June 04, 2013

The Forgotten Technique

Can you name and describe this technique off the top of your head? This technique allows a competitive determination of fair and reasonable pricing via a favorable comparison of subcontractor bid rates to rates contained in a competitively awarded Prime Contract. 

In other words, rates bid by a subcontractor on a post-award basis at or below a rate contained in a prime contract rate schedule count towards your purchasing system's competitive percentages. 

Documentation requirements: (a) solicitation; (b) subcontractor bid; and (c) Price Analysis which includes comparison matrix aligning subcontractor proposed rate with corresponding prime contract rate.

This technique has some potentially awesome applications within your purchasing system. Think of all those SMEs you have to add to a contract because the COTR "directed" you to them, and the fuss Ops puts up when you even suggest competing the procurement. Well, if the prime contract was awarded under full and open competition, and it has an incorporated rate sheet, then - you now have a way to perform a self-contained competitive price analysis, without market research or any such hassle. 

Pretty cool, huh?