Group award basis
FAR 25.504-4 provides step-by-step examples for applying Buy American evaluation factors and determining awards on a group basis, ensuring fair and consistent treatment of domestic and foreign offers.
Overview
FAR 25.504-4 provides detailed examples illustrating how to evaluate offers and determine awards when a solicitation specifies a group award basis under the Buy American statute and related regulations. The section walks through three scenarios, each with multiple line items and varying combinations of domestic, eligible, and noneligible products, as well as different offeror conditions (such as all-or-none awards). The examples demonstrate the application of evaluation factors (typically 20% or 30%) to noneligible foreign offers, the calculation of domestic content percentages, and the process for determining which offer should receive the award based on the lowest evaluated price. The section emphasizes the importance of following the prescribed evaluation methodology, including when to apply evaluation factors and how to handle group awards versus line item awards.
Key Rules
- Application of Evaluation Factors
- Apply a 20% (or 30% for small businesses) evaluation factor to noneligible foreign offers when a domestic offer is present and the acquisition is not covered by trade agreements.
- Group Award Determination
- When a solicitation specifies a group award, evaluate the total price and domestic content percentage for each offer to determine eligibility and whether evaluation factors apply.
- All-or-None Offers
- If an offeror specifies an all-or-none award, compare their total evaluated price to the combination of other offers for individual line items.
- Domestic Content Calculation
- Calculate the percentage of domestic content for each offer to determine if it qualifies as a domestic offer under the Buy American statute.
- Treatment of Foreign Offers as Domestic
- In some cases, foreign offers with sufficient domestic content may be treated as domestic for evaluation purposes.
Responsibilities
- Contracting Officers: Must accurately apply evaluation factors, calculate domestic content, and follow group award procedures as outlined in the examples.
- Contractors: Should clearly indicate domestic content, understand how evaluation factors may affect their competitiveness, and specify any all-or-none conditions.
- Agencies: Ensure compliance with Buy American and trade agreement statutes, and document evaluation decisions.
Practical Implications
- This section exists to clarify complex evaluation scenarios and ensure consistent application of Buy American requirements in group award situations.
- It impacts daily contracting by guiding how offers are compared and how evaluation factors are applied, which can significantly affect award outcomes.
- Common pitfalls include misapplying evaluation factors, incorrectly calculating domestic content, or misunderstanding group award versus line item award rules.