Evaluating Run-Out Costs
Q. Metro Transit (Minneapolis/St. Paul) is soliciting bids for a new tire lease and service contract. It is a federally funded procurement with an estimated contract value of $5 million. Our procurement will consider the cost of running out the current contractor's tires (if there is a change in contractor) in determining the lowest total cost to Metro Transit. One of the interested bidders has requested that we not consider the run-out cost "in the FTA's spirit of free and open competition" and that considering the run-out cost "imposes a barrier to free and open competition of all bidders." We considered run-out cost when awarding our last tire contract, five years ago. Are you aware of any requirement that would prevent Metro Transit from considering run-out costs in determining the low bidder?"
A. We are not aware of any requirement that would preclude you from considering run-out costs when evaluating which bidder will represent the lowest overall cost to your agency. (Answer reviewed September 1, 2009)
A. We are not aware of any requirement that would preclude you from considering run-out costs when evaluating which bidder will represent the lowest overall cost to your agency. (Answer reviewed September 1, 2009)
