a best practice to request a price discount in the initial RFQ and after quotes have been received and evaluated.
Contractors may be more likely to offer discounts in a more competitive environment. Contracting activities are also encouraged to post RFQs to eBuy, even when the FAR doesn't require it, to increase RFQ visibility and the pool of interested contractors. Buying activities are encouraged to engage industry early in the acquisition planning process to allow contractors adequate time to prepare for upcoming competitions. Maximizing competition is another way the government can leverage its buying power and encourage price discounts. The Acquisition Gateway is one potential source for this information. Understanding the marketplace by examining prices paid data, current commercial pricing practices, and other industry trends can help COs identify when more discounts may be warranted. The GSA Schedule CO has already determined contract prices fair and reasonable, and contractors are not obligated to discount their Schedule prices.įor all acquisitions, COs should conduct market research to get a sense of what prices they should expect to pay, including what, if any, discounts may be appropriate. Yes, even though COs must seek discounts when required, they may place orders or establish BPAs when no price discounts are offered in response to a discount request. This requirement applies to all Schedule orders or BPAs over the SAT, regardless of the level of competition, discounts offered at the Schedule level, type of product or service being acquired, or any other factors surrounding the procurement. The order is above the maximum order thresholdĬontractors may be motivated to offer discounts based on factors other than order value, including competitive forces, technological changes, labor conditions, industry sales goals, and inventory reductions.īuyers are required to seek a price reduction for all orders or BPAs that exceed the Simplified Acquisition Threshold (SAT).When establishing a BPA to fill recurring requirements and the potential volume of orders under BPAs offers the chance to secure price reductions, regardless of the size of individual orders, or.
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