As prescribed in 514.201-7(a), insert the following clause:
Progressive Awards and Monthly Quantity Allocations (Oct 2009)
(a) Monthly quantity allocation.
(1) Set forth below are the Government’s estimated annual and monthly requirements for each stock item covered by this solicitation. Bids shall indicate, in the spaces provided, the monthly quantity which the bidder is willing to furnish of any item or group of items involving the use of the same production facilities. In making monthly allocations, bidders are urged to group as many items as possible. Such groupings will make it possible for the Government to make fullest use of the production capabilities of each bidder.
(2) Bidders need not limit their monthly allocations to the Government’s estimated monthly requirements, since additional unanticipated needs may occur during the period of the contract. If a bid does not include monthly allocation quantities, it will be deemed to offer to furnish all of the Government’s requirements, even though they may exceed the stated estimated requirements.
National Stock Number
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Estimated Annual Requirements
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Estimated Annual Requirements
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Bidders Monthly Quantity Allocations
Items or Groups of Items
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MonthlyAllocation Quantity
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(b) Progressive awards. If the low responsive bid’s monthly quantity allocation is less than the Government’s estimated requirements, the Government may make progressive awards beginning with the low responsive bid and including each next low responsive bid to the extent necessary to meet the estimated requirements.
(c) Ordering procedures. If progressive awards are made, orders will be placed first with the Contractor offering the lowest price on each item normally up to that Contractor’s maximum quantity allocation and then, in the same manner, successively to other Contractors. When cumulative orders during any month, placed with a lower priced Contractor, equal or exceed 95 percent of its monthly quantity allocation, to avoid the placement of unduly small orders or the splitting of a subsequent order, the Government reserves the right to award the full quantity of the subsequent order to the next lower priced Contractor. In no case will orders be placed with any Contractor in excess of its monthly quantity allocation.
(End of clause)
