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Module 6: Price From the Documents. Written explanation, fictional example, and sources.
Educational content. Follow the applicable solicitation and contract. Official sources are provided below.
12 min · Progress tracking is not available yet
After this lesson you should be able to copy each contract line item’s quantity, unit of measure, pack size, and option period from the source files, and refuse a unit conversion that the files do not authorize. AsherGate analysis can extract those fields with citations. It does not convert cases into eaches and does not calculate a bid price.
FAR 4.1001 says procurement instruments shall identify supplies or services as separately identified line items and, as needed, subline items. Each line item describes characteristics such as pricing, delivery, and funding. FAR 4.1005-1, except as provided in 4.1005-2, requires the schedule to show, as separate data elements, the line-item number, a description, a Product or Service Code, accounting classification, and, for fixed-price lines, unit of measure, quantity, unit price, and total price. Copy quantity and unit from those fields. Do not merge two CLINs into one supplier carton count.
If the cover says 80 each and a workbook says 8 cases of 10, do not pick a favorite. Open the amendment and the price sheet. AsherGate analysis keeps quantity, unit of measure, pack size, and ordering period in separate fields, shows Not found when a field is missing, and flags a quantity that looks converted from a pack or case count. Keep the source unit.
Options are not free extras. FAR 17.204 says the contract shall specify limits on additional supplies or services or the overall duration, including extensions, and shall state the period within which the option may be exercised. Options may appear as a percentage of line items, an increase in line items, or additional numbered line items. FAR 17.206 generally requires the contracting officer to evaluate option quantities or periods when it was determined before soliciting that the Government is likely to exercise them. Price the option CLINs the instructions name. Do not assume an unevaluated option can be ignored, and do not assume an option will be exercised.
Keep this as a side note. FAR 4.1005-2 lists cases where a required data element may be handled differently. FAR 17.204(e) generally caps the total of basic and option periods at 5 years for services, and basic plus option quantities at 5 years of requirements for supplies, unless agency procedures approve otherwise; those limits do not apply to information technology contracts, and other statutes such as Service Contract Labor Standards may add limits. FAR 17.206(b) lets a higher-level official approve skipping option evaluation in listed circumstances, such as when funds are unlikely to be available. Read the evaluation language in Section M or the commercial equivalent.
Using the Gorsefield story below, CLIN 0001 is 80 each. The supplier quote is $90 per carton of 10. 80 divided by 10 equals 8 cartons. $90 divided by 10 equals $9.00 each. 8 × $90 equals $720 for the goods. CLIN 0002 option quantity is 40 each. 40 ÷ 10 equals 4 cartons, which is $360 at the same carton price. If evaluation includes the option, goods cost is $720 + $360 = $1,080, not $720.
If someone enters $90 as the unit price for “each,” 80 × $90 equals $7,200. That is ten times the carton math. Copy each from the RFQ. Do not submit a bid.
Fictional example
Gorsefield Reflective Tape LLC is a fictional traffic-tape shop in Casper, Wyoming. It stores fictional RFQ AG-UNIT-26-0522 from a fictional North Platte Road Desk. CLIN 0001 is 80 each of 4-inch reflective rolls. CLIN 0002 is an option for 40 each of the same roll. Unit of measure on both lines is each. Pack size in Attachment 2 is 10 rolls per carton.
A supplier quotes $90 per carton of 10. A teammate almost types $90 into the each column. They divide $90 by 10 and write $9.00 each. For the base quantity, 8 cartons × $90 = $720. For the option, 4 cartons × $90 = $360. Section M says option prices will be evaluated. They add $720 and $360 to get $1,080 in goods cost before freight.
AsherGate analysis shows quantity 80, unit each, pack size 10 rolls per carton, and an ordering period covering the base year plus one option year. They open the cited PDF and keep those words. They do not convert 80 each into 8 each. They do not submit a quotation.
Each official source is listed with the teaching claim it supports. Product behavior is labeled separately. Review dates are when AsherGate last checked the page.
Acquisition.gov · Official source · Reviewed 2026-09-27
Supports: Procurement instruments shall identify supplies or services as separately identified line items and, as needed, subline items. Each line item describes characteristics such as pricing, delivery, and funding.
Acquisition.gov · Official source · Reviewed 2026-09-27
Supports: Except as provided in 4.1005-2, fixed-price line items in the schedule include unit of measure, quantity, unit price, and total price as separate data elements, plus description and line-item number.
Acquisition.gov · Official source · Reviewed 2026-09-27
Supports: Section B includes item numbers, nomenclature, and quantities. Section D holds packaging and marking. Section F holds delivery or performance.
Acquisition.gov · Official source · Reviewed 2026-09-27
Supports: The contract shall specify limits on additional supplies or services or overall duration, and the period for exercising options. Options may be written as percentages, increases, or additional numbered line items.
Acquisition.gov · Official source · Reviewed 2026-09-27
Supports: Except as provided in 17.206(b), the contracting officer shall evaluate option quantities or periods when it was determined before soliciting that the Government is likely to exercise them.
AsherGate · AsherGate product · Reviewed 2026-09-27
Supports: Analysis extracts quantity, unit of measure, pack size, and ordering period without converting units. Missing fields show Not found. The product does not calculate a bid price.