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PGI 225.5—EVALUATING FOREIGN OFFERS—SUPPLY CONTRACTS

(See DFARS 225.5, DFARS/PGI view) 

PGI 225.504  Evaluation examples.


The following examples illustrate the evaluation procedures in DFARS 225.502(c)(ii).  The examples assume that the contracting officer has eliminated all offers that are unacceptable for reasons other than price or a trade agreement and that price is the determining factor in contract award.  The same evaluation procedures and the 50 percent evaluation factor apply regardless of whether the acquisition is subject to the Buy American Act (BAA) or the Balance of Payments Program (BOPP).


      (1)  Example 1.

 

      Offer A          $945,000                Foreign offer subject to BAA/BOPP

      Offer B         $950,000                Foreign offer exempt from BAA/BOPP

 

Since no domestic offers are received, do not apply the evaluation factor.  Award on Offer A.

 

      (2)  Example 2.

 

      Offer A          $950,000                Domestic offer

      Offer B         $890,000                Foreign offer exempt from BAA/BOPP

      Offer C         $880,000                Foreign offer subject to BAA/BOPP

 

Since the exempt foreign offer is lower than the domestic offer, do not apply the evaluation factor.  Award on Offer C.

      (3)  Example 3.

 

      Offer A          $9,100        Foreign offer exempt from BAA/BOPP

      Offer B         $8,900        Domestic offer

      Offer C         $6,000        Foreign offer subject to BAA/BOPP

 

Since the domestic offer is lower than the exempt foreign offer, apply the 50 percent evaluation factor to Offer C.  This results in an evaluated price of $9,000 for Offer C.  Award on Offer B.

 

      (4)  Example 4.

 

      Offer A          $910,000    Foreign offer exempt from BAA/BOPP

      Offer B         $890,000    Domestic offer

      Offer C         $590,000    Foreign offer subject to BAA/BOPP

 

Since the domestic offer is lower than the exempt foreign offer, apply the 50 percent evaluation factor to Offer C.  This results in an evaluated price of $885,000 for Offer C.  Award on Offer C.