Monday, November 17, 2014

Contractors Must Identify the "Place" of Contract Performance

Contracts awarded under sealed bidding (FAR Part 14) and by negotiation (FAR Part 15) both require prospective contractors to identify the place of contract performance and owner of the plant or facility at which the work will be performed. It is also necessary to identify the place of contract performance when determining and applying SCA rates (Service Contracting Act). Most prospective contractors disclose this information when making their certifications and representations as part of the SAM (System for Award Management) process.

Why is such information necessary? What will the Government do with it?

Information relative to the place of performance and owner of plant or facility, if other than the prospective contractor, is a basic requirement when contracting for supplies or services (including construction). A prospective contractor must affirmatively demonstrate its responsibility. Hence, the Government must be apprised of this information prior to the award.

The contracting officer must know the place of performance and the owner of the plant or facility to
  1. determine bidder responsibility
  2. determine price reasonableness
  3. conduct plant or source inspections, and
  4. determine whether the prospective contractor is a manufacturer or a regular dealer.

Back in 2011, we wrote a six part series describing how the Government conducts "responsibility" determinations on prospective contractors. That series can be viewed here.

The information is used to determine the prospective contractor's eligibility for awards and to assure proper preparation of the contract. Prospective contractors are only required to submit place of performance information on an exceptional basis; that is, whenever the place of performance for a specific solution is different from the address of the prospective contractor as indicated in the proposal.

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