Overview
FAR 45.202 establishes the procedures contracting officers must follow to ensure a level playing field when offerors possess or use Government property. It focuses on neutralizing competitive advantages and verifying the adequacy of an offeror's property management systems.
Key Rules
- Elimination of Competitive Advantage: The contracting officer is required to offset any unfair advantage gained by an offeror possessing Government property by applying a "rental equivalent evaluation factor" during the proposal evaluation process.
- Evaluation-Only Adjustments: The rental equivalent factor, dictated by FAR 52.245-9, is used strictly for the purpose of comparing offers and is not added to the actual contract price.
- Compliance Verification: The contracting officer must confirm that an offeror’s proposed property management plans, accounting methods, and practices meet the specific requirements outlined in the solicitation.
Practical Implications
- Leveling the Playing Field: This section ensures that incumbents or contractors with existing Government-furnished property cannot underbid competitors simply because they do not have to factor in the cost of acquiring their own equipment or facilities.
- System Readiness: Contractors must maintain rigorous property management systems, as the government will evaluate these procedures during the source selection process to ensure they are sufficient for the proposed effort.