(1) Meaning of Terms Not Defined in the State Procurement Code
- (a) Adequate Price Competition. Price competition exists if competitive sealed proposals are solicited and at least two responsible offerors independently compete for a contract to be awarded to the responsible offeror submitting the lowest evaluated price by submitting priced offers (or best and final offers) meeting the requirements of the solicitation. If the foregoing conditions are met, price competition shall be presumed to be "adequate" unless the Procurement Officer determines in writing that such competition is not adequate.
- (b) Established Market Price means a current price, established in the usual and ordinary course of trade between buyers and sellers, which can be substantiated from sources which are independent of the manufacturer or supplier and may be an indication of the reasonableness of price.
- (c) Prices Set by Law or Regulation. The price of a supply or service is set by law or regulation if some governmental body establishes the price that the offeror or contractor may charge the State and other customers.
(2) Submission of Substantiating Data.
- (a) Time and Manner. When factual information is requested by the Procurement Officer to substantiate that the price or cost offered, or some portion of such price or cost, is reasonable, the offeror shall submit such data to the Procurement Officer prior to beginning price negotiations at any reasonable time and in any reasonable manner prescribed by the Procurement Officer. Such information shall either be actually submitted or specifically identified in writing.
- (b) Refusal to Submit Data. A refusal by the offeror to supply the requested information may be grounds to disqualify the offeror or to defer award pending further review and analysis. In the event the Procurement Officer decides to enter into the contract without first receiving the requested information, the Procurement Officer shall make a written determination setting forth the reasons for the award, which shall be made a part of the procurement file.
Author: Department of Finance, Legal Division
Statutory Authority: Code of Ala. 1975, §41-4-141.
Editor’s Note: Renumbered from Rule 355-4-3-.11
History: New Rule: Published June 30, 2022; effective August 14, 2022; operative October 1, 2022. Amended: January 19, 2023; effective May 15, 2023.