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Highest rated technically, fair and reasonable price selection

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I ran across this GAO decision.  In it GAO recognizes a scheme of award to highest technical rating with fair and reasonable prices.  GAO states:


Our Office has not previously considered the question of whether an agency may properly structure a solicitation using a "highest technically rated [ ] with a fair and reasonable price" evaluation scheme.8 Based on the arguments presented by protesters and our review of the relevant statutes and regulations we find that the protesters have not established that GSA’s source selection process, as defined by this solicitation, is improper

Agencies putting in place multiple award IDIQ contracts usually struggle with evaluating price/cost.   It's tough figuring out a rational, defensible, and efficient way.  Often what happens is agencies devise some evaluation model that recognizes overall contract life costs.  They also may include sample tasks for offerors to propose against. 


Under Alliant 2 GSA just evaluated and ranked the highest technical proposals.  They pre-established a certain number of awardees and examined only the highest rated ones for price reasonableness.  There wasn’t any comparison of prices between one offer to another.  There also wasn’t any competitive range – just the highest technical scoring proposals with fair and reasonable prices.


A protest followed alleging under a best value procurement, CICA requires consideration of price in selecting sources for award.  GAO disagreed that this was a best value tradeoff procurement.  Rather it’s just another type of best value procurement like LPTA on the best value continuum that’s not mentioned in the FAR.


This really is a big benefit in establishing a multiple award IDIQ contract pool, especially those with a huge number of anticipated responses.  It speeds up the process and allows only the highest rated technical sources to receive awards.  Then price gets considered and negotiated at the task order level where it should be.


The decision is here  http://www.wifcon.com/cgen/4135593.pdf


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Thanks for that.  I searched unsuccessfully here to see if it was discussed.  I also went back but not far enough - the protest is dated just a day before Vern's post!  He's on top of it.

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