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pairs and alterations. Elements of the price list method include, but are not limited to, the following:

(1) Pre-established list prices are included in the solicitation.

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(2) Estimated requirements shown in the solicitation, if available.

(3) Bids are expressed as a percentage added to or deducted from the list prices for each group. The criteria in GSAR 514.271-3 shall be followed when grouping items.

(4) The contract is awarded to the responsible and responsive bidder who submits the percentage factor that produces the most favorable price to the Government in accordance with the solicitation.

(b) Development of pre-established list prices. (1) In developing pre-established list prices, industry surveys should be conducted every 3 years. Before using proposed list prices for the first time, firms expected to submit bids should be given an opportunity to review the proposed list prices. In addition to the proposed list prices, firms should be furnished with information on how the list prices will be used under the price list method. Copies of the draft solicitation may be furnished for this purpose.

(2) If industry price lists are not available for the items or services involved, pre-established list prices may be developed using the Government cost estimated for the item or service.

(3) Pre-established list prices may also be developed based on knowledge of the trade and previous contract prices. When using pre-established list prices, the contracting officer must ensure that items are properly grouped and that the list prices shown for the items within each group bear a reasonable and balanced relationship

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(a) Estimated requirements for each item in a group or for the group as a whole shall 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 reviewed and updated before being used in any solicitation. 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) Arrange the bidding schedule in each solicitation so that it is clear to bidders that only one percentage amount may be quoted for each group and that it may be quoted either as a deduction from or as an addition to the listed prices (see illustration of bidding schedule arrangement in paragraph (c) of this section).

(c) The following is an illustration of a bidding schedule arrangement for a group of items for aggregate award under the pricelist method:

Drills, Twist, High Speed, under Federal Specification (datedAmendment-- (dated--), gauge sizes, straight shank, length, Type C:

GROUP 1 (ITEMS 1 THROUGH 5)

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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.)

[50 FR 10050, Mar. 13, 1985]

514.272-2

Repair and alteration contracts. (a) Estimating prices and requirements-(1) Estimated quantities and unit prices. When developing a new solicitation, the contracting officer

shall ensure that quantity estimates and unit prices are as accurate as possible. Quantity estimates should be developed from the historical data file and from information available on anticipated program requirements for the area(s) covered by the contract. Guidance on establishing unit prices may be found in industry publications such as, The Richardson Rapid Construction Cost Estimating System; Building Construction Cost Data, Robert Show Means Co., Inc.; or Building Cost File, Construction Publishing Co., Inc.

(2) Estimated quanitity and unit price for each line item. The solicitation should list the quantities, when available, and unit prices for work performed during normal working hours, and quantities and unit prices for work performed outside of normal working hours. The solicitation shall also contain a statement indicating the percentage of work anticipated to be performed during normal working hours and that to be performed during other than normal working hours; e.g., it is anticipated that 70 percent of the work under this contract will be performed during normal working hours. The solicitation shall specify the hours and days of the week that are considered normal.

(b) Instruction to bidders. (1) Bidders shall be instructed to submit one (percentage) bid to be applied to unit prices listed in the solicitation or two or more percentages to be applied to specified categories of unit prices. The percentage(s) shall be net, or a percentage above or below the unit prices to which it is applied.

(2) If separate line item unit prices have been established for work performed during normal working hours

and for work performed outside normal working hours, a single percentage should be stated.

(3) If separate unit prices have not been established, two percentages are required; one to be applied to the unit prices for work performed during normal working hours and the other to be applied to unit prices for work performed outside normal working hours. In either case, the estimated percentage of work to be performed during normal working hours shall be stated in the solicitation.

(4) If unit prices are further grouped by trade or similar category, multiple percentage may be required.

(c) Notification to bidders. Bidders should be advised of the total expenditures for previous years or portions thereof. A statement must be included in the solicitation when estimates are provided that quantity estimates are furnished for information only and are not to be construed as guarantees or commitments to order items under the contract.

(d) Method of evaluation and award. (1) When separate line item unit prices are listed in the solicitation for work to be performed during both normal working hours and other than normal working hours, the bid price should be stated as a single percentage discount from, or addition to, the preestablished list price. The contract shall be awarded to the responsible and responsive bidder who submits the percentage factor that will produce the lowest unit price for each item when multipled by the pre-established price listed in the solicitation.

(2) When a particular percent is bid for work performed during normal working hours and another percent for work during other than normal working hours, the evaluated bid price shall be determined by multiplying the Government estimated total dollar amount of work to be performed during normal hours by the percentage bid for that portion of the work. The Government estimated dollar amount for the work performed during other than normal working hours shall be multiplied by the percentage bid for that portion of the work. The sum of the two evaluated

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(a) Bid modifications received before bid opening time shall be handled in the same manner as bids and shall be attached to the related bid envelope to ensure opening at the same time. When a telegraphic modification or withdrawal of a bid is received by telephone under the circumstances described in FAR 14.303, the identity of the telegraph office employee telephoning the message shall be obtained and recorded in the solicitation file.

(b) The receipt required by FAR 14.303(b) for withdrawal of a bid in person by a bidder or an authorized representative of the bidder before the time set for opening shall be worded as follows:

I certify that I am a bona fide fully authorized agent for or representative of (Bidder's name and address) whose bid on IFB No. is scheduled for opening on I hereby withdraw that bid from consideration and acknowledge receipt of the unopened bid.

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(c) The provision in 552.214-72, Telegraphic Submissions, Modifications, or Withdrawal of Bids Received at the GSA Communications Center, shall be

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514.370 Copies of bids required in submission.

Bids shall be submitted in an original and at least one copy. Additional copies may be required, if warranted. The original will be used by the contracting activity for the tabulation of bids. The copy will be retained by the Business Service Center for public information until the bid abstract is available to replace it. When information such as the GSA Form 527, Contractor's Qualifications and Financial Information, or Standard Form 24, Bid Bond, is submitted with a bid, it shall not be retained by the Business Service Center for public information. [50 FR 10051, Mar. 13, 1985]

Subpart 514.4-Opening of Bids and Award of Contract

514.401 Receipt and safeguarding of bids.

(a) Bids, and modifications in response to solicitations shall be received and safeguarded by the appropriate Business Service Center until the time specified for opening. Adequate space and facilities shall be provided for the receipt and safeguarding of bids and for the holding of public bid openings. This shall include a locking-type bid box located within sight of the bid custodian and in a place where bidders or their representatives can readily deposit bids. Bids received shall 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 shall be immediately

time-stamped or indicated thereon the place, date, and time of receipt by authorized personnel. Then the bid(s) shall be delivered by special handling to the bid custodian in the Business Service Center. Each Business Service Center Director shall designate bid custodians and alternates as may be required, to perform the functions incident to the receipt, custody, and recording of bids.

(2) Insufficient postage on bid envelopes shall not be a reason for failure to accept delivery of bids.

(3) Mailed bids and modifications delivered to the bid custodian before bid opening time shall be recorded on the bidders list on the same day they are delivered and then placed in suitable locked cabinet.

(4) Hand-carried bids delivered before bid opening time will be deposited in the locked bid box in the Business Service Center. The bid custodian shall have custody of a key or combination to the bid box. In the event a hand-carried bid is not placed in the bid box by the bidder, but is handed to the bid custodian or other Business Service Center personnel, it shall 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 shall remove and time stamp the bids, record them and place them with any other bids previously received.

(5) Telegraphic bids and modifications shall be sealed in envelopes immediately upon receipt, appropriately identified, and handled in the same manner as bids submitted by mail.

(6) For each invitation, the bid custodian shall prepare a list of the bidders whose bids are received before bid opening time using the GSA Form 1378, Record of, and Receipt for, Bids and Responses or the appropriate bid abstract form. The list shall show the invitation number and the name and address of each bidder. In addition, when a bid modification is received before bid opening time or when a bid previously recorded on this list is withdrawn, the list shall so indicate.

(b) At the scheduled bid opening time, the bid custodian shall deliver all

bids received in response to the invitation, together with both copies of the list of bidders, to the authorized bid opening official or designee, who shall acknowledge receipt of the bids by signing the duplicate copy of the GSA Form 1378 or the appropriate bid abstract form and returning it to the bid custodian. The original list shall become part of the contract file.

[49 FR 10820, Mar. 22, 1984, as amended at 50 FR 10051, Mar. 13, 1985]

514.402 Opening of bids.

514.402-1 Unclassified bids.

(a) Public bid openings shall be held in the Business Service Center except when determined to be impracticable by the Business Service Center, and the Contracting officer or bid opening officer. The schedule for bid openings shall be developed jointly by the Business Service Center and the bid opening officer in order to avoid conflicts. The contracting officer shall be responsible for obtaining space for bid openings which are to be held outside the Business Service Center. As soon as it is determined to hold the bid opening elsewhere, the contracting officer shall inform the Business Service Center, 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 head of the contracting activity, 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 Business Service Center personnal. Normally, this authorization will be requested only when the geographic distance separating the Business Service Center where bids are to be delivered and the contracting office makes it impracticable for the bid opening officer or designee to be present to open bids. (See FAR 14.402-1(b).)

(c) Bid openings shall be open to business representatives, members of the press, and the general public.

(d) To ensure that bids will be opened at the exact time specified, the bid opening official shall verify the accuracy of the timepiece to be used.

(e) For the information of those bidders present, approximately oneminute prior notice of bid opening will be announced audibly by the bid opening official.

(f)(1) The bid opening official shall take precaution to ensure that the exact time of opening has arrived and shall announce this fact audibly, citing the invitation or invitations scheduled for opening. The opening of bids shall then proceed in full view of the parties present.

(2) For construction contracts that provide for bid alternates, the amount of funds available for the award shall be announced prior to opening bids.

(g) in reading bids, the following information from each bid shall be announced when considered practicable and feasible: The name of the bidder, the unit price for each item bid upon, and other pertinent information, such as delivery and discount terms. A copy of each bid submitted in multiple copies shall remain in the bid opening room and be available for public examination until the bid abstract is completed and made available instead. Bids submitted in an original only shall be made available for examination in accordance with FAR 14.4021(c).

(h) No person shall tamper with any bid after it has been formally opened. This includes making any alterations or notations with pencil or ink, or disassembling or withdrawing pages or adding pages not submitted with the bid.

(i) When invitations for bids provide for the summission of bid guarantees, the contracting officer or designated bid opening official, shall turn over any checks submitted to satisfy the bid guarantee requirement to the regional Finance Division. As soon as an award is made, the contracting officer shall direct the regional Finance Division to issue a check to the unsuccessful offeror in an amount equal to the amount of the bid guarantee originally submitted. A similar procedure shall be followed in the event the solicitation is canceled or all bids are rejected.

Bid guarantees may be returned before award when a bidder requests the guarantee be returned and the bidder is not in contention for the award. Other forms of bid guarantees e.g., bid bonds, letters of credit, etc. shall be retained by the contracting officer and include in the contract file.

(j) A record of persons attending each bid opening shall be maintained. This record shall include at least the names of persons present, firms or organizations represented, date and time of opening, and the invitation numbers in which each person is interested. The reverse of the bid abstract form may be used for this purpose. The record shall be made a part of the invitation for bids file.

(k) If two or more bid openings are scheduled for the same date and hour and are to be conducted by the same bid opening official, normally the bid opening for which the greatest number of persons is present shall be conducted first.

(1) When multiple copies of bids are received, the bid opening official shall verify the entries on all copies. If there is a discrepancy between the copies of a bid, the contracting officer shall direct the bidder's attention to the suspected mistake and shall follow the procedures set forth in FAR 14.406 concerning mistakes in bids.

(m) Envelopes in which bids and bid modifications are received shall be retained in a temporary file until after all awards have been made. At that time, those which bear notations concerning abnormal receipt or opening for identification shall be made a part of the solicitation file and the remainder may be destroyed.

[49 FR 10820, Mar. 22, 1984, as amended at 50 FR 10051, Mar. 13, 1985]

514.402-3 Postponement of openings.

(a) When the contracting officer postpones a bid opening (see FAR 14.402-3), an amendment (see FAR 14.208) to the solicitation should be issued and distributed to all prospective bidders by mail or telegraph as soon as possible. The new time and date set for bid opening shall be as soon as possible. Prospective bidders

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