(a) A sole-source item can be considered subject to limited competition when an item has a single manufacturing source but can be obtained from a limited number of suppliers (usually distributors for the sole source OEM). Such limited competition acquisitions can meet the “adequate price competition” definition under the Truth In Negotiations Act (TINA) (FAR 15.403-1(c)(1)(i)) if:
i. there are multiple offerors; and,
ii. there is a finding executed by the contracting officer, documenting a reasonable basis for concluding that all offerors are offering prices in a manner truly independent of each other and the sole-source OEM (see PGI 15.402-92).
This finding shall be titled “Adequacy of Price Competition” finding (See PGI 15.402-92) and the contracting officer must attach this document to the price reasonableness determination statement (see 15.406-3(a)(11)).
(b) For sole-source items that are subject to limited competition (see 15.402-92(a)), the contracting officer must decide whether additional information is necessary to determine the reasonableness of the otherwise successful offeror’s price. The contracting officer shall review the price offered by the proposed awardee in the instant competition and compare it to prices paid for the item under prior awards. When conducting this price comparison, the contracting officer shall also take into consideration any changed conditions. In documenting this review, the contracting officer shall include the dates, quantities, unit prices, awardees and price reasonableness codes for all buys immediately preceding the buy used in the comparison, to the most recent buy to date; and include the source, name and individual values of any price historical and forecasted price or index used. The price comparison analysis, discussion of changed conditions and conclusion shall be included as part of, or by attachment to, the price reasonableness determination (15.406-3(a)(11)).
(c) DLA contracting officers shall follow the policy herein and the corresponding PGI 15.402-92 guidance.
