(2) Mark Item 12 of SF 33 as follows to preclude a bidder from inadvertently rendering its bid nonresponsive by inserting a figure less than that stipulated by the Government in 552.214– 16(c).

NOTE: Item 12 does not apply if the solicitation includes the provisions at 52.214.16, Minimum Bid Acceptance Period.

12. In compliance with the above, the undersigned agrees, if this offer is accepted within N/A* calendar days (60 calendar days unless a different period is inserted by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the designated points(s), within the time specified in the schedule. *See Provision 552.214-16.

(a) Definition. "Aggregate award" means an arrangement, stipulated by the Government in the solicitation, whereby two or more separately-priced line items are combined for award to that bidder whose offer will result in the lowest overall cost to the Government for all of the line items within the group, without regard to whether the prices offered by the bidder are low on each item within the group. (See also the definition of a "line item" in FAR 3.302.)

(b) Justification for use. (1) While ordinarily prices are solicited on an individual line item basis, it sometimes may be in the Government's best interest to combine two or more line items for an aggregate award such as when

(i) Uniformity of design, style, and finish is desired, as in the acquisition of suites of household furniture;

(ii) The articles being acquired will be assembled and used as a unit, and may not be interchangeable if acquired from different manufacturers;

(iii) The demand for certain articles is large, but the demand for other similar articles is not sufficient to attract competitive bids unless awarded in conjunction with the high-demand articles (e.g., various sizes of socket wrenches);

(iv) One location (delivery point) has a large requirement, and another location has a requirement that is too

small to individually attract competitive bids; or

(v) It is impractical to award and administer numerous small contracts for similar articles or services.

(2) Before deciding to combine items for aggregate award, the contracting officer shall include in the contract file the rationale for establishing an aggregate award formula, which must:

(i) Address the capability of bidders to furnish the types and quantities of supplies or services in the aggregate as well as the impact on bidders if different delivery points are grouped; and

(ii) Be capable of accurately projecting the lowest overall cost to the Government.

(3) Line items may not be grouped for award on an aggregate basis when it would:

(i) Preclude a significant number of firms from bidding due to an inability to provide all the types or quantities of supplies or services or to make deliveries to the various delivery points included in the prospective aggregate group; or

(ii) Increase overall prices to the Government by restricting significantly the number of eligible bidders for any other reason (see also 514.271-3).

(4) To determine the lowest cost on an aggregate group of items, it is necessary to extend unit prices by accurate weight factors calculated to reflect the true or proportionate quantities that will be purchased under a resultant contract (see 514.271-2). If weight factors must be based upon unreliable or conjectural information, or where reliable estimates on anticipated quantities are not available, the price list method described in 514.272 should be considered.

(5) If accurate weight factors and preestablished list prices are not available, an aggregate award formula should not be used because it could result in unbalanced bids and/or award I could not be assured to result in the lowest overall cost to the Government.

(c) Evaluation factors for award. When items will be awarded on an aggregate basis, the solicitation must clearly state the basis on which bids will be evaluated.

(1) If weight factors are used, bidders shall be required to submit a price on

each item within the group with award to be made to the responsive and responsible bidder whose computed overall price for the aggregate group of items is actually the lowest or can accurately be projected to result in the lowest overall cost to the Government. Failure to submit a price on each item within a group will make the bid ineligible for award with regard to that group of items.

(2) If the price method is used, bidders shall be required to express prices as a percentage to be added to or subtracted from the list price for each group of items with award to be made to the responsive and responsible bidder whose percentage factor produces the most favorable price to the Government.

514.271-2 Weighting of items for aggregate award.

(a) Unless the same weight factor is applicable to all line items in the aggregate group, accurate weight factors are essential for determining which bid would result in the lowest overall cost to the Government for the aggregate group.

(b) While the phrase "lowest overall cost to the Government" is used in this regulation, it is not always necessary that an aggregate award formula be capable of projecting actual cost. It is sufficient if the relative proportionate cost between line items within the aggregate group can be projected accurately, i.e., actual quantities may not be available, but ratios of the requirements within the line items in the aggregate group are available.

(c) Estimated quantities that apply to indefinite quantity or requirements contracts may be reduced to smaller numbers by a common denominator to facilitate the computations involved in evaluating bids, if doing so does not sacrifice precision.

(d) Actual purchase quantities will be used as weight factors for definite quantity acquisitions because a bidder might include two or more aggregate groups, or an aggregate group and various individual line items, under an "all or none" qualification. Proportionate weight factors must not be used in the evaluation process where

"all or none" qualifications are permitted.

(e) Weight factors may not be based on the estimated dollar value of purchases. If the dollar value of previous purchases is the only information available, and there is no recourse but to make award on an aggregate basis, the value of previous purchases must be converted to quantities for the purpose of establishing weight factors (i.e., divide total purchases of each item by the unit price to determine number of units purchased).

514.271-3 Grouping of line items for aggregate award.

(a) General. While paragraphs (b) and (c) pertain to supply contracts (articles and delivery points), the same principles apply to service contracts (types of services and service areas).

(b) Grouping of different articles. Only related articles, normally manufactured or produced by a majority of prospective bidders, should be included in an aggregate group. The grouping of unrelated articles usually is contrary to 514.271-1(b)(3).

(c) Grouping of geographic locations or delivery point. The contracting officer should consider the following guidelines before deciding to group different geographic locations or delivery points for aggregate award:

(1) If different delivery points have sufficient requirements so that individual shipments to each point will involve not only economic production runs, but carload or truckload quantities, these points should be listed as separate line items.

(2) The types of bidders (i.e., small or large firms, manufacturers or distributors, etc.) responding to previous solicitations are an important consideration. For example, if previous bidders are distributors having franchises within certain territories, the grouping of different territories would tend to restrict competition.

(3) The impact of transportation costs on competition and pricing, since transportation costs may constitute a significant portion of the total delivered cost. Depending upon the supplies being acquired:

(i) Grouping widespread geographic locations or delivery points may reduce

competition and/or result in higher prices due to the loss of “area pricing" advantages when a potential supplier has a single production point.

(ii) Conversely, for many smaller commercial items (hand tools, locks, etc.) manufacturers may quote the same price for delivery anywhere in the U.S.

(iii) Contracting officers should obtain the advice and assistance of transportation specialists before grouping geographic locations or delivery points, to include information regarding the location of tariff boundaries.

514.272 Price list method.

(a) General. The price list method may be used to avoid unbalanced bidding in requirements and indefinite quantity/indefinite delivery contracts when aggregate awards will be made and accurate estimates of anticipated quantities are unavailable. This method utilizes pre-established list prices for acquiring groups of similar items, services, or repairs and alterations. The following elements of the price list method must be included in the solicitation:

(1) A pre-established price list.

(2) An estimate of requirements, if available.

(3) A requirement that a bidder express its price as "net" or as a percentage added to or subtracted from the list prices for each group.

(4) The percentage factor in (a)(3) of this section is a price related factor, which must be identified in Section M of the Uniform Contract Format.

(b) Development of pre-established list prices. (1) Pre-established list prices may be developed by one or more of the following methods:

(i) Industry published prices. (ii) Industry surveys.

(iii) Government cost estimates based upon knowledge of the supplies

Item No.

or services to be grouped and previous contract prices.

(2) When proposed list prices will be used for the first time, prospective bidders should be given an opportunity to review the proposed list and furnished information on how the list prices will be used. Copies of the draft solicitation may be provided.

(3) The contracting officer must ensure that items are properly grouped and that the list prices for the grouped items bear a reasonable and balanced relationship to one another. Before using prices resulting from awards made under the weighted item method to develop price lists, those prices must be reviewed to ensure that they did not result from unbalanced bidding.

514.272-1 Supply contracts.

(a) Estimated requirements for each item in a group or for the entire group must be shown in the solicitation. For contracts for store stock items, estimated quantities should be shown only if estimates of demand for each item within a group can be derived from Government records (or verified contractor sales reports). All the estimates must be current. If the Government's needs cannot be estimated, the solicitation may include past orders. (See CG Decision, B-209037, 82-2 CPD para 323 (1982).)

(b) The bidding schedule must clearly state that bidders must quote only one percentage factor for each group, which must be expressed as either "net" or as a deduction from or an addition to the listed prices.

(c) The following illustrates a bidding schedule arrangement for a group of items for aggregate award under the price list method:

Drills, Twist, High Speed, under Federal Specification (dated ) and Amend), Wire gauge

(dated

ment sizes, straight shank, shortlength, Type C:

The bid on each item above is the list price shown minus/plus percent. (Bidder, insert "net" or a single percentage amount in the blank space and cross out minus or plus, as appropriate.)

514.272-2 Repair and alteration contracts.

(a) The solicitation shall:

(1) Contain a statement indicating the percentage of work anticipated to be performed during normal working hours;

(2) Define "normal" in terms of hours and days of the week; and

(3) List the quantities, if available, and unit prices for work performed during both normal working hours and outside of normal working hours.

(b) Instructions, conditions, and notices to bidders. (1)(i) Bidders should be advised of the previous year's total expenditures or portions of that total attributable to the listed items.

(ii) When estimates are provided, the solicitation must state that the quantity estimates are furnished for information only and are not to be construed as guarantees or commitments to order items under the contract.

(2) Bidders shall be instructed to quote two or more percentage factors to be applied as specified in (b)(2) (i) and (ii), of this section. The percentage factor(s) must be expressed as "net," or as an addition to or subtraction from the applicable unit prices.

(i) For the line item unit prices listed in the solicitation, two percentage factors must be solicited: one to be applied to the unit prices for the percentage of work performed during normal working hours and the second to be applied to the unit prices for the percentage of work performed outside of normal working hours.

(ii) When unit prices are further grouped by trade or business category, multiple percentages may be required.

(c) Evaluation factors for award. (1) When two percentage factors are solicited under (b)(2)(ii) of this section, the evaluated bid price is the sum of the percentage of work performed

(i) During normal work hours multiplied by the Government's total estimate adjusted by the bidder's percentage factor for that portion of the work, and

(ii) During other than normal working hours multiplied by the Government's total estimate adjusted by the bidder's percentage factor for that portion of the work.

(2) Award must be made to the responsible and responsive bidder submitting the lowest evaluated bid price.

(3) When additional evaluation factors such as options are used, they must be identified in the solicitation.

Subpart 514.3-Submission of Bids 514.301 Responsiveness of bids.

514.303 Modification or withdrawal of bids.

(a) When a telegraphic modification or withdrawal of a bid is received by telephone under the circumstances in FAR 14.303, the identity of the telegraph office employee telephoning the message should be obtained and recorded in the solicitation file.

(b) The receipt required by FAR 14.303(b) for withdrawal of a bid in person should be worded as follows:

I certify as a bona fide, agent for or representative of (Bidder's name and address), I am authorized to withdraw the bid on IFB No. scheduled for opening on and hereby acknowledge receipt

available to replace it. Supplemental financial forms or other information submitted with a bid, must be retained by the contracting activity and must not be retained by the BSC for public information.

Subpart 514.4-Opening of Bids and Award of Contract

514.401 Receipt and safeguarding of bids.

(a) Except as otherwise provided in paragraph (c), bids and modifications must be received and safeguarded by the appropriate BSC until the time specified for opening. Bids received should be handled as follows:

(1) At the initial point of receipt, each envelope (or other covering) received by mail and identified as containing a bid should be immediately time-stamped or indicated thereon the place, date, and time of receipt by authorized personnel. Then the bid(s) should be delivered by special handling to the bid custodian in the Business Service Center.

(2) Mailed bids and modifications delivered to the bid custodian before bid opening time should be recorded on the bidder's list on the same day they are delivered and then placed in a suitable locked cabinet.

(3) Hand-carried bids delivered before bid opening time should be deposited in the locked bid box. In the event a handcarried bid is not placed in the bid box by the bidder, but is handed to the bid custodian or other GSA employee, it should be time stamped immediately and then handled in the same manner as provided for mailed bids. At least once daily (and immediately preceding the time for each scheduled bid opening), the bid custodian should remove and time stamp the bids, record them and place them with any other bids previously received.

(4) Telegraphic or facsimile bid, if authorized, and modifications must be sealed in envelopes immediately upon receipt, appropriately identified, and handled in the same manner as bids submitted by mail.

(5) For each invitation, the bid custodian will prepare a list indicating the invitation number and listing on the GSA Form 1378, Record of, and Receipt

for, Bids and Responses, or the appropriate bid abstract form, the name and address of all responses, including any bid modification, received before bid opening time. When a bid previously recorded on this list is withdrawn, the list will so indicate.

(b) At the scheduled bid opening time, the bid custodian will deliver all bids received in response to the invitation, together with the original and one copy of the GSA Form 1378, Record of, and Receipt for, Bids and Responses, or other appropriate bid list to the authorized bid opening official or designee, who will acknowledge receipt of the bids by signing the duplicate copy of the form and returning it to the bid custodian. The original list becomes part of the contract file.

(c) Business Service Center Directors may designate an individual(s) working at a PBS Facility Support Center or Enhanced Field Office as a bid custodian, provided: (1) Adequate space and facilities are available within the Facility Support Center or Enhanced Field Office, (2) the individual(s) has been trained and (3) the Facility Support Center or Enhanced Field Office has a Small Business Technical Advisor. If such designations are made, the designated bid custodian must submit monthly reports to the BSC Director for forwarding to the Office of Small and Disadvantaged Business Utilization (AU).

514.402 Opening of bids.

514.402-1 Unclassified bids.

(a) Public bid openings will be held in the BSC when the BSC is the bid custodian. When the bid opening will be held elsewhere, the contracting officer shall inform the BSC serving the geographic area in which the contracting office is located of the invitation number and the location where the public bid opening will be held.

(b) The assistant bid opening officer shall be a qualified employee of the contracting office. Upon authorization by the HCA and the Director of Small and Disadvantaged Business Utilization in Central Office or the Director of the Business Service Center in the region, bids may be opened by selected BSC personnel. Normally, this author