Best Value Source Selection - Scoring Price

[Mr_Batesville]

Hello,

 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.

 

1. 1. • 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.

1. 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.

2. 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.

3. 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.

Edited June 23, 2016 by Mr_Batesville
Stating Hypothetical situation

[Guest Vern Edwards]

Way, way too detailed and complicated. Scrap it! Scrap all of it! 

You don't need to tell them that much. You will only create problems for yourself.

Some thoughts:

First, there is no such thing as "the Best Value Approach." There is the "lowest-price technically acceptable" approach, the "tradeoff process approach," and combinations of the two. See FAR 15.101.

Second, the proper terminology is rating, not "score" or "scoring."

Third, you need not describe rating methods, see FAR 15.304(d), and I strongly recommend that you not do so.

Also, do you really want to determine price realism? Do you know what you'd be getting yourself into? Is there a real need? If not, don't do it, because it comes with high protest risk.

What do you mean when you say that you will evaluate whether the price is "complete"?

Finally, it looks like you're planning to use numerical ratings. I suggest that you not use numerical ratings unless your team has received training in proper use and methods.

 

[Mr_Batesville]

Vern:

Thanks for the quick reply. I will review the FAR sections you have quoted and reply.

Thanks