Alternative Line Item Proposal
Offerors may propose alternative line item structures in their bids, but acceptance is solely at the Government's discretion and must comply with FAR subpart 4.10.
Overview
FAR 52.204-22, Alternative Line Item Proposal, allows offerors to propose alternative line item structures in their bids, proposals, or quotes when the solicitation's line items do not align with their standard business practices. This provision aims to facilitate contract administration and payment processes by enabling both the Government and offerors to consider more efficient or practical line item arrangements, as long as they comply with FAR subpart 4.10. However, the Government retains sole discretion to accept or reject any alternative proposals, and noncompliance with the solicitation's specified line items may result in a proposal being deemed nonresponsive or unacceptable.
Key Rules
- Submission of Alternative Line Items
- Offerors may submit additional proposals with alternative line items if the solicitation's structure does not match their practices, provided these alternatives comply with FAR subpart 4.10.
- Government Discretion
- The Government has the unilateral right to accept or reject any alternative line item proposals.
- Responsiveness Requirement
- Offers that do not comply with the solicitation's specified line items may be considered nonresponsive or unacceptable.
Responsibilities
- Contracting Officers: Must evaluate any alternative line item proposals for compliance with FAR subpart 4.10 and determine if acceptance is in the Government's best interest.
- Contractors: Must ensure any alternative line item proposals are consistent with FAR subpart 4.10 and understand that acceptance is not guaranteed.
- Agencies: Oversee the solicitation and evaluation process to ensure compliance and administrative efficiency.
Practical Implications
- This provision exists to address mismatches between Government solicitation formats and contractor business practices, reducing administrative burdens and payment issues.
- Contractors can propose alternative line item structures, but must ensure strict compliance with FAR requirements and recognize the risk of rejection.
- Common pitfalls include submitting alternatives that do not comply with FAR subpart 4.10 or failing to also provide a compliant proposal as specified in the solicitation.