- (c) Orders
exceeding the maximum order threshold.
Each schedule contract has an established maximum order threshold.
This threshold represents the point where it is advantageous for
the ordering office to seek a price reduction. In addition to
following the procedures in paragraph b, above, and before placing
an order that exceeds the maximum order threshold, ordering offices
shall--
Review additional Schedule Contractors'
- (1) catalogs/pricelists
or use the “GSA Advantage!” on-line shopping service;
(2) Based upon the initial evaluation, generally seek price
reductions from the Schedule Contractor(s) appearing to provide
the best value (considering price and other factors); and
(3) After price reductions have been sought, place the order
with the Schedule Contractor that provides the best value
and results in the lowest overall cost alternative. If further
price reductions are not offered, an order may still be placed,
if the ordering office determines that it is appropriate.
-
- NOTE: For orders
exceeding the maximum order threshold, the Contractor may:
- (1) Offer
a new lower price for this requirement (the Price Reductions
clause is not applicable to orders placed over the maximum
order in FAR 52.216-19 Order Limitations);
(2) Offer the lowest price available under the contract; or
(3) Decline the order (orders must be returned in accordance
with FAR 52.216-19).
-
- (d) Blanket
Purchase Agreements (BPAs).
The establishment of Federal Supply Schedule BPAs is permitted
when following the ordering procedures in FAR 8.404. All schedule
contracts contain BPA provisions. Ordering offices may use BPAs
to establish accounts with Contractors to fill recurring requirements.
BPAs should address the frequency of ordering and invoicing, discounts,
and delivery locations and times.
(e) Price reductions.
In addition to the circumstances outlined in paragraph c,
above, there may be instances when ordering offices will find
it advantageous to request a price reduction. For example, when
the ordering office finds a schedule supply or service elsewhere
at a lower price or when a BPA is being established to fill recurring
requirements, requesting a price reduction could be advantageous.
The potential volume of orders under these agreements, regardless
of the size of the individual order, may offer the ordering office
the opportunity to secure greater discounts. Schedule Contractors
are not required to pass on to all schedule users a price reduction
extended only to an individual agency for a specific order.
(f) Small business.
For orders exceeding the micro-purchase threshold, ordering
offices should give preference to the items of small business
concerns when two or more items at the same delivered price will
satisfy the requirement.
(g) Documentation.
Documentation. Orders should be documented, at a minimum, by identifying
the Contractor the item was purchased from, the item purchased,
and the amount paid. If an agency requirement in excess of the
micro-purchase threshold is defined so as to require a particular
brand name, product, or feature of a product peculiar to one manufacturer,
thereby precluding consideration of a product manufactured by
another company, the ordering office shall include an explanation
in the file as to why the particular brand name, product, or feature
is essential to satisfy the agency’s needs.
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