Common use of OPTION PRICING Clause in Contracts

OPTION PRICING. The FSA has the discretion to disqualify bidders if the option pricing is excessive. The bidder shall offer discount below Manufacturer’s Standard Retail Pricing (MSRP) or manufacturers published list price for any optional goods or services included in the bid submission and in resulting customer orders, if awarded. Purchasers are encouraged to negotiate option pricing with vendors. Discounts can be provided beyond published list price of optional goods or services. The additional discounts for each optional good or service shall be decided by the vendor. Bidder must indicate in their bid submission any option requiring the purchase of other options, and also indicate options that are a part of or dependent on another option. The use of options to facilitate the sale of an alternate manufacturer’s product which is outside the scope of the written base specification will be construed as noncompliant and the bid will be rejected in whole or part by the FSA Cooperative Purchasing Program. Option pricing will include all costs of labor associated with the option and should not be listed separately within the bid, with the exception of purchaser-owned wheel assemblies where the cost of labor is the sole item bid for Specifications 8-10. For Specifications 8-10, the purchaser is responsible for the tire mount installation on the wheel assemblies of the vehicle or piece of equipment unless the purchaser elects the tires installed on purchaser-owned wheel assemblies option.

OPTION PRICING. The FSA has the discretion to disqualify bidders if the option pricing is excessive. The bidder shall offer discount below Manufacturer’s Standard Retail Pricing (MSRP) or manufacturers published list price for any optional goods or services included in the bid submission and in resulting customer orders, if awarded. Purchasers are encouraged to negotiate option pricing with vendors. Discounts can be provided beyond published list price of optional goods or services. The additional discounts for each optional good or service shall be decided by the vendor. Bidder must indicate in their bid submission any option requiring the purchase of other options, and also indicate options that are a part of or dependent on another option. The use of options to facilitate the sale of an alternate manufacturer’s product which is outside the scope of the written base specification will be construed as noncompliant and the bid will be rejected in whole or part by the FSA Cooperative Purchasing ProgramFSA. Option pricing will include all costs of labor associated with the option and should not be listed separately within the bid, with the exception of purchaser-owned wheel assemblies where the cost of labor is the sole item bid for Specifications 8-10. For Specifications 8-10, the purchaser is responsible for the tire mount installation on the wheel assemblies of the vehicle or piece of equipment unless the purchaser elects the tires installed on purchaser-owned wheel assemblies option.