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DSCR

DSCR I92C: CUSTOMER VALUE CONTRACTS (CVC)

I92C   52.217-9G16  CUSTOMER VALUE CONTRACTS (CVC)  DSCR (JUN 1997)
AND
I17F37


    (a)  CUSTOMER VALUE CONTRACTING (CVC):  CVC is a contracting 
approach used to acquire commercial products sold to and used by 
the general public.  This contract is one of a group of CVC 
Indefinite Delivery Contracts established with all responsible 
contractors whose offer is determined to be acceptable at fair 
and reasonable rices.  When more than one offer is received for 
the exact manufacturer's product, the lowest evaluated offer 
(to include evaluation factors, such as the Small Disadvantaged 
Business Preference, when applicable) will receive the CVC for 
that manufacturer's product.

    (b)  DEFINITIONS:

         (1)  "Commercial Product" - A product, such as an item, 
material, component, subsystem, or system, sold or traded to the 
general public in the course of normal business operations at 
prices based on established catalog market prices (FAR 2.101).

         (2)  "General Public" - A significant number of buyers 
other than the Government or affiliates of the offeror; the item 
involved must not be for Government end use (FAR 15.804-1(b)(2)(v)).

         (3)  "Substantial Quantities" - Quantities regularly sold in 
amounts sufficient to constitute a real commercial market.  Nominal 
quantities, such as models, samples, prototypes, or experimental 
units, do not meet this requirement (FAR 15.804-1(b)(2)(iv)).

    (c)  DELIVERY ORDERS:  Delivery Orders (DO) will be issued for 
Direct Vendor Delivery shipments to the customer when the need 
materializes.  Minimum Delivery order limits will be established 
(elsewhere in the contract).  DSCR is not obligated to order against 
a CVC if the requirements fall below the minimum DO limit.

    (d)  FOB POINT:  As shown in Section F of the solicitation.

    (e)  UNIT OF ISSUE:  The Unit of Issue may be different for 
each manufacturer.  Therefore, each manufacturer must specify your 
commercial unit of issue in the schedule.

    (f)  PACKAGING:  Standard Commercial packaging is required.
However, if the item is classified as hazardous, additional 
packaging/marking requirements apply and are located elsewhere 
in the solicitation/contract.

    (g)  DESCRIPTION:  The solicitation is based on one of the 
following:  DSCR Purchase Description; Commercial Item Description; 
or Multiple Part/Model Numbers.  Under each CVC, each manufacturer's 
product will be assigned a separate NSN.

    (h)  ESTIMATED QUANTITIES:  Estimated quantities will be based 
on estimated annual demands, to the extent they are known for the 
overall item, not for each manufacturer's product.  The estimated 
dollar value of each CVC is the price of the item times the total 
annual estimated quantity.  It is suggested contractors provide 
prices based upon what they consider their share of the market may 
be.  However, there is no guarantee contractors will receive any 
orders exceeding a guaranteed minimum, if a guaranteed minimum is 
specified in the schedule.

    (i)  TERM OPTION:  One year term options (one to four years) 
are included in this contract.  In addition to other factors such 
as reduced demands for the item and contractor viability, prior 
contractor performance (including quality and/or delivery problems) 
may result in an option not being exercised.  The option is 
specified in the schedule.

    (j)  PRICING:

         (1)  PRICES:  Prices should be based on most favorable 
discounts off your most recent commercial price list that is 
published for use in the commercial sector.

         (2)  PRICE REDUCTIONS:  DSCR will accept price reductions 
throughout the life of the contract.  However, offerors are cautioned 
to offer the best price possible, initially.

         (3)  ECONOMIC PRICE ADJUSTMENT (EPA) OR PRICE REDETERMINATION:
If price adjustment terms are applicable, such terms will be reflected 
in Section I of this solicitation.

    (k)  CONTRACTOR POINT OF CONTACT:  Each offeror must provide in 
the space provided below a point of contact for the customer to 
request additional information regarding the product to support the 
best value decision:

         NAME:
         TITLE:
         ADDRESS:
         TELEPHONE NUMBER:

    (l)  CATALOGS:  Products covered by a CVC will be included in a 
DSCR marketing catalog/brochure that is distributed to our customers, 
which will include the contractor point of contact.  The 
catalog/brochure will provide for national exposure of the CVC 
contractor's products.  Our marketing catalog/brochure will include 
the contractor product make or model number, a brief description, 
price (including the DSCR cost recovery rate), and delivery.