Estimated Quantities or Weights for Evaluation of Offers
Estimated quantities or weights in transportation solicitations are used solely for evaluating offers and do not guarantee actual shipment volumes.
Overview
FAR 52.247-20 provides a standard provision for solicitations involving transportation or transportation-related services when the actual quantities or weights to be shipped between origins and destinations are unknown. The clause requires the contracting officer to specify estimated quantities or weights for each origin/destination pair, which will be used solely for evaluating offers. These estimates are not binding for actual contract performance but are intended to ensure a fair and consistent basis for comparing bids.
Key Rules
- Use of Estimated Quantities/Weights
- Estimated quantities or weights must be listed for each origin/destination pair in the solicitation and are used only for offer evaluation.
- Non-Binding Estimates
- The estimates provided are not guarantees of actual shipment quantities or weights; they are for evaluation purposes only.
Responsibilities
- Contracting Officers: Must include this provision in applicable solicitations and provide reasonable estimates for each shipping route.
- Contractors: Should base their pricing and proposals on the provided estimates, understanding these are for evaluation only and not guaranteed.
- Agencies: Ensure solicitations are clear about the use of estimates and that evaluations are conducted fairly.
Practical Implications
- This clause exists to standardize the evaluation process when actual shipping data is unavailable, preventing unfair advantages or misunderstandings.
- Contractors should carefully review the estimates and understand that actual work may differ, impacting revenue and resource planning.
- Common pitfalls include misunderstanding the non-binding nature of the estimates or failing to price proposals appropriately for potential variations.