I am currently contemplating an award using the Best Value Approach. Im getting confused on scoring price. I know that price needs to be evaluated and possible ranked. However, im unsure of how to score price when price is = to technical and come up with proper scoring. Score separately? Score combined. Below is some language that hypothetically I think would work . I would like to glean any insight on how I can approach best value when the basis of award is made contingent upon no-price factors = Price Factor?
The proposed price, inclusive of all bid Options, will be evaluated but not scored. The evaluation will determine whether the proposed price is realistic, complete, and reasonable in relation to the Solicitation requirements. The proposed price must be entirely compatible with the Offeror’s technical proposal and in a format compliant with the Solicitation.
technical/price tradeoff process will be used for this source selection. Award will be made to the responsible Offeror whose offer conforms to the Solicitation requirements and provides the best value , non-price factors and price considered.
FACTOR 5 – Technical Solution is more important than FACTOR 6-Oral Presentation, and FACTOR 7 - Project Team;
FACTOR 6 – Oral Presentation and FACTOR 7 –Project Team are equal to each other and are more important than FACTOR 2 – Project Management, FACTOR 3 – Special Experience & Technical Competency, and FACTOR 4 – Past Performance;
FACTOR 2 – Project Management, FACTOR 3 – Special Experience & Technical Competency, and FACTOR 4 – Past Performance are equal to each other and are more important than FACTOR 8 - Small Business Utilization Plan;
FACTOR 9 – Price, is approximately equal to Factors 2, 3, 4, 5, 6, 7, and 8 combined.
To achieve a Best value, the Technical and Price will be combined into an overall ranking of all offers in Phase 2 as described below.
For this project, Technical and Price are approximately equal so the maximum possible points for Technical is equal to the maximum possible points for Price. The highest ranked Technical and the lowest reasonable Price will each receive the maximum possible points.
TECHNICAL: The Combined score for Technical for each Offeror in Phase 2 will be ranked from highest to lowest. The scores will then be rescaled so that the highest score receives the maximum points allowed and the other scores will be appropriately rescaled to reflect a point value on the new scale that is equal to their Technical score.
PRICE: Each Offeror’s price is rescaled to match the Technical scale. The lowest ranked reasonable price received by an Offeror in Phase 2 will receive the maximum points allowed and the other Offerors prices will be appropriately rescaled to reflect a point value on the new scale that is equal to their Price.
The points from Technical and Price for each Offeror will be added together to provide an overall score for each Offeror in Phase 2. The scores will then be ranked from highest to lowest.
The Government plans to award the contract to the highest ranked Offeror of the combined Technical and Price scores. If for some reason the award cannot be made, the next highest ranking will be selected.
Example of hypothetical situational scoring:
Tech=50 Price=50 Total:100
Firm A : Tech-90 Rescaled=50 Price:130k Rescaled:50
Firm B: Tech-85 Rescaled=47 Price:135K Rescaled:48.1
Firm C: Tech-80 Rescaled=44 Price:140k Rescaled:41.2
With this method Firm A gets a perfect score. Not sure this would stand up against possible protest.