Factor 3: Total Evaluated Price Sample Clauses

Factor 3: Total Evaluated Price. (TEP) The Government will evaluate proposed prices by performing a price analysis in accordance with FAR 15.404-1(b) procedures. The following is an example of how price will be evaluated: Contract line item numbers (CLINs) with a single quantity: • For those CLINs with a single quantity, the Government will multiply quantity one (1) by the unit price to derive the total line amount. The following is an example: CLIN SUPPLIES/SERVICES QTY UNIT U/PRICE AMOUNT 0001 OB-122 WAA OBE Bottle (with GFM) 20 EA $1,000.00 $20,000.00 The total line item amount for CLIN 0001 is $20,000.00. CLINs with multiple quantity ranges: • For those CLINs with multiple quantity ranges, the Government will multiply the unit price by the maximum quantity for each range to derive the extended price for each range. • Next, the Government will add the extended prices for all ranges of the production year CLIN and divide by the sum of the maximum quantity of all ranges of that CLIN to find the average unit price. • The Government will multiply the average unit price by the maximum number of units of the highest range of the production year to arrive at a total evaluated price for the production year. The following is an example: PRODUCTION, First Year STEPLADDER PRICING Production YR Description FROM QUANTITY TO QUANTITY UNIT PRICE EXTENDED PRICE YR 1 CLIN 0002 OB-122 WAA OBE Bottle 11 20 $500 $10,000 21 30 $400 $12,000 31 40 $300 $12,000 90 $34,000 The total line item amount for CLIN 0002 is $34,000. Average unit price = $34,000/90 = $377.78 Total evaluated price for first production year = $377.78* 40 = $15,111.11
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