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B-203348 1 (1981-09-09)

handle is hein.gao/gaobabjbi0001 and id is 1 raw text is: z UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 OFFICE OF GENERAL COUNSEL D o n o t fll3.e & . a -a B-203348 September 9, 1981 Mr. William J. Maraist Assistant Administrator for Regulations Office of Federal Procurement Policy Office of Management and Budget Executive Office of the President Dear Mr. Maraist: You requested our comments on a draft segment of the Federal Acquisition Regulation (FAR) covering Part 15 - Negotiation, Subpart 15.6 - Source Selection. The draft sets out at section 15.609(a) the factors which must be considered by the contracting officer in determining the competitive range. The proposed FAR pro- vision states the contracting officer shall consider price and other factors * * * while the current Defense Acquisition Regulation (DAR) at section 3-805.2 provides that competitive range shall be determined on the basis of price or cost and other factors. We assume that the FAR provision eliminated the word cost only to more accurately reflect the language of 10 U.S.C. § 2304(g), which describes competitive range in terms of price and other factors considered, and not to eliminate proposed cost as a factor in determining competitive range. We believe that the word price as used in 10 U.S.C. § 2304(g) is intended to refer to both the price in a procurement leading to a fixed-price type contract and to the proposed cost estimate in a procurement leading to a cost-reimbursement type contract, and we consider both the proposed cost estimate and the proposed fixed price to be critical elements in a competitive range deter- mination. Thus, we would not agree with the proposed FAR pro- vision if the elimination of the word cost was intended to preclude the necessity for consideration of an offeror's cost estimate in competitive range determinations. We appreciate the opportunity to comment. Sincerely yours, Harry R. Van Cleve / I Acting General Counsel

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