## MEMORANDUM SUMMARIZING PROPOSAL EVALUATION RESULTS AND DOCUMENTING THE SOURCE SELECTION DECISION WHEN MAKING AWARD WITHOUT DISCUSSIONS - TEMPLATE

### INSTRUCTIONS FOR USING TEMPLATE

-   ***[APPLICABILITY]{.underline}**. **Required template for
    documenting proposal evaluation results and the source selection
    decision for competitive negotiated new contract awards that are
    awarded without discussions. ***

-   ***[EXCEPTIONS]{.underline}**. **This template [does not
    apply]{.underline} to orders placed under Volpe Center
    Indefinite-Delivery Type Contracts (see ADIP No. 85-7), orders
    placed under Federal Supply Schedules (FSS), Governmentwide Agency
    Contracts (GWAC) orders placed by the GWAC host agency, or
    procurements processed under Simplified Acquisition** **Procedures
    (SAP).***

-   ***[CUSTOMIZATION]{.underline}. Instructions are provided under each
    paragraph heading contained in the template stipulating the
    information required to be addressed. The scope and depth of the
    analysis to be documented under Paragraph 4, titled "Summary of
    Contractor's Proposal(s)" supporting the selection decision should
    be directly related to the dollar value, importance, and complexity
    of the procurement. [To facilitate execution of this
    document]{.underline}: Included is a copy of the template containing
    only the paragraph titles to make it easier to fill in the
    information.***

-   ***[COLUMNAR SUMMARY FORMAT/COST ELEMENT SUMMARY TABLE]{.underline}.
    Whenever cost analysis is used, include a summary comparison in
    columnar format of the respective positions of each Offeror's
    proposal -- See the Cost Element Summary Table for a sample format.
    Individual cost elements addressed in the summary can be modified as
    necessary to fit the particulars of any given procurement. See the
    cognizant Contracts Branch Chief for approval to waive the use of
    the columnar format if it is determined to be inappropriate for
    documenting the specifics of this procurement. For procurements
    estimated to exceed \$500,000, the waiver determination can be
    documented herein and the Contracts Branch Chief's approval of this
    document will also satisfy the waiver approval requirement.***

-   *[**MARKING**.]{.underline} **Ensure all copies of this document
    include the heading "SOURCE SELECTION INFORMATION -- SEE FAR 3.104"
    and attach a copy of DOT cover pages: DOT F 4220.35 and DOT F
    4220.36. (Note: The Source Selection Information header will be
    embedded in the template.)***

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-   ***RELATED LINK: For information on performing price analysis or
    cost analysis, see Contract Pricing Reference Guides at***
    <http://www.acq.osd.mil/dpap/contractpricing/chap-index.htm>

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-   ***CROSS REFERENCES TO FAR 15.406-3(a)(1) through (11): Eleven FAR
    elements are identified in the template. Note: Elements (1), (3),
    and (8) are generally not applicable when award is made without
    discussions and are so annotated in the template. However, you can
    customize these elements in the document as necessary.***

**[MEMORANDUM SUMMARIZING PROPOSAL EVALUATION RESULTS]{.underline}**

**[AND DOCUMENTING THE SOURCE SELECTION DECISION WHEN MAKING AWARD
WITHOUT DISCUSSIONS]{.underline}**

1.  **INTRODUCTION.** Provide a brief description of the supplies or
    services being acquired. Include the procurement request number, the
    name and office code of the Contracting Officer/Specialist
    processing the request, the solicitation number, and, if applicable,
    the number of amendments issued to the solicitation. (FAR
    15.406-3(a)(2)).

2.  **PURPOSE OF NEGOTIATION**. N/A as negotiations not conducted. (FAR
    15.406-3(a)(1)).

3.  **ATTENDEES AT NEGOTIATIONS**. N/A as negotiations not conducted.
    (FAR 15.406-3(a)(3)).

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4.  **SUMMARY OF KEY DOCUMENTS.** Identify the title and date of each
    key document. Include, as applicable, the following: (Cite the Tab
    under which each of the relevant documents are filed.)

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a)  Abstract of Proposals.

b)  Prospective Offeror(s) Proposal(s).

c)  Independent Government Cost Estimate.

d)  Field Pricing Review, including audit and price history information,
    as applicable.

e)  Technical Evaluation Results.

f)  SBA/PCR review and approval of subcontracting plan(s), as
    applicable.

g)  Documentation of Clarifications.

h)  Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

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5.  **COST OR PRICING DATA.** As required by FAR 15.406-3(a)(5),
    identify the exception used and

the basis for it, if cost or pricing data were not required in the case
of any price negotiation exceeding

\$550,000 (see FAR 15.403-1 for list of exceptions). Simply state "Not
Applicable" for procurements

not exceeding \$550,000. If cost or pricing data were required, identify
the extent to which the contracting officer -- (1) Relied on the cost or
pricing data submitted and used them in negotiating the price; (2)
Recognized as inaccurate, incomplete, or non current any cost or pricing
data submitted; the action taken by the contracting officer and the
contractor as a result; and the effect of the defective data on the
price negotiated; or (3) Determined that an exception applied after the
data were submitted and, therefore, considered not to be cost or pricing
data. (FAR 15.406-3(a)(5) and (6)).

6.  **SUMMARY OF CONTRACTOR(S) PROPOSAL(S).** Provide a summary of each
    Offeror's proposal, both technical and price, including (1) a
    comparison with the Independent Government Cost Estimate, including
    the reason for any pertinent variance, (2) any field pricing
    assistance recommendations, including the reasons for any pertinent
    variances from them, (3) the results of the technical evaluation,
    including a summary of each Offeror's strengths, weaknesses and
    deficiencies, (4) past performance evaluations, (5) SBA/PCR review
    of subcontracting Plan(s), and (6) any other administrative matters
    related to the Offeror's proposal such as the current status of any
    contractor systems (e.g., purchasing, estimating, accounting, and
    compensation) to the extent they effected and were considered by the
    Government in the selection decision. **The summary can be prepared
    as a [separate attachment]{.underline} for each Offeror's proposal,
    especially when the evaluation of complex proposals is involved.**

When the determination of price reasonableness is based solely on price
analysis (FAR 15.404-1(b)),

the summary shall include the source and type of data used to support
the determination.

Where the determination of price reasonableness is based on cost
analysis (see FAR 15.404-1(c)), the

summary shall address each major cost element stipulated in the
solicitation instructions. Include cost

realism analysis on cost reimbursement contracts to determine the
probable cost of performance of

each Offeror ( see FAR 15.404-1(d)). \[*Reminder: Cost realism*[^1] *is
a form of cost analysis.\]* Provide

a summary comparison in columnar format of the respective positions of
each Offeror's proposal (See

Table 1 for sample format. Individual cost elements can be modified as
necessary to fit the particulars

of any given procurement). Use DOT Weighted Guidelines (DOT F 4220.32)
for establishing the basis for the profit or fee being fair and
reasonable. See the cognizant Contracts Branch Chief for approval to
waive the use of the columnar format. Document this approval in the
contract file.

If the Offeror is identified as a small disadvantaged business concern
and the procurement falls within

the authorized North American Industry Classification System (NAICS)
Industry Subsectors as

determined by the Department of Commerce ensure the offer is evaluated
consistent with FAR Subparts 19.11 and 19.12. If the Offeror is
identified as a HUBZone small business concern, ensure the offer is
evaluated consistent with FAR Subpart 19.13.

(FAR 15.406-3(a)(4),(7), and (10)).

7.  **SIGNIFICANT FACTS.** N/A as negotiations not conducted. (FAR
    15.406-3(a)(8)).

8.  **HIGHER-LEVEL DIRECTION.** To the extent such direction has a
    significant effect on the action, provide a discussion and
    quantification of the impact of the direction given by Congress,
    other agencies, and higher-level officials (i.e., officials who
    would not normally exercise authority during the award and review
    process for the contract action.) Simply state "Not Applicable" if
    this section doesn't apply to the procurement being processed. It is
    expected that this section will rarely apply. (FAR 15.406-3(a)(9)).

9.  **FAIR AND REASONABLE PRICING.** Discuss how the proposed price is
    considered fair and reasonable[^2]. A fair and reasonable price does
    not require that the Contracting Officer agree with every element of
    proposed cost. The Contracting Officer should not become preoccupied
    with any single element and should balance the contract type, cost,
    and profit or fee to achieve a total result - a price that is fair
    and reasonable to both the Government and the Offeror. (FAR
    15.406-3(a)(11)).

10. **SOURCE SELECTION DECISION.**[^3] Describe the comparative
    assessment of proposals against all source selection criteria in the
    solicitation performed by the Contracting Officer. Include the
    rationale for any business judgements and tradeoffs made or relied
    on by the Contracting Officer, including benefits associated with
    additional costs. While tradeoffs need not be quantified, it is
    essential that the record clearly indicate the benefits to the
    government from awarding a contract to a higher-cost offeror.
    Identify those aspects of an offeror's proposal (i.e. strengths)
    that merit a price premium and include an explanation of the
    benefits associated with any particular strength.

11. **SIGNATURES.** The following shall be inserted and completed at the
    end of each such document:

The following signatures represent: (1) agreement with the information
contained herein, including the source selection decision[^4] and (2)
that the proposed price is fair and reasonable[^5].

Prepared by: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Reviewed by: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Signature, Title & Date) (Signature, Title & Date, of the

> Contracting Officer if not the Preparer of the Memo)

Approved by^4^
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Signature, Branch Chief's Title & Date)

**[TABLE 1 - COLUMNAR SUMMARY FORMAT]{.underline}**

**[COST ELEMENT SUMMARY]{.underline}**

**THE ABC THE LMNOP THE XYZ [NOTE(S)]{.underline}**

**[CONTRACTOR]{.underline} [CONTRACTOR]{.underline}
[CONTRACTOR]{.underline}**

**1. LABOR \$ \$ \$ (a)**

**2. MATERIALS \$ \$ \$ (b)**

**3. OVERHEAD(S)**

**4. SUBCONTRACT(S)**

**5. OTHER DIRECT COSTS**

**6. G&A**

**7. PROFIT OR FEE**

**8. TOTAL COST**

**9. COST OF MONEY**

**10. TOTAL AMOUNT**

11. **PRICE ADJUSTMENT**

**Use the "Note(s)" identifier to cross reference the discussion of each
final cost element amount to the Cost Element Summary.**

**[MEMORANDUM SUMMARIZING PROPOSAL EVALUATION RESULTS]{.underline}**

**[AND DOCUMENTING THE SOURCE SELECTION DECISION]{.underline}**

**[WHEN MAKING AWARD WITHOUT DISCUSSIONS]{.underline}**

1.  **INTRODUCTION.**

2.  **PURPOSE OF NEGOTIATION.**

3.  **ATTENDEES AT NEGOTIATIONS.**

4.  **SUMMARY OF KEY DOCUMENTS.**

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5.  **COST OR PRICING DATA.**

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6.  **SUMMARY OF CONTRACTOR'S PROPOSAL.**

7.  **SIGNIFICANT FACTS.**

8.  **HIGHER-LEVEL DIRECTION.**

9.  **FAIR AND REASONABLE PRICING.**

10. **SOURCE SELECTION DECISION.**

11. **SIGNATURES.** The following signatures represent: (1) agreement
    with the information contained herein, including the source
    selection decision; and (2) that the proposed price is fair and
    reasonable.

Prepared by: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Reviewed by: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Approved by: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**[TABLE 1 - COLUMNAR SUMMARY FORMAT]{.underline}**

#### Cost Element Summary

> **[Company]{.underline} [Company]{.underline} [Company]{.underline}
> [NOTE(S)]{.underline}**

  -------------- -------------- -------------- -------------- --------------
  **1.**         **\$**         **\$**         **\$**         **(a)**

  **2.**         **\$**         **\$**         **\$**         **(b)**

  **3.**         **\$**         **\$**         **\$**         **(c)**

  **4.**         **\$**         **\$**         **\$**         **(d)**

  **5.**         **\$**         **\$**         **\$**         **(e)**

  **6.**         **\$**         **\$**         **\$**         **(f)**

  **7.**         **\$**         **\$**         **\$**         **(g)**

  **8.**         **\$**         **\$**         **\$**         **(h)**

  **9.**         **\$**         **\$**         **\$**         **(i)**

  **10**         **\$**         **\$**         **\$**         **(j)**
  -------------- -------------- -------------- -------------- --------------

[^1]: ***Cost realism analysis is the process of independently reviewing
    and evaluating [specific]{.underline} elements of each offeror's
    proposed cost estimate to determine whether the estimated proposed
    cost elements are realistic for the work to be performed; reflect a
    clear understanding of the requirements; and are consistent with the
    unique methods of performance and materials described in the
    offeror's technical proposal.***

[^2]: ***Add the following if the acquisition is processed as a small
    business or 8(a) set aside, or a price evaluation adjustment for
    small disadvantaged concerns or HUBZone small business concerns is
    applied:* "and a fair market price."**

[^3]: ***Include this element when the Contracting Officer is the Source
    Selection Authority (SSA) (usually under \$50M-See TAM Chapters 1215
    & 1234). If the SSA is other than the contracting officer include a
    reference to the Source Selection Decision Document and attach a
    copy.***

[^4]: ^4^ ***This document must be reviewed and approved by the
    Contracts Branch Chief for procurements estimated to exceed
    \$500,000. Delete this approval block for procurements estimated
    not-to-exceed \$500,000 as the Contracting Officer's signature
    constitutes approval of the document.***

[^5]: ^2^