RFQ

As required by FAR 8.405-2, ordering activities must provide an RFQ, including the evaluation criteria or the basis upon which the selection will be made, to Schedule contractors that offer supplies or services that will meet the agency’s needs.  “Providing” an RFQ to Schedule contractors includes posting the RFQ on eBuy and is required under the following circumstances:

An RFQ should include that the following information is included:

Evaluation/Selection Criteria

This section of the RFQ identifies the selection criteria; e.g., technical excellence, management capability, prior experience, personnel qualifications, delivery or performance schedule compliance and/or past performance refer to “Best Value.”

NOTE: Ordering activities must treat all Schedule contractors fairly and inform them of the requirements of the potential order. The ordering activity must evaluate competitive quotes solely on the factors specified in the RFQ evaluation criteria.

When an ordering activity issues an RFQ, the request should include the SOW and it shall ask Schedule contractors to submit a price quote to provide the services as outlined in the SOW. The price shall be based on the prices in the Schedule contracts and shall consider the mix of labor categories and level of effort required to perform the services described in the SOW. A Firm Fixed Price (FFP) order shall be requested, unless the ordering activity makes a determination that it is not possible at the time of placing the order to estimate accurately the extent or duration of the work or to anticipate cost with any reasonable degree of confidence. When such a determination is made, a Labor Hour (LH) or Time and Materials (T&M) quotation may be requested. The FFP of the order should also include any travel costs or Other Direct Costs (ODCs) related to performance of the services ordered, unless the order provides for reimbursement of travel costs at the rates provided in the Federal Travel or Joint Travel Regulations. A ceiling price must be established for LH and T&M orders, along with a not-to-exceed line item for ODCs.

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NUTS AND BOLTS TIP
A determination of reasonable pricing for services offered should be based on the following three variables:
  • Hourly rates
  • Labor categories proposed to fulfill the task
  • Number of hours proposed for each category

The ordering agency must analyze the mix of categories, hours and rates to determine if the total price for the task is reasonable.

Remember: GSA has already determined that the hourly labor rates are fair and reasonable.

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NUTS AND BOLTS TIP
Remember to require in the RFQ that the quoted prices conform to the Schedule contract prices (equal to or lower than) and to seek additional price reductions where appropriate.

NOTE: Items/services not on the Schedule contract may be considered “open market.”