(a) When provision for multiple awards is made for the purpose of production testing a specification:
(1) The Government's minimum need must be principally for the purpose of determining that an item of supply can be manufactured to the specification on a production basis. Obtaining delivery of supplies is a secondary purpose.
(2) The quantity to be awarded to any contractor should, normally, be limited to the minimum economic production quantity required to ensure an adequate production test.
(b) When multiple awards are made due to the fact that the low, responsive or technically acceptable offeror cannot be determined to be responsible for the entire quantity solicited, the responsibility determination made on such offeror must reasonably describe the rationale for determining that award of more than the proposed award quantity to such prospective contractor would be beyond that prospective contractor's production or service capacity.
(c) When provision for multiple awards is made to ensure the availability of supplies in business risk situations:
(1) The contracting officer must adequately document a reasonable basis for making multiple awards that: supports the Government's need to make multiple awards to obtain the requirements when needed; explains how awarding more than one contract will reduce or eliminate past performance or supply availability problems; and describes the benefits of obtaining more than one source that outweigh any anticipated increases in prices resulting from the award of more than one contract (see 17.9002(d) above).
(2) The solicitation must permit award of the entire requirement to one offeror.
(3) The solicitation should include a provision reserving the Government's right to make multiple awards to other than the lowest priced offerors.
(4) Sealed bidding cannot properly be used because the solicitation provides that award may not be made solely on the basis of lowest price.
(5) The contracting officer must document, after receipt of offers and prior to award, that a reasonable basis to award to multiple sources exists.
(6) The contracting officer should make provision for a degree of competition, when practicable (e.g., low offeror will be awarded 60 percent of the total requirement, whereas the second low offeror will be awarded 40 percent of the total requirement).
