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| Price Evaluation Adjustments |
| To receive a prime contract from a Federal agency, you must submit a
bid for that contract along with other bidders who may or may not be
certified as SDBs. Your SDB certification authorizes the agency to
implement an upward price adjustment on all non-SDB bids submitted along
with yours. If your bid qualifies as the lowest bid after this
upward price adjustment, then the agency will award the contract to
you. The U.S. Department of Commerce (DOC) periodically publishes
a list
of all industries for which an upward price adjustment is
authorized. The current level of adjustment authorized by DOC for
all industries is 10%. |
| Evaluation Factors and Subfactors |
| This mechanism works in the context of SDB subcontracting
opportunities through government prime contractors. For very large
contracts, government agencies are authorized to award extra scoring
points to prime contractors which are committed to utilizing SDBs as
subcontractors. You benefit as an SDB by arranging with a prime
contractor to include your company as a subcontractor in its bid.
Other prime contractors which fail to include SDB subcontractors in
their bids lose the opportunity of gaining extra points. If your
prime contractor wins after all points are scored, then you get the
benefit of work as a subcontractor. |
| Incentive Subcontracting |
| This mechanism also works in the context of SDB subcontracting.
Government agencies are authorized to include incentive subcontracting
clauses in their contracts to encourage greater use of SDB
subcontractors. You benefit as an SDB from this arrangement
because prime contractors have a strong profit incentive to increase the
dollar amount of subcontracting opportunities that they award to you.
Click here to learn more about how the SDB
program can work for you. |
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