Current through Register Vol. 56, No. 18, September 16, 2024
(a) The contract sales price of a commodity item
or service approved by CSC shall equal fair market price (FMP) plus the administrative/management fee payable
to CNA and any approved payment to the CRP in excess of the FMP.
(b) Fair market price (FMP) shall be developed and determined in accordance
with the following procedures:
1. CNA shall solicit proposals from CRPs to
place commodity items or services on the State set-aside contract. CNA shall review proposals received for
feasibility and the CRPs capability to perform.
2. In the event
CNA approves a CRPs proposal, CNA shall solicit the Division of Purchase and Property's (Division) approval
of the proposal. Such CNA solicitation shall include the following: documentation establishing that no State
contract exists with respect to the commodity item or service; documentation evidencing the need by State
agencies for the commodity item or service; examples of such documentation may include prior contract usage
or a request from the using agency; CNA certification of the ability of the CRP to successfully provide the
commodity item or service; and documentation justifying the FMP proposed for the commodity or service. Within
two to three weeks of the CNA solicitation, the Division will present its request for any additional,
relevant, information necessary for timely review of the solicitation.
3. FMP means a recent competitive bid or negotiated price at which a vendor
of the same or similar commodity item or service, who is regularly engaged in the business of selling such
commodity item or service, offers to sell such commodity items or service under similar terms in the same
market. Included in FMP are the CRPs costs of production (overhead, labor and materials) and distribution.
The FMP shall be the basis for establishing a CRP approved price.
4. In its review of the CRP approved price proposed for a commodity item or
service, the Division may consider, if applicable, pricing for the same or similar commodity or service
received in the most recent competitive solicitation for the same or similar commodity item or service,
offered under similar conditions. The Division may also research, for comparison purposes, private sector
pricing for the same or similar commodity item or service, offered under similar conditions. The Division's
FMP analysis shall consider product specifications, quality requirements, current market condition,
lead-time, production volumes and anticipated order quantities. The Division shall conduct all studies and
analysis within two to three weeks of final document submission by CNA and notify CNA of its
decision.
5. Upon the Division's response to CNA's request, CNA
shall submit the proposal to CSC for consideration. Such submission shall include evidence of the Division's
position with respect to the proposal.
(c) The
proposal submitted by CNA to CSC for consideration may include a proposed payment to the CRP in excess of
FMP, as determined by the CNA, for the CRP to provide the commodity item or service. In no event shall a
proposed payment to the CRP in excess of FMP exceed seven percent of FMP.
(d) In considering a proposal to place a commodity item or service on State
set-aside contract, CSC shall consider:
1. The CNA's
recommendation;
2. The Division's position;
3. The FMP;
4. The CNA
administrative/management fee; and
5. Any proposed payment to the
CRP in excess of FMP.
