52.225-17
Evaluation of Foreign Currency Offers
FAR 52.225-17 ensures all foreign currency offers are fairly evaluated by converting them to U.S. dollars using a specified exchange rate source and date.
Overview
FAR 52.225-17 outlines how the government evaluates offers submitted in foreign currencies during the procurement process. Its main purpose is to ensure a fair and consistent method for converting foreign currency offers to U.S. dollars, allowing for accurate price comparisons among all bids or proposals. The provision requires the contracting officer to specify the source of the currency conversion rate and the exact date the rate will be applied, depending on the acquisition method used.
Key Rules
- Currency Conversion Source
- The contracting officer must state the official source of the currency exchange rate in the solicitation.
- Timing of Conversion for Sealed Bidding
- For sealed bids, the conversion rate is applied as of the bid opening date.
- Timing of Conversion for Negotiated Procurements
- For negotiated acquisitions, the conversion rate is applied on the date offers are due (if award is based on initial offers) or on the date proposal revisions are due (if award is based on revised proposals).
Responsibilities
- Contracting Officers: Must specify the exchange rate source and applicable date in the solicitation, and ensure all offers are evaluated using the same criteria.
- Contractors: Should be aware of the conversion method and timing to understand how their foreign currency offers will be evaluated.
- Agencies: Must ensure transparency and consistency in evaluating foreign currency offers.
Practical Implications
- This provision ensures all offers, regardless of currency, are evaluated on a level playing field.
- Contractors submitting offers in foreign currencies must pay attention to the specified conversion source and date, as exchange rate fluctuations can impact competitiveness.
- Failure to follow the specified procedures can lead to disputes or unfair evaluations.