# Presentation: 182779

## Module 4 –Solicitation, Evaluation, and Award

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- Module 4 –Solicitation, Evaluation, and Award

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- Topic 1 –
- Introduction/Objectives

## After Pre-Solicitation

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- Focus shifts to soliciting bids or proposals, evaluating them, and finally awarding a contract
- Module divided into six topics:
- Introduction/Objectives
- Solicitation of Sources - Part 1
- Solicitation of Sources – Part 2
- Response and Evaluation
- Contract Award
- Review

## Learning Objectives

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- Define the process for structuring a formal source selection process.
- Discuss publicizing contract actions.
- Compose a source selection plan that allows for best value selection from competitive solicitations.

- At the end of this module, you will be able to:

## Learning Objectives (cont.)

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- Describe the pre-award process.
- Identify other resources in addition to the FAR to include agencies websites that employees can go to for information about contracting and acquisition.
- Define the key and complex contract terms and conditions necessary for solicitation.

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- Topic 2 –
- Solicitation of Sources – Part 1

## Structure

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- Complex source selections may be formally structured
- There may, however, be no formal organizational structure
- Team may consist of one or more evaluators and contracting officer
- This module focuses on formally structured source selections

## Acquisition Team

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- Acquisition team is always established during the pre-solicitation phase
- Ensures continuity and active ongoing involvement by appropriate individuals

## Pre-Solicitation Phase

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- Source selection approach is determined
- Determines contents of Source Selection Plan and guides the solicitation
- Correct information must be included in Source Selection Plan
- Each Agency has its own place to get information
- Templates available online at _[https://acc.dau.mil/CommunityBrowser.aspx?id=29030](https://acc.dau.mil/CommunityBrowser.aspx?id=29030)_

## Two Common Approaches

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- Lowest Price, Technically Acceptable (LPTA)
- Best Value Source Selection

## Lowest Price, Technically Acceptable

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- Cost/price is overriding consideration
- No need for tradeoffs between cost and non-cost factors

- When simply comparing cost or price of proposals, cannot result in the best value.

## Question

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- Why is it critical to effectively communicate the government's capability need and requirements?

## Question

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- Why do you think it is critical to draft a specific and consistent source selection plan?

## Best Value Source Selection

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- You may need capabilities, qualifications, or experience
- May or may not be more important than cost/price
- Nevertheless, have strong bearing on the decision

- Use when other factors besides cost or price must be considered as well

## Format of Source Selection Plan

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- Many agencies have specific formats for source selection plans
- Size of Plan should reflect complexity of acquisition
- At a minimum, include:
- What product or service you are acquiring
- Description of evaluation organization structure
- Plans for pre-solicitation activities
- Acquisition strategy summary
- Proposed evaluation factors

## Question

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- Why should you provide a description of the evaluation organization structure?

## Methods of Solicitation

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- After Source Selection Plan has been drafted, method of solicitation is chosen
- Method of contracting determines method of solicitation
- Most government acquisitions use a Request for Proposal (RFP)

## Request for Proposal (RFP)

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- Method of solicitation for contracting by negotiation
- Sent to businesses that request a copy of solicitation
- Now FedBizOpps Database can be used
- Usually results from the synopsis published in the CBD/FBO
- If the business completes IFB and sends it to the contracting office, it is called a *proposal*

##   Community Connection

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-   Community Connection

- The Acquisition Community Connection
- _[https://acc.dau.mil/CommunityBrowser.aspx?id=38087](https://acc.dau.mil/CommunityBrowser.aspx?id=38087)_

## Critical Sections

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- Critical sections include:
**Part I** – The Schedule
- Section C – Description/Specifications/Work Statement/SOO/PBSW
**Part IV** – Representations and Instructions
- Section M – Evaluation Factors for Award

## Section C

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- Description/Specifications/Work Statements/SOO/PBSW
- Contains descriptions, specifications, and information to identify government’s requirements
- Uses functional or performance requirements whenever possible

## Question

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- Why should instructions be limited to the information needed to do the evaluation?

## Section M

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- Evaluation Factors for Award
- States the basis upon which the government will make the source selection decision
- Evaluation factors might include:
- Price or cost
- Past performance
- Technical excellence
- Management capabilities
- Personnel qualifications
- Prior experience

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- Topic 3 –
- Solicitation of Sources – Part 2

## Mandatory Evaluation Factors

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- Evaluation factors, such as **price/cost **and **past performance**, are mandatory for every acquisition.

## Question

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- Why do you think price/cost and past performance are mandatory evaluation factors?

## Price vs. Cost

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- When you are buying a car:
**Price **is what the sticker says.
**Cost **is what you actually pay after negotiation.
**Price** is hypothetical.** **
**Cost** is actual.

## Price/Cost Factors

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- Price or cost to the government must be included as an evaluation factor
- Solicitation must state what is to be evaluated
- Costs to be evaluated include:
- Costs for the basic effort only
- Costs for the basic effort plus all options
- Costs incurred as a result of acquiring or owning an item

## Cost Realism Analysis

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- Independent review of cost proposals
- Determines whether specific estimated proposed cost elements:
- Realistic for the work to be performed
- Reflect clear understanding of requirements
- Are consistent with unique methods of performance
- Also known as “should cost”

## Cost Realism Steps

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- Normalize WBS elements
- Determine evaluation areas to which cost realism would be applied
- Make cost realism adjustments underlying the basis of estimates and risks

- To objectively perform cost realism assessment, it is helpful to follow these steps:

## Question

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- What is the goal of a cost realism analysis?

## Past Performance

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- DEFINITION: Caliber of contractor’s performance on previous contracts should be included as an evaluation factor called **Past Performance**.

## Official Vehicle

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- Solicitation is official vehicle for you to communicate how proposal for award will be chosen

- Internal Document
- Offerors only see Section M (Evaluation Factors)

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- Topic 4 –
- Response and Evaluation

## Evaluation and Selection

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- Steps for evaluation and selection:
- Compare each proposal to the solicitation
- Perform comparative analysis of the proposal and requirements
- Determine if the price is fair
- Select the source for contract award

- The responses must be evaluated using evaluation factors.

## Project Manager and CO

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**Project Manger**
- Often leads evaluation of technical and management proposals
- Project manager can lead entire evaluation, if scope is limited enough
- Project manager does have subservient role to CO and SSA

- Project Manager and Contracting Officer work closely together throughout selection process

## Contracting Officer

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- Ensures that process complies with laws and regulations
- Provides proposals to SSEB
- Ensures that offerors comply with all requirements
- Communicates with offeror

## Question

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- In formal source selection, the contracting officer has many important responsibilities except...

## SSEB

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- Evaluates proposals against requirements in the RFP
- Identifies weaknesses
- Identifies any deficiency found

## Definitions

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**Weakness:** flaw that increases risk
**Deficiency:** failure of a proposal to meet requirements
**Competitive Range:** established by the CO for conducting discussions
- All of the most highly rated proposals are included in the competitive range

## Second Round

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- The Competitive range is not always established in a single pass.
- A second round is sometimes needed for important questions to be answered.

## Evaluation Teams

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- SSEB often appoints proposal evaluation teams
- Focus:
- Technical
- Management
- Cost
- Security (in some cases)

- A piece of software called FedSelect can help reduce the time that this will take.

## SSAC

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- Performs a comparative analysis of the SSEB’s evaluation of each proposal
- Functions of SSAC can be assigned to SSEB

## SSA

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- Oversees source selection process and selects proposal with best value
- Responsible for the integrity of the process

## Fair and Reasonable Evaluation

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- Price/cost must be identified as fair and reasonable
- Determination made by CO
- Price and cost analysis can be used for this determination

## Price Analysis

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- DEFINITION:  Process of examining and evaluating a proposed price without evaluating its separate cost elements and proposed profit

## Price Analysis (cont.)

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- Techniques include:
- Comparison with competitive published price lists
- Comparison of proposed prices received
- Comparison of proposed prices with prices obtained during market research
- Comparison of prior proposed prices with current proposed prices

## Cost Analysis

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- Review and evaluation of separate cost elements and profit in a proposal
- Application of judgment on reasonableness
- Determines how well proposed costs represent what they should be
- Only used during a cost-reimbursement contract

## Cost Analysis (cont.)

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- Unlike price analysis, all elements are examined
- It is time-consuming and expensive

## Question

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- Cost analysis is more expensive and time-consuming than price analysis.  Why would you choose this method of analysis over price analysis?

## Question

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- How are cost analysis and price analysis related to cost realism?

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- Topic 5 –
- Contract Award

## Contract Award

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- Key Players: CO and SSA
- Project manager can take a position on the decision:
- Request that decision makers take a second look
- Project manager accepts decisions as if they were his/her own

- The final step in the process is awarding the contract.

## Before Selection Reaches SSA

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- CO must:
- Compare the proposal differences that surfaced
- Define differences and analyze impact
- Make paired comparisons
- Assess the best mix of cost and non-cost benefits

## Justification of Tradeoffs

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- Role of the project manager to justify their conclusion of “best value”
- Strengths and weaknesses are put into recommendation
- Weights of evaluation factors are identified
- Weights are determined before you ever send out RFP

## Justification of Tradeoffs (cont.)

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- RFP will tell contractors what the weights are
- If contractor finds out that you’re awarding to a higher-cost bid, they are likely to contest
- Evaluation Language:
- Outstanding
- Excellent
- Fair
- Poor
- Marginal

## SSA

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- Explanation of final results should be prepared for the SSA
- Includes evaluation results, cost/price evaluation, and comparative value analysis for each proposal
- Also includes other considerations (resulting from negotiations)
- Documentation should be used as aid, not substitute for judgment

## SSA (cont.)

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- SSA decides which offer(s) to accept for contract award
- May be required to brief a higher authority before approval
- After approval, successful offer is given back to CO for contract award

## CO

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- After approval:
- The CO then signs the contract
- Only CO can award contract
- Not legally binding until signed and distributed

## CO (cont.)

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- Final task is to notify unsuccessful offerors
- Losers may request explanation

## Debriefing the Offeror

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- It is extremely important to promptly notify and debrief an offeror.

- Considerable resources go into preparing each proposal
- Fairness dictates an explanation
- Will allow contractors to release resources for other projects

## Question

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- Why is it in the government’s best interest to fully inform an offeror of their proposal’s shortcomings?

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- Topic 6 –
- Review

## Learning Objectives

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- Define the process for structuring a formal source selection process.
- Discuss publicizing contract actions.
- Compose a source selection plan that allows for best value selection from competitive solicitations.
- Describe the pre-award process.
- Define the key and complex contract terms and conditions necessary for solicitation.

- Recall the learning objectives for this module:

## Key Points

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- For the **solicitation of sources**, we learned about:
- Difference between Best Value and Lowest Price, Technically Acceptable Source Selection
- Importance of effective planning
- Purpose and contents of the RFP
- Drafting evaluation factors for award
- Publicizing solicitations using the FedBizOps website

## Key Points (cont.)

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- Steps for response and evaluation
- Responsibilities of the CO
- Roles of the SSEB, SSAC, and SSA
- Purpose of fair and reasonable evaluation
- Difference between cost and price analysis

- For the **response and evaluation** of proposals, we learned about:

## Key Points (cont.)

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- For **contract award**,** **we learned about:
- Key roles of the SSA and the CO
- Factors to consider before giving solicitation to SSA
- Documentation of the award decision
- Importance of “debriefing” the unsuccessful offerors