What criteria will be used to evaluate appropriate gross margins?
Bid amounts for the lead item will be evaluated to ensure you can acquire the item at realistic and feasible costs based on the submitted documentation. To determine whether a bid is bona fide, the bid amount for each lead item will be evaluated and compared to all other bidders’ bid amounts submitted for the same lead item throughout all competitive bidding areas. When calculating the bid amount for the lead item, you should determine if its gross profit margin is sustainable for furnishing all items in the product category.
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